[{"data":1,"prerenderedAt":7829},["Reactive",2],{"/":3},{"data":4,"headers":7801,"perPage":7827,"total":7828},{"stories":5,"cv":7798,"rels":7799,"links":7800},[6,834,1883,2824,3606,4262,4791,5662,7031],{"name":7,"created_at":8,"published_at":9,"updated_at":10,"id":11,"uuid":12,"content":13,"slug":824,"full_slug":825,"sort_by_date":96,"position":826,"tag_list":827,"is_startpage":29,"parent_id":828,"meta_data":96,"group_id":829,"first_published_at":830,"release_id":96,"lang":831,"path":832,"alternates":833,"default_full_slug":96,"translated_slugs":96},"How Does A Heloc Work?","2025-04-07T18:30:38.516Z","2025-12-26T13:44:56.923Z","2025-12-26T13:44:56.946Z",651798170,"149c25e0-c31c-483c-8cf0-f5104370e5bc",{"seo":14,"_uid":20,"hero":21,"author":31,"category":32,"featured":29,"imageAlt":18,"component":33,"blogContents":34,"canonicalTag":821,"publishedDate":822,"_editable":823},{"_uid":15,"title":16,"plugin":17,"og_image":18,"og_title":18,"description":19,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"77316249-bb90-485a-9a34-facfdf611141","How does a HELOC work? ","seo_metatags","","A home equity line of credit (HELOC) is when you use your home equity as leverage to take out new credit. Learn more about how to use these to your advantage.","39f3568e-f888-4c3e-816f-3647f7efec59",[22],{"id":18,"_uid":23,"image":24,"intro":19,"classes":18,"_editable":25,"blogTitle":26,"component":27,"imageLink":28,"blendImage":29,"backgroundColor":30},"ee81b4ff-6c03-4123-98ae-73405dea4592","//a.storyblok.com/f/110029/5658x3772/b8274780a7/how-does-a-heloc-work.png","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798170\"}-->","How Does a HELOC Work?","NriBlogHero","/images/how-does-a-heloc-work.png",false,"#F6F2F7","natasha-khullar-relph","Personal Loans","NriBlogPost",[35],{"_uid":36,"color":37,"richText":38,"_editable":819,"component":820},"67b1c1a7-fbb7-4c3c-a267-87dc959687fb","#444444",{"type":39,"content":40},"doc",[41,56,63,70,82,106,113,121,130,137,258,266,287,294,301,363,371,378,385,461,469,488,496,574,582,631,639,686,703,734,751,759,786,795,810],{"type":42,"content":43},"paragraph",[44],{"text":45,"type":46,"marks":47},"Navient may receive compensation when you click on links associated with this Navient Marketplace. Navient is not being compensated for any application, quotation, or the purchase of any financial products.","text",[48,52],{"type":49,"attrs":50},"styled",{"class":51},"footer-text",{"type":53,"attrs":54},"textStyle",{"color":55},"rgb(0, 0, 0)",{"type":42,"content":57},[58],{"text":59,"type":46,"marks":60},"If you’re a homeowner and find yourself strapped for cash, you may be overlooking the funds right under your nose: the value stored within your property. If you need money to cover an emergency expense, do some remodeling, or manage other debts, you can use your home equity as leverage to take out new credit. This is called a Home Equity Line of Credit (HELOC). ",[61],{"type":53,"attrs":62},{"color":55},{"type":42,"content":64},[65],{"text":66,"type":46,"marks":67},"With a HELOC, you put your home up as collateral in exchange for a flexible, reliable source of funds. But how does a HELOC work? And how can you decide if it’s right for you?",[68],{"type":53,"attrs":69},{"color":55},{"type":71,"attrs":72,"content":74},"heading",{"level":73},2,[75],{"text":76,"type":46,"marks":77},"What is a HELOC?",[78,80],{"type":79},"bold",{"type":53,"attrs":81},{"color":55},{"type":42,"content":83},[84,89,101],{"text":85,"type":46,"marks":86},"A ",[87],{"type":53,"attrs":88},{"color":55},{"text":90,"type":46,"marks":91},"home equity line of credit (HELOC)",[92,99],{"type":93,"attrs":94},"link",{"href":95,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://offers.moneylion.com/channelTrackingOfferRedirect/bcd695cb-0506-4838-b6cd-dc453bc187ca/70a8fc69-658a-4a1e-a98f-cef4814d2db2",null,"_blank","url",{"type":53,"attrs":100},{"color":55},{"text":102,"type":46,"marks":103}," allows homeowners to borrow money using the equity they’ve built up in their home as collateral. It provides a revolving credit line (somewhat like a credit card) that can be used for various purposes such as home improvements, debt consolidation, or other large expenses. ",[104],{"type":53,"attrs":105},{"color":55},{"type":42,"content":107},[108],{"text":109,"type":46,"marks":110},"A HELOC can prove particularly advantageous for projects characterized by uncertain costs and timelines. For instance, consider a home renovation project where the final expenses might fluctuate based on unexpected structural discoveries. In a situation like that, a HELOC would allow you to access funds incrementally as needed, enabling you to manage evolving costs without taking on unnecessary debt upfront. ",[111],{"type":53,"attrs":112},{"color":55},{"type":71,"attrs":114,"content":115},{"level":73},[116],{"text":117,"type":46,"marks":118},"How does a HELOC work? ",[119],{"type":53,"attrs":120},{"color":55},{"type":71,"attrs":122,"content":124},{"level":123},3,[125],{"text":126,"type":46,"marks":127},"Qualifying for a HELOC",[128],{"type":53,"attrs":129},{"color":55},{"type":42,"content":131},[132],{"text":133,"type":46,"marks":134},"To qualify for a HELOC, you’ll need to meet certain criteria.",[135],{"type":53,"attrs":136},{"color":55},{"type":138,"content":139},"bullet_list",[140,185,200,229],{"type":141,"content":142},"list_item",[143],{"type":42,"content":144},[145,151,156,166,171,180],{"text":146,"type":46,"marks":147},"Minimum amount of equity: ",[148,149],{"type":79},{"type":53,"attrs":150},{"color":55},{"text":152,"type":46,"marks":153},"To qualify for a HELOC, you typically need to have a certain amount of equity in your home. Equity is the difference between your home’s current market value and the outstanding mortgage balance. While specific requirements vary between lenders, the general guideline ranges between ",[154],{"type":53,"attrs":155},{"color":55},{"text":157,"type":46,"marks":158},"15 and 20%",[159,162,164],{"type":93,"attrs":160},{"href":161,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.cusocal.org/Learn/Financial-Guidance/Blog/how-soon-can-i-get-a-heloc",{"type":53,"attrs":163},{"color":55},{"type":165},"underline",{"text":167,"type":46,"marks":168},". The more equity you have in your home, the higher your chances of qualifying for a HELOC. Lenders will generally look at a metric called ",[169],{"type":53,"attrs":170},{"color":55},{"text":172,"type":46,"marks":173},"loan-to-value ratio (LTV ratio)",[174,177,179],{"type":93,"attrs":175},{"href":176,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/what-is-a-loan-to-value-ratio-and-how-does-it-relate-to-my-costs-en-121/",{"type":53,"attrs":178},{"color":55},{"type":165},{"text":181,"type":46,"marks":182},", which compares the amount you owe on your first mortgage to the home’s appraised value.",[183],{"type":53,"attrs":184},{"color":55},{"type":141,"content":186},[187],{"type":42,"content":188},[189,195],{"text":190,"type":46,"marks":191},"Credit score and financial situation: ",[192,193],{"type":79},{"type":53,"attrs":194},{"color":55},{"text":196,"type":46,"marks":197},"Lenders will also assess your creditworthiness, including your credit score and credit history. You may be more likely to qualify for a HELOC if you have a good credit score, typically above 620. Likewise, your application will be stronger if you can demonstrate responsible financial management, a history of on-time mortgage payments, and few other debts.",[198],{"type":53,"attrs":199},{"color":55},{"type":141,"content":201},[202],{"type":42,"content":203},[204,210,215,224],{"text":205,"type":46,"marks":206},"Income and debt-to-income ratio: ",[207,208],{"type":79},{"type":53,"attrs":209},{"color":55},{"text":211,"type":46,"marks":212},"Both your income and ",[213],{"type":53,"attrs":214},{"color":55},{"text":216,"type":46,"marks":217},"debt-to-income ratio",[218,221,223],{"type":93,"attrs":219},{"href":220,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/what-is-a-debt-to-income-ratio-en-1791/#:~:text=Your%20debt%2Dto%2Dincome%20ratio,will%20have%20different%20DTI%20limits.",{"type":53,"attrs":222},{"color":55},{"type":165},{"text":225,"type":46,"marks":226}," — the percentage of your monthly income that goes towards paying your debt — will play a role in determining how much you can borrow through a HELOC. Lenders will want to see that your income is sufficient to cover your existing debts as well as additional HELOC payments. ",[227],{"type":53,"attrs":228},{"color":55},{"type":141,"content":230},[231],{"type":42,"content":232},[233,239,244,253],{"text":234,"type":46,"marks":235},"Home appraisal: ",[236,237],{"type":79},{"type":53,"attrs":238},{"color":55},{"text":240,"type":46,"marks":241},"Lenders may require a professional appraisal to assess the market value of your home. The lender will then calculate your credit limit based on that value and your current home equity. ",[242],{"type":53,"attrs":243},{"color":55},{"text":245,"type":46,"marks":246},"Most lenders will allow you to access up to 80%",[247,250,252],{"type":93,"attrs":248},{"href":249,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.debt.org/real-estate/mortgages/home-equity-line-of-credit/",{"type":53,"attrs":251},{"color":55},{"type":165},{"text":254,"type":46,"marks":255}," of the amount of equity you have in your home. ",[256],{"type":53,"attrs":257},{"color":55},{"type":71,"attrs":259,"content":260},{"level":123},[261],{"text":262,"type":46,"marks":263},"The draw period",[264],{"type":53,"attrs":265},{"color":55},{"type":42,"content":267},[268,273,282],{"text":269,"type":46,"marks":270},"Once you qualify for a HELOC, you’ll be given a set credit limit and a time period during which you can withdraw funds. This is called the “draw period.” During this phase, you have the flexibility to borrow funds as needed, as with any other ",[271],{"type":53,"attrs":272},{"color":55},{"text":274,"type":46,"marks":275},"revolving line of credit",[276,279,281],{"type":93,"attrs":277},{"href":278,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.debt.org/credit/revolving/",{"type":53,"attrs":280},{"color":55},{"type":165},{"text":283,"type":46,"marks":284},". The draw period is what makes a HELOC different from other types of loans: it gives you the flexibility to borrow based on your changing needs rather than having to take out a specific amount or a single lump sum. While the draw period for each individual HELOC will depend on the terms of your loan and the lender’s policies, it should typically range from 5 to 10 years. ",[285],{"type":53,"attrs":286},{"color":55},{"type":42,"content":288},[289],{"text":290,"type":46,"marks":291},"While it may be tempting to borrow liberally during the draw period, it’s usually not advisable to rely on a HELOC for day-to-day expenses or speculative investing. Rather, it’s best to use the funds for expenses that are guaranteed to increase the value of your assets — like home renovations. ",[292],{"type":53,"attrs":293},{"color":55},{"type":42,"content":295},[296],{"text":297,"type":46,"marks":298},"Here are the key characteristics of the draw period: ",[299],{"type":53,"attrs":300},{"color":55},{"type":138,"content":302},[303,318,333,348],{"type":141,"content":304},[305],{"type":42,"content":306},[307,313],{"text":308,"type":46,"marks":309},"Access to funds:",[310,311],{"type":79},{"type":53,"attrs":312},{"color":55},{"text":314,"type":46,"marks":315}," During the 10-year draw period, you can access funds from the HELOC up to your approved credit limit. ",[316],{"type":53,"attrs":317},{"color":55},{"type":141,"content":319},[320],{"type":42,"content":321},[322,328],{"text":323,"type":46,"marks":324},"Flexible borrowing: ",[325,326],{"type":79},{"type":53,"attrs":327},{"color":55},{"text":329,"type":46,"marks":330},"You have the flexibility to borrow funds multiple times within the draw period, making it suitable for ongoing or variable expenses. If you want, you can repay the funds via monthly installments during the draw period. This replenishes the available credit in your HELOC, allowing you to borrow again as needed. ",[331],{"type":53,"attrs":332},{"color":55},{"type":141,"content":334},[335],{"type":42,"content":336},[337,343],{"text":338,"type":46,"marks":339},"Interest-only payments: ",[340,341],{"type":79},{"type":53,"attrs":342},{"color":55},{"text":344,"type":46,"marks":345},"Typically, you’re required to make interest-only payments during the draw period. These minimum payments tend to be quite low, which makes borrowing extremely affordable until the draw period ends. ",[346],{"type":53,"attrs":347},{"color":55},{"type":141,"content":349},[350],{"type":42,"content":351},[352,358],{"text":353,"type":46,"marks":354},"Variable interest rate: ",[355,356],{"type":79},{"type":53,"attrs":357},{"color":55},{"text":359,"type":46,"marks":360},"Most HELOC interest rates are variable, which means your rate can change based on fluctuations in the market.",[361],{"type":53,"attrs":362},{"color":55},{"type":71,"attrs":364,"content":365},{"level":123},[366],{"text":367,"type":46,"marks":368},"The repayment period",[369],{"type":53,"attrs":370},{"color":55},{"type":42,"content":372},[373],{"text":374,"type":46,"marks":375},"After the draw period ends, you’ll transition into the repayment period. During this phase, you’ll no longer be able to withdraw funds from your HELOC credit line. Instead, you’ll need to start making monthly payments on both the principal amount you borrowed and any interest that has accrued. ",[376],{"type":53,"attrs":377},{"color":55},{"type":42,"content":379},[380],{"text":381,"type":46,"marks":382},"Typically, the repayment period will span around 10 to 20 years, depending on the terms of your HELOC and the agreement you established with your lender. Here are the key characteristics of the repayment period: ",[383],{"type":53,"attrs":384},{"color":55},{"type":138,"content":386},[387,402,417,432],{"type":141,"content":388},[389],{"type":42,"content":390},[391,397],{"text":392,"type":46,"marks":393},"No more borrowing: ",[394,395],{"type":79},{"type":53,"attrs":396},{"color":55},{"text":398,"type":46,"marks":399},"The repayment period marks the end of the borrowing phase, meaning you can no longer access additional funds from your HELOC.",[400],{"type":53,"attrs":401},{"color":55},{"type":141,"content":403},[404],{"type":42,"content":405},[406,412],{"text":407,"type":46,"marks":408},"Regular monthly payments: ",[409,410],{"type":79},{"type":53,"attrs":411},{"color":55},{"text":413,"type":46,"marks":414},"During the repayment period, you’re required to make monthly payments on both your outstanding balance and any accrued interest. As you pay down the principal, your home equity increases. ",[415],{"type":53,"attrs":416},{"color":55},{"type":141,"content":418},[419],{"type":42,"content":420},[421,427],{"text":422,"type":46,"marks":423},"Fixed term: ",[424,425],{"type":79},{"type":53,"attrs":426},{"color":55},{"text":428,"type":46,"marks":429},"The repayment period has a fixed duration, often ranging from 10 to 20 years, depending on the terms of your HELOC agreement.",[430],{"type":53,"attrs":431},{"color":55},{"type":141,"content":433},[434],{"type":42,"content":435},[436,442,447,456],{"text":437,"type":46,"marks":438},"Amortization:",[439,440],{"type":79},{"type":53,"attrs":441},{"color":55},{"text":443,"type":46,"marks":444}," Your repayments will follow an ",[445],{"type":53,"attrs":446},{"color":55},{"text":448,"type":46,"marks":449},"amortization schedule",[450,453,455],{"type":93,"attrs":451},{"href":452,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://corporatefinanceinstitute.com/resources/commercial-lending/amortization-schedule/",{"type":53,"attrs":454},{"color":55},{"type":165},{"text":457,"type":46,"marks":458},". In the beginning, most of each payment will go toward paying down interest charges. But over time, as you pay that interest off, more and more of each payment will go toward paying off the principal.  ",[459],{"type":53,"attrs":460},{"color":55},{"type":71,"attrs":462,"content":463},{"level":73},[464],{"text":465,"type":46,"marks":466},"Pros and cons of a HELOC ",[467],{"type":53,"attrs":468},{"color":55},{"type":42,"content":470},[471,476,483],{"text":472,"type":46,"marks":473},"Think a ",[474],{"type":53,"attrs":475},{"color":55},{"text":477,"type":46,"marks":478},"HELOC is right for you",[479,481],{"type":93,"attrs":480},{"href":95,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":482},{"color":55},{"text":484,"type":46,"marks":485},"? Consider these pros and cons first.  ",[486],{"type":53,"attrs":487},{"color":55},{"type":71,"attrs":489,"content":490},{"level":123},[491],{"text":492,"type":46,"marks":493},"Pros:",[494],{"type":53,"attrs":495},{"color":55},{"type":497,"attrs":498,"content":500},"ordered_list",{"order":499},1,[501,515,530,545],{"type":141,"content":502},[503],{"type":42,"content":504},[505,510],{"text":308,"type":46,"marks":506},[507,508],{"type":79},{"type":53,"attrs":509},{"color":55},{"text":511,"type":46,"marks":512}," For most people, a home is the most prized asset they own, but it can be hard to access its value. A HELOC allows them to do that. It can be helpful for big expenses like home renovations, education costs, or debt consolidation.",[513],{"type":53,"attrs":514},{"color":55},{"type":141,"content":516},[517],{"type":42,"content":518},[519,525],{"text":520,"type":46,"marks":521},"Flexibility",[522,523],{"type":79},{"type":53,"attrs":524},{"color":55},{"text":526,"type":46,"marks":527},": Since you only pay interest and principal on what you withdraw, you can borrow as much or as little as you need. ",[528],{"type":53,"attrs":529},{"color":55},{"type":141,"content":531},[532],{"type":42,"content":533},[534,540],{"text":535,"type":46,"marks":536},"Lower interest rates",[537,538],{"type":79},{"type":53,"attrs":539},{"color":55},{"text":541,"type":46,"marks":542},": Because they’re secured by your home, HELOCs generally have lower interest rates compared to other types of loans.",[543],{"type":53,"attrs":544},{"color":55},{"type":141,"content":546},[547],{"type":42,"content":548},[549,555,560,569],{"text":550,"type":46,"marks":551},"Tax advantages:",[552,553],{"type":79},{"type":53,"attrs":554},{"color":55},{"text":556,"type":46,"marks":557}," Depending on how you use it, ",[558],{"type":53,"attrs":559},{"color":55},{"text":561,"type":46,"marks":562},"a HELOC may offer tax advantages",[563,566,568],{"type":93,"attrs":564},{"href":565,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.irs.gov/faqs/itemized-deductions-standard-deduction/real-estate-taxes-mortgage-interest-points-other-property-expenses/real-estate-taxes-mortgage-interest-points-other-property-expenses-2",{"type":53,"attrs":567},{"color":55},{"type":165},{"text":570,"type":46,"marks":571},". The Tax Cuts and Jobs Act of 2017 changed the tax deductions offered by HELOCs, so it's important to consult with a tax professional to understand the specific tax implications.",[572],{"type":53,"attrs":573},{"color":55},{"type":71,"attrs":575,"content":576},{"level":123},[577],{"text":578,"type":46,"marks":579},"Cons:",[580],{"type":53,"attrs":581},{"color":55},{"type":497,"attrs":583,"content":585},{"order":584},{"order":499},[586,601,616],{"type":141,"content":587},[588],{"type":42,"content":589},[590,596],{"text":591,"type":46,"marks":592},"Variable interest rates",[593,594],{"type":79},{"type":53,"attrs":595},{"color":55},{"text":597,"type":46,"marks":598},": HELOCs often come with variable interest rates, meaning that the interest rates can fluctuate over time. This can result in higher costs if national rates increase.",[599],{"type":53,"attrs":600},{"color":55},{"type":141,"content":602},[603],{"type":42,"content":604},[605,611],{"text":606,"type":46,"marks":607},"Fees",[608,609],{"type":79},{"type":53,"attrs":610},{"color":55},{"text":612,"type":46,"marks":613},": There may be upfront and ongoing fees associated with a HELOC, such as application fees, appraisal fees, or annual fees.",[614],{"type":53,"attrs":615},{"color":55},{"type":141,"content":617},[618],{"type":42,"content":619},[620,626],{"text":621,"type":46,"marks":622},"Collateral risk",[623,624],{"type":79},{"type":53,"attrs":625},{"color":55},{"text":627,"type":46,"marks":628},": Your home serves as collateral for the HELOC, which means that if you are unable to repay the loan, you risk foreclosure or losing your home.",[629],{"type":53,"attrs":630},{"color":55},{"type":71,"attrs":632,"content":633},{"level":73},[634],{"text":635,"type":46,"marks":636},"HELOC alternatives",[637],{"type":53,"attrs":638},{"color":55},{"type":138,"content":640},[641],{"type":141,"content":642},[643],{"type":42,"content":644},[645,651,656,664,672,681],{"text":646,"type":46,"marks":647},"Personal loans",[648,649],{"type":79},{"type":53,"attrs":650},{"color":55},{"text":652,"type":46,"marks":653},":",[654],{"type":53,"attrs":655},{"color":55},{"text":657,"type":46,"marks":658}," ",[659,662],{"type":93,"attrs":660},{"href":661,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://marketplace.navient.com/blog/how-do-personal-loans-work/",{"type":53,"attrs":663},{"color":55},{"text":665,"type":46,"marks":666},"A personal loan",[667,669,671],{"type":93,"attrs":668},{"href":661,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":670},{"color":55},{"type":165},{"text":673,"type":46,"marks":674},"1",[675,678,679],{"type":49,"attrs":676},{"class":677},"superscript",{"type":677},{"type":53,"attrs":680},{"color":55},{"text":682,"type":46,"marks":683}," is a type of loan that you can borrow from a bank, credit union, or online lender. You can use this loan option for almost any purpose. Unlike a HELOC, a personal loan is usually unsecured, which means it doesn’t require any collateral. This also means that a personal loan will usually have a higher interest rate than a HELOC because the lender cannot recoup their losses if you fail to repay your loan. ",[684],{"type":53,"attrs":685},{"color":55},{"type":138,"content":687},[688],{"type":141,"content":689},[690],{"type":42,"content":691},[692,698],{"text":693,"type":46,"marks":694},"Home equity loans:",[695,696],{"type":79},{"type":53,"attrs":697},{"color":55},{"text":699,"type":46,"marks":700}," Like a HELOC, a home equity loan is a type of second mortgage that allows homeowners to borrow money using the available equity they have in their home. Unlike a HELOC, a home equity loan is a lump-sum loan with a fixed interest rate and a set term (no draw and repayment period). ",[701],{"type":53,"attrs":702},{"color":55},{"type":138,"content":704},[705],{"type":141,"content":706},[707],{"type":42,"content":708},[709,715,720,729],{"text":710,"type":46,"marks":711},"Credit cards",[712,713],{"type":79},{"type":53,"attrs":714},{"color":55},{"text":716,"type":46,"marks":717},": If your expense is smaller and you expect to have the cash to get out of debt soon, a credit card can work. Look for a 0% introductory APR and make sure you pay off all your credit card debt ",[718],{"type":53,"attrs":719},{"color":55},{"text":721,"type":46,"marks":722},"before the interest rate skyrockets",[723,726,728],{"type":93,"attrs":724},{"href":725,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.experian.com/blogs/ask-experian/how-do-0-apr-credit-cards-work/",{"type":53,"attrs":727},{"color":55},{"type":165},{"text":730,"type":46,"marks":731},". ",[732],{"type":53,"attrs":733},{"color":55},{"type":138,"content":735},[736],{"type":141,"content":737},[738],{"type":42,"content":739},[740,746],{"text":741,"type":46,"marks":742},"Cash-out refinance",[743,744],{"type":79},{"type":53,"attrs":745},{"color":55},{"text":747,"type":46,"marks":748},": A cash-out refinance is a refinancing option where you replace your current mortgage with a new, higher home loan. The difference between the two loan amounts is paid out in cash. A cash-out refinance can be a good option if your home has appreciated in value and you need cash for a major expense. ",[749],{"type":53,"attrs":750},{"color":55},{"type":71,"attrs":752,"content":753},{"level":73},[754],{"text":755,"type":46,"marks":756},"Compare loans with Navient Marketplace",[757],{"type":53,"attrs":758},{"color":55},{"type":42,"content":760},[761,766,773,781],{"text":762,"type":46,"marks":763},"If you feel uncertain about putting your home up as collateral for a HELOC, you may want to consider an unsecured personal loan to cover your upcoming expenses. Not sure where to get started? Navient Marketplace partners with Fiona, a leading personal loan search tool, to help borrowers find loans custom-tailored to their needs. Go to Navient Marketplace today to",[764],{"type":53,"attrs":765},{"color":55},{"text":657,"type":46,"marks":767},[768,771],{"type":93,"attrs":769},{"href":770,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://marketplace.navient.com/",{"type":53,"attrs":772},{"color":55},{"text":774,"type":46,"marks":775},"find and prequalify for flexible loans",[776,778,780],{"type":93,"attrs":777},{"href":770,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":779},{"color":55},{"type":165},{"text":782,"type":46,"marks":783}," from the country’s top lenders.",[784],{"type":53,"attrs":785},{"color":55},{"type":42,"content":787},[788],{"text":789,"type":46,"marks":790},"Disclaimer: This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.",[791,793],{"type":49,"attrs":792},{"class":51},{"type":53,"attrs":794},{"color":55},{"type":42,"content":796},[797,803],{"text":673,"type":46,"marks":798},[799,801],{"type":49,"attrs":800},{"class":677},{"type":53,"attrs":802},{"color":55},{"text":804,"type":46,"marks":805}," Navient customers are invited to consider personal loan offers through our partner Fiona. Navient has not shared your information with Fiona and is not involved in the personal loan application process in any manner. All information is submitted directly to Fiona and any personal loan offers are made directly by participants in Fiona’s lending platform, powered by Even Financial. Even Financial, Inc. is the industry-leading embedded financial marketplace and independent subsidiary of MoneyLion Inc. (“MoneyLion”) (NYSE:ML). Checking your rate will not affect your credit score. Eligibility is not guaranteed and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. ",[806,808],{"type":49,"attrs":807},{"class":51},{"type":53,"attrs":809},{"color":55},{"type":42,"content":811},[812],{"text":813,"type":46,"marks":814},"Loan proceeds may not be used for postsecondary educational expenses, including refinancing federal or private student loans. ",[815,817],{"type":49,"attrs":816},{"class":51},{"type":53,"attrs":818},{"color":55},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798170\"}-->","BlogText","https://www.marketplace.navient.com/blog/how-does-a-heloc-work","Updated: September 20, 2023","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"39f3568e-f888-4c3e-816f-3647f7efec59\", \"id\": \"651798170\"}-->","how-does-a-heloc-work","navient_marketplace/blog/how-does-a-heloc-work",-500,[],651751493,"1162ccad-df5d-4d7b-aa34-11a89d2b96e9","2023-09-26T16:22:24.242Z","default","blog/how-does-a-heloc-work",[],{"name":835,"created_at":836,"published_at":837,"updated_at":838,"id":839,"uuid":840,"content":841,"slug":1877,"full_slug":1878,"sort_by_date":96,"position":826,"tag_list":1879,"is_startpage":29,"parent_id":828,"meta_data":96,"group_id":1880,"first_published_at":1881,"release_id":96,"lang":831,"path":96,"alternates":1882,"default_full_slug":96,"translated_slugs":96},"Home Equity Loan vs. Line of Credit","2025-04-07T18:30:36.731Z","2025-12-26T13:44:57.177Z","2025-12-26T13:44:57.254Z",651798169,"a18482a3-561b-4e63-880e-f6c0a7ece8fc",{"seo":842,"_uid":20,"hero":845,"author":31,"category":32,"featured":29,"imageAlt":18,"component":33,"blogContents":851,"canonicalTag":1875,"publishedDate":822,"_editable":1876},{"_uid":15,"title":843,"plugin":17,"og_image":18,"og_title":18,"description":844,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"Home Equity Loan vs. Line of Credit: What's the Difference? | Navient Marketplace","Your home’s equity is great financial leverage for taking out new credit. Here’s how to choose the right option for your goals.",[846],{"id":18,"_uid":23,"image":847,"intro":844,"classes":18,"_editable":848,"blogTitle":849,"component":27,"imageLink":850,"blendImage":29,"backgroundColor":30},"//a.storyblok.com/f/110029/5408x3605/b2c5381fc5/home-equity-loan-vs-line-of-credit.png","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798169\"}-->","Home Equity Loan vs. Line of Credit: What's the