monthly payments – Blog Campcee Tue, 29 Mar 2022 08:48:08 +0000 en-US hourly 1 monthly payments – Blog Campcee 32 32 Loans as low as $1,000 Thu, 10 Mar 2022 04:00:34 +0000

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Even if you’re married to your favorite credit card, you may find that there are times when it just doesn’t make sense to use it. For one thing, your credit limit may not be enough to cover a very large expense like a home renovation or a wedding. Also, credit cards usually carry high interest rates. These are areas where personal loans have the upper hand.

Personal loans have become a popular option for covering a variety of major expenses, such as home renovations, weddings, unexpected expenses, funerals and more. And in some cases, it may actually be more affordable to use a personal loan than to use a credit card, since personal loans are known for their relatively low interest rates.

There are many personal lenders out there, so it can sometimes be difficult to determine what each loan offers, but there are a few highlights to look out for. Avoiding prepayment charges and origination fees can help you save money on the cost of borrowing so that it can work in your favor to seek out a lender who does not bear these charges, such as loans PNC Bank staff.

Of course, however, you should always do additional research before applying for any financial product and ensure that you are comfortable with the terms of that product before signing on the dotted line.

To help, Select has reviewed PNC Bank’s APR, benefits, fees, loan amounts, and terms. (Learn more about our methodology below.) Read on to find out if PNC Bank is the right lender for you.

PNC Bank Personal Loan Review

PNC Bank Personal Loans

  • Annual Percentage Rate (APR)

    5.99% to 28.74% APR (0.25% APR discount when you sign up for autopay)

  • Purpose of the loan

    Debt consolidation, home improvement, wedding, moving and moving or vacation

  • Loan amounts

  • terms

  • Credit needed

  • Assembly costs

  • Prepayment penalty

  • Late charge

    10% of payment or $40, whichever is greater


  • No setup fees, no prepayment fees
  • Fixed rate APR
  • Flexible repayment terms
  • Loan amounts start at $1,000
  • No collateral needed

The inconvenients

  • Late payment fee invoice
  • Not the fastest funding (may take up to 10 business days)
  • Rates and conditions may vary depending on your postal code


APRs typically range from 5.99% to 28.74% for PNC Bank personal loans, but a more specific rate range (as well as other terms) will depend on your location and, of course, factors such as credit rating and amount of money needed. Prospective borrowers are encouraged to verify the rate range for their location by entering their zip code on the PNC Bank personal loan website.

Like many other personal lenders, PNC Bank offers a small discount on the interest rate for making payments automatically through a PNC Bank checking account (borrowers can receive a 0.25% discount for signing up so that their payments are automatically applied to your balance).

Personal loans from this lender also carry fixed interest rates that will not fluctuate over the life of your loan. Also keep in mind that generally the higher your credit score, the lower your interest rate is likely to be. PNC Bank does not disclose the exact minimum credit score required to qualify for its personal loan products.


There is some flexibility regarding your loan repayment schedule; borrowers can choose loan terms of up to 60 months.

And, as we mentioned above, if you already have a checking account at PNC Bank and use it to make your monthly payments automatically, you can qualify for an interest rate reduction of 0 .25%.


PNC Bank does not charge an application fee or origination fee, and there are no prepayment penalties for making additional payments to pay off your loan early.

However, there are late fees. Borrowers will be charged 10% of the payment or $40, whichever is greater, if a late payment is made.

And as with any other loan or credit product, it’s important to keep in mind that failure to pay in full on time may result in the lender notifying a credit reporting agency, which may affect your credit score.

Amount of the loan

Loan amounts range from $1,000 to $35,000, making this lender an attractive option for those looking to borrow small amounts of money (personal lenders can offer up to $100,000). Keep in mind, however, that not all applicants will qualify for the maximum loan amount. Qualification can usually depend on factors such as your creditworthiness.

And while PNC Bank personal loans can be used for a variety of expenses — including debt consolidation, home renovation, wedding, moving, or even vacation — there are some things you can’t use for. this loan. Prohibited uses include post-secondary education expenses, student loan debt refinancing, or any unlawful purpose.

Mandate’s duration

Candidates have a range of term lengths of up to 60 months.

At the end of the line

PNC Bank personal loans are a solid option for those who want to avoid origination fees and prepayment penalties. Although you don’t need to be an existing customer to apply for the loan, the biggest benefit is for those who set up automatic monthly payments through an existing PNC Bank checking account – you will receive an interest rate by 0.25%.

Since personal loan products may vary by location, your actual interest rate range and other terms may depend on your zip code. So you will have to check this before applying for this loan.

If you’re not comfortable with the terms you receive and are looking for slightly lower interest rates, check out LightStream Personal Loans, which offers APRs as low as 2.99% and an APR deduction of 0 .25% to automatically pay your bill each month.

Our methodology

To determine which personal loans are best, Select analyzed dozens of US personal loans offered by online and brick-and-mortar banks, including major credit unions, that have no origination or enrollment fees, from APRs to fixed rate and flexible loan amounts. and terms tailored to a range of financing needs.

When selecting and ranking the best personal loans, we focused on the following characteristics:

  • No creation or registration fees: None of the lenders on our top list charge borrowers an upfront fee for processing your loan.
  • Fixed APR: Variable rates can go up and down over the life of your loan. With a fixed-rate APR, you fix an interest rate for the life of the loan, which means your monthly payment won’t vary, making it easier to plan your budget.
  • Flexible minimum and maximum loan amounts/terms: Each lender offers a variety of financing options that you can customize based on your monthly budget and how long you need to pay off your loan.
  • No prepayment penalties: The lenders on our list do not charge borrowers for prepaying loans.
  • Simplified application process: We looked at whether lenders offered same-day approval decisions and a fast online application process.
  • Customer service: Every loan on our list offers customer service available by phone, email or secure online messaging. We have also opted for lenders that have a resource center or an online advice center to help you learn about the personal loan process and your finances.
  • Disbursement of funds: The loans on our list provide funds quickly by electronic transfer to your checking account or in the form of a paper check. Some lenders (which we have noted) offer the option of paying your creditors directly.
  • Automatic payment discounts: We’ve noted lenders who reward you for signing up for autopay by reducing your APR by 0.25% to 0.5%.
  • Creditor Payment Limits and Loan Sizes: The lenders above offer loans of varying sizes, ranging from $500 to $100,000. Each lender advertises their respective payment limits and loan amounts, and completing a pre-approval process can give you an idea of ​​what your interest rate and monthly payment would be for such an amount.

After reviewing the features above, we’ve sorted our recommendations based on overall financing needs, debt consolidation and refinance, small loans, and overnight financing.

Note that advertised rates and fee structures for personal loans are subject to fluctuation in accordance with the Fed rate. However, once you have accepted your loan agreement, a fixed rate APR will guarantee the interest rate and the monthly payment will remain constant for the duration of the loan. Your APR, monthly payment, and loan amount depend on your credit history and creditworthiness. To take out a loan, lenders will do a credit check and ask for a full application, which may require proof of income, identity verification, proof of address and more.

Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff only and have not been reviewed, endorsed or otherwise endorsed by any third party.

How an installment loan can affect your credit score Sat, 05 Mar 2022 18:30:57 +0000

NEW YORK – March 5, 2022 – (

iQuanti: Installment loans allow you to borrow money at a fixed interest rate and pay it back in fixed monthly installments of principal and interest. You can use them for a variety of purposes, such as refinancing debt, financing a home improvement, or building an emergency fund quickly.

If you’re working on building or repairing your credit, knowing how these types of loans can improve or hurt your credit score is essential. Let’s take a closer look at how an installment loan can affect your credit.

1. Applying for a loan can hurt your credit score slightly

When you apply for an installment loan, some lenders will do a thorough investigation, which means they will formally review your credit score and background. These challenging surveys damage your score a bit. However, as you increase your score over time, Serious Inquiries do less damage each time you get one. In addition, serious inquiries disappear from your credit file after two years. When they fall, your credit score may rise.

Although it may be difficult to find installment loans without credit check, many lenders will only conduct an informal inquiry during the approval decision process. Soft credit checks will not affect your credit score and will only be visible to you.

4. Making payments on time can boost your score

Two of the main factors used to calculate your score are your payment history and the length of your credit history. For this reason, making payments on time each month can add up significantly when it comes to improving your score. Likewise, missing payments can hurt your score, so try to make all your payments on time.

2. Adding the loan to your credit mix can improve your score

Your credit composition is an important factor in determining your credit score. It looks at the number of credit accounts you have opened and their diversity. By taking out an installment loan, you increase the number and diversity of your credit accounts, which can help boost your score quite quickly.

3. Paying off credit cards with the loan can improve your score

Credit utilization is another factor used to calculate your credit score. It measures the amount you borrow on your revolving credit accounts (credit cards and lines of credit) against your credit limits on those accounts. So if you get an installment loan to pay off your credit card balance, you could improve your score by reducing your credit usage.

The bottom line

Installment loans can impact your credit in several ways. The first thorough investigation hurts your score slightly, but you can easily make up for that damage by making timely monthly payments. Plus, adding the loan to your credit mix and using it to reduce credit card debt could provide another credit boost. Overall, be sure to only borrow what you can afford to repay to reap the benefits of installment loans.

Notice: The information provided in this article is provided for guidance only. Consult your financial advisor about your financial situation.

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How an installment loan can affect your credit score

Today’s Mortgage Rates Are Climbing | March 4, 2022 Fri, 04 Mar 2022 13:30:12 +0000

Interest rates for purchase and refinance loans are higher today, with some categories of loans seeing significant increases.

For buyers, the average rate for a 30-year fixed rate mortgage is 4.531%. That’s an increase of 0.149 percentage points from a day ago. Meanwhile, the rate for a 30-year refi is averaging 4.618%, up 0.155 percentage points.

The biggest change is in the average 30-year jumbo purchase loan rate, which jumped 0.446 percentage points to 4.299%.

  • The last rate on a 30-year fixed rate mortgage is 4.531%. ⇑
  • The final rate on a 15-year fixed rate mortgage is 3.494%. ⇑
  • The latest rate on a 5/1 ARM is 3.171%. ⇑
  • The latest rate on a 7/1 ARM is 3.445%. ⇑
  • The latest rate on a 10/1 ARM is 3.538%. ⇑

Money‘s daily mortgage rates reflect what a borrower with a 20% down payment and a credit score of 700 — roughly the national average score — could pay if he or she applied for a home loan right now. Each day’s rates are based on the average rate that 8,000 lenders offered applicants the previous business day. Freddie Mac’s weekly rates will generally be lower, as they measure the rates offered to borrowers with higher credit scores.

Are you looking for a loan? Check out Money’s lists of top mortgage lenders and top refinance lenders.

Today’s 30-Year Fixed Rate Mortgage Rates

  • The 30-year rate is 4.531%.
  • It’s a day infold by 0.149 percentage points.
  • It’s a month to augment by 0.395 percentage points.

The main advantage of a 30-year fixed rate mortgage is its long repayment term. By dividing the loan balance over several months, you pay less each time. The fixed rate also means that these payments will never change. The downside is that the interest rate is higher than on a short-term loan, so you’ll end up paying more over time.

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Average mortgage rates

Data based on US mortgages closed March 3, 2022

Type of loan 3rd of March Last week Change
15-year fixed conventional 3.49% 3.53% 0.04%
30-year fixed conventional 4.53% 4.49% 0.04%
ARM rate 7/1 3.45% 3.52% 0.07%
ARM rate 10/1 3.54% 3.64% 0.1%

Your actual rate may vary

15 years today fixed rate mortgage rates

  • The 15-year rate is 3.494%.
  • It’s a day infold by 0.132 percentage points.
  • It’s a month infold by 0.369 percentage points.

Some borrowers prefer 15-year fixed rate loans because interest rates tend to be low and the short payback period means you’ll pay less interest overall. However, the short term also means the monthly payments will be higher and may not be as manageable as a 30 year loan.

The latest rates of adjustable rate mortgages

  • The latest rate on a 5/1 ARM is 3.171%. ⇑
  • The latest rate on a 7/1 ARM is 3.445%. ⇑
  • The latest rate on a 10/1 ARM is 3.538%. ⇑

An adjustable rate mortgage can be an attractive option for borrowers who don’t plan to stay in a home for the long term. The interest rate will first be fixed and then begin to adjust periodically. For example, a 5/1 ARM will have a stable rate for five years before starting to adjust each year. Keep in mind, however, that once the rate begins to adjust, it could rise significantly.

The Latest VA, FHA, and Jumbo Loan Rates

The average rates for FHA, VA, and jumbo loans are:

  • The rate on a 30-year FHA mortgage is 4.282%. ⇑
  • The rate for a 30-year VA mortgage is 4.734%. ⇑
  • The rate for a 30-year jumbo mortgage is 4.299%. ⇑

The latest mortgage refinance rates

The average refinance rates for 30-year loans, 15-year loans and ARMs are:

  • The refinance rate on a 30-year fixed rate refinance is 4.618%. ⇑
  • The refinance rate on a 15-year fixed rate refinance is 3.599%. ⇑
  • The rollover rate on a 5/1 ARM is 3.22%. ⇑
  • The refinance rate on a 7/1 ARM is 3.495%. ⇑
  • The refinance rate on a 10/1 ARM is 3.602%. ⇑
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Average Mortgage Refinance Rates

Data based on US mortgages closed March 3, 2022

Type of loan 3rd of March Last week Change
15-year fixed conventional 3.6% 3.62% 0.02%
30-year fixed conventional 4.62% 4.57% 0.05%
ARM rate 7/1 3.5% 3.59% 0.09%
ARM rate 10/1 3.6% 3.72% 0.12%

Your actual rate may vary

Where are mortgage rates going this year?

