Latest news with #debtconsolidation
Yahoo
22-07-2025
- Business
- Yahoo
National Advertising Division Recommends Clearer Disclosure of Affiliate Advertising Relationship for Certain Reviews on TrustedCompanyReviews.com
BBB NATIONAL PROGRAMS Through its advertising monitoring program, BBB National Programs' National Advertising Division inquired about the rankings of debt consolidation companies by EIA Marketing on the review website The National Advertising Division (NAD) recommended that the material connection between EIA Marketing and companies listed in reviews that are affiliate partners be more clearly disclosed for certain reviews. New York, NY, July 22, 2025 (GLOBE NEWSWIRE) -- Through its advertising monitoring program, BBB National Programs' National Advertising Division inquired about the rankings of debt consolidation companies by EIA Marketing on the review website The National Advertising Division (NAD) recommended that the material connection between EIA Marketing and companies listed in reviews that are affiliate partners be more clearly disclosed for certain reviews. At issue for NAD was whether the format of the challenged advertising reasonably communicates the implied message that the debt consolidation rankings on the website are independent and objective instead of advertising for the top-rated product. NAD noted that some of the reviews on are those of EIA Marketing's affiliate partners (including the #1 rated debt consolidation company). Even assuming that the partner status of a company did not influence the ranking, NAD found that because TrustedCompanyReviews receives compensation from affiliate partners, the review is not impartial and constitutes advertising for that affiliate partner. NAD was concerned that consumers may not understand, based on the format of the webpage, that they are seeing advertising content for the rated company. NAD determined that the disclosure at the top of the webpage, 'The listings featured on this site are from companies from which this site receives compensation. This influences where, how, and in what order such listings appear on this site,' is not clear and conspicuous. Further, after scrolling down one page, the 'Advertiser Disclosure' is a hover-over disclosure that consumers may miss. NAD also noted that a pop-up advertisement for Accredited Debt Relief obscured the rest of the content on the webpage and referred to its top ranking and an invitation to access its plans. NAD recommended that EIA Marketing:
Yahoo
18-07-2025
- Business
- Yahoo
HELOC rates today, July 18, 2025: Rates are low enough for financial options
HELOC rates today are hanging steady below 8.75%. You may have credit card debt with an interest rate twice that high. If so, a home equity line of credit might be a debt consolidation solution to consider. According to the St. Louis Fed, the share of credit card holders with past-due balances is approaching levels last seen during the 2008 financial crisis. Using some of the cash value in your home to pay off the high-interest debt might give you some breathing room in your budget. Here's the latest on HELOC interest rate trends. This embedded content is not available in your region. HELOC rates Friday, July 18, 2025 According to Bank of America, the largest HELOC lender in the country by volume, today's average annual percentage yield (APR) on a 10-year draw HELOC is 8.72%. That is a variable rate that kicks in after a six-month introductory rate, which is 6.49% in most U.S. states. Of course, your personal HELOC rate will depend on various factors, including where you live. For example, Bank of America advertises a HELOC APR of 8.05% today in Iowa, but a 9.59% APR in New Mexico. Homeowners have a staggering amount of value tied up in their houses — more than $34 trillion at the end of 2024, according to the Federal Reserve. That's the third-largest amount of home equity on record. With mortgage rates lingering in the high 6% range, homeowners are not going to let go of their primary mortgage anytime soon, so selling a house may not be an option. Why let go of your 5%, 4% — or even 3% mortgage? Accessing some of that value with a use-it-as-you-need-it HELOC can be an excellent alternative. Dig deeper: Is a HELOC a good idea? Pros and cons to consider. How lenders determine HELOC interest rates HELOC interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which today is 7.50%. If a lender added 1% as a margin, the HELOC would have a rate of 8.50%. Lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home. Shop two or three lenders for the best terms. And average national HELOC rates can include "introductory" rates that may only last for six months or one year. After that, your interest rate will become adjustable, likely beginning at a substantially higher rate. Up Next Up Next How a HELOC works You don't have to give up your low-rate mortgage to access the equity in your home. Keep your primary mortgage and consider a second mortgage, such as a home equity line of credit. The best HELOC lenders offer low fees, a fixed-rate option, and generous credit lines. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit line limit. Pull some out; pay it back. Repeat. Meanwhile, you're paying down your low-interest-rate primary mortgage like the wealth-building machine you are. Learn more: How do fixed-rate HELOCs work, and which lenders offer them? This embedded content is not available in your region. Look for introductory rates, but be aware of a rate adjustment later Today, FourLeaf Credit Union is offering a HELOC APR of 6.49% for 12 months on lines up to $500,000. That's an introductory rate that will convert to a variable rate later. When shopping lenders, be aware of both rates. And as always, compare fees, repayment terms, and the minimum draw amount. The draw is the amount of money a lender requires you to initially take from your equity. The power of a HELOC is tapping only what you need and leaving some of your line of credit available for future needs. You don't pay interest on what you don't borrow. HELOC rates today: FAQs What is a good interest rate on a HELOC right now? Rates vary so much from one lender to the next that it's hard to pin down a magic number. You may see rates from 7% to as much as 18%. It really depends on your creditworthiness and how diligent a shopper you are. Is it a good idea to get a HELOC right now? For homeowners with low primary mortgage rates and a chunk of equity in their house, it's probably one of the best times to get a HELOC. You don't give up that great mortgage rate, and you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades. Of course, you can use a HELOC for fun things too, like a vacation — if you have the discipline to pay it off promptly. A vacation is likely not worth taking on long-term debt. What is the monthly payment on a $50,000 home equity line of credit? If you take out the full $50,000 from a line of credit on a $400,000 home, your payment may be around $395 per month with a variable interest rate of 8.75%. That's for a HELOC with a 10-year draw period and a 20-year repayment period. That sounds good, but remember, it winds up being a 30-year loan. HELOCs are best if you borrow and pay back the balance in a much shorter period of time.
Yahoo
17-07-2025
- Business
- Yahoo
Does your loan purpose matter? Yes — here's why
Key takeaways The purpose of your loan can impact the amount, terms and interest rates you're offered. Some lenders also place restrictions on how you can use the proceeds. Prequalifying with multiple lenders can help you find the best loan offer for your intended purpose, without hurting your credit. When applying for a personal loan, lenders will ask why you need the funds — and your answer matters. While many lenders offer personal loans that can be used for any (legal) purpose, some place restrictions on how funds can be used or adjust rates based on your intended purpose. Understanding how loan purpose affects your approval odds, loan amount, interest rates and terms can help you get the best possible deal. Here's what to know before you apply. Why does loan purpose matter? Debt consolidation, emergency expenses and home improvement are all common uses for personal loans. However you intend to use your loan, be prepared to disclose your loan purpose to the lender — it's often a required part of the application process. The loan purpose matters because the lender needs to determine whether the money will be used for something it allows. Some lenders may have specific restrictions as to what funds can be used for. The purpose of your loan may also impact the amount, interest rate and terms you qualify for. Lender choice Some lenders only offer loans for specific purposes. For instance, Happy Money specializes in loans for credit card debt consolidation. This can be a problem if you are trying to consolidate other unsecured debts, like a high-interest payday loan. In this case, you'd have to consider another lender. Loan amount Your loan purpose may impact the amount you're allowed to borrow. While some lenders, like LightStream, offer loans of up to $100,000, these large amounts are typically reserved for major purchases or home improvement projects. If you want to pay for a vacation (or other non-necessity) with your loan, you're unlikely to qualify for a lender's maximum amount — even with excellent credit. Repayment term Like loan amount, the repayment terms that are available to you may depend on your loan purpose. For example, LightStream offers terms of up to 12 years for home improvement loans, but limits terms to up to seven years for other purposes. Before accepting a loan, review the repayment terms carefully to ensure you can comfortably afford the monthly payments. Interest rates When comparing lenders, you will quickly find that interest rates