Difference?","/images/home-equity-loan-vs-line-of-credit.png",[852],{"_uid":36,"color":37,"richText":853,"_editable":1874,"component":820},{"type":39,"content":854},[855,863,870,877,885,892,900,907,1071,1079,1088,1105,1122,1153,1170,1187,1195,1226,1257,1274,1291,1299,1306,1314,1321,1398,1406,1414,1431,1448,1465,1482,1508,1516,1533,1550,1567,1575,1582,1589,1618,1625,1663,1671,1678,1715,1746,1763,1780,1797,1814,1822,1842,1850,1865],{"type":42,"content":856},[857],{"text":45,"type":46,"marks":858},[859,861],{"type":49,"attrs":860},{"class":51},{"type":53,"attrs":862},{"color":55},{"type":42,"content":864},[865],{"text":866,"type":46,"marks":867},"As a homeowner, your home is one of your most prized assets. With each mortgage payment, you gradually build up the equity in your property. This — your home equity — is the percentage of your home’s value that you officially own. Building home equity is a great way to increase your net worth. But you can also use your home equity as financial leverage to take out new credit. ",[868],{"type":53,"attrs":869},{"color":55},{"type":42,"content":871},[872],{"text":873,"type":46,"marks":874},"There are two main types of credit you can get using your home’s equity: home equity loans and home equity lines of credit (HELOCs). Here’s how to choose the right option for your goals. ",[875],{"type":53,"attrs":876},{"color":55},{"type":71,"attrs":878,"content":879},{"level":73},[880],{"text":881,"type":46,"marks":882},"What is a home equity loan?",[883],{"type":53,"attrs":884},{"color":55},{"type":42,"content":886},[887],{"text":888,"type":46,"marks":889},"A home equity loan is a type of second mortgage that allows you to borrow against the equity you’ve built up in your property. Home equity loans are popular for debt consolidation as well as covering home repairs and remodels. If you qualify for a home equity loan, the bank will loan you a lump sum of money, which you’ll then repay via a series of fixed monthly payments over a predetermined period of time. ",[890],{"type":53,"attrs":891},{"color":55},{"type":71,"attrs":893,"content":894},{"level":73},[895],{"text":896,"type":46,"marks":897},"How does a home equity loan work?",[898],{"type":53,"attrs":899},{"color":55},{"type":42,"content":901},[902],{"text":903,"type":46,"marks":904},"Here’s how to take out, use, and pay back a home equity loan. ",[905],{"type":53,"attrs":906},{"color":55},{"type":497,"attrs":908,"content":909},{"order":499},[910,953,982,997,1026,1041,1056],{"type":141,"content":911},[912],{"type":42,"content":913},[914,920,925,935,940,948],{"text":915,"type":46,"marks":916},"Check your eligibility: ",[917,918],{"type":79},{"type":53,"attrs":919},{"color":55},{"text":921,"type":46,"marks":922},"To qualify for a home equity loan, you’ll need to have a significant amount of equity in your property, as well as a ",[923],{"type":53,"attrs":924},{"color":55},{"text":926,"type":46,"marks":927},"good credit score",[928,931,934],{"type":93,"attrs":929},{"href":930,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.usa.gov/credit-score",{"type":53,"attrs":932},{"color":933},"rgb(17, 85, 204)",{"type":165},{"text":936,"type":46,"marks":937}," and a stable income. To determine your equity, lenders typically look at your ",[938],{"type":53,"attrs":939},{"color":55},{"text":941,"type":46,"marks":942},"loan-to-value ratio (LTV)",[943,945,947],{"type":93,"attrs":944},{"href":176,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":946},{"color":933},{"type":165},{"text":949,"type":46,"marks":950},". This number, expressed as a percentage, is the remaining balance of your mortgage loan divided by the cost of your house. So, if your house is valued at $300,000 and you have $250,000 left on your mortgage, your LTV is $250,000 / $300,000, or 83%. Lenders typically require an LTV of around 80% or lower.",[951],{"type":53,"attrs":952},{"color":55},{"type":141,"content":954},[955],{"type":42,"content":956},[957,963,968,977],{"text":958,"type":46,"marks":959},"Get prequalified",[960,961],{"type":79},{"type":53,"attrs":962},{"color":55},{"text":964,"type":46,"marks":965},": Before starting the official loan application process, you can opt for ",[966],{"type":53,"attrs":967},{"color":55},{"text":969,"type":46,"marks":970},"prequalification",[971,974,976],{"type":93,"attrs":972},{"href":973,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/owning-a-home/explore/get-prequalification-or-preapproval-letter/",{"type":53,"attrs":975},{"color":933},{"type":165},{"text":978,"type":46,"marks":979},". This step involves providing basic financial information to the lender to get an estimate of the loan amount and terms you may qualify for.",[980],{"type":53,"attrs":981},{"color":55},{"type":141,"content":983},[984],{"type":42,"content":985},[986,992],{"text":987,"type":46,"marks":988},"Fill out a loan application: ",[989,990],{"type":79},{"type":53,"attrs":991},{"color":55},{"text":993,"type":46,"marks":994},"If you think you qualify, you’ll fill out an application with the lender of your choice. You’ll need to provide proof of income, property details, and your credit history.",[995],{"type":53,"attrs":996},{"color":55},{"type":141,"content":998},[999],{"type":42,"content":1000},[1001,1007,1012,1021],{"text":1002,"type":46,"marks":1003},"Receive a property appraisal: ",[1004,1005],{"type":79},{"type":53,"attrs":1006},{"color":55},{"text":1008,"type":46,"marks":1009},"Before approving your application, the new lender will conduct a ",[1010],{"type":53,"attrs":1011},{"color":55},{"text":1013,"type":46,"marks":1014},"property appraisal",[1015,1018,1020],{"type":93,"attrs":1016},{"href":1017,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/what-are-appraisals-and-why-do-i-need-to-look-at-them-en-167/",{"type":53,"attrs":1019},{"color":933},{"type":165},{"text":1022,"type":46,"marks":1023}," to determine the market value of your home. The maximum amount of money they’ll lend you is generally up to 80% of the equity you hold. ",[1024],{"type":53,"attrs":1025},{"color":55},{"type":141,"content":1027},[1028],{"type":42,"content":1029},[1030,1036],{"text":1031,"type":46,"marks":1032},"Agree on repayment terms: ",[1033,1034],{"type":79},{"type":53,"attrs":1035},{"color":55},{"text":1037,"type":46,"marks":1038},"If approved, you’ll receive the approved loan amount in a single lump sum. (Once you take out the loan, your home equity will drop by an equivalent amount.) You’ll pay interest on your loan amount with each monthly payment. Most home equity loans have fixed interest rates, which means your monthly payment will remain the same throughout the life of the loan. The rate you qualify for will be based on your credit score, loan amount, and current loan-to-value ratio.",[1039],{"type":53,"attrs":1040},{"color":55},{"type":141,"content":1042},[1043],{"type":42,"content":1044},[1045,1051],{"text":1046,"type":46,"marks":1047},"Use the funds:",[1048,1049],{"type":79},{"type":53,"attrs":1050},{"color":55},{"text":1052,"type":46,"marks":1053}," Unlike other types of loans, like home loans or auto loans, home equity loans can be used for almost any purpose.",[1054],{"type":53,"attrs":1055},{"color":55},{"type":141,"content":1057},[1058],{"type":42,"content":1059},[1060,1066],{"text":1061,"type":46,"marks":1062},"Pay back the loan:",[1063,1064],{"type":79},{"type":53,"attrs":1065},{"color":55},{"text":1067,"type":46,"marks":1068}," Once you take out the loan, you’ll make monthly loan payments until the entire loan balance is paid off. When the loan is paid off fully, the amount of equity you own in your home will return to its previous level. ",[1069],{"type":53,"attrs":1070},{"color":55},{"type":71,"attrs":1072,"content":1073},{"level":73},[1074],{"text":1075,"type":46,"marks":1076},"Pros and cons of a home equity loan",[1077],{"type":53,"attrs":1078},{"color":55},{"type":71,"attrs":1080,"content":1081},{"level":123},[1082],{"text":1083,"type":46,"marks":1084},"Pros of home equity loans ",[1085],{"type":53,"attrs":1086},{"color":1087},"rgb(67, 67, 67)",{"type":138,"content":1089},[1090],{"type":141,"content":1091},[1092],{"type":42,"content":1093},[1094,1100],{"text":1095,"type":46,"marks":1096},"Fixed interest rate: ",[1097,1098],{"type":79},{"type":53,"attrs":1099},{"color":55},{"text":1101,"type":46,"marks":1102},"Home equity loans tend to have fixed interest rates, which means stable, consistent monthly payments. These rates tend to be lower compared to rates on other types of credit, such as personal loans or credit cards. ",[1103],{"type":53,"attrs":1104},{"color":55},{"type":138,"content":1106},[1107],{"type":141,"content":1108},[1109],{"type":42,"content":1110},[1111,1117],{"text":1112,"type":46,"marks":1113},"Lump sum payment: ",[1114,1115],{"type":79},{"type":53,"attrs":1116},{"color":55},{"text":1118,"type":46,"marks":1119},"Borrowers receive all the funds upfront in a single lump sum, which can be useful for large, one-time expenses.",[1120],{"type":53,"attrs":1121},{"color":55},{"type":138,"content":1123},[1124],{"type":141,"content":1125},[1126],{"type":42,"content":1127},[1128,1134,1139,1148],{"text":1129,"type":46,"marks":1130},"Tax deductions: ",[1131,1132],{"type":79},{"type":53,"attrs":1133},{"color":55},{"text":1135,"type":46,"marks":1136},"While the rules for tax deductions on home equity loans changed with the ",[1137],{"type":53,"attrs":1138},{"color":55},{"text":1140,"type":46,"marks":1141},"Tax Cuts and Jobs Act",[1142,1145,1147],{"type":93,"attrs":1143},{"href":1144,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.irs.gov/newsroom/tax-cuts-and-jobs-act-a-comparison-for-businesses#:~:text=The%20Tax%20Cuts%20and%20Jobs,the%20changes%20and%20plan%20accordingly.",{"type":53,"attrs":1146},{"color":933},{"type":165},{"text":1149,"type":46,"marks":1150},", you may still be able to claim a deduction on the interest you pay. Check with a tax professional.",[1151],{"type":53,"attrs":1152},{"color":55},{"type":138,"content":1154},[1155],{"type":141,"content":1156},[1157],{"type":42,"content":1158},[1159,1165],{"text":1160,"type":46,"marks":1161},"Longer repayment terms: ",[1162,1163],{"type":79},{"type":53,"attrs":1164},{"color":55},{"text":1166,"type":46,"marks":1167},"Home equity loans often come with long repayment terms, ranging from five to 30 years. A long term can mean more manageable monthly payments. ",[1168],{"type":53,"attrs":1169},{"color":55},{"type":138,"content":1171},[1172],{"type":141,"content":1173},[1174],{"type":42,"content":1175},[1176,1182],{"text":1177,"type":46,"marks":1178},"No restrictions on use:",[1179,1180],{"type":79},{"type":53,"attrs":1181},{"color":55},{"text":1183,"type":46,"marks":1184}," You can use the funds for a wide range of purposes, from home improvement projects to emergency expenses. ",[1185],{"type":53,"attrs":1186},{"color":55},{"type":71,"attrs":1188,"content":1189},{"level":123},[1190],{"text":1191,"type":46,"marks":1192},"Cons of home equity loans",[1193],{"type":53,"attrs":1194},{"color":1087},{"type":138,"content":1196},[1197],{"type":141,"content":1198},[1199],{"type":42,"content":1200},[1201,1207,1212,1221],{"text":1202,"type":46,"marks":1203},"Risk of foreclosure: ",[1204,1205],{"type":79},{"type":53,"attrs":1206},{"color":55},{"text":1208,"type":46,"marks":1209},"When you take out a home equity loan, you use your home as collateral. That means that if you default on the loan, you risk losing your property through ",[1210],{"type":53,"attrs":1211},{"color":55},{"text":1213,"type":46,"marks":1214},"foreclosure",[1215,1218,1220],{"type":93,"attrs":1216},{"href":1217,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/how-does-foreclosure-work-en-287/",{"type":53,"attrs":1219},{"color":933},{"type":165},{"text":1222,"type":46,"marks":1223},".",[1224],{"type":53,"attrs":1225},{"color":55},{"type":138,"content":1227},[1228],{"type":141,"content":1229},[1230],{"type":42,"content":1231},[1232,1238,1243,1252],{"text":1233,"type":46,"marks":1234},"Multiple mortgages: ",[1235,1236],{"type":79},{"type":53,"attrs":1237},{"color":55},{"text":1239,"type":46,"marks":1240},"Taking out a home equity loan adds to your existing debt burden. You’ll end up having to pay for that loan on top of your first mortgage. If you also have ",[1241],{"type":53,"attrs":1242},{"color":55},{"text":1244,"type":46,"marks":1245},"student loans",[1246,1249,1251],{"type":93,"attrs":1247},{"href":1248,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://navient.com/education-financing/",{"type":53,"attrs":1250},{"color":933},{"type":165},{"text":1253,"type":46,"marks":1254}," or credit card debt, adding a home equity loan could make your debt difficult to manage.",[1255],{"type":53,"attrs":1256},{"color":55},{"type":138,"content":1258},[1259],{"type":141,"content":1260},[1261],{"type":42,"content":1262},[1263,1269],{"text":1264,"type":46,"marks":1265},"Closing costs",[1266,1267],{"type":79},{"type":53,"attrs":1268},{"color":55},{"text":1270,"type":46,"marks":1271},": Your home equity loan may come with closing costs, including application fees, origination fees, appraisal fees, or title search fees. ",[1272],{"type":53,"attrs":1273},{"color":55},{"type":138,"content":1275},[1276],{"type":141,"content":1277},[1278],{"type":42,"content":1279},[1280,1286],{"text":1281,"type":46,"marks":1282},"Negative equity:",[1283,1284],{"type":79},{"type":53,"attrs":1285},{"color":55},{"text":1287,"type":46,"marks":1288}," When you take out a home equity loan, the equity you own in your property decreases. If the market value of your home goes down after this point, you may end up owing more on your home than it’s worth. This negative equity can make it challenging if you need to sell or refinance in the future. ",[1289],{"type":53,"attrs":1290},{"color":55},{"type":71,"attrs":1292,"content":1293},{"level":73},[1294],{"text":1295,"type":46,"marks":1296},"What is a home equity line of credit (HELOC)?",[1297],{"type":53,"attrs":1298},{"color":55},{"type":42,"content":1300},[1301],{"text":1302,"type":46,"marks":1303},"A home equity line of credit (HELOC) is a more flexible borrowing option for homeowners. Unlike a home equity loan, where you receive a lump sum upfront, a HELOC provides a revolving line of credit that you can draw from as needed, similar to a credit card. Your credit limit will be based on your home equity, your creditworthiness, and other factors. ",[1304],{"type":53,"attrs":1305},{"color":55},{"type":71,"attrs":1307,"content":1308},{"level":73},[1309],{"text":1310,"type":46,"marks":1311},"How does a HELOC work?",[1312],{"type":53,"attrs":1313},{"color":55},{"type":42,"content":1315},[1316],{"text":1317,"type":46,"marks":1318},"Similar to a home equity loan, a HELOC allows you to borrow against the equity in your home. However, there are a few significant differences. Here’s how a HELOC works.  ",[1319],{"type":53,"attrs":1320},{"color":55},{"type":497,"attrs":1322,"content":1323},{"order":499},[1324,1339,1354,1383],{"type":141,"content":1325},[1326],{"type":42,"content":1327},[1328,1334],{"text":1329,"type":46,"marks":1330},"Determine your eligibility:",[1331,1332],{"type":79},{"type":53,"attrs":1333},{"color":55},{"text":1335,"type":46,"marks":1336}," As with a home equity loan, you’ll need to have a good credit score and a stable income to qualify for a HELOC. Lenders typically look for a loan-to-value ratio (LTV) of 85% or lower. ",[1337],{"type":53,"attrs":1338},{"color":55},{"type":141,"content":1340},[1341],{"type":42,"content":1342},[1343,1349],{"text":1344,"type":46,"marks":1345},"Get a property appraisal: ",[1346,1347],{"type":79},{"type":53,"attrs":1348},{"color":55},{"text":1350,"type":46,"marks":1351},"After you fill out an application, the lender will conduct a property appraisal. Once again, your maximum credit limit will be a percentage of the home’s appraised value, which can typically be up to 80-85% of the equity you hold. ",[1352],{"type":53,"attrs":1353},{"color":55},{"type":141,"content":1355},[1356],{"type":42,"content":1357},[1358,1364,1369,1378],{"text":1359,"type":46,"marks":1360},"Use the funds: ",[1361,1362],{"type":79},{"type":53,"attrs":1363},{"color":55},{"text":1365,"type":46,"marks":1366},"Once your line of credit is open, you can access funding as needed up to your approved credit limit. Most HELOCs let you make withdrawals within an initial “",[1367],{"type":53,"attrs":1368},{"color":55},{"text":1370,"type":46,"marks":1371},"draw period",[1372,1375,1377],{"type":93,"attrs":1373},{"href":1374,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.experian.com/blogs/ask-experian/how-does-heloc-repayment-work/",{"type":53,"attrs":1376},{"color":933},{"type":165},{"text":1379,"type":46,"marks":1380},",” which usually lasts 5 to 10 years. During this period of time, you only have to pay interest on the funds you take out — you don’t have to pay back the funds themselves until the draw period ends.  ",[1381],{"type":53,"attrs":1382},{"color":55},{"type":141,"content":1384},[1385],{"type":42,"content":1386},[1387,1393],{"text":1388,"type":46,"marks":1389},"Pay back the principal: ",[1390,1391],{"type":79},{"type":53,"attrs":1392},{"color":55},{"text":1394,"type":46,"marks":1395},"After the draw period ends, the repayment period begins. During this period of time, which usually lasts 10 to 20 years, you must pay back the principal along with any interest. Most HELOCs have variable interest rates. Once you enter the repayment period, you can no longer withdraw funds. ",[1396],{"type":53,"attrs":1397},{"color":55},{"type":71,"attrs":1399,"content":1400},{"level":73},[1401],{"text":1402,"type":46,"marks":1403},"Pros and cons of a home equity line of credit",[1404],{"type":53,"attrs":1405},{"color":55},{"type":71,"attrs":1407,"content":1408},{"level":123},[1409],{"text":1410,"type":46,"marks":1411},"Pros of HELOCs ",[1412],{"type":53,"attrs":1413},{"color":1087},{"type":138,"content":1415},[1416],{"type":141,"content":1417},[1418],{"type":42,"content":1419},[1420,1426],{"text":1421,"type":46,"marks":1422},"Flexible borrowing:",[1423,1424],{"type":79},{"type":53,"attrs":1425},{"color":55},{"text":1427,"type":46,"marks":1428}," A HELOC provides a revolving line of credit. This means you can take out funds as needed — up to the approved credit limit — without having to apply for a new loan each time. ",[1429],{"type":53,"attrs":1430},{"color":55},{"type":138,"content":1432},[1433],{"type":141,"content":1434},[1435],{"type":42,"content":1436},[1437,1443],{"text":1438,"type":46,"marks":1439},"Lower interest rates: ",[1440,1441],{"type":79},{"type":53,"attrs":1442},{"color":55},{"text":1444,"type":46,"marks":1445},"HELOCs tend to have lower interest rates compared to other forms of credit, such as credit cards or personal loans.",[1446],{"type":53,"attrs":1447},{"color":55},{"type":138,"content":1449},[1450],{"type":141,"content":1451},[1452],{"type":42,"content":1453},[1454,1460],{"text":1455,"type":46,"marks":1456},"Various repayment options:",[1457,1458],{"type":79},{"type":53,"attrs":1459},{"color":55},{"text":1461,"type":46,"marks":1462}," During the draw period, you have the option to make interest-only payments, which put less of a strain on your budget. ",[1463],{"type":53,"attrs":1464},{"color":55},{"type":138,"content":1466},[1467],{"type":141,"content":1468},[1469],{"type":42,"content":1470},[1471,1477],{"text":1472,"type":46,"marks":1473},"Minimal upfront costs:",[1474,1475],{"type":79},{"type":53,"attrs":1476},{"color":55},{"text":1478,"type":46,"marks":1479}," Unlike home equity loans, HELOCs often have few upfront costs or application fees, making them a more affordable option for homeowners. ",[1480],{"type":53,"attrs":1481},{"color":55},{"type":138,"content":1483},[1484],{"type":141,"content":1485},[1486],{"type":42,"content":1487},[1488,1494,1499],{"text":1489,"type":46,"marks":1490},"Continue building equity:",[1491,1492],{"type":79},{"type":53,"attrs":1493},{"color":55},{"text":1495,"type":46,"marks":1496}," With a HELOC, you can continue building equity in your property as you make your mortgage payments. You’re less likely to end up with ",[1497],{"type":53,"attrs":1498},{"color":55},{"text":1500,"type":46,"marks":1501},"negative equity. ",[1502,1505,1507],{"type":93,"attrs":1503},{"href":1504,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://corporatefinanceinstitute.com/resources/accounting/negative-equity/",{"type":53,"attrs":1506},{"color":933},{"type":165},{"type":71,"attrs":1509,"content":1510},{"level":123},[1511],{"text":1512,"type":46,"marks":1513},"Cons of HELOCs",[1514],{"type":53,"attrs":1515},{"color":1087},{"type":138,"content":1517},[1518],{"type":141,"content":1519},[1520],{"type":42,"content":1521},[1522,1528],{"text":1523,"type":46,"marks":1524},"Variable interest rates:",[1525,1526],{"type":79},{"type":53,"attrs":1527},{"color":55},{"text":1529,"type":46,"marks":1530}," HELOCs typically come with variable interest rates. That means your monthly payment could increase over time. ",[1531],{"type":53,"attrs":1532},{"color":55},{"type":138,"content":1534},[1535],{"type":141,"content":1536},[1537],{"type":42,"content":1538},[1539,1545],{"text":1540,"type":46,"marks":1541},"Limited credit: ",[1542,1543],{"type":79},{"type":53,"attrs":1544},{"color":55},{"text":1546,"type":46,"marks":1547},"The amount of credit available through a HELOC is contingent on your available equity. If the property’s value declines, or if your financial situation changes, your credit limit could decrease accordingly. ",[1548],{"type":53,"attrs":1549},{"color":55},{"type":138,"content":1551},[1552],{"type":141,"content":1553},[1554],{"type":42,"content":1555},[1556,1562],{"text":1557,"type":46,"marks":1558},"Risk of property foreclosure: ",[1559,1560],{"type":79},{"type":53,"attrs":1561},{"color":55},{"text":1563,"type":46,"marks":1564},"As with a home equity loan, a HELOC relies on your home as collateral. Failure to repay the borrowed amount could result in foreclosure. ",[1565],{"type":53,"attrs":1566},{"color":55},{"type":71,"attrs":1568,"content":1569},{"level":73},[1570],{"text":1571,"type":46,"marks":1572},"Which is right for me, a HELOC or a home equity loan?",[1573],{"type":53,"attrs":1574},{"color":55},{"type":42,"content":1576},[1577],{"text":1578,"type":46,"marks":1579},"Your perfect loan choice will come down to your specific financial needs, preferences, and circumstances. Here are some guidelines to consider. ",[1580],{"type":53,"attrs":1581},{"color":55},{"type":42,"content":1583},[1584],{"text":1585,"type":46,"marks":1586},"Choose a home equity loan if:",[1587],{"type":53,"attrs":1588},{"color":55},{"type":138,"content":1590},[1591,1600,1609],{"type":141,"content":1592},[1593],{"type":42,"content":1594},[1595],{"text":1596,"type":46,"marks":1597},"You prefer predictable payments.",[1598],{"type":53,"attrs":1599},{"color":55},{"type":141,"content":1601},[1602],{"type":42,"content":1603},[1604],{"text":1605,"type":46,"marks":1606},"You need to cover a large, one-time expense.",[1607],{"type":53,"attrs":1608},{"color":55},{"type":141,"content":1610},[1611],{"type":42,"content":1612},[1613],{"text":1614,"type":46,"marks":1615},"You want to lock in a low interest rate.",[1616],{"type":53,"attrs":1617},{"color":55},{"type":42,"content":1619},[1620],{"text":1621,"type":46,"marks":1622},"Choose a HELOC if:",[1623],{"type":53,"attrs":1624},{"color":55},{"type":138,"content":1626},[1627,1636,1645,1654],{"type":141,"content":1628},[1629],{"type":42,"content":1630},[1631],{"text":1632,"type":46,"marks":1633},"You need flexibility.",[1634],{"type":53,"attrs":1635},{"color":55},{"type":141,"content":1637},[1638],{"type":42,"content":1639},[1640],{"text":1641,"type":46,"marks":1642},"You’re comfortable with potential interest rate fluctuations and want to take advantage of lower rates during the draw period. ",[1643],{"type":53,"attrs":1644},{"color":55},{"type":141,"content":1646},[1647],{"type":42,"content":1648},[1649],{"text":1650,"type":46,"marks":1651},"You’re uncertain about your exact funding needs. ",[1652],{"type":53,"attrs":1653},{"color":55},{"type":141,"content":1655},[1656],{"type":42,"content":1657},[1658],{"text":1659,"type":46,"marks":1660},"You have an airtight plan to pay back the funds during the repayment period. ",[1661],{"type":53,"attrs":1662},{"color":55},{"type":71,"attrs":1664,"content":1665},{"level":73},[1666],{"text":1667,"type":46,"marks":1668},"Alternatives to HELOCs and home equity loans ",[1669],{"type":53,"attrs":1670},{"color":55},{"type":42,"content":1672},[1673],{"text":1674,"type":46,"marks":1675},"If you decide that neither a home equity loan nor a home equity line of credit is right for you, consider these alternatives.",[1676],{"type":53,"attrs":1677},{"color":55},{"type":138,"content":1679},[1680],{"type":141,"content":1681},[1682],{"type":42,"content":1683},[1684,1690,1694,1703,1710],{"text":1685,"type":46,"marks":1686},"Personal loans:",[1687,1688],{"type":79},{"type":53,"attrs":1689},{"color":55},{"text":657,"type":46,"marks":1691},[1692],{"type":53,"attrs":1693},{"color":55},{"text":1695,"type":46,"marks":1696},"Unsecured personal loans",[1697,1700,1702],{"type":93,"attrs":1698},{"href":1699,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://marketplace.navient.com/blog/what-is-a-personal-loan/",{"type":53,"attrs":1701},{"color":933},{"type":165},{"text":673,"type":46,"marks":1704},[1705,1707,1708],{"type":49,"attrs":1706},{"class":677},{"type":677},{"type":53,"attrs":1709},{"color":18},{"text":1711,"type":46,"marks":1712}," are available from banks, credit unions, and online lenders. While they don’t require collateral and can be used for various purposes, the interest rates on personal loans may be higher than what you’d get on a home equity loan.",[1713],{"type":53,"attrs":1714},{"color":55},{"type":138,"content":1716},[1717],{"type":141,"content":1718},[1719],{"type":42,"content":1720},[1721,1727,1732,1741],{"text":1722,"type":46,"marks":1723},"Cash-out refinance:",[1724,1725],{"type":79},{"type":53,"attrs":1726},{"color":55},{"text":1728,"type":46,"marks":1729}," A ",[1730],{"type":53,"attrs":1731},{"color":55},{"text":1733,"type":46,"marks":1734},"cash-out refinance",[1735,1738,1740],{"type":93,"attrs":1736},{"href":1737,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.experian.com/blogs/ask-experian/what-is-a-cash-out-refinance/",{"type":53,"attrs":1739},{"color":933},{"type":165},{"text":1742,"type":46,"marks":1743}," involves refinancing your existing mortgage for a higher amount and receiving the difference as cash. This can be a good option if you have significant equity in your home and your current mortgage rate is low. ",[1744],{"type":53,"attrs":1745},{"color":55},{"type":138,"content":1747},[1748],{"type":141,"content":1749},[1750],{"type":42,"content":1751},[1752,1758],{"text":1753,"type":46,"marks":1754},"Credit cards:",[1755,1756],{"type":79},{"type":53,"attrs":1757},{"color":55},{"text":1759,"type":46,"marks":1760}," For smaller expenses, a credit card with a low interest rate or an 0% introductory annual percentage rate (APR) may be suitable. It’s important to pay off balances quickly, however, as high interest rates can lead to expensive credit card debt. ",[1761],{"type":53,"attrs":1762},{"color":55},{"type":138,"content":1764},[1765],{"type":141,"content":1766},[1767],{"type":42,"content":1768},[1769,1775],{"text":1770,"type":46,"marks":1771},"Personal lines of credit: ",[1772,1773],{"type":79},{"type":53,"attrs":1774},{"color":55},{"text":1776,"type":46,"marks":1777},"Personal lines of credit are another flexible borrowing option. These credit lines often have higher interest rates than HELOCs, but they don’t require home equity as collateral. ",[1778],{"type":53,"attrs":1779},{"color":55},{"type":138,"content":1781},[1782],{"type":141,"content":1783},[1784],{"type":42,"content":1785},[1786,1792],{"text":1787,"type":46,"marks":1788},"Home improvement loans:",[1789,1790],{"type":79},{"type":53,"attrs":1791},{"color":55},{"text":1793,"type":46,"marks":1794}," Some lenders offer loans designed specifically for home improvement or home renovation projects. These loans tend to have fixed interest rates, making them more predictable and budget-friendly. ",[1795],{"type":53,"attrs":1796},{"color":55},{"type":138,"content":1798},[1799],{"type":141,"content":1800},[1801],{"type":42,"content":1802},[1803,1809],{"text":1804,"type":46,"marks":1805},"Peer-to-peer lending: ",[1806,1807],{"type":79},{"type":53,"attrs":1808},{"color":55},{"text":1810,"type":46,"marks":1811},"P2P lending platforms connect borrowers with individual investors willing to fund loans. Terms and rates vary based on your