I need to consolidate my debt.?

My credit union offered me 2 options. Credit card with 5.9% for balance transfer or personal loan for 9%. What are the difference and effects of getting one of the option in terms of my credit score? I know the first one is better but i just recently opened my 2nd credit card would this be a problem on my score if i choose this? Kindly advice.... Thanks

I need to consolidate my debt.?

If you already have 2 credit cards, I wouldn%26#039;t advise getting a 3rd, that will sometimes lower your credit score. What would the balance transfer rate be if you consolidated onto one of your existing cards? Or are you going to consolidate the 2 existing cards onto 1 card and close the other 2 accounts? Is the 5.9% an introductory rate which would be raised, or is it the rate of the card itself? If the card%26#039;s rate is 5.9% and you are going to close the other 2 accounts in favor of the credit union%26#039;s credit card, then go for it.

However, if the 5.9% is an introductory rate which will last a certain period of time, can you pay off the balance in that time period? If it%26#039;s 5.9% for 6 months and then raises to 15% as a normal rate, you%26#039;d be much better off in the long run to take the loan, since the rate will not change over the life of the loan. While the loan will show on your credit report, as long as you make payments and discharge the loan in time, it won%26#039;t negitively affect your credit score and might actually improve it. Getting more credit cards will only lower it.

If it were me, here%26#039;s what I%26#039;d do:

Cancel 1 card, keep the card with the best interest rate.

Take the loan, even with the higher interest rate (it%26#039;s lower than most credit cards), paying off the balance of both cards with the rest of your debt.

Don%26#039;t run up the balance on your remaining credit card (lower the balance to a reasonable amount, say $1000 to cover emergency car repair and medical expenses, if you have to do so)

Build up an emergency fund of $1000 ASAP, that way you don%26#039;t have to use the credit card.

EDIT: cancel the second card with no balance. since the 5.9% is for the life of the balance, DEFINITELY see if you can transfer the entire balance to the credit union%26#039;s card and cancel the first credit card. An 18% interest rate is highway robbery, and you will never (or almost never) pay off the balance you have racked up. If you can find one in your area, take a Financial Peace University course. This class is taught by Dave Ramsey, a nationally known and well respected financial advisor. These classes are usually taught at local churches, although there is a home course available on his website, http://www.daveramsey.com. Dave Ramsey has written 3 books, Financial Peace, Financial Peace Revisited, and Total Money Makeover. If you can%26#039;t take the class, buy Total Money Makeover and the accompanying workbook. It may help you in gettting your financial life in order. I%26#039;m still saving money to take the class, but everyone that I know who has taken it has paid off several thousand dollars of debt in less than a year, and were debt free in 3-5 years (except for the house).

I need to consolidate my debt.?

loan

Unless you are in dire danger of foreclosure, I wouldn%26#039;t recommend either one. What they are basically saying is that you have an addiction, and they will offer you either heroin or crack......What I would suggest is that you first draft a budget, then pay as much as you can on the credit card or bill with the highest interest rate, minimum payments on the others. Then, when the low interest rate bill is paid off, transfer that payment to the one with the second highest interest rate, etc etc. Dave Ramsey puts it this way: %26quot;Live like noone else today so that some day soon, you can live like noone else%26quot;. Meaning his goal for his listeners is total freedom from indebtedness. His methods really work, and they don%26#039;t involve a new fix of credit.|||i think there should be no problem as long as you pay your minimume payment every month and not be late you should be in great shape with no problems. it doesn%26#039;t matter how many credit cards you open or have...as long as you%26#039;re keeping them under the over limit.|||If you haven%26#039;t changed your spending habits then neither option will help you. 78 percent of the time someone who consolidates their debt wracks up their debt again.

Get on a written budget, change your spending habits, and have attacked your debt you choose neither. You may end up in worse shape because of it.

And honestly, the last thing you need to worry about is your credit score. That just suggests you intend to go into debt again.

And I doubt that 5 percent is for life. Credit card companies up the percentage rating for the most minor of infractions to the terms of agreement.|||Hi

I saw your question I have decided to help people out due to the fact that I myself has been scammed twice by fake lenders in my search for a loan but at last I got a reliable lender that gave me the loan($60,000 USD) that I was in dire need of even with a bad credit. Hence I decided that I will refer anybody I come across to this God sent lender he is reliable and his terms are fair. You can get to him via his email address charles_lenders@yahoo.com Please tell him that Deborah Kirk he gave out a loan to me . I have search for a legit lender until I got him and I decided to help my fellow humans with this because there are a lot of fake lenders out there and I do not want any body to fall a prey please get to him and tell him that I referred you to him.

Thanks.

Deborah Kirk|||Read two books and then make up your own mind.

Read:

The Total Money Makeover by Dave Ramsey

The Millionaire Next Door by Stanley

If you want to read more about how this will affect your FICO score read a book by Suze Orman.

You are on the edge of making a very smart or very dumb financial decision. You need to educate yourself more about the affects of debt %26amp; credit and the almighty FICO before you do either option.