vary significantly. Your personal loan rate will be based on factors like credit score, income, loan amount and term. However, some lenders will also consider your borrowing purpose when determining your rate offer. Lenders may charge a lower rate if you plan to use the loan for debt consolidation versus making a significant purchase with the money. What can I use a personal loan for? Personal loans are versatile and can cover a wide range of expenses. Debt consolidation remains the most popular use for personal loans because they help borrowers save money by consolidating high-interest debt, like credit cards, with a personal loan with lower interest rates. If you have stellar credit, you could secure the lowest interest rate available, which is often much less than a credit card. Other common personal loan uses include: Emergency expenses, like medical bills or urgent car repairs Home improvements or major repairs Monthly bills Moving expenses Wedding costs Vacation funding Large purchases, such as appliances, RVs or boats Funeral costs IVF and other fertility treatments Adoption expenses Pet emergencies or vet bills Restricted personal loan uses While personal loans can be used for nearly any purpose, lenders typically impose a few common restrictions. In most cases, you can't use a personal loan to finance: Down payment on a home using an FHA or conventional mortgage: This is risky, as the likelihood of falling behind on loan payments is higher with two payments to manage. Saving money over time in a high-yield savings account is a better way to create a down payment fund. Educational expenses and tuition: The 2008 Higher Education Opportunity Act restricts the types of education loans that lenders can issue, so personal loans for college are often disallowed. Federal student loans could be a viable option with their low interest rates, generous loan terms and wide availability, regardless of credit history. Business-related expenses: Personal loans are intended to be just that: personal. Funds often may not be put toward your small business. While some lenders don't explicitly prohibit this use, it's best to use a small business loan for business-related expenses. Gambling or speculative investments: Gambling is risky, and lenders' goal is to avoid risk. Other high-risk speculative investments — like cryptocurrency, stock market trading or IPOs — are also typically prohibited. Bottom line Your reason for getting a personal loan is yours, but your potential lender can determine important loan factors based on that reasoning. Regardless of why you need a personal loan, compare lenders to see which offers the best personal loan rates based on your credit and needs. To find the best deal, get prequalified with multiple lenders, as this will give you a realistic idea of your eligibility without impacting your credit. Frequently asked questions What is the best reason to give when applying for a personal loan? The truth. Misrepresenting your loan purpose can lead to loan denial, future legal issues or account closure. What happens if I use my loan for a different purpose? If your plans change after receiving the funds — for example, using the money for debt consolidation instead of a wedding — check your lender's policies. Some lenders allow flexibility, while others impose restrictions. The safest course is to contact your lender to disclose the change in loan use and ask for next steps. Does loan purpose affect approval odds? Yes. Some lenders base loan approvals, amounts or terms on how you plan to use the funds. Your loan purpose can also influence your interest rates, affecting the overall cost of borrowing. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
CBS News
08-07-2025
- Business
- CBS News
No-closing-cost HELOCs: 5 things to know before borrowing this July
Taking out a HELOC without paying for closing costs may sound like a good deal, but there are a few caveats to note first. Getty Images Interest in tapping home equity has remained high over the last several years, and for good reason. Thanks to years of rising home values, homeowners are sitting on very high levels of equity right now, and at an average of over $300,000 per household, there are a lot of ways to put that value to work. And, while there are a few different ways to tap into that equity, home equity lines of credit (HELOCs), in particular, are a popular option for everything from home improvements to consolidating debt or even covering big-ticket expenses like college tuition. But with borrowing costs still higher than in years past, no-closing-cost HELOCs, in particular, are grabbing the attention of homeowners who are looking to save a little extra upfront. And, at first glance, these products seem like a win-win: You avoid shelling out hundreds or thousands of dollars in closing costs, which can make taking out a HELOC more affordable in the short term. But as with most financial