creditworthiness and each investor’s risk tolerance. ",[1812],{"type":53,"attrs":1813},{"color":55},{"type":71,"attrs":1815,"content":1816},{"level":73},[1817],{"text":1818,"type":46,"marks":1819},"Compare loans on Navient Marketplace",[1820],{"type":53,"attrs":1821},{"color":55},{"type":42,"content":1823},[1824,1829,1837],{"text":1825,"type":46,"marks":1826},"If you’re looking for a personal loan to cover your upcoming expenses, consider using Navient Marketplace to get started. Navient partners with MoneyLion, a leading personal loan search tool, to help borrowers find loans custom-tailored to their needs. Go to Navient Marketplace today to ",[1827],{"type":53,"attrs":1828},{"color":55},{"text":774,"type":46,"marks":1830},[1831,1834,1836],{"type":93,"attrs":1832},{"href":1833,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://marketplace.navient.com",{"type":53,"attrs":1835},{"color":933},{"type":165},{"text":1838,"type":46,"marks":1839}," from the country’s top lenders. ",[1840],{"type":53,"attrs":1841},{"color":55},{"type":42,"content":1843},[1844],{"text":789,"type":46,"marks":1845},[1846,1848],{"type":49,"attrs":1847},{"class":51},{"type":53,"attrs":1849},{"color":55},{"type":42,"content":1851},[1852,1858],{"text":673,"type":46,"marks":1853},[1854,1856],{"type":49,"attrs":1855},{"class":677},{"type":53,"attrs":1857},{"color":55},{"text":1859,"type":46,"marks":1860}," Navient customers are invited to consider personal loan offers through our partner MoneyLion. Navient has not shared your information with MoneyLion and is not involved in the personal loan application process in any manner. All information is submitted directly to MoneyLion and any personal loan offers are made directly by participants in MoneyLion’s lending platform. Engine by MoneyLion is the industry-leading embedded financial marketplace and independent subsidiary of MoneyLion Inc. (“MoneyLion”) (NYSE:ML). Checking your rate will not affect your credit score. Eligibility is not guaranteed and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. ",[1861,1863],{"type":49,"attrs":1862},{"class":51},{"type":53,"attrs":1864},{"color":55},{"type":42,"content":1866},[1867],{"text":1868,"type":46,"marks":1869},"Loan proceeds may not be used for postsecondary educational expenses, including refinancing federal or private student loans.",[1870,1872],{"type":49,"attrs":1871},{"class":51},{"type":53,"attrs":1873},{"color":55},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798169\"}-->","https://www.marketplace.navient.com/blog/home-equity-loan-vs-line-of-credit/","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"39f3568e-f888-4c3e-816f-3647f7efec59\", \"id\": \"651798169\"}-->","home-equity-loan-vs-line-of-credit","navient_marketplace/blog/home-equity-loan-vs-line-of-credit",[],"51312662-1d37-4013-8926-52d7f9f63a37","2023-09-26T16:16:20.075Z",[],{"name":1884,"created_at":1885,"published_at":1886,"updated_at":1887,"id":1888,"uuid":1889,"content":1890,"slug":2817,"full_slug":2818,"sort_by_date":96,"position":826,"tag_list":2819,"is_startpage":29,"parent_id":828,"meta_data":96,"group_id":2820,"first_published_at":2821,"release_id":96,"lang":831,"path":2822,"alternates":2823,"default_full_slug":96,"translated_slugs":96},"How to Get a Personal Loan When You Have Bad Credit","2025-04-07T18:30:35.165Z","2025-12-26T13:44:57.421Z","2025-12-26T13:44:57.502Z",651798168,"188547f2-42ed-4b3c-a93c-b01ef544436f",{"seo":1891,"_uid":20,"hero":1894,"author":31,"category":32,"featured":29,"imageAlt":18,"component":33,"blogContents":1899,"canonicalTag":2815,"publishedDate":822,"_editable":2816},{"_uid":15,"title":1892,"plugin":17,"og_image":18,"og_title":18,"description":1893,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"How to Get a Personal Loan When You Have Bad Credit | Navient Marketplace","Bad credit doesn’t mean the end of your borrowing opportunities. Here’s how to set your self up for success when you’re applying for a personal loan with bad credit.",[1895],{"id":18,"_uid":23,"image":1896,"intro":1893,"classes":18,"_editable":1897,"blogTitle":1884,"component":27,"imageLink":1898,"blendImage":29,"backgroundColor":30},"//a.storyblok.com/f/110029/6586x4391/2bed9636e3/how-to-get-a-personal-loan-with-bad-credit.png","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798168\"}-->","/images/how-to-get-a-personal-loan-with-bad-credit.png",[1900],{"_uid":36,"color":37,"richText":1901,"_editable":2814,"component":820},{"type":39,"content":1902},[1903,1911,1918,1926,1933,1940,1961,1968,2073,2081,2089,2116,2151,2159,2206,2223,2240,2257,2274,2291,2308,2325,2332,2340,2347,2502,2510,2517,2524,2532,2553,2561,2568,2575,2596,2603,2611,2618,2717,2725,2732,2739,2746,2784,2792,2806],{"type":42,"content":1904},[1905],{"text":45,"type":46,"marks":1906},[1907,1909],{"type":49,"attrs":1908},{"class":51},{"type":53,"attrs":1910},{"color":55},{"type":42,"content":1912},[1913],{"text":1914,"type":46,"marks":1915},"If life’s thrown you a few curveballs and you find yourself left with a less-than-ideal credit score, know this: bad credit doesn’t have to mean the end of your borrowing opportunities. If you find yourself in need of a personal loan to address short-term emergency expenses, meet certain goals, or for debt consolidation, there are still avenues open to you. Here’s how to get a loan when you have bad credit.",[1916],{"type":53,"attrs":1917},{"color":55},{"type":71,"attrs":1919,"content":1920},{"level":73},[1921],{"text":1922,"type":46,"marks":1923},"Can you get a loan if you have bad credit?",[1924],{"type":53,"attrs":1925},{"color":55},{"type":42,"content":1927},[1928],{"text":1929,"type":46,"marks":1930},"A common question people with bad credit histories ask is whether it’s possible to get a loan with a low credit score. The answer is yes. ",[1931],{"type":53,"attrs":1932},{"color":55},{"type":42,"content":1934},[1935],{"text":1936,"type":46,"marks":1937},"Bad credit means you have a spotty credit history or a low credit score. Credit scores are commonly calculated based on factors such as your payment history, the length of your credit history, how many new credit accounts you’ve opened lately, and the types of credit you use. If you have poor credit, it could be due to missed loan payments, defaults, high credit card balances, or bankruptcies in your past. ",[1938],{"type":53,"attrs":1939},{"color":55},{"type":42,"content":1941},[1942,1947,1956],{"text":1943,"type":46,"marks":1944},"While traditional lenders may be hesitant to extend loans to individuals with bad credit, some specialized lenders cater specifically to these kinds of borrowers. These lenders are often referred to as “subprime” or “bad credit” lenders and will consider factors beyond credit score when evaluating loan applications. Some classic examples of subprime lenders include online lenders, ",[1945],{"type":53,"attrs":1946},{"color":55},{"text":1948,"type":46,"marks":1949},"credit unions",[1950,1953,1955],{"type":93,"attrs":1951},{"href":1952,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://mycreditunion.gov/about-credit-unions/credit-union-different-than-a-bank",{"type":53,"attrs":1954},{"color":55},{"type":165},{"text":1957,"type":46,"marks":1958},", and peer-to-peer (P2P) lending platforms.",[1959],{"type":53,"attrs":1960},{"color":55},{"type":42,"content":1962},[1963],{"text":1964,"type":46,"marks":1965},"While there are legitimate subprime lenders out there, it’s important to watch out for unscrupulous operators. Borrowers with bad credit can be particularly vulnerable to scams and predatory lenders, who may take advantage of their desperation and charge higher interest rates and fees. Here are some common traps to steer clear of: ",[1966],{"type":53,"attrs":1967},{"color":55},{"type":138,"content":1969},[1970,1985,2000,2029,2058],{"type":141,"content":1971},[1972],{"type":42,"content":1973},[1974,1980],{"text":1975,"type":46,"marks":1976},"Payday loans: ",[1977,1978],{"type":79},{"type":53,"attrs":1979},{"color":55},{"text":1981,"type":46,"marks":1982},"Payday loans may seem like a quick solution for immediate cash needs, but they often come with high interest rates and short repayment periods, trapping borrowers in a cycle of debt.",[1983],{"type":53,"attrs":1984},{"color":55},{"type":141,"content":1986},[1987],{"type":42,"content":1988},[1989,1995],{"text":1990,"type":46,"marks":1991},"No credit-check loans: “",[1992,1993],{"type":79},{"type":53,"attrs":1994},{"color":55},{"text":1996,"type":46,"marks":1997},"No credit-check loans” may seem convenient on the surface, but they come with high interest rates and fees. Any lender who doesn’t perform a credit inquiry is likely taking advantage of your financial situation.",[1998],{"type":53,"attrs":1999},{"color":55},{"type":141,"content":2001},[2002],{"type":42,"content":2003},[2004,2010,2015,2024],{"text":2005,"type":46,"marks":2006},"Paying for cosigners:",[2007,2008],{"type":79},{"type":53,"attrs":2009},{"color":55},{"text":2011,"type":46,"marks":2012}," Many lenders offer their best loan terms to borrowers with ",[2013],{"type":53,"attrs":2014},{"color":55},{"text":2016,"type":46,"marks":2017},"cosigners",[2018,2021,2023],{"type":93,"attrs":2019},{"href":2020,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/what-is-a-co-signer-en-745/",{"type":53,"attrs":2022},{"color":55},{"type":165},{"text":2025,"type":46,"marks":2026},". However, if a lender asks for an upfront payment to secure a cosigner, run.",[2027],{"type":53,"attrs":2028},{"color":55},{"type":141,"content":2030},[2031],{"type":42,"content":2032},[2033,2039,2044,2053],{"text":2034,"type":46,"marks":2035},"Advance fee scams: ",[2036,2037],{"type":79},{"type":53,"attrs":2038},{"color":55},{"text":2040,"type":46,"marks":2041},"If you’re asked to pay ",[2042],{"type":53,"attrs":2043},{"color":55},{"text":2045,"type":46,"marks":2046},"origination fees",[2047,2050,2052],{"type":93,"attrs":2048},{"href":2049,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.debt.org/credit/loans/origination-fees/",{"type":53,"attrs":2051},{"color":55},{"type":165},{"text":2054,"type":46,"marks":2055}," or monthly payments before being granted a loan, it’s likely a scam. Legitimate lenders typically deduct fees from the loan amount itself rather than demanding them upfront",[2056],{"type":53,"attrs":2057},{"color":55},{"type":141,"content":2059},[2060],{"type":42,"content":2061},[2062,2068],{"text":2063,"type":46,"marks":2064},"Pressure tactics: ",[2065,2066],{"type":79},{"type":53,"attrs":2067},{"color":55},{"text":2069,"type":46,"marks":2070},"Scammers often try to pressure borrowers into making hasty decisions. Legitimate lenders will give you ample time to review and understand the loan terms before committing.",[2071],{"type":53,"attrs":2072},{"color":55},{"type":71,"attrs":2074,"content":2075},{"level":73},[2076],{"text":2077,"type":46,"marks":2078},"How to get a loan if you have bad credit ",[2079],{"type":53,"attrs":2080},{"color":55},{"type":71,"attrs":2082,"content":2083},{"level":123},[2084],{"text":2085,"type":46,"marks":2086},"Pull your credit report ",[2087],{"type":53,"attrs":2088},{"color":55},{"type":42,"content":2090},[2091,2096,2103,2112],{"text":2092,"type":46,"marks":2093},"Before you begin the process of obtaining a loan, it’s important to have a clear understanding of where you stand. You can get free copies of your credit reports from the three major credit bureaus — Equifax, Experian, and TransUnion — via",[2094],{"type":53,"attrs":2095},{"color":55},{"text":657,"type":46,"marks":2097},[2098,2101],{"type":93,"attrs":2099},{"href":2100,"uuid":96,"anchor":96,"target":96,"linktype":98},"http://annualcreditreport.com",{"type":53,"attrs":2102},{"color":55},{"text":2104,"type":46,"marks":2105},"AnnualCreditReport.com",[2106,2109,2111],{"type":93,"attrs":2107},{"href":2108,"uuid":96,"anchor":96,"target":97,"linktype":98},"http://AnnualCreditReport.com",{"type":53,"attrs":2110},{"color":55},{"type":165},{"text":1222,"type":46,"marks":2113},[2114],{"type":53,"attrs":2115},{"color":55},{"type":42,"content":2117},[2118,2123,2132,2137,2146],{"text":2119,"type":46,"marks":2120},"Once you have your report, take a look at your credit score. A ",[2121],{"type":53,"attrs":2122},{"color":55},{"text":2124,"type":46,"marks":2125},"FICO score",[2126,2129,2131],{"type":93,"attrs":2127},{"href":2128,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.fico.com/en/products/fico-score",{"type":53,"attrs":2130},{"color":55},{"type":165},{"text":2133,"type":46,"marks":2134}," below 580 is considered low. Also keep an eye out for inaccuracies. Reporting errors can inadvertently lower your credit score. If you spot anything that seems incorrect, ",[2135],{"type":53,"attrs":2136},{"color":55},{"text":2138,"type":46,"marks":2139},"take swift action to dispute the error",[2140,2143,2145],{"type":93,"attrs":2141},{"href":2142,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/how-do-i-dispute-an-error-on-my-credit-report-en-314/",{"type":53,"attrs":2144},{"color":55},{"type":165},{"text":2147,"type":46,"marks":2148},". It could boost your score. ",[2149],{"type":53,"attrs":2150},{"color":55},{"type":71,"attrs":2152,"content":2153},{"level":123},[2154],{"text":2155,"type":46,"marks":2156},"Improve your credit score ",[2157],{"type":53,"attrs":2158},{"color":55},{"type":42,"content":2160},[2161,2166,2173,2181,2186,2193,2201],{"text":2162,"type":46,"marks":2163},"Improving your credit score might seem like a long-term solution to your problem, but you might be surprised to discover that you can actually build credit in",[2164],{"type":53,"attrs":2165},{"color":55},{"text":657,"type":46,"marks":2167},[2168,2171],{"type":93,"attrs":2169},{"href":2170,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.experian.com/blogs/ask-experian/how-to-get-a-loan-with-bad-credit/",{"type":53,"attrs":2172},{"color":55},{"text":2174,"type":46,"marks":2175},"as little as a few months",[2176,2178,2180],{"type":93,"attrs":2177},{"href":2170,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":2179},{"color":55},{"type":165},{"text":2182,"type":46,"marks":2183},". Some tactics, like using",[2184],{"type":53,"attrs":2185},{"color":55},{"text":657,"type":46,"marks":2187},[2188,2191],{"type":93,"attrs":2189},{"href":2190,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.experian.com/blogs/ask-experian/what-is-experian-boost/",{"type":53,"attrs":2192},{"color":55},{"text":2194,"type":46,"marks":2195},"Experian Boost",[2196,2198,2200],{"type":93,"attrs":2197},{"href":2190,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":2199},{"color":55},{"type":165},{"text":2202,"type":46,"marks":2203}," or enlisting the help of rent-reporting services, can actually boost your credit score fairly immediately. If you can wait a while to take out your loan, here are some other, more traditional ways to do it: ",[2204],{"type":53,"attrs":2205},{"color":55},{"type":138,"content":2207},[2208],{"type":141,"content":2209},[2210],{"type":42,"content":2211},[2212,2218],{"text":2213,"type":46,"marks":2214},"Pay bills on time:",[2215,2216],{"type":79},{"type":53,"attrs":2217},{"color":55},{"text":2219,"type":46,"marks":2220}," The most important factor affecting your credit score is your payment history. Make sure to pay all your bills, including credit card payments, loans, and utilities, on time.",[2221],{"type":53,"attrs":2222},{"color":55},{"type":138,"content":2224},[2225],{"type":141,"content":2226},[2227],{"type":42,"content":2228},[2229,2235],{"text":2230,"type":46,"marks":2231},"Reduce credit card balances",[2232,2233],{"type":79},{"type":53,"attrs":2234},{"color":55},{"text":2236,"type":46,"marks":2237},": Keep your credit card balances low and aim to pay off your credit card debt and streamline it through a debt consolidation loan. High credit utilization can negatively impact your credit score, so try to use only a small percentage of your available credit.",[2238],{"type":53,"attrs":2239},{"color":55},{"type":138,"content":2241},[2242],{"type":141,"content":2243},[2244],{"type":42,"content":2245},[2246,2252],{"text":2247,"type":46,"marks":2248},"Don't close old accounts",[2249,2250],{"type":79},{"type":53,"attrs":2251},{"color":55},{"text":2253,"type":46,"marks":2254},": Closing old credit accounts can decrease your overall credit history and potentially lower your credit score range. Consider keeping those accounts open but inactive to maintain a longer credit history.",[2255],{"type":53,"attrs":2256},{"color":55},{"type":138,"content":2258},[2259],{"type":141,"content":2260},[2261],{"type":42,"content":2262},[2263,2269],{"text":2264,"type":46,"marks":2265},"Limit new credit applications",[2266,2267],{"type":79},{"type":53,"attrs":2268},{"color":55},{"text":2270,"type":46,"marks":2271},": Applying for multiple new credit accounts in a short period can raise red flags for lenders and lower your credit score. Only apply for new credit when necessary and spaced out over time.",[2272],{"type":53,"attrs":2273},{"color":55},{"type":138,"content":2275},[2276],{"type":141,"content":2277},[2278],{"type":42,"content":2279},[2280,2286],{"text":2281,"type":46,"marks":2282},"Monitor your credit report: ",[2283,2284],{"type":79},{"type":53,"attrs":2285},{"color":55},{"text":2287,"type":46,"marks":2288},"Regularly review your credit report for any errors or inaccuracies. If you find any, dispute them with the credit bureau to have them corrected. A clean and accurate credit report can positively impact your credit score.",[2289],{"type":53,"attrs":2290},{"color":55},{"type":138,"content":2292},[2293],{"type":141,"content":2294},[2295],{"type":42,"content":2296},[2297,2303],{"text":2298,"type":46,"marks":2299},"Diversify your credit mix",[2300,2301],{"type":79},{"type":53,"attrs":2302},{"color":55},{"text":2304,"type":46,"marks":2305},": Having a mix of different types of credit, such as credit cards, loans, and a mortgage, can help improve your credit score. This shows lenders that you can handle various forms of credit responsibly.",[2306],{"type":53,"attrs":2307},{"color":55},{"type":138,"content":2309},[2310],{"type":141,"content":2311},[2312],{"type":42,"content":2313},[2314,2320],{"text":2315,"type":46,"marks":2316},"Become an authorized user",[2317,2318],{"type":79},{"type":53,"attrs":2319},{"color":55},{"text":2321,"type":46,"marks":2322},": If someone you trust has a credit card with a long and positive history, they can add you as an authorized user. This allows you to piggyback off the account holder’s good credit history. ",[2323],{"type":53,"attrs":2324},{"color":55},{"type":42,"content":2326},[2327],{"text":2328,"type":46,"marks":2329},"Remember, improving your credit score is a gradual process, and there are no quick fixes. Be proactive, establish excellent credit habits, and you'll see positive changes in your credit score over time.",[2330],{"type":53,"attrs":2331},{"color":55},{"type":71,"attrs":2333,"content":2334},{"level":123},[2335],{"text":2336,"type":46,"marks":2337},"Research alternative lenders",[2338],{"type":53,"attrs":2339},{"color":55},{"type":42,"content":2341},[2342],{"text":2343,"type":46,"marks":2344},"Some alternative lenders assess more than just credit score. Instead, they focus on an individual’s overall financial health, employment history, and repayment capability. Some of these lenders include: ",[2345],{"type":53,"attrs":2346},{"color":55},{"type":138,"content":2348},[2349,2364,2379,2416,2445,2460,2474],{"type":141,"content":2350},[2351],{"type":42,"content":2352},[2353,2359],{"text":2354,"type":46,"marks":2355},"Online lenders: ",[2356,2357],{"type":79},{"type":53,"attrs":2358},{"color":55},{"text":2360,"type":46,"marks":2361},"Some online lenders provide loans specifically to borrowers with bad credit scores. Many online lenders offer a streamlined application process and quicker loan approval times.",[2362],{"type":53,"attrs":2363},{"color":55},{"type":141,"content":2365},[2366],{"type":42,"content":2367},[2368,2374],{"text":2369,"type":46,"marks":2370},"Credit unions:",[2371,2372],{"type":79},{"type":53,"attrs":2373},{"color":55},{"text":2375,"type":46,"marks":2376}," Credit unions are not-for-profit financial institutions that may be more willing to work with individuals with bad credit. They offer lower interest rates compared to traditional banks. ",[2377],{"type":53,"attrs":2378},{"color":55},{"type":141,"content":2380},[2381],{"type":42,"content":2382},[2383,2389,2398,2403,2411],{"text":2384,"type":46,"marks":2385},"Community Development Financial Institutions (CDFIs): ",[2386,2387],{"type":79},{"type":53,"attrs":2388},{"color":55},{"text":2390,"type":46,"marks":2391},"CDFIs",[2392,2395,2397],{"type":93,"attrs":2393},{"href":2394,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://cdfi.org/what-are-cdfis/",{"type":53,"attrs":2396},{"color":55},{"type":165},{"text":2399,"type":46,"marks":2400}," focus on underserved and economically disadvantaged communities. They offer a range of financial products, including ",[2401],{"type":53,"attrs":2402},{"color":55},{"text":2404,"type":46,"marks":2405},"personal loans",[2406,2408,2410],{"type":93,"attrs":2407},{"href":1699,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":2409},{"color":55},{"type":165},{"text":2412,"type":46,"marks":2413},", small business loans, auto loans, and housing loans.",[2414],{"type":53,"attrs":2415},{"color":55},{"type":141,"content":2417},[2418],{"type":42,"content":2419},[2420,2426,2431,2440],{"text":2421,"type":46,"marks":2422},"Credit builder loans: ",[2423,2424],{"type":79},{"type":53,"attrs":2425},{"color":55},{"text":2427,"type":46,"marks":2428},"Some financial institutions offer ",[2429],{"type":53,"attrs":2430},{"color":55},{"text":2432,"type":46,"marks":2433},"credit builder",[2434,2437,2439],{"type":93,"attrs":2435},{"href":2436,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.equifax.com/personal/education/credit-cards/articles/-/learn/credit-builder-loan/",{"type":53,"attrs":2438},{"color":55},{"type":165},{"text":2441,"type":46,"marks":2442}," or bad credit loans designed to help borrowers establish or improve their credit. These loans are typically between $500 and $5,000.",[2443],{"type":53,"attrs":2444},{"color":55},{"type":141,"content":2446},[2447],{"type":42,"content":2448},[2449,2455],{"text":2450,"type":46,"marks":2451},"Microlenders: ",[2452,2453],{"type":79},{"type":53,"attrs":2454},{"color":55},{"text":2456,"type":46,"marks":2457},"Microlenders provide small-dollar loans to individuals and small businesses, particularly those with limited access to traditional financing. ",[2458],{"type":53,"attrs":2459},{"color":55},{"type":141,"content":2461},[2462],{"type":42,"content":2463},[2464,2469],{"text":1804,"type":46,"marks":2465},[2466,2467],{"type":79},{"type":53,"attrs":2468},{"color":55},{"text":2470,"type":46,"marks":2471},"P2P lending platforms connect borrowers directly with individual investors willing to fund loans. These platforms may have more flexible lending criteria than traditional banks.",[2472],{"type":53,"attrs":2473},{"color":55},{"type":141,"content":2475},[2476],{"type":42,"content":2477},[2478,2484,2489,2497],{"text":2479,"type":46,"marks":2480},"Online personal loan marketplaces: ",[2481,2482],{"type":79},{"type":53,"attrs":2483},{"color":55},{"text":2485,"type":46,"marks":2486},"Online personal loan marketplaces, such as ",[2487],{"type":53,"attrs":2488},{"color":55},{"text":2490,"type":46,"marks":2491},"Navient Marketplace",[2492,2494,2496],{"type":93,"attrs":2493},{"href":770,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":2495},{"color":55},{"type":165},{"text":2498,"type":46,"marks":2499},", use loan comparison tools to help borrowers compare various loan options. You can receive tailored loan offers that align with your specific needs and financial circumstances. Loan comparison tools also allow you to explore a range of lending options without triggering multiple hard inquiries, which can negatively impact your credit score.",[2500],{"type":53,"attrs":2501},{"color":55},{"type":71,"attrs":2503,"content":2504},{"level":123},[2505],{"text":2506,"type":46,"marks":2507},"Consider a secured loan",[2508],{"type":53,"attrs":2509},{"color":55},{"type":42,"content":2511},[2512],{"text":2513,"type":46,"marks":2514},"A secured loan is a lending arrangement where the borrower provides collateral in exchange for the loan. This collateral provides the lender with a form of repayment if the borrower defaults. Collateral can include real estate, vehicles, savings accounts, or other valuable assets. Home equity loans are just one example of secured loans. ",[2515],{"type":53,"attrs":2516},{"color":55},{"type":42,"content":2518},[2519],{"text":2520,"type":46,"marks":2521},"Unsecured loans, including unsecured personal loans, typically require fair credit, if not good to excellent credit. Secured loans, on the other hand, don’t always have a minimum credit score requirement. ",[2522],{"type":53,"attrs":2523},{"color":55},{"type":71,"attrs":2525,"content":2526},{"level":123},[2527],{"text":2528,"type":46,"marks":2529},"Shop smart ",[2530],{"type":53,"attrs":2531},{"color":55},{"type":42,"content":2533},[2534,2539,2548],{"text":2535,"type":46,"marks":2536},"Before you commit to a bad credit loan, make sure to review the repayment terms. Understand what kind of late fees you’ll be charged if you file a late payment, and check to see if you’ll be charged prepayment penalties if you decide to get out of debt faster. Some lenders may offer special discounts, as well. Many of the best bad credit loans will provide an interest rate discount if you sign up for ",[2537],{"type":53,"attrs":2538},{"color":55},{"text":2540,"type":46,"marks":2541},"autopay",[2542,2545,2547],{"type":93,"attrs":2543},{"href":2544,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/how-do-automatic-debit-payments-from-my-bank-account-work-en-2021/",{"type":53,"attrs":2546},{"color":55},{"type":165},{"text":2549,"type":46,"marks":2550},", for example. ",[2551],{"type":53,"attrs":2552},{"color":55},{"type":71,"attrs":2554,"content":2555},{"level":123},[2556],{"text":2557,"type":46,"marks":2558},"Find a cosigner",[2559],{"type":53,"attrs":2560},{"color":55},{"type":42,"content":2562},[2563],{"text":2564,"type":46,"marks":2565},"A cosigner is a creditworthy individual who agrees to take joint responsibility for a loan along with the primary borrower. This is typically a trusted family member, though it can also be a good friend. Unlike a co-borrower, the cosigner doesn’t receive an equal share of the loan. Instead, they promise the lender that they’ll help pay back the loan if the primary borrower becomes unable to. This extra layer of creditworthiness gives lenders more security, which means they may be able to offer you lower rates.",[2566],{"type":53,"attrs":2567},{"color":55},{"type":71,"attrs":2569,"content":2570},{"level":123},[2571],{"text":958,"type":46,"marks":2572},[2573],{"type":53,"attrs":2574},{"color":55},{"type":42,"content":2576},[2577,2582,2591],{"text":2578,"type":46,"marks":2579},"Prequalification is a preliminary step in the loan application process that allows you to gauge your potential eligibility for a loan before formally applying. To get prequalified, you first provide some basic personal information to a lender. That lender then conducts a ",[2580],{"type":53,"attrs":2581},{"color":55},{"text":2583,"type":46,"marks":2584},"soft credit check",[2585,2588,2590],{"type":93,"attrs":2586},{"href":2587,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/whats-a-credit-inquiry-en-1317/",{"type":53,"attrs":2589},{"color":55},{"type":165},{"text":2592,"type":46,"marks":2593}," and gives you an estimate of what loan amount you’ll qualify for. ",[2594],{"type":53,"attrs":2595},{"color":55},{"type":42,"content":2597},[2598],{"text":2599,"type":46,"marks":2600},"It’s important to note that prequalification is not a guarantee of a loan approval. The actual approval process, which involves a more comprehensive review of your financial history and credit score, occurs when you submit a formal loan application. ",[2601],{"type":53,"attrs":2602},{"color":55},{"type":71,"attrs":2604,"content":2605},{"level":123},[2606],{"text":2607,"type":46,"marks":2608},"Gather documentation",[2609],{"type":53,"attrs":2610},{"color":55},{"type":42,"content":2612},[2613],{"text":2614,"type":46,"marks":2615},"You’ll likely need to provide these main documents during the loan application: ",[2616],{"type":53,"attrs":2617},{"color":55},{"type":138,"content":2619},[2620,2635,2650,2665,2680,2695],{"type":141,"content":2621},[2622],{"type":42,"content":2623},[2624,2630],{"text":2625,"type":46,"marks":2626},"Proof