Mortgage rates have fallen through 2020. Millions of homeowners have responded to low mortgage rates by refinancing existing loans and taking out new ones. Many people bought homes they might not have been able to afford if rates were higher. In January 2021, rates briefly dipped to the lowest levels on record, but rose slightly for the rest of the year.

Looking ahead, experts believe that interest rates will rise further in 2022, but also modestly. Factors that could affect rates include continued economic improvement and further labor market gains. The Federal Reserve has also started to scale back its purchases of mortgage-backed securities and said it plans to raise the federal funds rate three times in 2022 to combat rising inflation from March.

While mortgage rates are likely to rise, experts say the increase won’t happen overnight and it won’t be a dramatic jump. Rates are expected to remain near historic lows throughout the first half of the year, rising slightly later in the year. Even with rising rates, it will still be a good time to finance a new home or refinance a mortgage.

Factors that influence mortgage rates include:

  • The Federal Reserve. The Fed acted quickly when the pandemic hit the United States in March 2020. The Fed announced its intention to keep money flowing in the economy by lowering the Federal Fund short-term interest rate between 0% and 0.25%, which is also low as you go. The central bank also pledged to buy mortgage-backed securities and treasury bills, supporting the housing finance market, but began to scale back those purchases in November.
  • The 10-year Treasury bond. Mortgage rates keep pace with government 10-year Treasury bond yields. Yields first fell below 1% in March 2020 and have since risen. On average, there is typically a 1.8 point “spread” between Treasury yields and benchmark mortgage rates.
  • The wider economy. Unemployment rates and changes in gross domestic product are important indicators of the overall health of the economy. When employment and GDP growth are weak, it means the economy is weak, which can lower interest rates. Thanks to the pandemic, unemployment levels reached historic highs early last year and have yet to recover. GDP has also taken a hit, and although it has rebounded somewhat, there is still plenty of room for improvement.

Tips for getting the lowest possible mortgage rate

There is no universal mortgage rate that all borrowers receive. Qualifying for the lowest mortgage rates takes some work and will depend on both personal financial factors and market conditions.

Check your credit score and your credit report. Mistakes or other red flags can lower your credit score. Borrowers with the highest credit scores are the ones who will get the best rates, so it’s essential to check your credit report before you begin the home hunting process. Taking steps to correct mistakes will help increase your score. If you have high credit card balances, paying them off can also give you a quick boost.

Save money for a large down payment. This will lower your loan-to-value ratio, which is the share of the house price that the lender has to finance. A lower LTV usually translates to a lower mortgage rate. Lenders also like to see money that has been saved in an account for at least 60 days. It tells the lender that you have the money to finance the home purchase.

Shop around for the best rate. Don’t settle for the first interest rate a lender offers you. Check with at least three different lenders to see who offers the lowest interest rate. Also consider different types of lenders, such as credit unions and online lenders in addition to traditional banks.

Also, take the time to learn about the different types of loans. Although the 30-year fixed rate mortgage is the most common type of mortgage, consider a shorter-term loan such as a 15-year mortgage or an adjustable rate mortgage. These types of loans often come with a lower rate than a conventional 30-year mortgage. Compare the costs of all to see which best suits your needs and financial situation. Government loans — such as those backed by the Federal Housing Authority, Department of Veterans Affairs, and Department of Agriculture — may be more affordable options for those who qualify.

Finally, lock in your rate. Locking in your rate once you’ve found the right rate, the right loan product, and the right lender will help ensure that your mortgage rate doesn’t increase until the loan is closed.

Our mortgage rate methodology

Money’s Daily Mortgage Rates show the average rate offered by more than 8,000 lenders across the United States for which the most recent rates are available. Today we are posting rates for Thursday, March 3, 2022. Our rates reflect what a typical borrower with a credit score of 700 might expect to pay for a home loan right now. These rates were offered to people depositing 20% ​​deposit and include discount points.

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Home Refinance Options for 2022 Wed, 02 Mar 2022 12:45:29 +0000

Learn about your home refinancing options

Refinancing a home loan involves taking out a new mortgage to replace yours. Reasons for refinancing include getting a lower rate and payment, switching to a different loan program, dropping a name from a mortgage, or cashing in on home equity.

Your financial goals will help you determine which type of refinance is best for you. Refi options vary by loan program, purpose, and type of refinance. Here’s what you need to know before choosing.

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What are the two types of refinancing?

You have two main options when refinancing. You can opt for a cash-out refinance, which means you take some of the equity out of your home, or a no-cash refinance, which usually involves a new loan with a lower rate and a monthly payment.

In addition, there are various refinancing programs offered by government and private organizations. The type of refinance loan you choose will depend on your current loan type and your personal finances.

You and your loan officer will work together to decide on the best refinancing option for your situation. But if you want to do your research before you start the process, here’s a little more information on the top home mortgage refinance options for 2022.

Conventional Loan Refinance Options

A conventional mortgage is a loan that is not guaranteed by the government. These are issued by private banks and mortgage companies, and they generally comply with the lending rules set by Fannie Mae and Freddie Mac.

A conventional loan refinance typically requires a 620 credit score and some home equity.

Term rate refinancing

A rate and term refinance or a cashless refinance changes either the mortgage rate or the term of the loan, or both. This often results in a lower interest rate and monthly mortgage payment.

This is a simple refinance, so it does not include a cash-out option. You will need at least 3% equity for conventional rate and term refinancing.

Refinancing by collection

The main purpose of a cash refinance is to borrow money against the equity in your home. A conventional refinance can also lower your mortgage rate, although that is not the primary goal.

Cash refinancing involves borrowing more than your current mortgage balance and taking the difference in cash. You can use the money for any purpose; the most common reasons for a loan buy-out include home renovations, debt consolidation and the purchase of another property.

This type of refinance requires more than 20% equity to qualify, and you can usually borrow up to 80% of the value of your home. This number, minus the amount you currently owe on your home loan, determines the amount of cash back you can get.

High LTV refinance

In the past, Fannie Mae and Freddie Mac offered mortgage refinance options for underwater homeowners.

Thanks to rising property values, only 3% of homeowners are currently underwater. And these special programs have been suspended because so few people need them.

Fortunately, you can still refinance even if you have a high loan-to-value (LTV) ratio. Many lenders only require a 3% equity interest in the home to refinance, which most homeowners will have even if they have only put down a small down payment.

FHA Loan Refinance Options

An FHA loan is a mortgage backed by the Federal Housing Administration. The FHA does not create loans; rather, it insures loans originated by banks, credit unions, and mortgage companies.

Qualifying for an FHA refinance requires a minimum credit score between 500 and 580. In addition, borrowers who refinance an FHA loan will be required to pay mortgage insurance premiums (MIPs).

If you have at least 20% equity in your home when you refinance, you can avoid private mortgage insurance by refinancing a conventional loan instead of an FHA loan.

FHA streamline refinancing

If you’re looking to change your rate and/or term without cash back, an FHA Streamline refi lets you refinance with less time and paperwork. These refis do not require another assessment, and lenders sometimes waive a credit check.