products, there's more to the story, and that additional context could cost you more than you bargained for — literally. So, before you start searching for no-closing-cost HELOC lenders, it's important to know how these types of HELOCs really work and what trade-offs may be lurking beneath the surface this month. Compare your home equity borrowing options and find the right fit now. No-closing-cost HELOCs: 5 things to know before borrowing this July Does the idea of a no-closing-cost HELOC sound intriguing? Here are some important things to keep in mind before borrowing: There are still closing costs to account for — but they aren't paid upfront Don't let the name fool you. Taking out a no-closing-cost HELOC doesn't mean your lender is waiving those fees entirely. The closing costs, which include things like application fees, appraisal charges and origination fees, are typically rolled into your line of credit or covered by the lender in exchange for a higher interest rate instead. Or, in some cases, the lender may recoup those fees by charging you if you close the line early. You need to make sure that you understand how the lender structures these costs so you aren't caught off guard later. Learn how affordable the right HELOC or home equity loan could be today. The break-even point matters more than you may think If your lender is rolling the closing costs into your line of credit via a higher interest rate, you'll want to calculate when you'll break even compared to paying those costs upfront. For example, if you're borrowing $50,000 and your rate is 0.5% higher on a no-closing-cost HELOC, you'll pay an extra $250 per year in interest. If the typical closing costs would have been $3,000, it would take 12 years to break even on the extra costs. If you plan to pay off the line sooner, you might be better off paying the closing costs upfront. Rate structures vary significantly between lenders Some no-closing-cost HELOCs start with promotional rates that jump after an introductory period, while others maintain consistent variable rates tied to the prime rate. Pay close attention to how your rate will adjust over time and what caps exist on rate increases. A slightly higher starting rate might be worth it if it comes with better long-term rate protection. Credit and borrowing requirements are often stricter Since lenders are absorbing upfront costs, they typically want to work with borrowers who are considered to be lower risk. This often means higher credit score requirements (usually 700 or above), lower debt-to-income ratios and sometimes higher equity amounts. If your credit profile isn't stellar, you might find better options with a traditional HELOC where you pay closing costs upfront. Reading the fine print on repayment penalties is crucial Most no-closing-cost HELOCs include clawback provisions that require you to reimburse closing costs if you pay off the line before a certain date. These periods typically range from three to five years, but some extend longer, so make sure you understand exactly when these penalties kick in and how much you'd owe if you do pay off your line of credit before it's due. And, you should also note that some lenders may also impose penalties for paying down large portions of your balance early, not just for closing the entire line. Other options for tapping home equity When evaluating no-closing-cost HELOCs against traditional options, consider your specific timeline and borrowing needs. If you're planning a short-term project and expect to pay off the line within a few years, a traditional HELOC with upfront costs might save you money. However, if you want ongoing access to credit for multiple projects or expect to carry a balance for many years, the no-closing-cost option could work in your favor. You also have other options if you decide that neither type of HELOC will fit your situation. For example, a cash-out refinance lets you replace your existing mortgage with a larger one and take the difference in cash, but you'll pay closing costs and could replace a lower mortgage rate with a higher one. Or, a home equity loan lets you borrow a lump sum at a fixed rate, which can be ideal if you prefer predictable payments. And for smaller expenses, a personal loan might offer a faster (though typically more expensive) path to funding. The bottom line No-closing-cost HELOCs can be a smart tool for the right borrower, but only if you understand how the "no-cost" feature really works. These products often shift costs in ways that aren't obvious at first glance, so weigh the potential savings against any higher rates, penalties or fees. Before committing, you should also compare offers from multiple lenders and consider how long you plan to keep the HELOC open. With a little due diligence, you can decide whether this option fits your financial goals or whether a traditional HELOC or another borrowing strategy makes more sense.