of identity: ",[2627,2628],{"type":79},{"type":53,"attrs":2629},{"color":55},{"text":2631,"type":46,"marks":2632},"A government-issued photo ID and social security number",[2633],{"type":53,"attrs":2634},{"color":55},{"type":141,"content":2636},[2637],{"type":42,"content":2638},[2639,2645],{"text":2640,"type":46,"marks":2641},"Proof of income:",[2642,2643],{"type":79},{"type":53,"attrs":2644},{"color":55},{"text":2646,"type":46,"marks":2647}," Recent pay stubs, tax returns, W-2 forms, or other proof of income",[2648],{"type":53,"attrs":2649},{"color":55},{"type":141,"content":2651},[2652],{"type":42,"content":2653},[2654,2660],{"text":2655,"type":46,"marks":2656},"Bank statements:",[2657,2658],{"type":79},{"type":53,"attrs":2659},{"color":55},{"text":2661,"type":46,"marks":2662}," Recent bank account statements that show your transaction history ",[2663],{"type":53,"attrs":2664},{"color":55},{"type":141,"content":2666},[2667],{"type":42,"content":2668},[2669,2675],{"text":2670,"type":46,"marks":2671},"Proof of residence: ",[2672,2673],{"type":79},{"type":53,"attrs":2674},{"color":55},{"text":2676,"type":46,"marks":2677},"Utility bills or a lease agreement to verify your current address",[2678],{"type":53,"attrs":2679},{"color":55},{"type":141,"content":2681},[2682],{"type":42,"content":2683},[2684,2690],{"text":2685,"type":46,"marks":2686},"Collateral documents: ",[2687,2688],{"type":79},{"type":53,"attrs":2689},{"color":55},{"text":2691,"type":46,"marks":2692},"Secured loans may require proof of the collateral being offered, such as property deeds, vehicle titles, or other ownership documents. ",[2693],{"type":53,"attrs":2694},{"color":55},{"type":141,"content":2696},[2697],{"type":42,"content":2698},[2699,2705,2710],{"text":2700,"type":46,"marks":2701},"Debt information: ",[2702,2703],{"type":79},{"type":53,"attrs":2704},{"color":55},{"text":2706,"type":46,"marks":2707},"A list of your current debts, outstanding loans, and credit card balances that will allow lenders to assess your ",[2708],{"type":53,"attrs":2709},{"color":55},{"text":216,"type":46,"marks":2711},[2712,2714,2716],{"type":93,"attrs":2713},{"href":220,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":2715},{"color":55},{"type":165},{"type":71,"attrs":2718,"content":2719},{"level":123},[2720],{"text":2721,"type":46,"marks":2722},"Apply for the loan",[2723],{"type":53,"attrs":2724},{"color":55},{"type":42,"content":2726},[2727],{"text":2728,"type":46,"marks":2729},"When you’re ready to submit a formal application, contact your lender to begin the process. You'll be asked to provide information about your personal finances and employment details. Most online personal loan lenders offer fast online applications and will allow you to submit any documentation electronically. Many larger financial institutions, like banks, also allow you to go into a branch to submit a physical application. ",[2730],{"type":53,"attrs":2731},{"color":55},{"type":42,"content":2733},[2734],{"text":2735,"type":46,"marks":2736},"In some cases, online lenders may approve a loan within one or two business days, while traditional lenders may have a longer processing window, often spanning a few weeks. Once you have your approval letter, be sure to carefully review the details of the loan agreement — including the loan term, annual percentage rate (APR), and any fees — before signing on the dotted line. ",[2737],{"type":53,"attrs":2738},{"color":55},{"type":71,"attrs":2740,"content":2741},{"level":73},[2742],{"text":755,"type":46,"marks":2743},[2744],{"type":53,"attrs":2745},{"color":55},{"type":42,"content":2747},[2748,2753,2760,2765,2771,2779],{"text":2749,"type":46,"marks":2750},"Online loan marketplaces can help you compare various types of loans from different lenders and ultimately make a thoughtful, informed choice. If you’re looking for a personal loan, consider starting your search with Navient Marketplace",[2751],{"type":53,"attrs":2752},{"color":55},{"text":673,"type":46,"marks":2754},[2755,2757,2758],{"type":49,"attrs":2756},{"class":677},{"type":677},{"type":53,"attrs":2759},{"color":18},{"text":2761,"type":46,"marks":2762},". To help you find the best personal loan rates, Navient collaborates with Fiona, a leading personal loan search tool. Explore your options and find personalized loan rates by",[2763],{"type":53,"attrs":2764},{"color":55},{"text":657,"type":46,"marks":2766},[2767,2769],{"type":93,"attrs":2768},{"href":770,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":2770},{"color":55},{"text":2772,"type":46,"marks":2773},"visiting our marketplace",[2774,2776,2778],{"type":93,"attrs":2775},{"href":770,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":2777},{"color":55},{"type":165},{"text":2780,"type":46,"marks":2781}," today.",[2782],{"type":53,"attrs":2783},{"color":55},{"type":42,"content":2785},[2786],{"text":789,"type":46,"marks":2787},[2788,2790],{"type":49,"attrs":2789},{"class":51},{"type":53,"attrs":2791},{"color":55},{"type":42,"content":2793},[2794,2800],{"text":673,"type":46,"marks":2795},[2796,2798],{"type":49,"attrs":2797},{"class":677},{"type":53,"attrs":2799},{"color":55},{"text":804,"type":46,"marks":2801},[2802,2804],{"type":49,"attrs":2803},{"class":51},{"type":53,"attrs":2805},{"color":55},{"type":42,"content":2807},[2808],{"text":1868,"type":46,"marks":2809},[2810,2812],{"type":49,"attrs":2811},{"class":51},{"type":53,"attrs":2813},{"color":55},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798168\"}-->","https://www.marketplace.navient.com/blog/how-to-get-a-personal-loan-with-bad-credit/","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"39f3568e-f888-4c3e-816f-3647f7efec59\", \"id\": \"651798168\"}-->","how-to-get-a-personal-loan-with-bad-credit","navient_marketplace/blog/how-to-get-a-personal-loan-with-bad-credit",[],"d70dcfd9-b2f4-4004-bcfe-35f8e2ba6360","2023-09-26T16:22:05.482Z","blog/how-to-get-a-personal-loan-with-bad-credit",[],{"name":2825,"created_at":2826,"published_at":2827,"updated_at":2828,"id":2829,"uuid":2830,"content":2831,"slug":3599,"full_slug":3600,"sort_by_date":96,"position":826,"tag_list":3601,"is_startpage":29,"parent_id":828,"meta_data":96,"group_id":3602,"first_published_at":3603,"release_id":96,"lang":831,"path":3604,"alternates":3605,"default_full_slug":96,"translated_slugs":96},"How to Pay off Credit Card Debt Fast","2025-04-07T18:30:33.525Z","2025-12-26T13:44:57.575Z","2025-12-26T13:44:57.602Z",651798167,"510902b5-3978-4e10-a862-512a370b5b2c",{"seo":2832,"_uid":20,"hero":2835,"author":31,"category":2841,"featured":29,"imageAlt":18,"component":33,"blogContents":2842,"canonicalTag":3597,"publishedDate":822,"_editable":3598},{"_uid":15,"title":2833,"plugin":17,"og_image":18,"og_title":18,"description":2834,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"How to Pay off Credit Card Debt Fast | Navient Marketplace","The best plan to pay off your credit card debt is to find one that you can stick with. Here we share our best tips and solutions for paying off your credit card debt fast.",[2836],{"id":18,"_uid":23,"image":2837,"intro":2834,"classes":18,"_editable":2838,"blogTitle":2839,"component":27,"imageLink":2840,"blendImage":29,"backgroundColor":30},"//a.storyblok.com/f/110029/8192x4804/c9ee6ede27/how-to-pay-off-credit-card-debt-fast.png","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798167\"}-->","How to Pay Off Credit Card Debt Fast","/images/how-to-pay-off-credit-card-debt-fast.png","Credit Cards",[2843],{"_uid":36,"color":37,"richText":2844,"_editable":3596,"component":820},{"type":39,"content":2845},[2846,2854,2861,2869,2876,2883,2891,2898,2906,2927,2935,2942,2950,2957,2965,2972,2980,2987,3018,3026,3033,3064,3072,3079,3108,3115,3123,3143,3232,3253,3261,3268,3275,3283,3303,3311,3394,3401,3408,3415,3423,3430,3447,3487,3517,3525,3532,3551,3559,3573,3581],{"type":42,"content":2847},[2848],{"text":45,"type":46,"marks":2849},[2850,2852],{"type":49,"attrs":2851},{"class":51},{"type":53,"attrs":2853},{"color":55},{"type":42,"content":2855},[2856],{"text":2857,"type":46,"marks":2858},"If you’re struggling with mounting credit card debt, it can be tempting to feel like you’ll never get your head above water. But while outstanding credit card payments can be challenging to manage, there are several effective strategies that can help you get out of debt quickly. The secret is to create a debt repayment plan tailored to your personal finance goals. Here’s how to choose the right method for your financial situation. ",[2859],{"type":53,"attrs":2860},{"color":55},{"type":71,"attrs":2862,"content":2863},{"level":73},[2864],{"text":2865,"type":46,"marks":2866},"1. Identify the problem ",[2867],{"type":53,"attrs":2868},{"color":55},{"type":42,"content":2870},[2871],{"text":2872,"type":46,"marks":2873},"If you don’t know how you got into credit card debt, start by understanding the root of the issue. ",[2874],{"type":53,"attrs":2875},{"color":55},{"type":42,"content":2877},[2878],{"text":2879,"type":46,"marks":2880},"Take a closer look at your spending habits and financial decisions and ask yourself the following questions:",[2881],{"type":53,"attrs":2882},{"color":55},{"type":71,"attrs":2884,"content":2885},{"level":123},[2886],{"text":2887,"type":46,"marks":2888},"Are you consistently overspending and living beyond your means?",[2889],{"type":53,"attrs":2890},{"color":1087},{"type":42,"content":2892},[2893],{"text":2894,"type":46,"marks":2895},"Many Americans overspend simply because it’s so easy to make purchases these days. If you’re constantly swiping your card without first consulting a budget, buying luxury items you may not need, or doing a lot of online shopping, you may be living beyond your means.  ",[2896],{"type":53,"attrs":2897},{"color":55},{"type":71,"attrs":2899,"content":2900},{"level":123},[2901],{"text":2902,"type":46,"marks":2903},"Do unexpected expenses contribute to your mounting debt?",[2904],{"type":53,"attrs":2905},{"color":1087},{"type":42,"content":2907},[2908,2913,2922],{"text":2909,"type":46,"marks":2910},"Life is unpredictable, and sudden medical bills, car repairs, or other unforeseen emergencies can quickly drain your finances. If you don’t have a ",[2911],{"type":53,"attrs":2912},{"color":55},{"text":2914,"type":46,"marks":2915},"robust emergency fund",[2916,2919,2921],{"type":93,"attrs":2917},{"href":2918,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/an-essential-guide-to-building-an-emergency-fund/",{"type":53,"attrs":2920},{"color":933},{"type":165},{"text":2923,"type":46,"marks":2924}," or other savings account to draw from, you may resort to using credit cards to cover these expenses.",[2925],{"type":53,"attrs":2926},{"color":55},{"type":71,"attrs":2928,"content":2929},{"level":123},[2930],{"text":2931,"type":46,"marks":2932},"Are you only making minimum payments on your debt?",[2933],{"type":53,"attrs":2934},{"color":1087},{"type":42,"content":2936},[2937],{"text":2938,"type":46,"marks":2939},"While minimum payments may seem manageable in the short term, they primarily serve to pay off interest charges, leaving the actual balance of your debt largely untouched. As a result, your debt will continue to accumulate. ",[2940],{"type":53,"attrs":2941},{"color":55},{"type":71,"attrs":2943,"content":2944},{"level":123},[2945],{"text":2946,"type":46,"marks":2947},"Do you have too many credit cards to keep track of?",[2948],{"type":53,"attrs":2949},{"color":1087},{"type":42,"content":2951},[2952],{"text":2953,"type":46,"marks":2954},"It can be hard to juggle multiple cards with different due dates and interest rates. In the confusion, you may find yourself making late payments or missing payments altogether. As a result, you’ll rack up credit card interest and late fees, both of which can escalate your debt.  ",[2955],{"type":53,"attrs":2956},{"color":55},{"type":71,"attrs":2958,"content":2959},{"level":73},[2960],{"text":2961,"type":46,"marks":2962},"2. Pick a debt repayment strategy",[2963],{"type":53,"attrs":2964},{"color":55},{"type":42,"content":2966},[2967],{"text":2968,"type":46,"marks":2969},"Choosing the right repayment strategy can help you become debt-free faster. Here are two popular approaches. ",[2970],{"type":53,"attrs":2971},{"color":55},{"type":71,"attrs":2973,"content":2974},{"level":123},[2975],{"text":2976,"type":46,"marks":2977},"The debt snowball method",[2978],{"type":53,"attrs":2979},{"color":1087},{"type":42,"content":2981},[2982],{"text":2983,"type":46,"marks":2984},"With the debt snowball method, you prioritize paying off smaller debts first. This method is excellent for people who find motivation in small victories and enjoy the psychological boost of crossing debts off their list. Here’s how it works.",[2985],{"type":53,"attrs":2986},{"color":55},{"type":497,"attrs":2988,"content":2990},{"order":2989},{"order":499},[2991,3000,3009],{"type":141,"content":2992},[2993],{"type":42,"content":2994},[2995],{"text":2996,"type":46,"marks":2997},"First, list all your debts in order from the smallest balance to the largest balance.",[2998],{"type":53,"attrs":2999},{"color":55},{"type":141,"content":3001},[3002],{"type":42,"content":3003},[3004],{"text":3005,"type":46,"marks":3006},"Channel any extra cash toward your smallest debt while continuing to make just the minimum payments on all your other debts. ",[3007],{"type":53,"attrs":3008},{"color":55},{"type":141,"content":3010},[3011],{"type":42,"content":3012},[3013],{"text":3014,"type":46,"marks":3015},"Once you clear that first debt, start paying that same amount toward your next smallest debt. When that’s paid off, move to the next, and so on. This creates a “snowball” effect. ",[3016],{"type":53,"attrs":3017},{"color":55},{"type":71,"attrs":3019,"content":3020},{"level":123},[3021],{"text":3022,"type":46,"marks":3023},"The debt avalanche method",[3024],{"type":53,"attrs":3025},{"color":1087},{"type":42,"content":3027},[3028],{"text":3029,"type":46,"marks":3030},"With the debt avalanche method, you pay off debts based on their interest rates. The goal is to minimize the overall interest paid. This method is best for people motivated by long-term financial savings. Here how the debt avalanche method works:",[3031],{"type":53,"attrs":3032},{"color":55},{"type":497,"attrs":3034,"content":3036},{"order":3035},{"order":499},[3037,3046,3055],{"type":141,"content":3038},[3039],{"type":42,"content":3040},[3041],{"text":3042,"type":46,"marks":3043},"Start by listing all your debts in order from the highest interest rate to lowest interest rate.",[3044],{"type":53,"attrs":3045},{"color":55},{"type":141,"content":3047},[3048],{"type":42,"content":3049},[3050],{"text":3051,"type":46,"marks":3052},"Make minimum payments on all your debts, but direct any extra money toward the debt with the highest interest rate. ",[3053],{"type":53,"attrs":3054},{"color":55},{"type":141,"content":3056},[3057],{"type":42,"content":3058},[3059],{"text":3060,"type":46,"marks":3061},"Once that highest interest-rate debt is paid off, move to the debt with the next highest interest rate. ",[3062],{"type":53,"attrs":3063},{"color":55},{"type":71,"attrs":3065,"content":3066},{"level":123},[3067],{"text":3068,"type":46,"marks":3069},"Snowball vs avalanche",[3070],{"type":53,"attrs":3071},{"color":1087},{"type":42,"content":3073},[3074],{"text":3075,"type":46,"marks":3076},"Consider a hypothetical scenario where you have three credit card debts: ",[3077],{"type":53,"attrs":3078},{"color":55},{"type":138,"content":3080},[3081,3090,3099],{"type":141,"content":3082},[3083],{"type":42,"content":3084},[3085],{"text":3086,"type":46,"marks":3087},"Card A with a balance of $1,000 and an interest rate of 12%",[3088],{"type":53,"attrs":3089},{"color":55},{"type":141,"content":3091},[3092],{"type":42,"content":3093},[3094],{"text":3095,"type":46,"marks":3096},"Card B with a balance of $3,000 and an interest rate of 18%",[3097],{"type":53,"attrs":3098},{"color":55},{"type":141,"content":3100},[3101],{"type":42,"content":3102},[3103],{"text":3104,"type":46,"marks":3105},"Card C with a balance of $5,000 and an interest rate of 15%",[3106],{"type":53,"attrs":3107},{"color":55},{"type":42,"content":3109},[3110],{"text":3111,"type":46,"marks":3112},"With the Snowball method, you’d prioritize paying off Card A, then Card B, and finally Card C. With the Avalanche method, however, you’d pay off card B first, since it has the highest interest rate, followed by Card C and Card A.",[3113],{"type":53,"attrs":3114},{"color":55},{"type":71,"attrs":3116,"content":3117},{"level":73},[3118],{"text":3119,"type":46,"marks":3120},"3. Consider debt consolidation",[3121],{"type":53,"attrs":3122},{"color":55},{"type":42,"content":3124},[3125,3130,3138],{"text":3126,"type":46,"marks":3127},"One way to make your payments more manageable is to ",[3128],{"type":53,"attrs":3129},{"color":55},{"text":3131,"type":46,"marks":3132},"consolidate your debt",[3133,3136],{"type":93,"attrs":3134},{"href":3135,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://offers.moneylion.com/channelTrackingOfferRedirect/ba675b58-5d95-47ac-b285-7ddd8df4eaf3/f8b6569c-b09c-41c4-818f-6ac8ffa83f8e",{"type":53,"attrs":3137},{"color":55},{"text":3139,"type":46,"marks":3140},". Instead of juggling multiple credit card accounts with varying interest rates and due dates, you’ll be left with a single debt consolidation loan with a single, predictable monthly payment. There are several ways to go about debt consolidation. ",[3141],{"type":53,"attrs":3142},{"color":55},{"type":138,"content":3144},[3145,3180,3217],{"type":141,"content":3146},[3147],{"type":42,"content":3148},[3149,3155,3160,3168,3175],{"text":3150,"type":46,"marks":3151},"Personal loans: ",[3152,3153],{"type":79},{"type":53,"attrs":3154},{"color":55},{"text":3156,"type":46,"marks":3157},"With a ",[3158],{"type":53,"attrs":3159},{"color":55},{"text":3161,"type":46,"marks":3162},"personal loan",[3163,3165,3167],{"type":93,"attrs":3164},{"href":1699,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":3166},{"color":933},{"type":165},{"text":673,"type":46,"marks":3169},[3170,3172,3173],{"type":49,"attrs":3171},{"class":677},{"type":677},{"type":53,"attrs":3174},{"color":18},{"text":3176,"type":46,"marks":3177},", you borrow a lump sum from a lender and use it to pay off your high-interest debts. In the end, you’re left with just one loan to manage, typically with a fixed interest rate and a clear repayment term.",[3178],{"type":53,"attrs":3179},{"color":55},{"type":141,"content":3181},[3182],{"type":42,"content":3183},[3184,3190,3195,3204,3212],{"text":3185,"type":46,"marks":3186},"Balance transfer credit cards: ",[3187,3188],{"type":79},{"type":53,"attrs":3189},{"color":55},{"text":3191,"type":46,"marks":3192},"This is a form of ",[3193],{"type":53,"attrs":3194},{"color":55},{"text":3196,"type":46,"marks":3197},"credit card refinancing",[3198,3201,3203],{"type":93,"attrs":3199},{"href":3200,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://marketplace.navient.com/blog/credit-card-refinancing/",{"type":53,"attrs":3202},{"color":933},{"type":165},{"text":3205,"type":46,"marks":3206},"2",[3207,3209,3210],{"type":49,"attrs":3208},{"class":677},{"type":677},{"type":53,"attrs":3211},{"color":18},{"text":3213,"type":46,"marks":3214},". It involves transferring the balances from your high-interest credit cards to a new credit card with a lower interest rate. This can help you save money while you pay down the balance. (Be sure to check for balance transfer fees before you commit.)",[3215],{"type":53,"attrs":3216},{"color":55},{"type":141,"content":3218},[3219],{"type":42,"content":3220},[3221,3227],{"text":3222,"type":46,"marks":3223},"Home equity loans or lines of credit: ",[3224,3225],{"type":79},{"type":53,"attrs":3226},{"color":55},{"text":3228,"type":46,"marks":3229},"If you own a home, you may be able to use your home equity to secure a loan. You can use the loan funds to pay off high-interest credit card debt. However, your home may be forfeit if you can’t make your loan payments.",[3230],{"type":53,"attrs":3231},{"color":55},{"type":42,"content":3233},[3234,3239,3248],{"text":3235,"type":46,"marks":3236},"To be eligible for debt consolidation, you’ll need a good credit score, steady income, and a low ",[3237],{"type":53,"attrs":3238},{"color":55},{"text":3240,"type":46,"marks":3241},"credit utilization ratio",[3242,3245,3247],{"type":93,"attrs":3243},{"href":3244,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/will-closing-credit-cards-i-already-have-increase-my-credit-score-en-1231/",{"type":53,"attrs":3246},{"color":933},{"type":165},{"text":3249,"type":46,"marks":3250},". If you choose to consolidate, just be sure to stay disciplined with your spending and stick to your debt repayment strategy. If you continue racking up debt after you consolidate, you could end up worse off than before. ",[3251],{"type":53,"attrs":3252},{"color":55},{"type":71,"attrs":3254,"content":3255},{"level":73},[3256],{"text":3257,"type":46,"marks":3258},"4. Create a budget",[3259],{"type":53,"attrs":3260},{"color":55},{"type":42,"content":3262},[3263],{"text":3264,"type":46,"marks":3265},"You may be more likely to overspend if you don’t have any guidelines in place. A well-structured budget allows you to track your income and expenses, giving you a clear understanding of where your money is going and helping you identify areas where you can cut back. A good budget will also help you stay on track once you have a debt repayment strategy in place. ",[3266],{"type":53,"attrs":3267},{"color":55},{"type":42,"content":3269},[3270],{"text":3271,"type":46,"marks":3272},"Start by tracking your spending for a month. At the end of the month, list all your sources of income and categorize all your monthly expenses. Analyze this list to identify areas where you can make adjustments. A sample budget might look like this:",[3273],{"type":53,"attrs":3274},{"color":55},{"type":42,"content":3276},[3277],{"text":3278,"type":46,"marks":3279},"Income:",[3280,3281],{"type":79},{"type":53,"attrs":3282},{"color":55},{"type":138,"content":3284},[3285,3294],{"type":141,"content":3286},[3287],{"type":42,"content":3288},[3289],{"text":3290,"type":46,"marks":3291},"Paycheck: $3,500 per month",[3292],{"type":53,"attrs":3293},{"color":55},{"type":141,"content":3295},[3296],{"type":42,"content":3297},[3298],{"text":3299,"type":46,"marks":3300},"Side hustle: $500 per month",[3301],{"type":53,"attrs":3302},{"color":55},{"type":42,"content":3304},[3305],{"text":3306,"type":46,"marks":3307},"Expenses:",[3308,3309],{"type":79},{"type":53,"attrs":3310},{"color":55},{"type":138,"content":3312},[3313,3322,3331,3340,3349,3358,3367,3376,3385],{"type":141,"content":3314},[3315],{"type":42,"content":3316},[3317],{"text":3318,"type":46,"marks":3319},"Rent/mortgage: $1,200",[3320],{"type":53,"attrs":3321},{"color":55},{"type":141,"content":3323},[3324],{"type":42,"content":3325},[3326],{"text":3327,"type":46,"marks":3328},"Utilities: $200",[3329],{"type":53,"attrs":3330},{"color":55},{"type":141,"content":3332},[3333],{"type":42,"content":3334},[3335],{"text":3336,"type":46,"marks":3337},"Groceries: $400",[3338],{"type":53,"attrs":3339},{"color":55},{"type":141,"content":3341},[3342],{"type":42,"content":3343},[3344],{"text":3345,"type":46,"marks":3346},"Transportation: $200",[3347],{"type":53,"attrs":3348},{"color":55},{"type":141,"content":3350},[3351],{"type":42,"content":3352},[3353],{"text":3354,"type":46,"marks":3355},"Insurance: $150",[3356],{"type":53,"attrs":3357},{"color":55},{"type":141,"content":3359},[3360],{"type":42,"content":3361},[3362],{"text":3363,"type":46,"marks":3364},"Minimum debt payments: $800",[3365],{"type":53,"attrs":3366},{"color":55},{"type":141,"content":3368},[3369],{"type":42,"content":3370},[3371],{"text":3372,"type":46,"marks":3373},"Emergency fund: $200",[3374],{"type":53,"attrs":3375},{"color":55},{"type":141,"content":3377},[3378],{"type":42,"content":3379},[3380],{"text":3381,"type":46,"marks":3382},"Miscellaneous: $250",[3383],{"type":53,"attrs":3384},{"color":55},{"type":141,"content":3386},[3387],{"type":42,"content":3388},[3389],{"text":3390,"type":46,"marks":3391},"Investments: $400",[3392],{"type":53,"attrs":3393},{"color":55},{"type":42,"content":3395},[3396],{"text":3397,"type":46,"marks":3398},"Total income - total expenses = $200",[3399],{"type":53,"attrs":3400},{"color":55},{"type":42,"content":3402},[3403],{"text":3404,"type":46,"marks":3405},"Right now, we have $200 leftover each month. If you don’t have an emergency fund, it may be best to save that $200 each month until you have three to six months of living expenses accumulated in case of an unexpected crisis. But if you already have a well-stocked emergency fund, you may want to allocate this extra cash toward debt payment. ",[3406],{"type":53,"attrs":3407},{"color":55},{"type":42,"content":3409},[3410],{"text":3411,"type":46,"marks":3412},"To accelerate your repayment progress even more, comb through your budget again, looking for non-essential expenses that you can cut. Maybe you can cook rather than dine out, or cut back on subscription services. Any money you can avoid spending can go toward paying down your debts. ",[3413],{"type":53,"attrs":3414},{"color":55},{"type":71,"attrs":3416,"content":3417},{"level":73},[3418],{"text":3419,"type":46,"marks":3420},"5. Consider debt relief",[3421],{"type":53,"attrs":3422},{"color":55},{"type":42,"content":3424},[3425],{"text":3426,"type":46,"marks":3427},"Debt relief is a broad term that encompasses various strategies for reducing or eliminating debt. It can help individuals pay down their credit card bills and regain control over their financial lives. Here are some available debt relief options. ",[3428],{"type":53,"attrs":3429},{"color":55},{"type":138,"content":3431},[3432],{"type":141,"content":3433},[3434],{"type":42,"content":3435},[3436,3442],{"text":3437,"type":46,"marks":3438},"Debt settlement: ",[3439,3440],{"type":79},{"type":53,"attrs":3441},{"color":55},{"text":3443,"type":46,"marks":3444},"With debt settlement, you negotiate with your credit card companies to accept less than the full amount of debt you owe. If they agree to settle, you’ll typically have to make a lump sum payment—or a series of payments—to clear your debt. Debt settlement is a good fit for individuals facing severe financial hardship. While debt settlement can provide significant debt reduction, it may also have adverse effects on your credit report.",[3445],{"type":53,"attrs":3446},{"color":55},{"type":138,"content":3448},[3449],{"type":141,"content":3450},[3451],{"type":42,"content":3452},[3453,3459,3468,3473,3482],{"text":3454,"type":46,"marks":3455},"Debt management plans: ",[3456,3457],{"type":79},{"type":53,"attrs":3458},{"color":55},{"text":3460,"type":46,"marks":3461},"Debt Management Plans (DMPs)",[3462,3465,3467],{"type":93,"attrs":3463},{"href":3464,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.debt.org/management-plans/",{"type":53,"attrs":3466},{"color":933},{"type":165},{"text":3469,"type":46,"marks":3470}," are an option for those who need assistance but want to avoid the negative credit impacts of settlement or bankruptcy. With a DMP, a ",[3471],{"type":53,"attrs":3472},{"color":55},{"text":3474,"type":46,"marks":3475},"nonprofit credit counseling agency",[3476,3479,3481],{"type":93,"attrs":3477},{"href":3478,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.justice.gov/ust/list-credit-counseling-agencies-approved-pursuant-11-usc-111",{"type":53,"attrs":3480},{"color":933},{"type":165},{"text":3483,"type":46,"marks":3484}," works with the credit card issuer to negotiate lower rates and more affordable monthly payments. You make a single monthly payment to the credit counseling agency, and they disburse the funds to your creditors on your behalf.",[3485],{"type":53,"attrs":3486},{"color":55},{"type":138,"content":3488},[3489],{"type":141,"content":3490},[3491],{"type":42,"content":3492},[3493,3499,3503,3512],{"text":3494,"type":46,"marks":3495},"Bankruptcy:",[3496,3497],{"type":79},{"type":53,"attrs":3498},{"color":55},{"text":657,"type":46,"marks":3500},[3501],{"type":53,"attrs":3502},{"color":55},{"text":3504,"type":46,"marks":3505},"Bankruptcy",[3506,3509,3511],{"type":93,"attrs":3507},{"href":3508,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.uscourts.gov/services-forms/bankruptcy",{"type":53,"attrs":3510},{"color":933},{"type":165},{"text":3513,"type":46,"marks":3514}," is a last resort option for those facing extreme financial hardship. While declaring bankruptcy can immediately clear your debts and provide a fresh start, it also has severe and long-lasting consequences on your credit score and financial standing.",[3515],{"type":53,"attrs":3516},{"color":55},{"type":71,"attrs":3518,"content":3519},{"level":73},[3520],{"text":3521,"type":46,"marks":3522},"Compare personal loans on Navient Marketplace",[3523],{"type":53,"attrs":3524},{"color":55},{"type":42,"content":3526},[3527],{"text":3528,"type":46,"marks":3529},"If you want to consolidate your debt, simplify your monthly payments, and save money on interest, consider using a personal loan. Personal loans can help you get your debt under control and pay it off on your own terms. ",[3530],{"type":53,"attrs":3531},{"color":55},{"type":42,"content":3533},[3534,3539,3546],{"text":3535,"type":46,"marks":3536},"Ready to start shopping for personal loans? To help streamline your search, Navient Marketplace partners with MoneyLion, a leading personal loan search tool. Explore the versatile loans available and discover personalized loan rates by ",[3537],{"type":53,"attrs":3538},{"color":55},{"text":2772,"type":46,"marks":3540},[3541,3543,3545],{"type":93,"attrs":3542},{"href":770,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":3544},{"color":933},{"type":165},{"text":3547,"type":46,"marks":3548}," today.  ",[3549],{"type":53,"attrs":3550},{"color":55},{"type":42,"content":3552},[3553],{"text":789,"type":46,"marks":3554},[3555,3557],{"type":49,"attrs":3556},{"class":51},{"type":53,"attrs":3558},{"color":55},{"type":42,"content":3560},[3561,3567],{"text":673,"type":46,"marks":3562},[3563,3565],{"type":49,"attrs":3564},{"class":677},{"type":53,"attrs":3566},{"color":55},{"text":1859,"type":46,"marks":3568},[3569,3571],{"type":49,"attrs":3570},{"class":51},{"type":53,"attrs":3572},{"color":55},{"type":42,"content":3574},[3575],{"text":813,"type":46,"marks":3576},[3577,3579],{"type":49,"attrs":3578},{"class":51},{"type":53,"attrs":3580},{"color":55},{"type":42,"content":3582},[3583,3589],{"text":3205,"type":46,"marks":3584},[3585,3587],{"type":49,"attrs":3586},{"class":677},{"type":53,"attrs":3588},{"color":55},{"text":3590,"type":46,"marks":3591}," Navient has partnered with CardRatings for our OO\\lerage ot credit card products. Navient and CardRatings may receive a commission from card issuers. Opinions. reviews, analyses & recommendations are Navient's alone, and have not been reviewed, endorsed or approved by any of these entities. ",[3592,3594],{"type":49,"attrs":3593},{"class":51},{"type":53,"attrs":3595},{"color":55},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798167\"}-->","https://www.marketplace.navient.com/blog/how-to-pay-off-credit-card-debt-fast/","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"39f3568e-f888-4c3e-816f-3647f7efec59\", \"id\": \"651798167\"}-->","how-to-pay-off-credit-card-debt-fast","navient_marketplace/blog/how-to-pay-off-credit-card-debt-fast",[],"165c874f-ef3c-48b4-9590-144a7399f01b","2023-09-26T16:23:10.823Z","blog/how-to-pay-off-credit-card-debt-fast/",[],{"name":3607,"created_at":3608,"published_at":3609,"updated_at":3610,"id":3611,"uuid":3612,"content":3613,"slug":4255,"full_slug":4256,"sort_by_date":96,"position":826,"tag_list":4257,"is_startpage":29,"parent_id":828,"meta_data":96,"group_id":4258,"first_published_at":4259,"release_id":96,"lang":831,"path":4260,"alternates":4261,"default_full_slug":96,"translated_slugs":96},"Charge Card vs. Credit Card: Which is better? ","2025-04-07T18:30:31.760Z","2025-12-26T13:44:57.857Z","2025-12-26T13:44:57.881Z",651798166,"2bdcb13c-647e-491f-819e-b8026d729056",{"seo":3614,"_uid":20,"hero":3617,"author":31,"category":2841,"featured":29,"imageAlt":18,"component":33,"blogContents":3623,"canonicalTag":4253,"publishedDate":822,"_editable":4254},{"_uid":15,"title":3615,"plugin":17,"og_image":18,"og_title":18,"description":3616,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"Charge Card vs. Credit Card: Which is better?  | Navient Marketplace","Although these two financial tools often seem interchangeable, they operate in different ways. Here’s what you need to know about each option and when to use each. ",[3618],{"id":18,"_uid":23,"image":3619,"intro":3616,"classes":18,"_editable":3620,"blogTitle":3621,"component":27,"imageLink":3622,"blendImage":29,"backgroundColor":30},"//a.storyblok.com/f/110029/6000x4000/a4bc5de4a5/charge-card-vs-credit-card.png","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798166\"}-->","Charge Card vs. Credit Card: Which is Better?","/images/charge-card-vs-credit-card.png",[3624],{"_uid":36,"color":37,"richText":3625,"_editable":4252,"component":820},{"type":39,"content":3626},[3627,3636,3643,3650,3658,3666,3673,3694,3701,3765,3773,3780,3787,3851,3859,3866,3874,3881,3889,3918,3925,3933,3962,3970,3991,3998,4005,4013,4020,4040,4047,4055,4062,4092,4109,4140,4170,4201,4208,4216,4235,4243],{"type":42,"content":3628},[3629],{"text":45,"type":46,"marks":3630},[3631,3633],{"type":49,"attrs":3632},{"class":51},{"type":53,"attrs":3634},{"color":3635},"#000000",{"type":42,"content":3637},[3638],{"text":3639,"type":46,"marks":3640},"In today’s lending landscape, borrowers have a variety of options at their fingertips. Among these, charge cards and credit cards stand out as some of the most popular means of accessing funds.",[3641],{"type":53,"attrs":3642},{"color":3635},{"type":42,"content":3644},[3645],{"text":3646,"type":46,"marks":3647},"So, what’s the difference between a charge card and a credit card? Although these two financial tools often seem interchangeable, they operate in different ways. Credit cards provide a revolving line of credit, which you can make only a minimum payment on if you need to. Charge cards, on the other hand, require a payment in full each month. Here’s what you need to know about each option and when to use each. ",[3648],{"type":53,"attrs":3649},{"color":3635},{"type":71,"attrs":3651,"content":3652},{"level":73},[3653],{"text":3654,"type":46,"marks":3655},"What’s the difference between a credit card and a charge card? ",[3656],{"type":53,"attrs":3657},{"color":3635},{"type":71,"attrs":3659,"content":3660},{"level":123},[3661],{"text":3662,"type":46,"marks":3663},"Understanding credit cards",[3664],{"type":53,"attrs":3665},{"color":3635},{"type":42,"content":3667},[3668],{"text":3669,"type":46,"marks":3670},"Credit cards are one of the most widely used forms of payment in the modern world. They allow users to make purchases on credit, essentially borrowing money from the card issuer. In most cases, the card issuer is a bank or credit union. ",[3671],{"type":53,"attrs":3672},{"color":3635},{"type":42,"content":3674},[3675,3680,3689],{"text":3676,"type":46,"marks":3677},"When you open a new credit card, you are ",[3678],{"type":53,"attrs":3679},{"color":3635},{"text":3681,"type":46,"marks":3682},"assigned a credit limit",[3683,3686,3688],{"type":93,"attrs":3684},{"href":3685,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/why-did-i-get-a-low-credit-limit-on-a-credit-card-en-11/",{"type":53,"attrs":3687},{"color":3635},{"type":165},{"text":3690,"type":46,"marks":3691},". This specifies the maximum amount you can borrow at any given time. Each month, you’ll receive a statement detailing your purchases and the minimum payment you’re required to make.",[3692],{"type":53,"attrs":3693},{"color":3635},{"type":42,"content":3695},[3696],{"text":3697,"type":46,"marks":3698},"Key features of credit cards: ",[3699],{"type":53,"attrs":3700},{"color":3635},{"type":497,"attrs":3702,"content":3704},{"order":3703},{"order":499},[3705,3720,3735,3750],{"type":141,"content":3706},[3707],{"type":42,"content":3708},[3709,3715],{"text":3710,"type":46,"marks":3711},"Credit limit",[3712,3713],{"type":79},{"type":53,"attrs":3714},{"color":3635},{"text":3716,"type":46,"marks":3717},": Credit cards come with a predefined credit limit that determines how much you can borrow at any given time. ",[3718],{"type":53,"attrs":3719},{"color":3635},{"type":141,"content":3721},[3722],{"type":42,"content":3723},[3724,3730],{"text":3725,"type":46,"marks":3726},"Minimum payments",[3727,3728],{"type":79},{"type":53,"attrs":3729},{"color":3635},{"text":3731,"type":46,"marks":3732},": With a credit card, it’s optional to pay your balance in full each month. Instead, you are only expected to make a minimum payment, a small percentage of the outstanding balance, by the payment due date. ",[3733],{"type":53,"attrs":3734},{"color":3635},{"type":141,"content":3736},[3737],{"type":42,"content":3738},[3739,3745],{"text":3740,"type":46,"marks":3741},"Revolving credit",[3742,3743],{"type":79},{"type":53,"attrs":3744},{"color":3635},{"text":3746,"type":46,"marks":3747},": If you choose not to pay your bill in full, you have the option to carry the remaining balance from one month into the next. ",[3748],{"type":53,"attrs":3749},{"color":3635},{"type":141,"content":3751},[3752],{"type":42,"content":3753},[3754,3760],{"text":3755,"type":46,"marks":3756},"Interest charges",[3757,3758],{"type":79},{"type":53,"attrs":3759},{"color":3635},{"text":3761,"type":46,"marks":3762},": If you choose to carry your balance forward, you’ll likely have to pay interest charges on that amount.",[3763],{"type":53,"attrs":3764},{"color":3635},{"type":71,"attrs":3766,"content":3767},{"level":123},[3768],{"text":3769,"type":46,"marks":3770},"Understanding charge cards ",[3771],{"type":53,"attrs":3772},{"color":3635},{"type":42,"content":3774},[3775],{"text":3776,"type":46,"marks":3777},"While charge cards might sound similar to credit cards, they operate on a different principle. Charge cards provide a means of making purchases without a revolving credit feature. With a charge card, you are expected to pay the full balance each month, essentially requiring you to clear your debt in full by the payment due date.",[3778],{"type":53,"attrs":3779},{"color":3635},{"type":42,"content":3781},[3782],{"text":3783,"type":46,"marks":3784},"Key features of charge cards: ",[3785],{"type":53,"attrs":3786},{"color":3635},{"type":497,"attrs":3788,"content":3790},{"order":3789},{"order":499},[3791,3806,3821,3836],{"type":141,"content":3792},[3793],{"type":42,"content":3794},[3795,3801],{"text":3796,"type":46,"marks":3797},"No predetermined credit limit: ",[3798,3799],{"type":79},{"type":53,"attrs":3800},{"color":3635},{"text":3802,"type":46,"marks":3803},"Charge cards do not have a fixed credit limit, which enables more flexible spending.",[3804],{"type":53,"attrs":3805},{"color":3635},{"type":141,"content":3807},[3808],{"type":42,"content":3809},[3810,3816],{"text":3811,"type":46,"marks":3812},"No revolving credit:",[3813,3814],{"type":79},{"type":53,"attrs":3815},{"color":3635},{"text":3817,"type":46,"marks":3818}," Unlike credit cards, charge cards do not allow you to carry a balance from month to month. The full balance must be paid in full within the payment period.",[3819],{"type":53,"attrs":3820},{"color":3635},{"type":141,"content":3822},[3823],{"type":42,"content":3824},[3825,3831],{"text":3826,"type":46,"marks":3827},"No interest charges",[3828,3829],{"type":79},{"type":53,"attrs":3830},{"color":3635},{"text":3832,"type":46,"marks":3833},": Because charge cards require the balance to be paid in full, there are typically no interest charges.",[3834],{"type":53,"attrs":3835},{"color":3635},{"type":141,"content":3837},[3838],{"type":42,"content":3839},[3840,3846],{"text":3841,"type":46,"marks":3842},"Annual fees",[3843,3844],{"type":79},{"type":53,"attrs":3845},{"color":3635},{"text":3847,"type":46,"marks":3848},": Charge cards often come with higher annual membership fees compared to credit cards. In exchange, they offer added benefits and perks.",[3849],{"type":53,"attrs":3850},{"color":3635},{"type":71,"attrs":3852,"content":3853},{"level":73},[3854],{"text":3855,"type":46,"marks":3856},"Credit card or charge card: Which is better?",[3857],{"type":53,"attrs":3858},{"color":3635},{"type":42,"content":3860},[3861],{"text":3862,"type":46,"marks":3863},"Here’s how to decide what kind of card is right for you. ",[3864],{"type":53,"attrs":3865},{"color":3635},{"type":71,"attrs":3867,"content":3868},{"level":123},[3869],{"text":3870,"type":46,"marks":3871},"1. Consider your financial habits",[3872],{"type":53,"attrs":3873},{"color":3635},{"type":42,"content":3875},[3876],{"text":3877,"type":46,"marks":3878},"If you’re the kind of person who consistently pays your bills on time and in full, a charge card may be the ideal fit. ",[3879],{"type":53,"attrs":3880},{"color":3635},{"type":42,"content":3882},[3883],{"text":3884,"type":46,"marks":3885},"Pros of Charge Cards ",[3886,3887],{"type":79},{"type":53,"attrs":3888},{"color":3635},{"type":138,"content":3890},[3891,3900,3909],{"type":141,"content":3892},[3893],{"type":42,"content":3894},[3895],{"text":3896,"type":46,"marks":3897},"Charge cards require you to settle your entire balance at the end of each billing cycle. If you’re already accustomed to paying your bills on time, this won’t be a challenge. ",[3898],{"type":53,"attrs":3899},{"color":3635},{"type":141,"content":3901},[3902],{"type":42,"content":3903},[3904],{"text":3905,"type":46,"marks":3906},"With a charge card, there’s no option to carry a balance from one month to the next. This can be advantageous if you want to avoid accumulating debt and interest charges. ",[3907],{"type":53,"attrs":3908},{"color":3635},{"type":141,"content":3910},[3911],{"type":42,"content":3912},[3913],{"text":3914,"type":46,"marks":3915},"Using a charge card encourages financial discipline, ensuring that you live within your means and don’t overspend. ",[3916],{"type":53,"attrs":3917},{"color":3635},{"type":42,"content":3919},[3920],{"text":3921,"type":46,"marks":3922},"On the other hand, if you prefer a more flexible payment date, a credit card may be the better choice. Keep in mind that, since you can carry a balance from month to month, it can be more tempting to overspend with a credit card than with a charge card. But the balance-carry feature can be handy in case of emergencies. Here are some other potential benefits.  ",[3923],{"type":53,"attrs":3924},{"color":3635},{"type":42,"content":3926},[3927],{"text":3928,"type":46,"marks":3929},"Pros of Credit Cards ",[3930,3931],{"type":79},{"type":53,"attrs":3932},{"color":3635},{"type":138,"content":3934},[3935,3944,3953],{"type":141,"content":3936},[3937],{"type":42,"content":3938},[3939],{"text":3940,"type":46,"marks":3941},"Credit cards provide the freedom to carry a balance from month to month. ",[3942],{"type":53,"attrs":3943},{"color":3635},{"type":141,"content":3945},[3946],{"type":42,"content":3947},[3948],{"text":3949,"type":46,"marks":3950},"Responsible credit card usage can have a greater positive influence on your credit score than charge card usage. That makes credit cards an attractive option if you want to build or improve your credit history.",[3951],{"type":53,"attrs":3952},{"color":3635},{"type":141,"content":3954},[3955],{"type":42,"content":3956},[3957],{"text":3958,"type":46,"marks":3959},"Credit cards are available to borrowers with a wider range of credit scores.",[3960],{"type":53,"attrs":3961},{"color":3635},{"type":71,"attrs":3963,"content":3964},{"level":123},[3965],{"text":3966,"type":46,"marks":3967},"2. Pull your credit score",[3968],{"type":53,"attrs":3969},{"color":3635},{"type":42,"content":3971},[3972,3977,3986],{"text":3973,"type":46,"marks":3974},"Once you’ve considered the pros and cons of each kind of card, it’s time to ",[3975],{"type":53,"attrs":3976},{"color":3635},{"text":3978,"type":46,"marks":3979},"check your credit report",[3980,3983,3985],{"type":93,"attrs":3981},{"href":3982,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/how-do-i-get-a-free-copy-of-my-credit-reports-en-5/",{"type":53,"attrs":3984},{"color":3635},{"type":165},{"text":3987,"type":46,"marks":3988},". This can help you determine which cards you’re likely to qualify for based on your creditworthiness. ",[3989],{"type":53,"attrs":3990},{"color":3635},{"type":42,"content":3992},[3993],{"text":3994,"type":46,"marks":3995},"Charge cards are typically reserved for individuals with excellent credit. That’s because they have no preset spending limits, and card issuers expect full payment each month. You’ll need a high credit score to convince card issuers that you can meet these expectations. ",[3996],{"type":53,"attrs":3997},{"color":3635},{"type":42,"content":3999},[4000],{"text":4001,"type":46,"marks":4002},"Credit cards, on the other hand, tend to have more lenient credit score requirements. Your credit may influence the interest rates you receive, but even with a relatively low credit score, you’ll still qualify for some basic credit cards. More premium credit cards — especially those with lucrative rewards programs like cashback, travel points, or exclusive benefits — often require good to excellent credit scores.",[4003],{"type":53,"attrs":4004},{"color":3635},{"type":71,"attrs":4006,"content":4007},{"level":123},[4008],{"text":4009,"type":46,"marks":4010},"3. Examine fees and rewards",[4011],{"type":53,"attrs":4012},{"color":3635},{"type":42,"content":4014},[4015],{"text":4016,"type":46,"marks":4017},"Charge cards often come with higher annual fees than most credit cards. These fees are typically justified by the more premium services, travel benefits, and exclusive rewards they offer. Many of these rewards cater to high-spending, frequent travelers and individuals seeking luxury experiences. Charge cards focus on providing top-tier rewards rather than a broad range of options. ",[4018],{"type":53,"attrs":4019},{"color":3635},{"type":42,"content":4021},[4022,4027,4035],{"text":4023,"type":46,"marks":4024},"Credit cards, however, come in various categories, each tailored to specific consumer needs. This diversity means you can ",[4025],{"type":53,"attrs":4026},{"color":3635},{"text":4028,"type":46,"marks":4029},"find credit cards",[4030,4032,4034],{"type":93,"attrs":4031},{"href":770,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":4033},{"color":3635},{"type":165},{"text":4036,"type":46,"marks":4037}," that offer rewards matching your lifestyle, such as cashback on everyday purchases, travel miles, or rewards points for specific retailers. Credit cards often have more varied rewards programs, catering to a broader audience with varying preferences. ",[4038],{"type":53,"attrs":4039},{"color":3635},{"type":42,"content":4041},[4042],{"text":4043,"type":46,"marks":4044},"While there are many credit cards available with no annual fees, some premium cards may charge up to several hundred dollars per year for enhanced rewards and perks. The annual fee will depend on the specific credit card you choose, your credit history, and your spending habits. ",[4045],{"type":53,"attrs":4046},{"color":3635},{"type":71,"attrs":4048,"content":4049},{"level":73},[4050],{"text":4051,"type":46,"marks":4052},"Charge cards vs. credit cards: How do they affect your credit score?",[4053],{"type":53,"attrs":4054},{"color":3635},{"type":42,"content":4056},[4057],{"text":4058,"type":46,"marks":4059},"Charge cards and credit cards each affect your credit score differently.",[4060],{"type":53,"attrs":4061},{"color":3635},{"type":138,"content":4063},[4064],{"type":141,"content":4065},[4066],{"type":42,"content":4067},[4068,4074,4079,4087],{"text":4069,"type":46,"marks":4070},"Credit utilization: ",[4071,4072],{"type":79},{"type":53,"attrs":4073},{"color":3635},{"text":4075,"type":46,"marks":4076},"Charge cards typically don’t have preset spending limits, which means issuers don’t report credit limits to the credit bureaus. As a result, charge card balances don’t factor into your ",[4077],{"type":53,"attrs":4078},{"color":3635},{"text":3240,"type":46,"marks":4080},[4081,4084,4086],{"type":93,"attrs":4082},{"href":4083,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://credit.org/blog/what-is-credit-utilization/",{"type":53,"attrs":4085},{"color":3635},{"type":165},{"text":4088,"type":46,"marks":4089}," (the amount of credit you’re using compared to your total credit limit). This can be beneficial because a high credit utilization can negatively impact your credit score. On the other hand, you won’t get credit for maintaining a low credit utilization rate either. ",[4090],{"type":53,"attrs":4091},{"color":3635},{"type":138,"content":4093},[4094],{"type":141,"content":4095},[4096],{"type":42,"content":4097},[4098,4104],{"text":4099,"type":46,"marks":4100},"On-time payments: ",[4101,4102],{"type":79},{"type":53,"attrs":4103},{"color":3635},{"text":4105,"type":46,"marks":4106},"Both charge cards and credit cards can positively impact your credit score if you consistently make on-time payments. Your payment history is a significant factor in your credit score, so paying bills promptly is crucial, regardless of the type of card you have.  ",[4107],{"type":53,"attrs":4108},{"color":3635},{"type":138,"content":4110},[4111],{"type":141,"content":4112},[4113],{"type":42,"content":4114},[4115,4121,4126,4135],{"text":4116,"type":46,"marks":4117},"Credit history length: ",[4118,4119],{"type":79},{"type":53,"attrs":4120},{"color":3635},{"text":4122,"type":46,"marks":4123},"Keeping credit cards open can help you establish a longer ",[4124],{"type":53,"attrs":4125},{"color":3635},{"text":4127,"type":46,"marks":4128},"credit history",[4129,4132,4134],{"type":93,"attrs":4130},{"href":4131,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://consumer.gov/credit-loans-debt/your-credit-history",{"type":53,"attrs":4133},{"color":3635},{"type":165},{"text":4136,"type":46,"marks":4137},", which is another factor in your credit score calculation. Charge cards also contribute to credit history, but they may not have as significant an impact.",[4138],{"type":53,"attrs":4139},{"color":3635},{"type":138,"content":4141},[4142],{"type":141,"content":4143},[4144],{"type":42,"content":4145},[4146,4152,4157,4165],{"text":4147,"type":46,"marks":4148},"Credit inquiries: ",[4149,4150],{"type":79},{"type":53,"attrs":4151},{"color":3635},{"text":4153,"type":46,"marks":4154},"When you apply for either a charge card or a credit card, the issuer will perform a ",[4155],{"type":53,"attrs":4156},{"color":3635},{"text":4158,"type":46,"marks":4159},"hard inquiry",[4160,4162,4164],{"type":93,"attrs":4161},{"href":2587,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":4163},{"color":3635},{"type":165},{"text":4166,"type":46,"marks":4167}," on your credit report. Multiple hard inquiries in a short period can temporarily lower your credit score. However, the impact is generally similar for both types of cards. ",[4168],{"type":53,"attrs":4169},{"color":3635},{"type":138,"content":4171},[4172],{"type":141,"content":4173},[4174],{"type":42,"content":4175},[4176,4182,4187,4196],{"text":4177,"type":46,"marks":4178},"Diversity of accounts: ",[4179,4180],{"type":79},{"type":53,"attrs":4181},{"color":3635},{"text":4183,"type":46,"marks":4184},"Maintaining a ",[4185],{"type":53,"attrs":4186},{"color":3635},{"text":4188,"type":46,"marks":4189},"mix of credit accounts",[4190,4193,4195],{"type":93,"attrs":4191},{"href":4192,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.badcredit.org/how-to/what-is-credit-mix/",{"type":53,"attrs":4194},{"color":3635},{"type":165},{"text":4197,"type":46,"marks":4198}," — such as credit cards, installment loans, and mortgages — can positively affect your credit score. Having a credit card alongside a charge card can demonstrate a diverse credit profile, potentially benefiting your credit score. ",[4199],{"type":53,"attrs":4200},{"color":3635},{"type":42,"content":4202},[4203],{"text":4204,"type":46,"marks":4205},"While there are nuanced differences in how charge cards and credit cards can affect your credit score, the most crucial factor for maintaining or improving your score is responsible financial behavior. Making on-time payments and managing your credit wisely are key regardless of the type of card you use. ",[4206],{"type":53,"attrs":4207},{"color":3635},{"type":71,"attrs":4209,"content":4210},{"level":73},[4211],{"text":4212,"type":46,"marks":4213},"Compare cards with Navient Marketplace",[4214],{"type":53,"attrs":4215},{"color":3635},{"type":42,"content":4217},[4218,4223,4230],{"text":4219,"type":46,"marks":4220},"Whether you want to build up your credit score or get reward points for spending, Navient can help you find credit card offers tailored just for you. Just input a few details about your financial situation, and ",[4221],{"type":53,"attrs":4222},{"color":3635},{"text":2490,"type":46,"marks":4224},[4225,4227,4229],{"type":93,"attrs":4226},{"href":1833,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":4228},{"color":3635},{"type":165},{"text":4231,"type":46,"marks":4232}," will return results for a credit card suited to your financial goals. ",[4233],{"type":53,"attrs":4234},{"color":3635},{"type":42,"content":4236},[4237],{"text":789,"type":46,"marks":4238},[4239,4241],{"type":49,"attrs":4240},{"class":51},{"type":53,"attrs":4242},{"color":3635},{"type":42,"content":4244},[4245],{"text":4246,"type":46,"marks":4247},"Navient has partnered with CardRatings for our credit card products. Navient and CardRatings may receive a commission from card issuers. Opinions. reviews, analyses & recommendations are Navient's alone, and have not been reviewed, endorsed or approved by any of these entities. ",[4248,4250],{"type":49,"attrs":4249},{"class":51},{"type":53,"attrs":4251},{"color":3635},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798166\"}-->","https://www.marketplace.navient.com/blog/charge-card-vs-credit-card/","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"39f3568e-f888-4c3e-816f-3647f7efec59\", \"id\": \"651798166\"}-->","charge-card-vs-credit-card","navient_marketplace/blog/charge-card-vs-credit-card",[],"010569a7-eeb4-4ff1-b835-316f8605a68d","2023-09-26T16:24:09.728Z","https://marketplace.navient.com/blog/charge-card-vs-credit-card/",[],{"name":4263,"created_at":4264,"published_at":4265,"updated_at":4266,"id":4267,"uuid":4268,"content":4269,"slug":4784,"full_slug":4785,"sort_by_date":96,"position":826,"tag_list":4786,"is_startpage":29,"parent_id":828,"meta_data":96,"group_id":4787,"first_published_at":4788,"release_id":96,"lang":831,"path":4789,"alternates":4790,"default_full_slug":96,"translated_slugs":96},"Should I Refinance My Car? A 9-Question Checklist","2025-04-07T18:30:30.091Z","2025-12-26T13:44:58.112Z","2025-12-26T13:44:58.183Z",651798165,"aa63f050-1da1-4d8d-9efb-09226faf22a1",{"seo":4270,"_uid":20,"hero":4273,"author":31,"category":4278,"featured":29,"imageAlt":18,"component":33,"blogContents":4279,"canonicalTag":4782,"publishedDate":822,"_editable":4783},{"_uid":15,"title":4271,"plugin":17,"og_image":18,"og_title":18,"description":4272,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"Should I Refinance My Car? A 9-Question Checklist  | Navient Marketplace","Refinancing your car can make sense if you’ll save money or lower your monthly payment. Here’s what you need to know if you’re thinking about refinancing.",[4274],{"id":18,"_uid":23,"image":4275,"intro":4272,"classes":18,"_editable":4276,"blogTitle":4263,"component":27,"imageLink":4277,"blendImage":29,"backgroundColor":30},"//a.storyblok.com/f/110029/5940x3341/bde73811c6/should-i-refinance-my-car.png","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798165\"}-->","/images/should-i-refinance-my-car.png","Auto Refinance",[4280],{"_uid":36,"color":37,"richText":4281,"_editable":4781,"component":820},{"type":39,"content":4282},[4283,4291,4310,4317,4325,4363,4372,4379,4386,4395,4402,4409,4430,4437,4446,4453,4461,4468,4476,4483,4492,4513,4555,4562,4571,4578,4585,4594,4601,4608,4617,4638,4645,4654,4661,4668,4675,4684,4704,4711,4720,4727,4734,4749,4757,4766],{"type":42,"content":4284},[4285],{"text":45,"type":46,"marks":4286},[4287,4289],{"type":49,"attrs":4288},{"class":51},{"type":53,"attrs":4290},{"color":3635},{"type":42,"content":4292},[4293,4298,4305],{"text":4294,"type":46,"marks":4295},"A car loan refinance can sometimes feel like a get-out-of-jail-free card. Under the right circumstances, it can help you land lower interest rates and even a lower monthly payment",[4296],{"type":53,"attrs":4297},{"color":3635},{"text":673,"type":46,"marks":4299},[4300,4302,4303],{"type":49,"attrs":4301},{"class":677},{"type":677},{"type":53,"attrs":4304},{"color":3635},{"text":4306,"type":46,"marks":4307},". If you got stuck with a high interest rate on your original loan — or if you have a better credit score now — a refinance could help you save hundreds of dollars. ",[4308],{"type":53,"attrs":4309},{"color":3635},{"type":42,"content":4311},[4312],{"text":4313,"type":46,"marks":4314},"However, it’s