You must have made at least six payments on your current FHA mortgage to qualify. And your existing mortgage must be an FHA loan.

FHA cash-out refinancing

An FHA refinance involves refinancing your FHA mortgage loan and borrowing money against your principal. To qualify, you will need at least 20% equity and you can borrow up to 80% of the value of your home. This number, minus the amount you currently owe on your home loan, determines the amount of cash back you can get.

Unlike a Streamline refinance, this refi requires a credit score and check, and you’ll pay mortgage insurance regardless of your equity level.

Refinance the FHA into a conventional loan

You can also refinance from an FHA loan to a conventional loan. This is an option if you have a higher credit score (at least 620) and at least 20% equity. Switching to a conventional loan can eliminate FHA mortgage insurance, which is usually on the loan for life.

VA Loan Refinance Options

VA loans are backed by the US Department of Veterans Affairs. Banks, credit unions, and private lenders provide these loans to military personnel, veterans, and their surviving spouses.

VA Streamline Refinance (IRRRL)

A VA Interest Rate Reduction Refinance Loan (IRRRL) is another option for simple rate and term refinance. You can switch from a variable rate mortgage to a fixed rate mortgage, lower your interest rate and lower your payments. However, you cannot cash out your principal with a VA Streamline refinance.

There is no minimum credit score for this type of refinance, nor a maximum loan-to-value ratio. However, some lenders will require a credit check despite the VA’s guideline that they don’t have to.

The VA financing fee for an IRRRL loan is equal to 0.5% of the loan amount.

VA Cash Refinance

With the VA cash-out refinance option, you can change the rate and term of your VA loan while cashing in your principal. There is no minimum credit score for a VA cash-out refinance, but you may need a minimum of 10% equity.

VA cash-out refinances do not require mortgage insurance. However, there is a one-time finance charge which typically amounts to 3.6% of the loan amount.

Jumbo Loan Refinance Options

A jumbo loan is a mortgage that exceeds the conforming loan limit set by Fannie Mae and Freddie Mac. Borrowers use these loans to finance high-end properties, and jumbo loans typically have higher credit scores and down payment requirements.

Refinancing of a jumbo rate and term loan

A rate and term jumbo refinance can lower your rate or change the terms of your mortgage. But since a jumbo loan is larger than an average mortgage, it’s a bit more difficult to refinance.

You will need a higher credit score (minimum of 680-700), a low debt-to-equity ratio, cash reserves, and often 10% or more equity.

Cash–out jumbo refinancing

A cash jumbo refinance also allows you to leverage the equity in your home. This type of refinancing also requires a higher credit rating and cash reserves. Lenders generally require more than 20% equity to qualify.

Refinance into conforming loan

There is also the option of refinancing a jumbo loan into a conventional (conforming) loan once you have paid off the loan balance.

The national conforming loan limit for 2022 is $ – from $548,250 in 2021. This change could put your jumbo mortgage within the conforming loan limit. And if so, refinancing a conventional loan could lower your interest rate and your monthly payments.

USDA Loan Refinance Options

A USDA loan is a mortgage guaranteed by the United States Department of Agriculture. To be eligible you will need a minimum credit score of 640 and you must own property in an eligible rural area.

USDA loans do not require a down payment, which means you can refinance through the USDA program if you have little or no equity in your home.

Streamlined USDA Refinance

USDA loans do not offer a withdrawal option. You can, however, get a Streamline refinance to change the rate and terms of your loan. You can refinance up to the full value of the property, sometimes without a new appraisal.

Your current USDA home loan must be at least one year old to qualify, and you must have made on-time payments within the past six months. You must also meet income and debt-to-income ratio requirements.

Refinance in conventional loan

One of the main advantages of a USDA loan is that this program does not require a down payment. The downside is that these loans charge an annual fee that works like mortgage insurance.

USDA Mortgage Insurance lasts for the life of the loan, regardless of your equity level. To remove the fee, you will need to refinance a USDA loan to a conventional loan once you have 20% or more equity.

How to Choose the Right Refinance Option for You

Refinancing is a great way to lower your interest rate and monthly payments, switch loan plans, or even switch from an adjustable rate mortgage to a fixed rate mortgage.

However, refinancing is not unique. It is therefore important to choose the right program.

The right refinance option will depend on your refinance goal, the amount of equity you have, and your current loan program. A simplified or rate and term refinance is ideal for a simple process, while a cash refinance allows you to leverage your capital.

Talk to a mortgage advisor. These experts can help you choose the best approach for your situation.

The information contained on The Mortgage Reports website is provided for informational purposes only and does not constitute advertising for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent company or affiliates.

What is the Graduated Repayment Plan? Mon, 28 Feb 2022 21:53:01 +0000

If you take out federal student loans, you’re automatically enrolled in the standard repayment plan, which gives you consistent payments over 10 years. Although this is a common option, it is not the only way to repay student loans. The progressive repayment plan is an alternative plan that starts your payments low and increases them over time.

If you need a little extra help and are exploring other ways to pay off your student loans, consider the gradual repayment plan.

What is the progressive repayment plan?

The gradual repayment plan is a type of federal student loan repayment plan that slowly increases your monthly payment over time.

Your payments start low and generally increase every two years. You’ll still pay off your loans in 10 years (or up to 30 years if you’ve consolidated your loans), but the plan expects your income to increase over those 10 years.

Under this plan, your payments will never be less than the amount of accrued interest on your payments. Your payouts will also never be more than three times any other payout.

Which loans are eligible for progressive repayment?

Most federal loans are eligible for the progressive repayment plan, including:

  • Subsidized direct loans.
  • Direct unsubsidized loans.
  • Direct Loans PLUS.
  • Direct Consolidation Loans.
  • Federal Subsidized Stafford Loans.
  • Unsubsidized Federal Stafford Loans.
  • FFEL PLUS loans.
  • FFEL consolidation loans.

How the progressive repayment plan is calculated

If you choose the progressive repayment plan and you have an unconsolidated loan, the US Department of Education will determine your payments; In general, your payments will start at around 50% of what you would pay on the Standard Refund Plan and end at around 150% of what you would pay on the Standard Refund Plan.

If you have a consolidated loan, however, your payment schedule will be slightly different. If you have less than $7,500 in consolidated loans, your repayment period will still be 10 years. If you owe between $7,500 and $10,000, you will repay over 12 years. This repayment period increases as your total loan balance increases.

The Ministry of Education’s loan simulator can help you determine if the progressive repayment plan is a good option for your student loans. Since everyone’s repayment structure is a little different, your needs might warrant a different repayment plan.

Is the progressive repayment plan a good idea?

The progressive repayment plan is not an income-driven repayment plan. If your income does not increase over time, you will still be liable for increased payments towards the end of your plan.