CBS News
08-07-2025
- Business
- CBS News
3 big things to know before consolidating your debt this July
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. If you're dealing with a lot of high-rate debt this July, debt consolidation could make sense, but it's important to do your homework first. Getty Images If you've noticed that your credit card balances have been creeping higher recently, you certainly aren't the only one. Americans are carrying record levels of revolving debt right now, with the average cardholder owing just under $8,000. And, they're carrying that amount of debt at a time when the average credit card interest rate is hovering around 22%. Those higher balances and borrowing costs are having a big impact on people's finances, especially when coupled with still-high inflation. That, in turn, has led debt consolidation to become an attractive option for those looking to reduce their monthly debt obligations. Consolidating your debt can be a smart financial move in nearly any economic landscape, as this type of debt relief allows you to combine multiple balances into one monthly payment, generally at a lower interest rate. By taking this route, you can save a lot of money on interest and pay off what you owe faster. But while debt consolidation can pay off, it's not a decision to rush into. You still need to weigh your options and understand a few important things before jumping in. Below, we'll examine what you need to know before making your move this month. Learn about the debt relief strategies you can use to reduce your balances now. 3 big things to know before consolidating your debt this July Here's what you need to know about consolidating your debt this July before making your move: Personal loans aren't the only option for consolidation. When people think of debt consolidation, personal loans are often the first thing that comes to mind. But while a personal loan can be used for this purpose, these types of loans aren't your only choice. Balance transfer credit cards, for example, can also help you consolidate debt, especially if you qualify for one with a 0% introductory APR. These offers can give you 12 to 21 months on average with no interest, which means you can completely erase interest if you can pay off the balance within that window. Just watch out for balance transfer fees (typically 3% to 5% of the transferred amount) and make sure you have a solid payoff plan before the promo period ends. Debt consolidation programs are another option, especially if your credit isn't strong enough to qualify for a low-rate loan or card. These programs, which are offered through debt relief companies, can help you secure a consolidation loan through the debt relief company's partner lenders. These loans are designed specifically for consolidating credit card debt and the lenders are accustomed to working with people who have minor credit issues, so they may be more accessible if you're struggling to qualify elsewhere. Explore your debt relief options and start tackling your high-rate debt today. The savings could be significant, even in today's rate environment. One of the biggest perks of debt consolidation is the potential to save money. Credit cards currently average around 22% APR, which can add hundreds or even thousands of dollars in interest to your balance over time. But by rolling those balances into a different borrowing product, the savings could be substantial. For example, right now, personal loan rates average about 12% for borrowers with good credit, so by rolling multiple high-rate cards into one loan with a rate at or near that rate, it could result in serious savings. Tapping into your home equity can also be a smart way to save when consolidating debt now, as rates on these products are hovering near 8% on average. Keep in mind, though, that the rate you qualify for when borrowing depends on your credit score, income and other factors. If your credit isn't in great shape, your loan rate might not be low enough to make consolidation worthwhile. In that case, other debt relief options, like debt forgiveness or debt management, may be a better fit. There may be a limit to how much (and the type of) debt you can consolidate. Debt consolidation can be a great way to get rid of your debt, but it isn't an option for every type of account. Most debt consolidation loans and balance transfer credit cards are designed to let you tackle unsecured debts like credit cards, medical bills or personal loans. They won't allow you to include secured debts like car loans or mortgages in the equation, though. There's also the question of loan limits when consolidating your debt. For example, lenders typically cap personal loans at between $50,000 and $100,000. If you have more debt than that, or if your debt-to-income ratio is too high, you may not qualify to borrow the amount you need. Even balance transfer cards come with limits based on your credit profile. So, if you're trying to consolidate a hefty amount of credit card debt with a balance transfer, you may have a tough time getting approved for the credit limit you need. So, before applying, you may want to take stock of how much debt you want to consolidate and what type it is. If you're juggling a mix of secured and unsecured debts, or if your total balances are very high, you may want to explore debt relief programs or even talk with a credit counselor to map out a different approach instead. The bottom line Debt consolidation can be a powerful tool for getting your finances back on track, and the current rate environment offers genuine opportunities for savings, but success depends on choosing the right method for your situation and having a solid plan in place. And, as you work to chip away at what you owe, be sure to also take an honest look at the spending habits that got you here. Consolidation without behavior change will only lead to similar problems in the future, so it's important to take a holistic approach to your debt overall.