not the right solution for every borrower. So, if you’ve been wondering, “Should I refinance my car?” be sure to consider these nine questions first.",[4315],{"type":53,"attrs":4316},{"color":3635},{"type":71,"attrs":4318,"content":4319},{"level":73},[4320],{"text":4321,"type":46,"marks":4322},"Key takeaways",[4323],{"type":53,"attrs":4324},{"color":3635},{"type":138,"content":4326},[4327,4336,4345,4354],{"type":141,"content":4328},[4329],{"type":42,"content":4330},[4331],{"text":4332,"type":46,"marks":4333},"If market interest rates drop or if you improve your financial situation, it could be a good time to consider auto loan refinancing.",[4334],{"type":53,"attrs":4335},{"color":3635},{"type":141,"content":4337},[4338],{"type":42,"content":4339},[4340],{"text":4341,"type":46,"marks":4342},"A car loan refinance can help you save money over the life of your loan. It can also lower your monthly payment. ",[4343],{"type":53,"attrs":4344},{"color":3635},{"type":141,"content":4346},[4347],{"type":42,"content":4348},[4349],{"text":4350,"type":46,"marks":4351},"Refinancing isn’t right for everyone. When you refinance, you may have to pay fees or penalties, which could cut into or negate your savings. ",[4352],{"type":53,"attrs":4353},{"color":3635},{"type":141,"content":4355},[4356],{"type":42,"content":4357},[4358],{"text":4359,"type":46,"marks":4360},"Lenders will consider your personal finances and the condition of your car to determine your eligibility for a refinance.",[4361],{"type":53,"attrs":4362},{"color":3635},{"type":71,"attrs":4364,"content":4365},{"level":73},[4366],{"text":4367,"type":46,"marks":4368},"1. Has my credit improved?",[4369,4370],{"type":79},{"type":53,"attrs":4371},{"color":3635},{"type":42,"content":4373},[4374],{"text":4375,"type":46,"marks":4376},"If your credit score has improved since you first took out your auto loan, you may qualify for a better interest rate. Lenders consider your credit score an indicator of how likely you are to repay your debts. If you have a good credit score, that shows you have a history of making timely loan payments and managing your finances responsibly. That makes you a lower-risk borrower. As a result, new lenders are more likely to offer you lower interest rates. ",[4377],{"type":53,"attrs":4378},{"color":3635},{"type":42,"content":4380},[4381],{"text":4382,"type":46,"marks":4383},"You’ll qualify for great refinance rates if you have a credit score of 700 or above. Of course, your credit score isn't the only thing lenders consider when determining your interest rate. Other factors like your income, employment status, loan term, and national interest rate trends can all impact your loan offer.",[4384],{"type":53,"attrs":4385},{"color":3635},{"type":71,"attrs":4387,"content":4388},{"level":73},[4389],{"text":4390,"type":46,"marks":4391},"2. Are national interest rates down?",[4392,4393],{"type":79},{"type":53,"attrs":4394},{"color":3635},{"type":42,"content":4396},[4397],{"text":4398,"type":46,"marks":4399},"A great time to refinance a car loan is when national interest rates are down. That’s because lenders select their rates based on national trends. This is true of both new car loans and auto refinance loans. ",[4400],{"type":53,"attrs":4401},{"color":3635},{"type":42,"content":4403},[4404],{"text":4405,"type":46,"marks":4406},"If market rates were high when you took out your loan but are low now, refinancing could help you take advantage of the change and secure a lower rate for yourself. On the flip side, if market rates have risen since you took out your loan, refinancing now could result in an even higher interest rate. ",[4407],{"type":53,"attrs":4408},{"color":3635},{"type":42,"content":4410},[4411,4416,4425],{"text":4412,"type":46,"marks":4413},"So, how can you tell if interest rates are up or down? Auto loan rates typically fluctuate based on the “federal funds rate” which is a national standard interest rate ",[4414],{"type":53,"attrs":4415},{"color":3635},{"text":4417,"type":46,"marks":4418},"set by the Federal Reserve",[4419,4422,4424],{"type":93,"attrs":4420},{"href":4421,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.newyorkfed.org/markets/reference-rates/effr",{"type":53,"attrs":4423},{"color":3635},{"type":165},{"text":4426,"type":46,"marks":4427},". It’s used to determine everything from credit card rates to student loan interest. ",[4428],{"type":53,"attrs":4429},{"color":3635},{"type":42,"content":4431},[4432],{"text":4433,"type":46,"marks":4434},"To figure out how the rates on your existing loan compare to current offers, look up the current prime rate. This is a benchmark minimum interest rate based on the federal funds rate. If the prime rate is significantly lower than the interest rate on your current loan, it may be time to refinance. ",[4435],{"type":53,"attrs":4436},{"color":3635},{"type":71,"attrs":4438,"content":4439},{"level":73},[4440],{"text":4441,"type":46,"marks":4442},"3. Can I afford to pay off my debt faster?",[4443,4444],{"type":79},{"type":53,"attrs":4445},{"color":3635},{"type":42,"content":4447},[4448],{"text":4449,"type":46,"marks":4450},"If you can afford the monthly payment on your current auto loan — or have room in your budget to pay even more — a refinance could help you get out of debt faster. You can accomplish this in two ways.  ",[4451],{"type":53,"attrs":4452},{"color":3635},{"type":71,"attrs":4454,"content":4455},{"level":123},[4456],{"text":4457,"type":46,"marks":4458},"Reducing your loan term",[4459],{"type":53,"attrs":4460},{"color":3635},{"type":42,"content":4462},[4463],{"text":4464,"type":46,"marks":4465},"When you refinance, you can ask that the term of your loan be reduced. Because your loan payments will be spread out over fewer years, reducing your term will lead to a higher monthly payment. However, you’ll be making fewer total payments — which means you’ll pay less interest over the life of the loan. Reducing your term will also help you get out of debt faster.",[4466],{"type":53,"attrs":4467},{"color":3635},{"type":71,"attrs":4469,"content":4470},{"level":123},[4471],{"text":4472,"type":46,"marks":4473},"Getting a lower interest rate",[4474],{"type":53,"attrs":4475},{"color":3635},{"type":42,"content":4477},[4478],{"text":4479,"type":46,"marks":4480},"If you can afford your current monthly payment but can’t afford to go any higher, refinancing could still help you. For example, if you secure a low refinance rate but keep your monthly repayment amount the same, a higher percentage of each payment will be going toward the loan principal. That will help you pay it off faster without increasing your monthly bill. ",[4481],{"type":53,"attrs":4482},{"color":3635},{"type":71,"attrs":4484,"content":4485},{"level":73},[4486],{"text":4487,"type":46,"marks":4488},"4. Did I finance my car through the dealership?",[4489,4490],{"type":79},{"type":53,"attrs":4491},{"color":3635},{"type":42,"content":4493},[4494,4499,4508],{"text":4495,"type":46,"marks":4496},"If you got your current loan through a car dealership, refinancing may be a good idea. This is because dealerships",[4497],{"type":53,"attrs":4498},{"color":3635},{"text":4500,"type":46,"marks":4501}," often give borrowers higher interest rates",[4502,4505,4507],{"type":93,"attrs":4503},{"href":4504,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.experian.com/blogs/ask-experian/is-it-better-to-finance-a-car-through-a-bank-or-dealership/",{"type":53,"attrs":4506},{"color":3635},{"type":165},{"text":4509,"type":46,"marks":4510}," than financial institutions like banks or credit unions do. Further, dealerships often add extras to loan contracts. These can include:",[4511],{"type":53,"attrs":4512},{"color":3635},{"type":138,"content":4514},[4515,4524,4533,4542],{"type":141,"content":4516},[4517],{"type":42,"content":4518},[4519],{"text":4520,"type":46,"marks":4521},"Service contracts",[4522],{"type":53,"attrs":4523},{"color":3635},{"type":141,"content":4525},[4526],{"type":42,"content":4527},[4528],{"text":4529,"type":46,"marks":4530},"Extended warranties",[4531],{"type":53,"attrs":4532},{"color":3635},{"type":141,"content":4534},[4535],{"type":42,"content":4536},[4537],{"text":4538,"type":46,"marks":4539},"Tire and wheel warranties",[4540],{"type":53,"attrs":4541},{"color":3635},{"type":141,"content":4543},[4544],{"type":42,"content":4545},[4546],{"text":4547,"type":46,"marks":4548},"Guaranteed asset protection (GAP) waivers",[4549,4552,4554],{"type":93,"attrs":4550},{"href":4551,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.federalreserve.gov/econres/feds/consumers-and-guaranteed-asset-protection-on-vehicle-financing-contracts.htm",{"type":53,"attrs":4553},{"color":3635},{"type":165},{"type":42,"content":4556},[4557],{"text":4558,"type":46,"marks":4559},"By refinancing your loan, you can eliminate any unnecessary add-ons. This can help reduce your monthly payments and save you money. ",[4560],{"type":53,"attrs":4561},{"color":3635},{"type":71,"attrs":4563,"content":4564},{"level":73},[4565],{"text":4566,"type":46,"marks":4567},"5. Are my monthly payments too high?",[4568,4569],{"type":79},{"type":53,"attrs":4570},{"color":3635},{"type":42,"content":4572},[4573],{"text":4574,"type":46,"marks":4575},"If you’re struggling to make your monthly car payments, refinancing could help reduce your bill. If you can secure a better interest rate on your new loan, that alone may result in a lower minimum due each month. ",[4576],{"type":53,"attrs":4577},{"color":3635},{"type":42,"content":4579},[4580],{"text":4581,"type":46,"marks":4582},"If you want an even lower payment, consider applying for a longer term when you refinance. This will allow you to pay off your loan in smaller installments over a longer period of time. Keep in mind that, though this may result in a lower monthly payment, it could also mean that you pay more in interest over the life of the loan. ",[4583],{"type":53,"attrs":4584},{"color":3635},{"type":71,"attrs":4586,"content":4587},{"level":73},[4588],{"text":4589,"type":46,"marks":4590},"6. When did I buy the car?",[4591,4592],{"type":79},{"type":53,"attrs":4593},{"color":3635},{"type":42,"content":4595},[4596],{"text":4597,"type":46,"marks":4598},"Lenders usually require borrowers to meet certain eligibility requirements before they’ll grant an auto loan refinance. Many lenders require you to have held your current loan for a certain amount of time. For many lenders, this minimum is six months. So, if you bought your new car just a few weeks ago, you may not yet be eligible for a refinance. ",[4599],{"type":53,"attrs":4600},{"color":3635},{"type":42,"content":4602},[4603],{"text":4604,"type":46,"marks":4605},"Other lenders consider the age of your car, not just how long you’ve had it. If your car is more than ten years old or has more than 100,000 miles on it, you may not qualify for a refinance with certain lenders. ",[4606],{"type":53,"attrs":4607},{"color":3635},{"type":71,"attrs":4609,"content":4610},{"level":73},[4611],{"text":4612,"type":46,"marks":4613},"7. Do I qualify?",[4614,4615],{"type":79},{"type":53,"attrs":4616},{"color":3635},{"type":42,"content":4618},[4619,4624,4633],{"text":4620,"type":46,"marks":4621},"Even if you decide you want to refinance, you’ll still need a ",[4622],{"type":53,"attrs":4623},{"color":3635},{"text":4625,"type":46,"marks":4626},"good to excellent credit score",[4627,4630,4632],{"type":93,"attrs":4628},{"href":4629,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/how-do-i-get-and-keep-a-good-credit-score-en-318/",{"type":53,"attrs":4631},{"color":3635},{"type":165},{"text":4634,"type":46,"marks":4635}," to qualify. When you apply, the lender will conduct a “hard inquiry” on your credit, which involves pulling your credit report and payment history and making sure you can afford the loan amount. If you have a regular income, don’t have much other debt, and haven’t missed any recent payments, you likely have a healthy credit history.",[4636],{"type":53,"attrs":4637},{"color":3635},{"type":42,"content":4639},[4640],{"text":4641,"type":46,"marks":4642},"Next, the lender will consider the condition and value of your car. If the value of your car has dropped significantly since the time you purchased it, you’ll have a harder time refinancing your auto loan. If your insurance company has declared your car totaled in the past, you may be ineligible for refinancing. ",[4643],{"type":53,"attrs":4644},{"color":3635},{"type":71,"attrs":4646,"content":4647},{"level":73},[4648],{"text":4649,"type":46,"marks":4650},"8. Is my loan in danger of going upside down?",[4651,4652],{"type":79},{"type":53,"attrs":4653},{"color":3635},{"type":42,"content":4655},[4656],{"text":4657,"type":46,"marks":4658},"An upside-down car loan is a situation where you owe more on your auto loan than the car is worth. It's also known as having “negative equity” in your car, or being “underwater” on the loan. ",[4659],{"type":53,"attrs":4660},{"color":3635},{"type":42,"content":4662},[4663],{"text":4664,"type":46,"marks":4665},"For example, if you owe $15,000 on a car that is currently worth only $10,000, you would have negative equity of $5,000. In this case, even if you were to sell the car at its full current value, you would still owe the lender the remaining balance of $5,000.",[4666],{"type":53,"attrs":4667},{"color":3635},{"type":42,"content":4669},[4670],{"text":4671,"type":46,"marks":4672},"If you’re upside down on the loan, or in danger of going upside down, you’ll have a hard time finding a lender to refinance with. And even if you do, it may not be worth it –– the refinancing loan is likely to come with a much higher interest rate.  ",[4673],{"type":53,"attrs":4674},{"color":3635},{"type":71,"attrs":4676,"content":4677},{"level":73},[4678],{"text":4679,"type":46,"marks":4680},"9. Can I afford the fees?",[4681,4682],{"type":79},{"type":53,"attrs":4683},{"color":3635},{"type":42,"content":4685},[4686,4691,4700],{"text":4687,"type":46,"marks":4688},"While auto loan refinancing can offer significant savings in certain situations, it’s important to remember that it isn’t free. Every time you apply for a new loan — including a refinance loan — you’ll have to pay loan application fees, origination fees, and title transfer fees. Some lenders also apply additional charges. In some cases, the savings you make from getting a lower interest rate may not be enough to offset the costs. This is particularly true if your current lender charges ",[4689],{"type":53,"attrs":4690},{"color":3635},{"text":4692,"type":46,"marks":4693},"prepayment penalties",[4694,4697,4699],{"type":93,"attrs":4695},{"href":4696,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.experian.com/blogs/ask-experian/how-to-avoid-paying-prepayment-penalty/",{"type":53,"attrs":4698},{"color":3635},{"type":165},{"text":730,"type":46,"marks":4701},[4702],{"type":53,"attrs":4703},{"color":3635},{"type":42,"content":4705},[4706],{"text":4707,"type":46,"marks":4708},"Before you finalize a refinance, be sure to read the disclosures on your new loan and tally up your new lender’s fees. Then, use a refinance loan calculator to calculate your potential savings. Make sure they’re significantly more than the sum of the fees before you move forward. ",[4709],{"type":53,"attrs":4710},{"color":3635},{"type":71,"attrs":4712,"content":4713},{"level":73},[4714],{"text":4715,"type":46,"marks":4716},"Compare auto loans with Navient Marketplace",[4717,4718],{"type":79},{"type":53,"attrs":4719},{"color":3635},{"type":42,"content":4721},[4722],{"text":4723,"type":46,"marks":4724},"If you’re ready to exchange your old loan for a new one, refinancing could be right for you. An auto loan refinance can help you secure lower monthly payments and a lower interest rate. Both can help you save money.",[4725],{"type":53,"attrs":4726},{"color":3635},{"type":42,"content":4728},[4729],{"text":4730,"type":46,"marks":4731},"The first step is to shop around and see what kinds of refinance rates are out there. For that, there’s no better tool than Navient Marketplace. Just fill out some basic personal information, and you’ll be automatically matched with offers from some of the top auto loan providers. You can then compare, contrast, and choose the best offer. ",[4732],{"type":53,"attrs":4733},{"color":3635},{"type":42,"content":4735},[4736,4744],{"text":4737,"type":46,"marks":4738},"Fill out a profile",[4739,4741,4743],{"type":93,"attrs":4740},{"href":770,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":4742},{"color":3635},{"type":165},{"text":4745,"type":46,"marks":4746}," on Navient Marketplace today. It’s fast and free, and it won’t affect your credit score.",[4747],{"type":53,"attrs":4748},{"color":3635},{"type":42,"content":4750},[4751],{"text":789,"type":46,"marks":4752},[4753,4755],{"type":49,"attrs":4754},{"class":51},{"type":53,"attrs":4756},{"color":3635},{"type":42,"content":4758},[4759],{"text":4760,"type":46,"marks":4761},"Navient customers are invited to consider auto loan refinance offers through our partner Fiona. Navient has not shared your information with Fiona. Auto loan refinance offers are made by participants in Fiona’s lending platform, powered by Engine by MoneyLion. Engine by MoneyLion is the technology platform powering financial services online. Checking your rate will not affect your credit score.",[4762,4764],{"type":49,"attrs":4763},{"class":51},{"type":53,"attrs":4765},{"color":3635},{"type":42,"content":4767},[4768,4774],{"text":673,"type":46,"marks":4769},[4770,4772],{"type":49,"attrs":4771},{"class":677},{"type":53,"attrs":4773},{"color":3635},{"text":4775,"type":46,"marks":4776}," Choosing to refinance to a longer term may lower your monthly payment, but increase the amount of interest you may pay. Choosing to refinance to a shorter term may increase your monthly payment, but lower the amount of interest you may pay. Review your loan documentation for total cost of your refinanced loan.",[4777,4779],{"type":49,"attrs":4778},{"class":51},{"type":53,"attrs":4780},{"color":3635},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798165\"}-->","https://www.marketplace.navient.com/blog/should-i-refinance-my-car/","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"39f3568e-f888-4c3e-816f-3647f7efec59\", \"id\": \"651798165\"}-->","should-i-refinance-my-car","navient_marketplace/blog/should-i-refinance-my-car",[],"d2bf7afe-11e0-4f1d-b789-025510c467a6","2023-09-26T16:14:19.318Z","blog/should-i-refinance-my-car/",[],{"name":4792,"created_at":4793,"published_at":4794,"updated_at":4795,"id":4796,"uuid":4797,"content":4798,"slug":5655,"full_slug":5656,"sort_by_date":96,"position":826,"tag_list":5657,"is_startpage":29,"parent_id":828,"meta_data":96,"group_id":5658,"first_published_at":5659,"release_id":96,"lang":831,"path":5660,"alternates":5661,"default_full_slug":96,"translated_slugs":96},"How to Choose a Credit Card: 5 Questions to Ask Yourself","2025-04-07T18:30:28.380Z","2025-12-26T13:44:58.423Z","2025-12-26T13:44:58.449Z",651798164,"41585952-6d17-442d-8c90-05742f103a60",{"seo":4799,"_uid":20,"hero":4802,"author":31,"category":2841,"featured":29,"imageAlt":18,"component":33,"blogContents":4807,"canonicalTag":5653,"publishedDate":822,"_editable":5654},{"_uid":15,"title":4800,"plugin":17,"og_image":18,"og_title":18,"description":4801,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"How to Choose a Credit Card: 5 Questions to Ask Yourself | Navient Marketplace","Different credit cards offer different perks, and choosing the right one could help you save lots of money in interest charges–or get free airline miles or other rewards.",[4803],{"id":18,"_uid":23,"image":4804,"intro":4801,"classes":18,"_editable":4805,"blogTitle":4792,"component":27,"imageLink":4806,"blendImage":29,"backgroundColor":30},"//a.storyblok.com/f/110029/4608x3456/3ef1c38a85/how-to-choose-a-credit-card.png","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798164\"}-->","/images/how-to-choose-a-credit-card.png",[4808],{"_uid":36,"color":37,"richText":4809,"_editable":5652,"component":820},{"type":39,"content":4810},[4811,4818,4825,4832,4870,4878,4894,4923,4930,4968,4975,4982,5083,5091,5098,5188,5196,5203,5211,5232,5240,5247,5255,5262,5291,5298,5314,5322,5329,5337,5370,5378,5397,5404,5411,5443,5451,5458,5519,5526,5533,5580,5588,5613,5621,5629],{"type":42,"content":4812},[4813],{"text":4814,"type":46,"marks":4815},"With so many credit card options on the market, selecting the right one can be overwhelming. But that doesn’t mean you should pick one at random. Different types of credit cards offer different perks, and choosing the right one could help you save hundreds of dollars in interest charges — or make hundreds of dollars in free airline miles or other rewards. ",[4816],{"type":53,"attrs":4817},{"color":55},{"type":42,"content":4819},[4820],{"text":4821,"type":46,"marks":4822},"Whether you’re a first-time cardholder or a seasoned pro with excellent credit, it’s important to pick a card that aligns with your personal finance goals and lifestyle. Here’s how to choose a credit card that’s right for you. ",[4823],{"type":53,"attrs":4824},{"color":55},{"type":71,"attrs":4826,"content":4827},{"level":73},[4828],{"text":4321,"type":46,"marks":4829},[4830],{"type":53,"attrs":4831},{"color":55},{"type":138,"content":4833},[4834,4843,4852,4861],{"type":141,"content":4835},[4836],{"type":42,"content":4837},[4838],{"text":4839,"type":46,"marks":4840},"Check your credit score before applying for a credit card.",[4841],{"type":53,"attrs":4842},{"color":55},{"type":141,"content":4844},[4845],{"type":42,"content":4846},[4847],{"text":4848,"type":46,"marks":4849},"If you have a low score or limited credit history, consider choosing a secured card or student card to help you build your credit. ",[4850],{"type":53,"attrs":4851},{"color":55},{"type":141,"content":4853},[4854],{"type":42,"content":4855},[4856],{"text":4857,"type":46,"marks":4858},"If you have good credit, a travel credit card or rewards card may be more lucrative.",[4859],{"type":53,"attrs":4860},{"color":55},{"type":141,"content":4862},[4863],{"type":42,"content":4864},[4865],{"text":4866,"type":46,"marks":4867},"Consider each credit card’s perks, rewards, and interest rates before you make your decision.",[4868],{"type":53,"attrs":4869},{"color":55},{"type":71,"attrs":4871,"content":4872},{"level":73},[4873],{"text":4874,"type":46,"marks":4875},"1. What’s my credit score?",[4876],{"type":53,"attrs":4877},{"color":55},{"type":42,"content":4879},[4880,4889],{"text":4881,"type":46,"marks":4882},"Checking your credit score",[4883,4886,4888],{"type":93,"attrs":4884},{"href":4885,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://consumer.ftc.gov/articles/free-credit-reports",{"type":53,"attrs":4887},{"color":933},{"type":165},{"text":4890,"type":46,"marks":4891}," is an important step in managing your financial health, and it’s especially critical before applying for a new credit card. That’s because: ",[4892],{"type":53,"attrs":4893},{"color":55},{"type":138,"content":4895},[4896,4905,4914],{"type":141,"content":4897},[4898],{"type":42,"content":4899},[4900],{"text":4901,"type":46,"marks":4902},"Knowing your credit score helps you get a better idea of your likelihood of being approved for certain cards. ",[4903],{"type":53,"attrs":4904},{"color":55},{"type":141,"content":4906},[4907],{"type":42,"content":4908},[4909],{"text":4910,"type":46,"marks":4911},"You can use your score to find credit cards that are best tailored to your financial profile. ",[4912],{"type":53,"attrs":4913},{"color":55},{"type":141,"content":4915},[4916],{"type":42,"content":4917},[4918],{"text":4919,"type":46,"marks":4920},"Your credit score will affect the interest rate you’ll pay on balances.",[4921],{"type":53,"attrs":4922},{"color":55},{"type":42,"content":4924},[4925],{"text":4926,"type":46,"marks":4927},"There are three major credit bureaus — Equifax, Experian, and TransUnion — each of which provides credit reports that include your credit score. The most commonly used scoring model is the FICO score. ",[4928],{"type":53,"attrs":4929},{"color":55},{"type":42,"content":4931},[4932,4937,4946,4951,4957,4964],{"text":4933,"type":46,"marks":4934},"The federal ",[4935],{"type":53,"attrs":4936},{"color":55},{"text":4938,"type":46,"marks":4939},"Fair Credit Reporting Act",[4940,4943,4945],{"type":93,"attrs":4941},{"href":4942,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.ftc.gov/legal-library/browse/statutes/fair-credit-reporting-act",{"type":53,"attrs":4944},{"color":933},{"type":165},{"text":4947,"type":46,"marks":4948}," ensures you can get a free credit report annually from all three bureaus. In the wake of the pandemic, however, the bureaus are all offering free weekly credit reports through December 2023. You can request your report online at",[4949],{"type":53,"attrs":4950},{"color":55},{"text":657,"type":46,"marks":4952},[4953,4955],{"type":93,"attrs":4954},{"href":2100,"uuid":96,"anchor":96,"target":96,"linktype":98},{"type":53,"attrs":4956},{"color":55},{"text":2104,"type":46,"marks":4958},[4959,4961,4963],{"type":93,"attrs":4960},{"href":2108,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":4962},{"color":933},{"type":165},{"text":730,"type":46,"marks":4965},[4966],{"type":53,"attrs":4967},{"color":55},{"type":42,"content":4969},[4970],{"text":4971,"type":46,"marks":4972},"If you discover errors on your credit report, take action to correct them as soon as possible. This keeps your credit history clean and can prevent unfair damage to your score. To dispute errors, contact the credit reporting agency that issued the report or the organization involved in the error. Be sure to provide evidence to support your claim. The bureaus are legally obligated to investigate and rectify any inaccuracies within a reasonable timeframe. ",[4973],{"type":53,"attrs":4974},{"color":55},{"type":42,"content":4976},[4977],{"text":4978,"type":46,"marks":4979},"If your credit report still reflects a low credit score after any errors are fixed, here are a few things you can do: ",[4980],{"type":53,"attrs":4981},{"color":55},{"type":138,"content":4983},[4984,4999,5027,5056],{"type":141,"content":4985},[4986],{"type":42,"content":4987},[4988,4994],{"text":4989,"type":46,"marks":4990},"Pay your bills on time: ",[4991,4992],{"type":79},{"type":53,"attrs":4993},{"color":55},{"text":4995,"type":46,"marks":4996},"Developing a history of on-time payments is one of the best ways to improve your score.",[4997],{"type":53,"attrs":4998},{"color":55},{"type":141,"content":5000},[5001],{"type":42,"content":5002},[5003,5009,5014,5022],{"text":5004,"type":46,"marks":5005},"Reduce your credit card balances:",[5006,5007],{"type":79},{"type":53,"attrs":5008},{"color":55},{"text":5010,"type":46,"marks":5011}," Credit card issuers prefer to see a ",[5012],{"type":53,"attrs":5013},{"color":55},{"text":3240,"type":46,"marks":5015},[5016,5019,5021],{"type":93,"attrs":5017},{"href":5018,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.investopedia.com/terms/c/credit-utilization-rate.asp",{"type":53,"attrs":5020},{"color":933},{"type":165},{"text":5023,"type":46,"marks":5024}," of 30% or less. This means you’re only currently using up to 30% of your total available credit limit.",[5025],{"type":53,"attrs":5026},{"color":55},{"type":141,"content":5028},[5029],{"type":42,"content":5030},[5031,5037,5042,5051],{"text":5032,"type":46,"marks":5033},"Limit new credit applications:",[5034,5035],{"type":79},{"type":53,"attrs":5036},{"color":55},{"text":5038,"type":46,"marks":5039}," Submitting too many credit card applications within a short time period of time could negatively impact your credit score. Try to wait ",[5040],{"type":53,"attrs":5041},{"color":55},{"text":5043,"type":46,"marks":5044},"at least six months",[5045,5048,5050],{"type":93,"attrs":5046},{"href":5047,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.experian.com/blogs/ask-experian/how-long-to-wait-between-credit-card-applications/",{"type":53,"attrs":5049},{"color":933},{"type":165},{"text":5052,"type":46,"marks":5053}," between submitting applications.",[5054],{"type":53,"attrs":5055},{"color":55},{"type":141,"content":5057},[5058],{"type":42,"content":5059},[5060,5066,5071,5078],{"text":5061,"type":46,"marks":5062},"Have a diverse credit mix: ",[5063,5064],{"type":79},{"type":53,"attrs":5065},{"color":55},{"text":5067,"type":46,"marks":5068},"Lenders like to see different types of credit on your report. This demonstrates that you can responsibly manage a range of different credit types. If you have a mortgage loan, auto