The progressive repayment plan is a good idea if:

  • You expect a steady increase in your income. For entry-level workers, the progressive payment plan is a good option as you slowly start earning more during your career.
  • You want to be out of debt quickly. With some alternative repayment plans, your student loan debt could be with you for up to 25 years. The progressive repayment plan is ideal for borrowers who still want to stay on a 10-year schedule.

You should skip the progressive repayment plan if:

  • You want low monthly payments. If you earn very little and don’t expect your income to grow much, consider enrolling in an income-driven repayment plan. Your payments could be as low as $0, depending on your income and family size.
  • You are on the right track for PSLF. Only income-driven repayment plans are eligible for the public service loan exemption. Since the Tiered Repayment Plan is not PSLF eligible, your payments will not be counted if you eventually switch to a PSLF track.

Next steps

If you are considering opting for the progressive repayment plan, make sure it suits your needs. The Federal Student Aid Loan Simulator can help you choose the best repayment plan for you based on your goals: whether you want to pay off your loans as quickly as possible, get the lowest monthly payment, or pay off your loans on a certain date.

Learn more:

When is it okay to use your emergency fund to pay off debt? Fri, 25 Feb 2022 19:41:15 +0000

Select’s editorial team works independently to review financial products and write articles that we think our readers will find useful. We earn commission from affiliate partners on many offers, but not all offers on Select are from affiliate partners.

For many people, getting out of debt as quickly as possible is a top priority, especially if you’ve been carrying debt for several years and are crushed by high interest charges. So if you are so close To get rid of your balance once and for all, you might be wondering if it’s a good idea to use savings from an emergency fund to pay off your debt for good.

Why paying off a debt can seem so urgent

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Another advantage when it comes to paying off debt quickly is being able to redirect your money to other goals. Northwestern Mutual’s 2020 Planning and Progression Study found that 58% of respondents with debt believe their balance is preventing them from reaching major financial milestones. Of these respondents, 36% have delayed making major purchases, 29% said they have delayed saving for retirement, 18% have delayed buying a home, 8% have delayed having children and 7% delayed marriage.

So being able to finally reach certain financial goals can be a big factor when it comes to aggressively paying off your debt. If you’re spending $500 a month on credit card or loan payments, you can redirect that $500 toward retirement savings, a wedding, or buying a house once you’re debt-free. .

Should you use your emergency fund to pay off your debts?

The short answer is this: it depends on how much debt you have and how much money you have in your emergency fund.

Keep in mind that your an emergency fund exists to cover unforeseen expenses that would otherwise slow you down financially and put you further into debt. So if you had to use a significant portion of your emergency fund to pay off debt, you could significantly reduce your ability to cover a large, unexpected expense. This is why you need to consider the amount of your debts and the size of your emergency fund.

For example, if you have $10,000 in your emergency fund and a credit card balance of $5,000, paying off the debt would wipe out half of your emergency fund — and that could put you in a predicament. more vulnerable financial position if you don’t have one. other savings. But if you have an emergency fund of $10,000 left and a credit card balance of $500, you may be more likely to use some of your savings while feeling confident in your ability to manage. a significant unforeseen expense.

“If you reimburse these types of [debts] makes you vulnerable to a financial crisis that could potentially hurt your credit, file for personal bankruptcy, or be temporarily or permanently impoverished, so the financial reward of saving interest on debt reduction may not be worth the risk,” says JR Robinson, a personal finance expert at Credello.

And if you decide you could use some of the money in your emergency savings to pay off your debt, don’t forget to take steps to replenish your emergency fund.

Methods to pay off debt faster

LightStream Personal Loans

  • Annual Percentage Rate (APR)

    2.49% to 19.99%* when you sign up for autopay

  • Purpose of the loan

    Debt consolidation, renovation, car financing, medical expenses, marriage and more

  • Loan amounts

  • terms

  • Credit needed

  • Assembly costs

  • Prepayment penalty

  • Late charge

SoFi Personal Loans

  • Annual Percentage Rate (APR)

    5.74% to 21.28% when you sign up for autopay

  • Purpose of the loan

    Debt consolidation/refinance, home improvement, relocation assistance or medical expenses

  • Loan amounts

  • terms

  • Credit needed

  • Assembly costs

  • Prepayment penalty

  • Late charge

Another effective option can sometimes be to use a 0% APR balance transfer card if high interest rates make it difficult to pay off your credit card debt. Say you apply for a credit card like the Citi Simplicity® card or the US Bank Visa® Platinum card: you’ll be able to transfer the balance from an existing credit card to a new card and pay off as much as you can. with an introductory offer at 0% interest.

Citi Simplicity® Card

  • Awards

  • welcome bonus

  • Annual subscription

  • Introduction AVR

    0% for 21 months on balance transfers; 0% for 12 months on purchases

  • Regular APR

    14.74% to 24.74% variable

  • Balance Transfer Fee

    5% of each balance transfer; $5 minimum

  • Foreign transaction fees

  • Credit needed

U.S. Bank Visa® Platinum Card

On the secure site of US Bank

  • Awards

  • welcome bonus

  • Annual subscription

  • Introduction AVR

    0% for the first 20 billing cycles on balance transfers and purchases*

  • Regular APR

    14.49% – 24.49% (variable)*

  • Balance Transfer Fee

    Either 3% of the amount of each transfer or $5 minimum, whichever is greater

  • Foreign transaction fees

  • Credit needed

Finally, creating a budget can help you pay off debt faster while benefiting your overall financial health.

“By tracking your money and changing your spending habits, you can free up money to pay off debt faster,” says Robinson. “Look for ways to spend less money and also make more money. Where can you save money? Can you cook more and order less? How about a side gig or selling some items you own?”

Check out Select’s in-depth coverage at personal finance, technology and tools, The well-being and more, and follow us on Facebook, instagram and Twitter to stay up to date.

Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff only and have not been reviewed, endorsed or otherwise endorsed by any third party.

How to find the best bridging loan – Forbes Advisor UK Fri, 25 Feb 2022 17:26:48 +0000

Finding the best bridge loan for your situation can ease the burden at a time when many financial and practical plates are spinning at the same time.

But, as always, the first step is to fully understand what this type of loan is, how it works and what the risks are.

What is a bridging loan?

A bridge loan is a type of short-term financing typically used when you want to buy a new home before selling your old one.

The loan “bridges” the purchase and the sale.

Bridge loans are usually taken out for a maximum of 12 months and can normally be closed fairly quickly.

What else can a bridging loan be used for?

Although bridging loans are typically used when there is a gap in a residential real estate transaction, they are also often used by real estate investors and developers.

For example, if you buy a property at auction, you should normally complete the transaction within 28 days. This will not be enough time to arrange a standard mortgage, so bridge financing is used instead. The buyer can then remortgage with a traditional lender later.

Bridge loans can also have other uses for property. For example:

  • Real estate renovation
  • Buy a non-mortgage property
  • Buying a property with a short lease
  • Urgent real estate transactions

Bridge loans can also be used for non-property related reasons such as:

  • Repay debts or tax bills
  • Solve short-term business cash flow problems
  • Divorce settlements

Is a bridging loan a secured loan?

Yes, bridge loans are a type of secured loan, so you will need to set up an asset as collateral for the loan.

Having a ‘charge’ on your property means that there is a legal agreement for the lender to proceed with the sale of your property if you do not repay the loan as agreed.

If there are no other mortgages or loans on your property, the bridge loan will be a “first charge” loan. If you have a mortgage on your property, the bridge loan will be a “second charge” loan. Charges refer to the order debts that will be paid when the property is sold.

Because bridge loans are secured loans, you can usually be accepted even if you have bad credit. The downside is that your property may be repossessed if you don’t repay the loan as agreed.

You can usually borrow between £5,000 and £25m (sometimes more) on a bridge loan. The exact amount you can borrow will depend on the value of the property you are posting as collateral.

Where can I get a bridging loan?

  • Banks
  • construction companies
  • Specialized bridging lenders
  • Relay brokers
  • Mortgage brokers

What is a bridging loan exit strategy?

Bridge loans are designed as a short-term financing solution. When you take out one, you’ll usually need to have a plan for how you’ll pay it back: this is called the ‘exit strategy’.

Typical exit strategies include:

  • Sell ​​the property you bought with the bridging loan
  • Selling another property you own
  • Repayment to a standard mortgage
  • Selling a business or other property
  • Money from a business transaction, divorce or inheritance

What are open and closed bridging loans?

Bridge loans can be “open” or “closed”.

Open bridging loans are generally more expensive. They do not have a fixed repayment date and are therefore more flexible than closed bridge loans.

Closed bridge loans require you to have an exit plan and set a payment date when you take out the loan. Closed bridging loans are usually contracted for a few weeks or a few months.

How much does a bridging loan cost?

Bridge loans are expensive compared to other types of mortgages or loans.

Since bridging loans tend to be short-term, interest is charged daily rather than annually. Annual Percentage Rates (APRs) can range from 6% to 20%. By comparison, standard mortgages can be as cheap as 1% or 2%.

Like other types of home financing, lenders offer bridging loans with fixed or variable interest rates.

In addition to interest, you will likely have to pay arrangement fees to the lender, administration fees, appraisal fees and legal fees for the transfer of ownership.

If a broker arranged the loan, there will likely be a fee for that as well.

Do I have to make monthly payments on a bridging loan?

Bridging lenders do not always require monthly repayment. Instead, interest payments are “accumulated”. This means that they are added to the loan and paid at the end of the term. However, this means that interest charges are compounded monthly and can add up quickly.

With some bridge loans, you can pay interest monthly, like an interest-only mortgage. Then you repay the principal of the loan at the end of the term.

Another option is “retained interest”. For example, a loan of £100,000 with an interest rate of 1% would represent £12,000 in interest over a period of 12 months. The lender keeps the £12,000 and the loan amount paid to you is £88,000.

Are bridging loans regulated?

Bridge loans can be regulated by the Financial Conduct Authority (FCA) or unregulated, depending on the nature of the loan.

If a borrower’s home (or a home occupied by close family members of the borrower) is used as collateral for the loan, the bridge loan must be sold as a regulated loan.

The regulations mean that consumers are protected against incorrect advice or mis-selling from lenders or brokers.

However, bridge loans taken out in the name of a business (not an individual) will not be regulated, as they are treated as a business transaction. This means the borrower has less protection.

Advantages and disadvantages of the bridging loan

Bridging loans mean quick access to cash that can help with real estate purchases and time-sensitive business transactions. They often prevent real estate chains from collapsing when a buyer pulls out.

Bridge loans can also provide funds for the purchase of property where the property is not mortgageable for any reason – such as being uninhabitable or having a short term lease.

With the right security, you can borrow a lot of money on a bridging loan and have different repayment options.

On the other hand, bridging loans can be very expensive. If you get the bridge loan on your house and you can’t repay the loan, your house could be repossessed.

For many borrowers, alternative financing options might work better.

How to find the best bridging loan?

Especially when it comes to high-risk financing options like bridge loans, it’s important to compare your options and understand the product before signing up.

A global bridging loan broker will be able to find the best option for your personal situation and guide you through the process. Some brokers do not charge a fee to the client.

You can also compare online bridging loan providers for rates and terms online, and reference any advice or recommendations in relation to this.

Looking for debt relief? Here’s how a credit counselor can help you Mon, 21 Feb 2022 14:01:54 +0000

Non-profit credit counseling agencies provide free or low-cost financial services to consumers struggling to manage debt or considering bankruptcy. Here’s what a credit counselor can do for you. (iStock)

Unmanageable high-interest debt can take a heavy toll on a consumer’s finances. It may seem that no matter how much you try to repay, the balances continue to grow as interest accumulates over time.

Ten percent of Americans are worried about missing their minimum debt payment in the next 3 months, according to the Federal Reserve Bank of New York. Becoming in default can cause some consumers to consider bankruptcy — and in the worst-case scenario, debt collectors can sue borrowers for unpaid debts, resulting in wage garnishment.

If you’re having trouble paying off your debts, you might consider seeking help from a nonprofit credit counseling agency. Credit counselors can help you develop a plan to pay off several types of debt, such as credit cards, unpaid medical bills, and payday loans.

Keep reading to learn more about credit counseling, as well as your alternative debt consolidation options. You can compare debt consolidation loan interest rates for free without affecting your credit score on Credible.


What is credit counseling?

Non-profit credit counseling agencies provide free, low-cost financial services to consumers struggling to manage their debts. Some consumers who file for bankruptcy may be required to seek credit counseling as part of their court filing. A credit counselor can help you by:

  • Provide advice on how to manage your money and debts
  • Analyze your finances and create a monthly budget
  • Get free copies of your credit report and credit scores
  • Sign up for a debt management plan (DMP), which may have a monthly cost
  • Negotiate with your creditors on your behalf to lower interest rates and waive late fees

Consumers should be aware that some for-profit debt management companies may disguise themselves as non-profit organizations. A reputable credit counseling agency should send you free information about the services they offer, according to the Consumer Financial Protection Bureau (CFPB). If an advisor is unwilling to provide this information, this is a red flag.

You can find reputable credit counselors through a few professional organizations, such as the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association of America (FCAA). You can also view the full list of approved credit counseling agencies on the Department of Justice website.

To learn more about your alternative debt consolidation options, contact a knowledgeable lending expert at Credible.


3 Alternative Debt Repayment Methods

Credit counseling is a relatively low-risk way to manage multiple debts, but it’s not your only option. Here are some other strategies to quickly pay off your debts.

1. Debt avalanche or debt snowball

The debt avalanche method involves paying off the debts with the highest interest rate first to save the most money over time. On the other hand, the debt snowball method is to pay off smaller balances first to speed up your debt repayment plan.


2. Credit Card Balance Transfers

It may be possible to transfer the balance of one or more credit cards to a new account at a lower interest rate with a balance transfer card. Credit card issuers typically charge a balance transfer fee of 3-5% of the total amount.