loan, ",[5069],{"type":53,"attrs":5070},{"color":55},{"text":3161,"type":46,"marks":5072},[5073,5075,5077],{"type":93,"attrs":5074},{"href":1699,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":5076},{"color":933},{"type":165},{"text":5079,"type":46,"marks":5080},", or student loan in addition to your credit cards, that could positively impact your score (so long as you’re making payments on time). ",[5081],{"type":53,"attrs":5082},{"color":55},{"type":71,"attrs":5084,"content":5085},{"level":73},[5086],{"text":5087,"type":46,"marks":5088},"2. Why do I want a credit card?",[5089],{"type":53,"attrs":5090},{"color":55},{"type":42,"content":5092},[5093],{"text":5094,"type":46,"marks":5095},"Choosing the right credit card depends on your individual goals and needs. While some credit cards offer attractive perks, others have lower interest rates. To find the best credit card for your needs, first ask yourself what your goals are. ",[5096],{"type":53,"attrs":5097},{"color":55},{"type":138,"content":5099},[5100,5129,5158,5173],{"type":141,"content":5101},[5102],{"type":42,"content":5103},[5104,5110,5115,5124],{"text":5105,"type":46,"marks":5106},"Improve or build credit:",[5107,5108],{"type":79},{"type":53,"attrs":5109},{"color":55},{"text":5111,"type":46,"marks":5112}," If you have little or no credit history, you may want to choose a secured card as your first credit card. You won’t generally need to provide your credit score to open a ",[5113],{"type":53,"attrs":5114},{"color":55},{"text":5116,"type":46,"marks":5117},"secured credit card",[5118,5121,5123],{"type":93,"attrs":5119},{"href":5120,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.equifax.com/personal/education/credit-cards/articles/-/learn/what-is-a-secured-credit-card-do-they-build-credit/",{"type":53,"attrs":5122},{"color":933},{"type":165},{"text":5125,"type":46,"marks":5126},". Instead, you’ll give the credit card company a refundable cash deposit. This acts as a security deposit and is typically equal to your credit limit. ",[5127],{"type":53,"attrs":5128},{"color":55},{"type":141,"content":5130},[5131],{"type":42,"content":5132},[5133,5139,5144,5153],{"text":5134,"type":46,"marks":5135},"Save on interest:",[5136,5137],{"type":79},{"type":53,"attrs":5138},{"color":55},{"text":5140,"type":46,"marks":5141}," If you already have credit card debt, consider getting a ",[5142],{"type":53,"attrs":5143},{"color":55},{"text":5145,"type":46,"marks":5146},"balance transfer credit card",[5147,5150,5152],{"type":93,"attrs":5148},{"href":5149,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/consumer-tools/credit-cards/answers/key-terms/",{"type":53,"attrs":5151},{"color":933},{"type":165},{"text":5154,"type":46,"marks":5155}," with an introductory 0% APR (annual percentage rate). This allows you to transfer debts to a new card with zero interest, which could help you save money as you pay down your debt. Keep in mind, rates skyrocket after the introductory period, so pay down your balance as soon as possible. ",[5156],{"type":53,"attrs":5157},{"color":55},{"type":141,"content":5159},[5160],{"type":42,"content":5161},[5162,5168],{"text":5163,"type":46,"marks":5164},"Earn rewards: ",[5165,5166],{"type":79},{"type":53,"attrs":5167},{"color":55},{"text":5169,"type":46,"marks":5170},"Rewards credit cards offer cash-back programs, travel points, or airline miles in exchange for regular day-to-day spending. These can help you plan vacations or cover other purchases without draining your savings.",[5171],{"type":53,"attrs":5172},{"color":55},{"type":141,"content":5174},[5175],{"type":42,"content":5176},[5177,5183],{"text":5178,"type":46,"marks":5179},"Finance a big purchase:",[5180,5181],{"type":79},{"type":53,"attrs":5182},{"color":55},{"text":5184,"type":46,"marks":5185}," If you’re looking to finance a significant purchase and pay it off over several months, look for a credit card with an introductory 0% APR period. Just be careful to pay off your balance before the promotional period ends. ",[5186],{"type":53,"attrs":5187},{"color":55},{"type":71,"attrs":5189,"content":5190},{"level":73},[5191],{"text":5192,"type":46,"marks":5193},"3. What options are available to me?",[5194],{"type":53,"attrs":5195},{"color":55},{"type":42,"content":5197},[5198],{"text":5199,"type":46,"marks":5200},"The next step is understanding the types of credit cards available. Most cards fall into four main categories:",[5201],{"type":53,"attrs":5202},{"color":55},{"type":71,"attrs":5204,"content":5205},{"level":123},[5206],{"text":5207,"type":46,"marks":5208},"Credit-building cards",[5209],{"type":53,"attrs":5210},{"color":1087},{"type":42,"content":5212},[5213,5218,5227],{"text":5214,"type":46,"marks":5215},"If you have bad credit or limited credit history, you may want to start with a credit-building card. These cards often have lenient eligibility criteria. Secured cards require a security deposit, but they make a great stepping-stone to regular, unsecured cards. If you’re enrolled in a college or university, you may also qualify for a ",[5216],{"type":53,"attrs":5217},{"color":55},{"text":5219,"type":46,"marks":5220},"student card",[5221,5224,5226],{"type":93,"attrs":5222},{"href":5223,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.equifax.com/personal/education/credit-cards/articles/-/learn/student-credit-cards-what-are-they-how-to-get-one/",{"type":53,"attrs":5225},{"color":933},{"type":165},{"text":5228,"type":46,"marks":5229},". Like secured cards, student credit cards work to boost your credit without requiring a high score or long credit history.",[5230],{"type":53,"attrs":5231},{"color":55},{"type":71,"attrs":5233,"content":5234},{"level":123},[5235],{"text":5236,"type":46,"marks":5237},"Balance transfer credit cards",[5238],{"type":53,"attrs":5239},{"color":1087},{"type":42,"content":5241},[5242],{"text":5243,"type":46,"marks":5244},"Balance transfer credit cards could help you save money while paying off credit card debt. Many of these cards offer a 0% balance transfer APR for the first year after you open the card. This lets you make progress on your debt without accruing interest charges during that time. Once the introductory period ends, though, your remaining balance will be subject to the card’s regular APR. ",[5245],{"type":53,"attrs":5246},{"color":55},{"type":71,"attrs":5248,"content":5249},{"level":123},[5250],{"text":5251,"type":46,"marks":5252},"Rewards credit cards",[5253],{"type":53,"attrs":5254},{"color":1087},{"type":42,"content":5256},[5257],{"text":5258,"type":46,"marks":5259},"These credit cards are designed for people who want to earn cash back or rewards on their purchases. There are a few different types of rewards cards to consider:",[5260],{"type":53,"attrs":5261},{"color":55},{"type":138,"content":5263},[5264,5273,5282],{"type":141,"content":5265},[5266],{"type":42,"content":5267},[5268],{"text":5269,"type":46,"marks":5270},"Cash-back rewards cards offer a percentage back on spending.",[5271],{"type":53,"attrs":5272},{"color":55},{"type":141,"content":5274},[5275],{"type":42,"content":5276},[5277],{"text":5278,"type":46,"marks":5279},"Points-earning cards accumulate points for various redemption options. ",[5280],{"type":53,"attrs":5281},{"color":55},{"type":141,"content":5283},[5284],{"type":42,"content":5285},[5286],{"text":5287,"type":46,"marks":5288},"Miles-earning cards accumulate airline miles or other travel rewards. ",[5289],{"type":53,"attrs":5290},{"color":55},{"type":42,"content":5292},[5293],{"text":5294,"type":46,"marks":5295},"Flat-rate cash-back credit cards offer cash back on all purchases, usually at least 2%. Other cards offer around 5% cash back on spending in specific categories. Many of these credit cards offer bonus rewards for purchases made at gas stations or grocery stores, for example. ",[5296],{"type":53,"attrs":5297},{"color":55},{"type":42,"content":5299},[5300,5305],{"text":5301,"type":46,"marks":5302},"You can redeem cash-back rewards as a statement credit on your next bill, or you can link your card to a savings account to automatically transfer them to your bank. And if you’re feeling generous, some companies even let you ",[5303],{"type":53,"attrs":5304},{"color":55},{"text":5306,"type":46,"marks":5307},"donate your rewards to charity. ",[5308,5311,5313],{"type":93,"attrs":5309},{"href":5310,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.redcross.org/donations/ways-to-donate/donate-rewards-points.html",{"type":53,"attrs":5312},{"color":933},{"type":165},{"type":71,"attrs":5315,"content":5316},{"level":123},[5317],{"text":5318,"type":46,"marks":5319},"Low-interest credit cards",[5320],{"type":53,"attrs":5321},{"color":1087},{"type":42,"content":5323},[5324],{"text":5325,"type":46,"marks":5326},"A low-interest credit card is a good option for financing expenses over time. These cards typically come in two forms: those that simply offer a lower APR than average, and those that offer a 0% intro APR. If you have a large purchase coming up and plan to pay it off quickly, a card with a 0% introductory period can be a smart choice.",[5327],{"type":53,"attrs":5328},{"color":55},{"type":71,"attrs":5330,"content":5331},{"level":73},[5332],{"text":5333,"type":46,"marks":5334},"4. How does each option stack up?",[5335],{"type":53,"attrs":5336},{"color":55},{"type":42,"content":5338},[5339,5344,5351,5356,5365],{"text":5340,"type":46,"marks":5341},"Once you know what you’re looking for, you can use an online service to help you compare available options. One convenient option is ",[5342],{"type":53,"attrs":5343},{"color":55},{"text":2490,"type":46,"marks":5345},[5346,5348,5350],{"type":93,"attrs":5347},{"href":1833,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":5349},{"color":933},{"type":165},{"text":5352,"type":46,"marks":5353},". Credit card comparison tool ",[5354],{"type":53,"attrs":5355},{"color":55},{"text":5357,"type":46,"marks":5358},"Fiona",[5359,5362,5364],{"type":93,"attrs":5360},{"href":5361,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://fiona.com/",{"type":53,"attrs":5363},{"color":933},{"type":165},{"text":5366,"type":46,"marks":5367}," works in partnership with Navient to match borrowers to a wide range of custom credit card offers. When you search for card options on the Navient Marketplace website, Fiona will work up a list of offers from various lending partners, including Chase, Capital One, and Citi. Each offer will be tailored to your needs and financial history. You can then compare these credit card options to help you make an informed decision. ",[5368],{"type":53,"attrs":5369},{"color":55},{"type":71,"attrs":5371,"content":5372},{"level":73},[5373],{"text":5374,"type":46,"marks":5375},"5. Which card offers the best value?",[5376],{"type":53,"attrs":5377},{"color":55},{"type":42,"content":5379},[5380,5385,5392],{"text":5381,"type":46,"marks":5382},"Once you’ve received credit card offers through ",[5383],{"type":53,"attrs":5384},{"color":55},{"text":2490,"type":46,"marks":5386},[5387,5389,5391],{"type":93,"attrs":5388},{"href":1833,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":5390},{"color":933},{"type":165},{"text":5393,"type":46,"marks":5394}," or another comparison tool of your choice, review your options carefully. Here are some key factors to keep in mind for each type of card. ",[5395],{"type":53,"attrs":5396},{"color":55},{"type":71,"attrs":5398,"content":5399},{"level":123},[5400],{"text":5207,"type":46,"marks":5401},[5402],{"type":53,"attrs":5403},{"color":1087},{"type":42,"content":5405},[5406],{"text":5407,"type":46,"marks":5408},"If you’re shopping for student cards, secured cards, or other cards to help build up your credit, you’ll want to look for:",[5409],{"type":53,"attrs":5410},{"color":55},{"type":138,"content":5412},[5413,5428],{"type":141,"content":5414},[5415],{"type":42,"content":5416},[5417,5423],{"text":5418,"type":46,"marks":5419},"Credit increases: ",[5420,5421],{"type":79},{"type":53,"attrs":5422},{"color":55},{"text":5424,"type":46,"marks":5425},"Choose a secured card that offers periodic credit increases as a reward for good spending habits. ",[5426],{"type":53,"attrs":5427},{"color":55},{"type":141,"content":5429},[5430],{"type":42,"content":5431},[5432,5438],{"text":5433,"type":46,"marks":5434},"Transition to unsecured:",[5435,5436],{"type":79},{"type":53,"attrs":5437},{"color":55},{"text":5439,"type":46,"marks":5440}," Look for a secured credit card that provides an easy transition to an unsecured card with no need for a new application. ",[5441],{"type":53,"attrs":5442},{"color":55},{"type":71,"attrs":5444,"content":5445},{"level":123},[5446],{"text":5447,"type":46,"marks":5448},"Balance transfer and low-interest credit cards",[5449],{"type":53,"attrs":5450},{"color":1087},{"type":42,"content":5452},[5453],{"text":5454,"type":46,"marks":5455},"If you’re looking to pay off existing debt through a balance transfer credit card, compare the following criteria:",[5456],{"type":53,"attrs":5457},{"color":55},{"type":138,"content":5459},[5460,5475,5490],{"type":141,"content":5461},[5462],{"type":42,"content":5463},[5464,5470],{"text":5465,"type":46,"marks":5466},"Length of welcome offer:",[5467,5468],{"type":79},{"type":53,"attrs":5469},{"color":55},{"text":5471,"type":46,"marks":5472}," The longer the sign-up bonus period, the better. While the average introductory period is 12 to 18 months, you can find some credit cards that offer 0% interest for up to 21 months. ",[5473],{"type":53,"attrs":5474},{"color":55},{"type":141,"content":5476},[5477],{"type":42,"content":5478},[5479,5485],{"text":5480,"type":46,"marks":5481},"Balance transfer fees: ",[5482,5483],{"type":79},{"type":53,"attrs":5484},{"color":55},{"text":5486,"type":46,"marks":5487},"Credit card companies typically charge cardholders a fee to transfer a balance. That fee is usually 3 to 5% of the balance being transferred. This can make it quite expensive to transfer big balances. However, some cards don’t charge transfer fees at all — though these typically have shorter introductory APR periods. If you know you can pay off your debt quickly, however, choosing a fee-free card can save you a lot of money. ",[5488],{"type":53,"attrs":5489},{"color":55},{"type":141,"content":5491},[5492],{"type":42,"content":5493},[5494,5500,5505,5514],{"text":5495,"type":46,"marks":5496},"Penalties or late fees:",[5497,5498],{"type":79},{"type":53,"attrs":5499},{"color":55},{"text":5501,"type":46,"marks":5502}," When possible, select credit cards that don’t charge a ",[5503],{"type":53,"attrs":5504},{"color":55},{"text":5506,"type":46,"marks":5507},"penalty APR",[5508,5511,5513],{"type":93,"attrs":5509},{"href":5510,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.experian.com/blogs/ask-experian/what-is-a-penalty-apr/",{"type":53,"attrs":5512},{"color":933},{"type":165},{"text":5515,"type":46,"marks":5516}," or fees for late payments. ",[5517],{"type":53,"attrs":5518},{"color":55},{"type":71,"attrs":5520,"content":5521},{"level":123},[5522],{"text":5251,"type":46,"marks":5523},[5524],{"type":53,"attrs":5525},{"color":1087},{"type":42,"content":5527},[5528],{"text":5529,"type":46,"marks":5530},"If the primary purpose of your credit card is to earn rewards from everyday purchasing, consider the following:",[5531],{"type":53,"attrs":5532},{"color":55},{"type":138,"content":5534},[5535,5550,5565],{"type":141,"content":5536},[5537],{"type":42,"content":5538},[5539,5545],{"text":5540,"type":46,"marks":5541},"Rewards program: ",[5542,5543],{"type":79},{"type":53,"attrs":5544},{"color":55},{"text":5546,"type":46,"marks":5547},"Decide what type of reward program would benefit you most. If you’re a frequent traveler or want to save up miles to visit family, consider a travel credit card. If you have an international trip in your sights, choose one with low foreign transaction fees. If you spend a lot on everyday purchases like gas or groceries, a regular cash-back card might be better.",[5548],{"type":53,"attrs":5549},{"color":55},{"type":141,"content":5551},[5552],{"type":42,"content":5553},[5554,5560],{"text":5555,"type":46,"marks":5556},"Low spending requirements: ",[5557,5558],{"type":79},{"type":53,"attrs":5559},{"color":55},{"text":5561,"type":46,"marks":5562},"Many rewards cards require you to spend a certain amount of money during the introductory period in order to earn big bonuses. While you may want to meet the spending limit to maximize the benefits, it’s not worth stretching your budget to do so.",[5563],{"type":53,"attrs":5564},{"color":55},{"type":141,"content":5566},[5567],{"type":42,"content":5568},[5569,5575],{"text":5570,"type":46,"marks":5571},"Annual fees: ",[5572,5573],{"type":79},{"type":53,"attrs":5574},{"color":55},{"text":5576,"type":46,"marks":5577},"Many reward cards come with annual fees. So, make sure the rewards will outweigh the cost of the fee. When possible, choose cards with no or low annual fees. ",[5578],{"type":53,"attrs":5579},{"color":55},{"type":71,"attrs":5581,"content":5582},{"level":73},[5583],{"text":5584,"type":46,"marks":5585},"Compare credit cards on Navient Marketplace",[5586],{"type":53,"attrs":5587},{"color":55},{"type":42,"content":5589},[5590,5595,5601,5608],{"text":5591,"type":46,"marks":5592},"Whether you want to build your credit for the first time or get rewards for everyday spending, Navient can help you find a new credit card that suits your needs. Explore",[5593],{"type":53,"attrs":5594},{"color":55},{"text":657,"type":46,"marks":5596},[5597,5599],{"type":93,"attrs":5598},{"href":1833,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":5600},{"color":55},{"text":2490,"type":46,"marks":5602},[5603,5605,5607],{"type":93,"attrs":5604},{"href":1833,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":5606},{"color":933},{"type":165},{"text":5609,"type":46,"marks":5610}," to compare different offers tailored to your lifestyle.",[5611],{"type":53,"attrs":5612},{"color":55},{"type":42,"content":5614},[5615],{"text":45,"type":46,"marks":5616},[5617,5619],{"type":49,"attrs":5618},{"class":51},{"type":53,"attrs":5620},{"color":55},{"type":42,"content":5622},[5623],{"text":789,"type":46,"marks":5624},[5625,5627],{"type":49,"attrs":5626},{"class":51},{"type":53,"attrs":5628},{"color":55},{"type":42,"content":5630},[5631,5638,5646],{"text":5632,"type":46,"marks":5633},"Information in this blog, including the rates advertised, are current as of 06/26/2023 and subject to change. For current rates, please visit ",[5634,5636],{"type":49,"attrs":5635},{"class":51},{"type":53,"attrs":5637},{"color":55},{"text":770,"type":46,"marks":5639},[5640,5642,5644],{"type":93,"attrs":5641},{"href":770,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":49,"attrs":5643},{"class":51},{"type":53,"attrs":5645},{"color":55},{"text":1222,"type":46,"marks":5647},[5648,5650],{"type":49,"attrs":5649},{"class":51},{"type":53,"attrs":5651},{"color":55},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798164\"}-->","https://www.marketplace.navient.com/blog/how-to-choose-a-credit-card/","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"39f3568e-f888-4c3e-816f-3647f7efec59\", \"id\": \"651798164\"}-->","how-to-choose-a-credit-card","navient_marketplace/blog/how-to-choose-a-credit-card",[],"9a65b026-646c-4643-9747-f8cfbc280bf4","2023-09-26T16:15:08.152Z","blog/how-to-choose-a-credit-card/",[],{"name":5663,"created_at":5664,"published_at":5665,"updated_at":5666,"id":5667,"uuid":5668,"content":5669,"slug":7024,"full_slug":7025,"sort_by_date":96,"position":826,"tag_list":7026,"is_startpage":29,"parent_id":828,"meta_data":96,"group_id":7027,"first_published_at":7028,"release_id":96,"lang":831,"path":7029,"alternates":7030,"default_full_slug":96,"translated_slugs":96},"What is Personal Finance? Definition, Examples & Tips for Success","2025-04-07T18:30:24.943Z","2025-12-26T13:44:58.928Z","2025-12-26T13:44:59.059Z",651798162,"a8d8a59b-124e-48c9-a12b-d31c8112bb1e",{"seo":5670,"_uid":20,"hero":5673,"author":31,"category":5679,"featured":29,"imageAlt":18,"component":33,"blogContents":5680,"canonicalTag":7022,"publishedDate":822,"_editable":7023},{"_uid":15,"title":5671,"plugin":17,"og_image":18,"og_title":18,"description":5672,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"What is Personal Finance? Definition, Examples, Tips for Success | Navient Marketplace","Personal finance is a fundamental part of everyone’s lives, and yet it’s a loaded topic for many people. Here’s what you need to know. ",[5674],{"id":18,"_uid":23,"image":5675,"intro":5676,"classes":18,"_editable":5677,"blogTitle":5663,"component":27,"imageLink":5678,"blendImage":29,"backgroundColor":30},"//a.storyblok.com/f/110029/6000x4000/019b862f0a/what-is-personal-finance.png","Personal finance is a fundamental part of everyone’s lives, and yet it’s a loaded topic for many people. Here’s what you need to know.","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798162\"}-->","/images/what-is-personal-finance.png","Finance 101",[5681],{"_uid":36,"color":37,"richText":5682,"_editable":7021,"component":820},{"type":39,"content":5683},[5684,5692,5699,5706,5714,5721,5729,5736,5744,5751,5758,5846,5853,5885,5893,5914,6160,6168,6175,6219,6236,6339,6356,6363,6447,6455,6490,6511,6628,6649,6765,6773,6780,6811,6828,6845,6862,6879,6887,6894,6911,6955,6986,6994,7013],{"type":42,"content":5685},[5686],{"text":45,"type":46,"marks":5687},[5688,5690],{"type":49,"attrs":5689},{"class":51},{"type":53,"attrs":5691},{"color":55},{"type":42,"content":5693},[5694],{"text":5695,"type":46,"marks":5696},"Personal finance is a fundamental part of everyone’s lives, and yet it’s a loaded topic for many people. Money talk can be intimidating and confusing. Even the definition of “personal finance” can feel a little murky sometimes. But understanding it can be the key to unlocking some of your biggest financial goals — from buying a home to having kids to retiring early. ",[5697],{"type":53,"attrs":5698},{"color":55},{"type":42,"content":5700},[5701],{"text":5702,"type":46,"marks":5703},"So what exactly is personal finance? And how can you leverage it to make sound financial decisions? Here’s what you need to know. ",[5704],{"type":53,"attrs":5705},{"color":55},{"type":71,"attrs":5707,"content":5708},{"level":73},[5709],{"text":5710,"type":46,"marks":5711},"Personal finance definition ",[5712],{"type":53,"attrs":5713},{"color":55},{"type":42,"content":5715},[5716],{"text":5717,"type":46,"marks":5718},"Personal finance is personal money management. It refers to an individual’s strategies and habits for earning, spending, saving, and investing. Personal finance also encompasses various aspects of financial decision-making. Budgeting, saving for retirement, debt repayment, and purchasing insurance all fall under the personal finance umbrella. ",[5719],{"type":53,"attrs":5720},{"color":55},{"type":71,"attrs":5722,"content":5723},{"level":73},[5724],{"text":5725,"type":46,"marks":5726},"The fundamentals of personal finance",[5727],{"type":53,"attrs":5728},{"color":55},{"type":42,"content":5730},[5731],{"text":5732,"type":46,"marks":5733},"Developing financial literacy, i.e., knowledge and skills about managing money, can help you take control of your cash flow. While financial management is a pretty broad topic, there are a few areas of personal finance that are especially important to understand. Here are the basics. ",[5734],{"type":53,"attrs":5735},{"color":55},{"type":71,"attrs":5737,"content":5738},{"level":123},[5739],{"text":5740,"type":46,"marks":5741},"Earning an income ",[5742],{"type":53,"attrs":5743},{"color":1087},{"type":42,"content":5745},[5746],{"text":5747,"type":46,"marks":5748},"Regular income provides financial security. It’s reassuring to know that if an emergency happens, you’ll be able to cover basic financial needs like housing, food, utilities, transportation, and healthcare. Maintaining a strong income is also the most reliable way to grow your net worth and reach your financial goals quickly. That could include saving for retirement, purchasing a home, funding your or your children’s education, or starting a business. ",[5749],{"type":53,"attrs":5750},{"color":55},{"type":42,"content":5752},[5753],{"text":5754,"type":46,"marks":5755},"The primary sources of income for most people include:",[5756],{"type":53,"attrs":5757},{"color":55},{"type":138,"content":5759},[5760,5789,5831],{"type":141,"content":5761},[5762],{"type":42,"content":5763},[5764,5770,5775,5784],{"text":5765,"type":46,"marks":5766},"Employment:",[5767,5768],{"type":79},{"type":53,"attrs":5769},{"color":55},{"text":5771,"type":46,"marks":5772},"  Most individuals work for a company or organization and receive a regular paycheck in exchange for their services. Self-employment, freelancing, and gig work are also viable ways to generate income. The ",[5773],{"type":53,"attrs":5774},{"color":55},{"text":5776,"type":46,"marks":5777},"Occupational Outlook Handbook",[5778,5781,5783],{"type":93,"attrs":5779},{"href":5780,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.bls.gov/ooh/",{"type":53,"attrs":5782},{"color":933},{"type":165},{"text":5785,"type":46,"marks":5786}," lists the average income and job outlook for most occupations.",[5787],{"type":53,"attrs":5788},{"color":55},{"type":141,"content":5790},[5791],{"type":42,"content":5792},[5793,5799,5804,5813,5818,5827],{"text":5794,"type":46,"marks":5795},"Investments: ",[5796,5797],{"type":79},{"type":53,"attrs":5798},{"color":55},{"text":5800,"type":46,"marks":5801},"You can also generate income from investments, such as stocks, bonds, or mutual funds. These can provide additional streams of revenue through ",[5802],{"type":53,"attrs":5803},{"color":55},{"text":5805,"type":46,"marks":5806},"dividends",[5807,5810,5812],{"type":93,"attrs":5808},{"href":5809,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.accountingtools.com/articles/what-are-dividends.html",{"type":53,"attrs":5811},{"color":933},{"type":165},{"text":5814,"type":46,"marks":5815},", interest, or ",[5816],{"type":53,"attrs":5817},{"color":55},{"text":5819,"type":46,"marks":5820},"capital gains",[5821,5824,5826],{"type":93,"attrs":5822},{"href":5823,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.irs.gov/taxtopics/tc409#:~:text=You%20have%20a%20capital%20gain,%2C%20aren't%20tax%20deductible.",{"type":53,"attrs":5825},{"color":933},{"type":165},{"text":1222,"type":46,"marks":5828},[5829],{"type":53,"attrs":5830},{"color":55},{"type":141,"content":5832},[5833],{"type":42,"content":5834},[5835,5841],{"text":5836,"type":46,"marks":5837},"Passive income:",[5838,5839],{"type":79},{"type":53,"attrs":5840},{"color":55},{"text":5842,"type":46,"marks":5843}," Passive income refers to earnings derived from sources that require minimal effort or time, such as rental properties, royalties from creative works, or income generated from online businesses. ",[5844],{"type":53,"attrs":5845},{"color":55},{"type":42,"content":5847},[5848],{"text":5849,"type":46,"marks":5850},"To manage your income effectively, it’s also important to understand the difference between disposable and discretionary income. ",[5851],{"type":53,"attrs":5852},{"color":55},{"type":138,"content":5854},[5855,5870],{"type":141,"content":5856},[5857],{"type":42,"content":5858},[5859,5865],{"text":5860,"type":46,"marks":5861},"Disposable income: ",[5862,5863],{"type":79},{"type":53,"attrs":5864},{"color":55},{"text":5866,"type":46,"marks":5867},"This is what’s left after taxes have been deducted from your paycheck. It’s the money you have available to save, spend, or invest.",[5868],{"type":53,"attrs":5869},{"color":55},{"type":141,"content":5871},[5872],{"type":42,"content":5873},[5874,5880],{"text":5875,"type":46,"marks":5876},"Discretionary income:",[5877,5878],{"type":79},{"type":53,"attrs":5879},{"color":55},{"text":5881,"type":46,"marks":5882}," This is the money you have after taking care of essential expenses, including housing, food, and transportation. It can be saved or invested, or used for non-essential spending. ",[5883],{"type":53,"attrs":5884},{"color":55},{"type":71,"attrs":5886,"content":5887},{"level":123},[5888],{"text":5889,"type":46,"marks":5890},"Budgeting ",[5891],{"type":53,"attrs":5892},{"color":1087},{"type":42,"content":5894},[5895,5900,5909],{"text":5896,"type":46,"marks":5897},"Budgeting is the process of setting aside portions of your income for different spending categories. A good budget acts as a financial blueprint to make sure you’re effectively managing your money and maintaining a steady ",[5898],{"type":53,"attrs":5899},{"color":55},{"text":5901,"type":46,"marks":5902},"cash