Some consumers may even qualify for a 0% APR introductory offer, which allows you to pay off your credit card debt over up to 18 months without interest. These promotions are generally reserved for borrowers with very good to excellent credit, which is defined by the FICO model as 740 or higher.

You can compare balance transfer cards from multiple credit card issuers at once on Credible.


3. Debt consolidation loans

A debt consolidation loan is a type of personal loan used to pay off unsecured debt at a lower fixed rate. Personal loans are lump-sum loans that you repay in monthly installments over a set period, usually a few years.

According to the Federal Reserve, two-year personal loan interest rates are currently at record highs, which means there’s never been a better opportunity to refinance your debt at a lower rate. Remember that the interest rate you are entitled to depends on your credit score and your debt-to-equity ratio.

Pay off $10,000 in credit card debt

A recent analysis estimates that well-qualified applicants can potentially save up to $174 on their monthly payments by consolidating their credit card debt into a personal loan. Over time, this can translate into thousands of dollars in interest cost savings.

If this strategy interests you, use a personal loan calculator to estimate your monthly payments. You can also visit Credible to compare debt consolidation loan interest rates to determine if this debt repayment strategy is right for your financial situation.


You have a financial question, but you don’t know who to contact? Email the Credible Money Expert at and your question might be answered by Credible in our Money Expert column.

54% think debt is a reason for divorce Sat, 19 Feb 2022 14:34:08 +0000

Select’s editorial team works independently to review financial products and write articles that we think our readers will find useful. We may receive a commission when you click on links to our affiliate partners’ products.

Does your couple encounter problems and stress related to money? You’re not alone.

According to a SunTrust Bank survey conducted online by Harris Poll, 35% of people blame finances for the stress they experience in their relationships — and often at the heart of many couples’ financial conflicts is debt.

Being in debt can cause you to give up on the things that you would really like to prioritize as a couple, which can delay the achievement of various goals. In fact, recent findings from National Debt Relief report that 38% of couples miss dates and date nights when in debt.

According to the same study, people have such negative feelings about debt that 3 in 5 Americans have considered postponing their marriage to avoid inheriting their partner’s debt. In addition, 54% of respondents believe that having a partner in debt is a major reason for considering divorce.

“Debt can cause conflict and friction in a relationship, but it’s all about communication and how each partner views their debt,” says Dr. Regine Muradian, psychologist and board member of National Debt Relief. .

Although these indications seem dismal, there are steps couples can take when it comes to paying off their debts together. Here’s how debt can affect your marriage and what you can do about it:

Disagreements about how you spend money

Huge debts can cause partners to disagree about how to spend disposable income. For example, maybe one person wants to aggressively pay down their debts and throw extra money at the couple’s balance, but the other person wants to take more vacations together. These different debt, budget, and spending goals can give partners the impression that the money is not being used as they would like.

And those disagreements can drag on if high interest charges make it seem like you’ll never fully pay off your balance. Without additional debt, however, you can spend more of your money on other goals, like saving for a house, investing, or taking more vacations together each year.

Financial infidelity and secrecy surrounding expenses

Feelings of shame and lack of motivation

feelings of resentment

How to manage your debts as a couple

Debt management — especially larger amounts — can seem daunting and difficult, but Dr. Muradian outlines some impactful steps you can take to get started on the right foot.

She notes that it’s important to keep communication open about how much money it’s okay to spend.

“Avoid criticizing each other’s drinking habits and instead work to find solutions together,” says Dr. Muradian. “Each person can write out what their spending plan looks like separately, and then they can come together and merge the plan for a great path to success.”

She also says that it helps to create specific and clear goals together.

“For example, you can say ‘by this date we will have paid that much by creating monthly savings together.’ This way, the relationship is cushioned by teamwork and support.The couple will feel motivated as they achieve this goal of being debt-free together,” says Dr. Muradian.

There are also many tools available that can help you pay off your debts even faster. Balance transfer cards let you transfer high-interest credit card debt to a new card and make interest-free payments for a set period of time, usually for at least six months and up to 21 month.

During this 0% APR introductory period, you can pay off your principal faster since you won’t accrue interest charges. The Citi® Diamond Preferred® Card and the Citi Simplicity® Card offer an introductory offer of 0% APR for 21 months on balance transfers (afterwards, 13.74% to 23.74% variable APR on the Citi Diamond Preferred and 14.74% to 24.74% Variable APR on Citi Simplicity). All transfers must be completed within the first 4 months and there is a balance transfer fee for both cards, 5% of each balance transfer; At least $5.

Citi® Diamond Preferred® Card

  • Awards

  • welcome bonus

  • Annual subscription

  • Introduction AVR

    0% for 21 months on balance transfers; 0% for 12 months on purchases

  • Regular APR

    13.74% to 23.74% variable

  • Balance Transfer Fee

    5% of each balance transfer; $5 minimum

  • Foreign transaction fees

  • Credit needed


  • No annual fee
  • Balances can be transferred within 4 months of account opening
  • One of the longest introductory periods for balance transfers

The inconvenients

  • 3% foreign transaction fee
  • No rewards program

Citi Simplicity® Card

  • Awards

  • welcome bonus

  • Annual subscription

  • Introduction AVR

    0% for 21 months on balance transfers; 0% for 12 months on purchases

  • Regular APR

    14.74% to 24.74% variable

  • Balance Transfer Fee

    5% of each balance transfer; $5 minimum

  • Foreign transaction fees

  • Credit needed

And if you have different types of debt, personal loans can be an effective way to consolidate your debts into one simple, organized monthly payment at a lower interest rate.

So, let’s say you take out a loan like the LightStream Personal Loan or the SoFi Personal Loan: you’ll request a specific amount that’s enough to cover the total of all your debts, and the lender will send a specified amount to each of your creditors to pay off those debts. Then you will only be responsible for repaying the personal loan in the form of fixed, equal monthly payments plus interest. This can sometimes be more feasible for those who feel that managing multiple monthly payments to multiple lenders is overwhelming.

SoFi Personal Loans

  • Annual Percentage Rate (APR)

    5.74% to 20.28% when you sign up for autopay

  • Purpose of the loan

    Debt consolidation/refinance, home improvement, relocation assistance or medical expenses

  • Loan amounts

  • terms

  • Credit needed

  • Assembly costs

  • Prepayment penalty

  • Late charge

LightStream Personal Loans

  • Annual Percentage Rate (APR)

    2.49% to 19.99%* when you sign up for autopay

  • Purpose of the loan

    Debt consolidation, renovation, car financing, medical expenses, marriage and more

  • Loan amounts

  • terms

  • Credit needed

  • Assembly costs

  • Prepayment penalty

  • Late charge

However, it is extremely important to have discussions about money before getting married so that each partner is clear about what their financial situation might look like.

“The conversations couples have about debt and finances are just as important as discussions about other topics like starting a family,” Dr. Muradian says. “Before marriage, couples need to know if their partner is in debt and understand how their debt arose. Additionally, knowing their plan for repaying their debt is equally important as it can impact their financial planning as well. that couple.”

Check out Select’s in-depth coverage at personal finance, technology and tools, The well-being and more, and follow us on Facebook, instagram and Twitter to stay up to date.

Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff only and have not been reviewed, endorsed or otherwise endorsed by any third party.

Capital One Platinum Secured Credit Card: Rebuild your credit with no frills Fri, 18 Feb 2022 16:00:00 +0000

All things considered, few people would find the Capital One Platinum* Secured Credit Card the best option available to them. Compared to other secured credit cards – which generally require a security deposit to maintain your line of credit and are designed for those with no credit or bad credit — Capital One’s offer is generally lackluster. Its range of potential credit lines is the smallest of those on our radar at $200 to $1,000, and its purchase APR (variable 26.99%) is as high as we’ve seen. There’s no rewards program or welcome bonus, although that’s pretty typical for secured credit cards.

The biggest advantage of this Capital One credit card is the possibility of having an initial line of credit greater than your deposit. In almost all cases, secured credit cards set your credit limit to the amount of your deposit – if your deposit is $300, that’s your limit. But with this card, your initial line of credit will be $200, but your deposit could be $49, $99, or $200, depending on your application criteria. This means that it is possible to score an initial line of credit on top of your deposit amount.

Here’s what you need to know about the Capital One Platinum Secured Card, as well as some comparable cards worth considering.

In this article

Introductory offerN / A

APR26.99% (Variable)

Recommended credit Limited, Bad

Reward rateN / A

Annual fees$0

Intro Purchase APRN / A

Intro Balance Transfer APRN / A

Balance Transfer Fee $0 to this transfer APR

APR balance transfer26.99% (Variable)

Late payment fees Up to $40

Foreign transaction fees Any

APR Penalty Any

Filing and Qualifications

As with most other secured credit cards, there is no annual fee associated with the Capital One Platinum Secured Credit Card – you are only responsible for depositing $49, $99 or $200. The amount you owe for your initial deposit will be determined by your request. If you want a higher credit limit, you can deposit up to $1,000, in which case your limit will be equal to the amount you deposited.

Although some secure credit card issuers give you a pass for a firm credit check, Capital One is not one of them. They will check your credit when processing your application – as well as your income, employment status and housing payment – ​​but they offer pre-approval if you are curious to see if you qualify without committing to a full credit check. Note that even once you are approved, your account is not officially “opened” until you submit your security deposit.

Once you’re set up with this card, there’s not much you can do but use it responsibly. Try to keep your usage to 30% or less of your credit limit ($60 or less per month on a $200 credit limit), but use it at least occasionally and pay it off in full each month to avoid interest charges and start boost your credit.

Build credit with this card

Even though secured credit cards may recall debit cards due to the security deposit, secured credit cards are legitimate lines of credit from which issuers report your activity to the credit bureaus. Responsible activity on your card (light to moderate use, with full payments each month) will help you grow your credit more effectively.

outraged improve your credit score, a responsible activity can also recover your security deposit. In as little as six months, Capital One can begin automatically reviewing your account to see if you qualify for a higher line of credit or a security deposit refund (in the form of a statement credit), you thereby switching to the Capital One Platinum credit card. *, from which you can continue to increase your credit and credit line.

Other advantages

Although there are no awards or connection bonus, you can enjoy a few benefits with the Capital One Secured Platinum card. With flexible due dates, you can choose when you make your monthly payments. And as with all other Capital One credit cards, there is no foreign transaction fees with this card. So if you’re traveling abroad, you can use this card anywhere Mastercard is accepted without paying extra. Usually, these fees amount to around 3% of the transaction.

Comparable cards

Discover it® Secure credit card
The Discover it®* secured credit card is by far one of our favorite secured credit cards. Although it offers no leverage on the initial security deposit, your line of credit range is wider from $200 to $2,500. Moreover, this secured credit card offers a pretty good rewards program and a sign-in bonus, while most secured credit cards are picky for these features. See our full review of the Discover it® Secured Credit Card for more details.

Chime Credit Builder Secure Visa® Credit Card

The Chime Credit Builder* Secure Visa Credit Card is another of our favorite secure cards. While this card is similar to the Capital One Secured Platinum card in that it doesn’t offer fancy benefits, it does give the cardholder the easiest access to a line of credit. With this card there is no credit check associated with the application, which can help be approved easier. Additionally, this card has no minimum or maximum deposit limit, giving you freedom over your line of credit depending on your available cash.

Capital One Platinum Credit Card
If you think you are about to qualify for a traditional credit card, you can skip the Capital One Platinum Secured Credit Card application process and apply for the Capital One Platinum Credit Card instead. This is the card you can upgrade to from the Platinum Secured Card, and is designed for those who have fair credit (usually a FICO score of 580-669). The specs and benefits are basically the same, except with this card, you won’t have to put down your money to open the account.


What is a secured credit card?

This type of credit card usually requires an initial deposit equal to the credit limit. So, for a card with a credit limit of $500, you would need to deposit $500. Secured credit cards are always subject to late and rejected payment fees and generate interest on unpaid balances. As such, a secured credit card presents lower risk to card issuers and allows them to extend lines of credit to borrowers who do not have good credit or do not meet the credit score threshold. minimum credit.

How is my credit score calculated?

Credit scores are calculated by looking at a variety of factors related to your personal credit, including length of credit history, payment history, amounts owed, new credit, and credit mix. The exact weight of each factor depends on the score model (FICO, VantageScore or other) and your own credit history. If, for example, you have no credit history, the other factors may be weighted more heavily. (See this article for more information on credit scores.)

How long does it take to improve my credit rating?

After opening a secured credit card account, it will take approximately one to two months for the secured credit card issuer to report it to a major credit bureau, in which case it will begin to impact your credit report and your credit score. It then takes several more months before account activity is significant enough to make a difference. If you maintain a low or zero balance and manage the rest of your finances well, you could increase your score by several hundred points in a year or two, but that will depend on your particular situation. If you have a longer credit history with a number of issues, it will take longer. If you have a shorter history, each month’s activity will play a much bigger role.

Our approach

We review the most popular cards with the best benefits. We go through the fine print so there are no surprises when you open an account. We find the key factors that make a card stand out and compare them to other top cards. This way, readers can opt for a different card with similar functionality if our choice doesn’t suit them. Our opinions are regularly checked and updated to incorporate new recommendations, as well as to reflect changes in offers and the market.

*All information about the Capital One Platinum Secured Credit Card, Discover it Secured Credit Card, Chime Credit Builder Secured Card and Capital One Platinum Credit Card has been independently collected by CNET and has not been reviewed by CNET. the transmitter.

Editorial content on this page is based solely on objective, independent assessments by our editors and is not influenced by advertising or partnerships. It was not supplied or commissioned by a third party. However, we may receive compensation when you click on links to products or services offered by our partners.