flow",[5903,5906,5908],{"type":93,"attrs":5904},{"href":5905,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.accountingtools.com/articles/what-is-cash-flow.html",{"type":53,"attrs":5907},{"color":933},{"type":165},{"text":5910,"type":46,"marks":5911},". While there is no one-size-fits-all approach to budgeting, here are some basic steps: ",[5912],{"type":53,"attrs":5913},{"color":55},{"type":497,"attrs":5915,"content":5916},{"order":499},[5917,5945,6057,6115,6130,6145],{"type":141,"content":5918},[5919],{"type":42,"content":5920},[5921,5927,5932,5941],{"text":5922,"type":46,"marks":5923},"List your income and expenses: ",[5924,5925],{"type":79},{"type":53,"attrs":5926},{"color":55},{"text":5928,"type":46,"marks":5929},"First determine your total income from all sources. Then, track your expenses for a month to understand where your money is currently going. You can do this ",[5930],{"type":53,"attrs":5931},{"color":55},{"text":5933,"type":46,"marks":5934},"using an Excel spreadsheet",[5935,5938,5940],{"type":93,"attrs":5936},{"href":5937,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.refinery29.com/en-us/2018/05/196574/how-to-budget-with-an-excel-spreadsheet",{"type":53,"attrs":5939},{"color":933},{"type":165},{"text":1222,"type":46,"marks":5942},[5943],{"type":53,"attrs":5944},{"color":55},{"type":141,"content":5946},[5947,5960],{"type":42,"content":5948},[5949,5955],{"text":5950,"type":46,"marks":5951},"Categorize your expenses:",[5952,5953],{"type":79},{"type":53,"attrs":5954},{"color":55},{"text":5956,"type":46,"marks":5957}," Next, lump your expenses into different spending categories. These might include:",[5958],{"type":53,"attrs":5959},{"color":55},{"type":138,"content":5961},[5962,5971,5980,5989,5998,6007,6016,6025],{"type":141,"content":5963},[5964],{"type":42,"content":5965},[5966],{"text":5967,"type":46,"marks":5968},"Housing",[5969],{"type":53,"attrs":5970},{"color":55},{"type":141,"content":5972},[5973],{"type":42,"content":5974},[5975],{"text":5976,"type":46,"marks":5977},"Utilities",[5978],{"type":53,"attrs":5979},{"color":55},{"type":141,"content":5981},[5982],{"type":42,"content":5983},[5984],{"text":5985,"type":46,"marks":5986},"Groceries",[5987],{"type":53,"attrs":5988},{"color":55},{"type":141,"content":5990},[5991],{"type":42,"content":5992},[5993],{"text":5994,"type":46,"marks":5995},"Transportation, including car payments and gas",[5996],{"type":53,"attrs":5997},{"color":55},{"type":141,"content":5999},[6000],{"type":42,"content":6001},[6002],{"text":6003,"type":46,"marks":6004},"Eating out",[6005],{"type":53,"attrs":6006},{"color":55},{"type":141,"content":6008},[6009],{"type":42,"content":6010},[6011],{"text":6012,"type":46,"marks":6013},"Entertainment and hobbies",[6014],{"type":53,"attrs":6015},{"color":55},{"type":141,"content":6017},[6018],{"type":42,"content":6019},[6020],{"text":6021,"type":46,"marks":6022},"Debt repayments",[6023],{"type":53,"attrs":6024},{"color":55},{"type":141,"content":6026},[6027],{"type":42,"content":6028},[6029,6034,6043,6048],{"text":6030,"type":46,"marks":6031},"Savings or contributions to a retirement account, like a ",[6032],{"type":53,"attrs":6033},{"color":55},{"text":6035,"type":46,"marks":6036},"401(k)",[6037,6040,6042],{"type":93,"attrs":6038},{"href":6039,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.irs.gov/retirement-plans/401k-plans",{"type":53,"attrs":6041},{"color":933},{"type":165},{"text":6044,"type":46,"marks":6045}," or ",[6046],{"type":53,"attrs":6047},{"color":55},{"text":6049,"type":46,"marks":6050},"IRA",[6051,6054,6056],{"type":93,"attrs":6052},{"href":6053,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.investor.gov/additional-resources/retirement-toolkit/self-directed-plans-individual-retirement-accounts-iras",{"type":53,"attrs":6055},{"color":933},{"type":165},{"type":141,"content":6058},[6059,6086],{"type":42,"content":6060},[6061,6067,6072,6081],{"text":6062,"type":46,"marks":6063},"Follow the 50/30/20 rule:",[6064,6065],{"type":79},{"type":53,"attrs":6066},{"color":55},{"text":6068,"type":46,"marks":6069}," Now it’s time to take a look at your actual spending and determine whether or not it matches your values and goals. One popular budgeting guideline is the ",[6070],{"type":53,"attrs":6071},{"color":55},{"text":6073,"type":46,"marks":6074},"50/30/20 rule",[6075,6078,6080],{"type":93,"attrs":6076},{"href":6077,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.unfcu.org/guides/the-50-30-20-rule/#",{"type":53,"attrs":6079},{"color":933},{"type":165},{"text":6082,"type":46,"marks":6083},". This rule encourages you to spend:",[6084],{"type":53,"attrs":6085},{"color":55},{"type":138,"content":6087},[6088,6097,6106],{"type":141,"content":6089},[6090],{"type":42,"content":6091},[6092],{"text":6093,"type":46,"marks":6094},"50% of your after-tax income on needs (like housing, utilities, groceries, and transportation)",[6095],{"type":53,"attrs":6096},{"color":55},{"type":141,"content":6098},[6099],{"type":42,"content":6100},[6101],{"text":6102,"type":46,"marks":6103},"30% on wants (like eating out, entertainment, and hobbies)",[6104],{"type":53,"attrs":6105},{"color":55},{"type":141,"content":6107},[6108],{"type":42,"content":6109},[6110],{"text":6111,"type":46,"marks":6112},"20% on savings, retirement contributions, and debt repayment",[6113],{"type":53,"attrs":6114},{"color":55},{"type":141,"content":6116},[6117],{"type":42,"content":6118},[6119,6125],{"text":6120,"type":46,"marks":6121},"Adjust based on your financial goals:",[6122,6123],{"type":79},{"type":53,"attrs":6124},{"color":55},{"text":6126,"type":46,"marks":6127}," Your budget should align with your goals and desires. If you have a specific savings target — such as a down payment on a house or a chunk of debt you’d like to pay off — you may want to reconfigure your budget to hit your goal within a reasonable timeframe.",[6128],{"type":53,"attrs":6129},{"color":55},{"type":141,"content":6131},[6132],{"type":42,"content":6133},[6134,6140],{"text":6135,"type":46,"marks":6136},"Pay yourself first: ",[6137,6138],{"type":79},{"type":53,"attrs":6139},{"color":55},{"text":6141,"type":46,"marks":6142},"It can be tough to prioritize saving over spending. To stay disciplined, set aside a portion of each paycheck for savings or investments before you allocate funds to other categories. Treat savings as a fixed expense and automate regular contributions to your savings accounts.",[6143],{"type":53,"attrs":6144},{"color":55},{"type":141,"content":6146},[6147],{"type":42,"content":6148},[6149,6155],{"text":6150,"type":46,"marks":6151},"Review and adjust regularly: ",[6152,6153],{"type":79},{"type":53,"attrs":6154},{"color":55},{"text":6156,"type":46,"marks":6157},"Your income, life circumstances, and goals will change over time. Be sure to monitor your budget regularly and adjust as needed. ",[6158],{"type":53,"attrs":6159},{"color":55},{"type":71,"attrs":6161,"content":6162},{"level":123},[6163],{"text":6164,"type":46,"marks":6165},"Saving and investing",[6166],{"type":53,"attrs":6167},{"color":1087},{"type":42,"content":6169},[6170],{"text":6171,"type":46,"marks":6172},"Here are some popular vehicles for storing extra funds and making that money work for you.",[6173],{"type":53,"attrs":6174},{"color":55},{"type":138,"content":6176},[6177],{"type":141,"content":6178},[6179],{"type":42,"content":6180},[6181,6187,6192,6200,6205,6214],{"text":6182,"type":46,"marks":6183},"Emergency savings: ",[6184,6185],{"type":79},{"type":53,"attrs":6186},{"color":55},{"text":6188,"type":46,"marks":6189},"Building an ",[6190],{"type":53,"attrs":6191},{"color":55},{"text":6193,"type":46,"marks":6194},"emergency fund",[6195,6197,6199],{"type":93,"attrs":6196},{"href":2918,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":6198},{"color":933},{"type":165},{"text":6201,"type":46,"marks":6202}," should be a top priority, no matter what stage of life you’re in. Aim to have three to six months’ worth of living expenses socked away in a savings account. This will provide a financial safety net in case of unexpected events like job loss, medical emergencies, or major repairs. ",[6203],{"type":53,"attrs":6204},{"color":55},{"text":6206,"type":46,"marks":6207},"High-yield savings accounts",[6208,6211,6213],{"type":93,"attrs":6209},{"href":6210,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://marketplace.navient.com/blog/are-high-yield-savings-accounts-worth-it/",{"type":53,"attrs":6212},{"color":933},{"type":165},{"text":6215,"type":46,"marks":6216}," offer competitive interest rates, which can help you earn money from your savings when they’re not in use. ",[6217],{"type":53,"attrs":6218},{"color":55},{"type":138,"content":6220},[6221],{"type":141,"content":6222},[6223],{"type":42,"content":6224},[6225,6231],{"text":6226,"type":46,"marks":6227},"Checking accounts:",[6228,6229],{"type":79},{"type":53,"attrs":6230},{"color":55},{"text":6232,"type":46,"marks":6233}," Use this type of account for essential day-to-day transactions, such as paying bills and storing accessible cash. Most checking accounts come with debit cards and ATM access. ",[6234],{"type":53,"attrs":6235},{"color":55},{"type":138,"content":6237},[6238,6267,6311],{"type":141,"content":6239},[6240],{"type":42,"content":6241},[6242,6248,6253,6262],{"text":6243,"type":46,"marks":6244},"Savings accounts: ",[6245,6246],{"type":79},{"type":53,"attrs":6247},{"color":55},{"text":6249,"type":46,"marks":6250},"This type of bank account allows you to set aside money for short-term financial goals. Unlike high-yield savings accounts, ",[6251],{"type":53,"attrs":6252},{"color":55},{"text":6254,"type":46,"marks":6255},"traditional savings accounts",[6256,6259,6261],{"type":93,"attrs":6257},{"href":6258,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.experian.com/blogs/ask-experian/pros-cons-high-yield-savings-account/",{"type":53,"attrs":6260},{"color":933},{"type":165},{"text":6263,"type":46,"marks":6264}," tend to earn only a nominal amount of interest.",[6265],{"type":53,"attrs":6266},{"color":55},{"type":141,"content":6268},[6269,6282],{"type":42,"content":6270},[6271,6277],{"text":6272,"type":46,"marks":6273},"Investment accounts:",[6274,6275],{"type":79},{"type":53,"attrs":6276},{"color":55},{"text":6278,"type":46,"marks":6279}," For long-term financial planning — such as building wealth or retirement savings — consider opening an investment account. Options include: ",[6280],{"type":53,"attrs":6281},{"color":55},{"type":138,"content":6283},[6284,6293,6302],{"type":141,"content":6285},[6286],{"type":42,"content":6287},[6288],{"text":6289,"type":46,"marks":6290},"Individual brokerage accounts",[6291],{"type":53,"attrs":6292},{"color":55},{"type":141,"content":6294},[6295],{"type":42,"content":6296},[6297],{"text":6298,"type":46,"marks":6299},"Employer-sponsored retirement plans like 401(k)s,",[6300],{"type":53,"attrs":6301},{"color":55},{"type":141,"content":6303},[6304],{"type":42,"content":6305},[6306],{"text":6307,"type":46,"marks":6308},"Individual retirement accounts, including traditional and Roth IRAs",[6309],{"type":53,"attrs":6310},{"color":55},{"type":141,"content":6312},[6313],{"type":42,"content":6314},[6315,6321,6325,6334],{"text":6316,"type":46,"marks":6317},"College savings: ",[6318,6319],{"type":79},{"type":53,"attrs":6320},{"color":55},{"text":85,"type":46,"marks":6322},[6323],{"type":53,"attrs":6324},{"color":55},{"text":6326,"type":46,"marks":6327},"529 college savings plan",[6328,6331,6333],{"type":93,"attrs":6329},{"href":6330,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.sec.gov/about/reports-publications/investor-publications/introduction-529-plans",{"type":53,"attrs":6332},{"color":933},{"type":165},{"text":6335,"type":46,"marks":6336}," offers tax advantages and can be used to cover qualified education expenses, such as tuition, books, and room and board. ",[6337],{"type":53,"attrs":6338},{"color":55},{"type":138,"content":6340},[6341],{"type":141,"content":6342},[6343],{"type":42,"content":6344},[6345,6351],{"text":6346,"type":46,"marks":6347},"Certificates of Deposit (CDs):",[6348,6349],{"type":79},{"type":53,"attrs":6350},{"color":55},{"text":6352,"type":46,"marks":6353}," CDs offer savers a fixed interest rate for locking their money into an account for a specific period of time. CDs generally offer higher interest rates than regular savings accounts, but may have penalties for early withdrawal. ",[6354],{"type":53,"attrs":6355},{"color":55},{"type":42,"content":6357},[6358],{"text":6359,"type":46,"marks":6360},"So, how much should you allocate toward each type of account? Here are some general guidelines:",[6361],{"type":53,"attrs":6362},{"color":55},{"type":138,"content":6364},[6365,6380,6395,6419],{"type":141,"content":6366},[6367],{"type":42,"content":6368},[6369,6375],{"text":6370,"type":46,"marks":6371},"Emergency savings:",[6372,6373],{"type":79},{"type":53,"attrs":6374},{"color":55},{"text":6376,"type":46,"marks":6377}," Aim to save three to six months’ of living expenses. ",[6378],{"type":53,"attrs":6379},{"color":55},{"type":141,"content":6381},[6382],{"type":42,"content":6383},[6384,6390],{"text":6385,"type":46,"marks":6386},"Investments:",[6387,6388],{"type":79},{"type":53,"attrs":6389},{"color":55},{"text":6391,"type":46,"marks":6392}," Consider investing 10 to 15% of your income in stocks and bonds, or in opportunities beyond Wall Street, like real estate. A financial advisor can help you decide the best way to invest your money.",[6393],{"type":53,"attrs":6394},{"color":55},{"type":141,"content":6396},[6397],{"type":42,"content":6398},[6399,6405,6410],{"text":6400,"type":46,"marks":6401},"College savings:",[6402,6403],{"type":79},{"type":53,"attrs":6404},{"color":55},{"text":6406,"type":46,"marks":6407}," Determine how much you’ll need to save and start early to take advantage of ",[6408],{"type":53,"attrs":6409},{"color":55},{"text":6411,"type":46,"marks":6412},"compounding growth.",[6413,6416,6418],{"type":93,"attrs":6414},{"href":6415,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.investor.gov/additional-resources/information/youth/teachers-classroom-resources/what-compound-interest",{"type":53,"attrs":6417},{"color":933},{"type":165},{"type":141,"content":6420},[6421],{"type":42,"content":6422},[6423,6429,6434,6443],{"text":6424,"type":46,"marks":6425},"Homeownership:",[6426,6427],{"type":79},{"type":53,"attrs":6428},{"color":55},{"text":6430,"type":46,"marks":6431}," Aim to save at least 20% of a home’s cost as a down payment. Otherwise, you may have to buy ",[6432],{"type":53,"attrs":6433},{"color":55},{"text":6435,"type":46,"marks":6436},"Private Mortgage Insurance",[6437,6440,6442],{"type":93,"attrs":6438},{"href":6439,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/what-is-private-mortgage-insurance-en-122/",{"type":53,"attrs":6441},{"color":933},{"type":165},{"text":1222,"type":46,"marks":6444},[6445],{"type":53,"attrs":6446},{"color":55},{"type":71,"attrs":6448,"content":6449},{"level":123},[6450],{"text":6451,"type":46,"marks":6452},"Borrowing",[6453],{"type":53,"attrs":6454},{"color":1087},{"type":42,"content":6456},[6457,6462,6471,6476,6485],{"text":6458,"type":46,"marks":6459},"Borrowing money can help you reach your financial goals, but you should never take on debt lightly. For one thing, debts will show up on ",[6460],{"type":53,"attrs":6461},{"color":55},{"text":6463,"type":46,"marks":6464},"your credit report",[6465,6468,6470],{"type":93,"attrs":6466},{"href":6467,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/what-is-a-credit-report-en-309/",{"type":53,"attrs":6469},{"color":933},{"type":165},{"text":6472,"type":46,"marks":6473},", the official record of your borrowing history. Too much debt can have a negative impact on your ",[6474],{"type":53,"attrs":6475},{"color":55},{"text":6477,"type":46,"marks":6478},"credit score",[6479,6482,6484],{"type":93,"attrs":6480},{"href":6481,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.experian.com/blogs/ask-experian/what-credit-score-do-i-need-to-buy-a-house/",{"type":53,"attrs":6483},{"color":933},{"type":165},{"text":6486,"type":46,"marks":6487},", which could affect your ability to open other lines of credit in the future. ",[6488],{"type":53,"attrs":6489},{"color":55},{"type":42,"content":6491},[6492,6497,6506],{"text":6493,"type":46,"marks":6494},"That said, not all debt is ",[6495],{"type":53,"attrs":6496},{"color":55},{"text":6498,"type":46,"marks":6499},"bad debt",[6500,6503,6505],{"type":93,"attrs":6501},{"href":6502,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.equifax.com/personal/education/credit/report/articles/-/learn/understanding-credit-good-debt-vs-bad-debt/",{"type":53,"attrs":6504},{"color":933},{"type":165},{"text":6507,"type":46,"marks":6508},". Here are some common types: ",[6509],{"type":53,"attrs":6510},{"color":55},{"type":138,"content":6512},[6513,6528,6543,6557,6572,6598,6613],{"type":141,"content":6514},[6515],{"type":42,"content":6516},[6517,6523],{"text":6518,"type":46,"marks":6519},"Mortgage:",[6520,6521],{"type":79},{"type":53,"attrs":6522},{"color":55},{"text":6524,"type":46,"marks":6525}," A loan used to purchase a home, typically repaid over 15 to 30 years",[6526],{"type":53,"attrs":6527},{"color":55},{"type":141,"content":6529},[6530],{"type":42,"content":6531},[6532,6538],{"text":6533,"type":46,"marks":6534},"Student loans:",[6535,6536],{"type":79},{"type":53,"attrs":6537},{"color":55},{"text":6539,"type":46,"marks":6540}," Loans that fund education expenses. They can either be federal loans or come from private lenders.",[6541],{"type":53,"attrs":6542},{"color":55},{"type":141,"content":6544},[6545],{"type":42,"content":6546},[6547,6552],{"text":1753,"type":46,"marks":6548},[6549,6550],{"type":79},{"type":53,"attrs":6551},{"color":55},{"text":6553,"type":46,"marks":6554}," A revolving line of credit that allows individuals to make everyday purchases. Credit card debt is typically subject to high interest charges if not paid in full each month.",[6555],{"type":53,"attrs":6556},{"color":55},{"type":141,"content":6558},[6559],{"type":42,"content":6560},[6561,6567],{"text":6562,"type":46,"marks":6563},"Auto loans:",[6564,6565],{"type":79},{"type":53,"attrs":6566},{"color":55},{"text":6568,"type":46,"marks":6569}," Loans used to purchase a vehicle.",[6570],{"type":53,"attrs":6571},{"color":55},{"type":141,"content":6573},[6574],{"type":42,"content":6575},[6576,6581,6585,6593],{"text":1685,"type":46,"marks":6577},[6578,6579],{"type":79},{"type":53,"attrs":6580},{"color":55},{"text":1728,"type":46,"marks":6582},[6583],{"type":53,"attrs":6584},{"color":55},{"text":6586,"type":46,"marks":6587},"type of unsecured loan",[6588,6590,6592],{"type":93,"attrs":6589},{"href":1699,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":6591},{"color":933},{"type":165},{"text":6594,"type":46,"marks":6595}," that can be used for various purposes, such as debt consolidation, home improvements, or emergency expenses.",[6596],{"type":53,"attrs":6597},{"color":55},{"type":141,"content":6599},[6600],{"type":42,"content":6601},[6602,6608],{"text":6603,"type":46,"marks":6604},"Home Equity Line of Credit (HELOC): ",[6605,6606],{"type":79},{"type":53,"attrs":6607},{"color":55},{"text":6609,"type":46,"marks":6610},"A line of credit that allows individuals to borrow against the equity they hold in their homes.",[6611],{"type":53,"attrs":6612},{"color":55},{"type":141,"content":6614},[6615],{"type":42,"content":6616},[6617,6623],{"text":6618,"type":46,"marks":6619},"Small business loans: ",[6620,6621],{"type":79},{"type":53,"attrs":6622},{"color":55},{"text":6624,"type":46,"marks":6625},"Loans used to start or expand a small business. ",[6626],{"type":53,"attrs":6627},{"color":55},{"type":42,"content":6629},[6630,6635,6644],{"text":6631,"type":46,"marks":6632},"Conversely, paying off your debts can ",[6633],{"type":53,"attrs":6634},{"color":55},{"text":6636,"type":46,"marks":6637},"boost your credit score",[6638,6641,6643],{"type":93,"attrs":6639},{"href":6640,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.equifax.com/personal/education/credit/score/articles/-/learn/how-to-improve-credit-score/",{"type":53,"attrs":6642},{"color":933},{"type":165},{"text":6645,"type":46,"marks":6646},". When repaying debt, consider these general rules:",[6647],{"type":53,"attrs":6648},{"color":55},{"type":497,"attrs":6650,"content":6652},{"order":6651},{"order":499},[6653,6677,6692,6707,6750],{"type":141,"content":6654},[6655],{"type":42,"content":6656},[6657,6663,6672],{"text":6658,"type":46,"marks":6659},"Refinance when possible: ",[6660,6661],{"type":79},{"type":53,"attrs":6662},{"color":55},{"text":6664,"type":46,"marks":6665},"Refinancing your student loans",[6666,6669,6671],{"type":93,"attrs":6667},{"href":6668,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://navirefi.com/blog/how-to-refinance-student-loans/",{"type":53,"attrs":6670},{"color":933},{"type":165},{"text":6673,"type":46,"marks":6674}," or mortgage can potentially save you money by getting you a lower interest rate.",[6675],{"type":53,"attrs":6676},{"color":55},{"type":141,"content":6678},[6679],{"type":42,"content":6680},[6681,6687],{"text":6682,"type":46,"marks":6683},"Manage your credit utilization:",[6684,6685],{"type":79},{"type":53,"attrs":6686},{"color":55},{"text":6688,"type":46,"marks":6689}," Aim to utilize less than 30% of your total credit limit. This can help you maintain a healthy credit score and keep your debt manageable.",[6690],{"type":53,"attrs":6691},{"color":55},{"type":141,"content":6693},[6694],{"type":42,"content":6695},[6696,6702],{"text":6697,"type":46,"marks":6698},"Make regular payments: ",[6699,6700],{"type":79},{"type":53,"attrs":6701},{"color":55},{"text":6703,"type":46,"marks":6704},"Even if you’re focused on paying down one type of debt, continue to make on-time minimum payments on all your debts in the meantime.",[6705],{"type":53,"attrs":6706},{"color":55},{"type":141,"content":6708},[6709],{"type":42,"content":6710},[6711,6717,6722,6731,6736,6745],{"text":6712,"type":46,"marks":6713},"Debt repayment strategies: ",[6714,6715],{"type":79},{"type":53,"attrs":6716},{"color":55},{"text":6718,"type":46,"marks":6719},"There are different approaches to debt repayment, such as ",[6720],{"type":53,"attrs":6721},{"color":55},{"text":6723,"type":46,"marks":6724},"the Snowball Method",[6725,6728,6730],{"type":93,"attrs":6726},{"href":6727,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.ramseysolutions.com/debt/how-the-debt-snowball-method-works",{"type":53,"attrs":6729},{"color":933},{"type":165},{"text":6732,"type":46,"marks":6733}," (paying off smaller debts first) or ",[6734],{"type":53,"attrs":6735},{"color":55},{"text":6737,"type":46,"marks":6738},"the Avalanche method",[6739,6742,6744],{"type":93,"attrs":6740},{"href":6741,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.ramseysolutions.com/debt/debt-snowball-vs-debt-avalanche",{"type":53,"attrs":6743},{"color":933},{"type":165},{"text":6746,"type":46,"marks":6747}," (paying off debts with the highest interest rates first). Choose the strategy that most appeals to you.",[6748],{"type":53,"attrs":6749},{"color":55},{"type":141,"content":6751},[6752],{"type":42,"content":6753},[6754,6760],{"text":6755,"type":46,"marks":6756},"Stay motivated: ",[6757,6758],{"type":79},{"type":53,"attrs":6759},{"color":55},{"text":6761,"type":46,"marks":6762},"Debt repayment can be tedious. Keep yourself engaged by finding an accountability buddy, listening to financial education podcasts, and keeping your financial goals in mind. ",[6763],{"type":53,"attrs":6764},{"color":55},{"type":71,"attrs":6766,"content":6767},{"level":123},[6768],{"text":6769,"type":46,"marks":6770},"Insurance coverage",[6771],{"type":53,"attrs":6772},{"color":1087},{"type":42,"content":6774},[6775],{"text":6776,"type":46,"marks":6777},"Insuring yourself against financial emergencies is an important component of smart money management. Some common types of insurance include: ",[6778],{"type":53,"attrs":6779},{"color":55},{"type":138,"content":6781},[6782],{"type":141,"content":6783},[6784],{"type":42,"content":6785},[6786,6792,6797,6806],{"text":6787,"type":46,"marks":6788},"Life insurance:",[6789,6790],{"type":79},{"type":53,"attrs":6791},{"color":55},{"text":6793,"type":46,"marks":6794}," Life insurance provides financial protection for your dependents in the event of your death. There are primarily two types of life insurance. ",[6795],{"type":53,"attrs":6796},{"color":55},{"text":6798,"type":46,"marks":6799},"Term life insurance",[6800,6803,6805],{"type":93,"attrs":6801},{"href":6802,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://marketplace.navient.com/blog/is-term-life-insurance-worth-it/",{"type":53,"attrs":6804},{"color":933},{"type":165},{"text":6807,"type":46,"marks":6808}," provides coverage for a specific term, such as 10, 20, or 30 years. Whole life insurance provides coverage for your entire life. A financial planner or estate planning lawyer can help you choose the right type for you.",[6809],{"type":53,"attrs":6810},{"color":55},{"type":138,"content":6812},[6813],{"type":141,"content":6814},[6815],{"type":42,"content":6816},[6817,6823],{"text":6818,"type":46,"marks":6819},"Auto insurance:",[6820,6821],{"type":79},{"type":53,"attrs":6822},{"color":55},{"text":6824,"type":46,"marks":6825}," Auto or car insurance provides coverage for property damage, bodily injury, and other liabilities related to vehicles. ",[6826],{"type":53,"attrs":6827},{"color":55},{"type":138,"content":6829},[6830],{"type":141,"content":6831},[6832],{"type":42,"content":6833},[6834,6840],{"text":6835,"type":46,"marks":6836},"Home insurance: ",[6837,6838],{"type":79},{"type":53,"attrs":6839},{"color":55},{"text":6841,"type":46,"marks":6842},"This protects your home and belongings against damages or losses caused by fire, theft, or natural disasters. ",[6843],{"type":53,"attrs":6844},{"color":55},{"type":138,"content":6846},[6847],{"type":141,"content":6848},[6849],{"type":42,"content":6850},[6851,6857],{"text":6852,"type":46,"marks":6853},"Disability insurance:",[6854,6855],{"type":79},{"type":53,"attrs":6856},{"color":55},{"text":6858,"type":46,"marks":6859}," Disability insurance replaces your income if you are unable to work due to a disability or illness. ",[6860],{"type":53,"attrs":6861},{"color":55},{"type":138,"content":6863},[6864],{"type":141,"content":6865},[6866],{"type":42,"content":6867},[6868,6874],{"text":6869,"type":46,"marks":6870},"Long-Term Care Insurance:",[6871,6872],{"type":79},{"type":53,"attrs":6873},{"color":55},{"text":6875,"type":46,"marks":6876}," This covers the cost of services like nursing homes, assisted living facilities, or professional caregivers. These aren’t usually covered by health insurance. ",[6877],{"type":53,"attrs":6878},{"color":55},{"type":71,"attrs":6880,"content":6881},{"level":123},[6882],{"text":6883,"type":46,"marks":6884},"Taxes",[6885],{"type":53,"attrs":6886},{"color":1087},{"type":42,"content":6888},[6889],{"text":6890,"type":46,"marks":6891},"Staying informed about tax laws and regulations can help you minimize your tax burden. Here are some key points to understand:",[6892],{"type":53,"attrs":6893},{"color":55},{"type":138,"content":6895},[6896],{"type":141,"content":6897},[6898],{"type":42,"content":6899},[6900,6906],{"text":6901,"type":46,"marks":6902},"Income tax: ",[6903,6904],{"type":79},{"type":53,"attrs":6905},{"color":55},{"text":6907,"type":46,"marks":6908},"This is typically the largest portion of an individual’s tax burden. It’s often calculated based on a percentage of your taxable income. ",[6909],{"type":53,"attrs":6910},{"color":55},{"type":138,"content":6912},[6913],{"type":141,"content":6914},[6915],{"type":42,"content":6916},[6917,6923,6928,6937,6942,6951],{"text":6918,"type":46,"marks":6919},"Tax deductions and credits: ",[6920,6921],{"type":79},{"type":53,"attrs":6922},{"color":55},{"text":6924,"type":46,"marks":6925},"Deductions are items you can subtract from your taxable income. These may include charitable contributions and certain business expenses. Tax credits, on the other hand, are items you can subtract directly from your tax bill. These can save you even more money. Examples include the ",[6926],{"type":53,"attrs":6927},{"color":55},{"text":6929,"type":46,"marks":6930},"Child Tax Credit",[6931,6934,6936],{"type":93,"attrs":6932},{"href":6933,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.irs.gov/credits-deductions/individuals/child-tax-credit",{"type":53,"attrs":6935},{"color":933},{"type":165},{"text":6938,"type":46,"marks":6939}," and ",[6940],{"type":53,"attrs":6941},{"color":55},{"text":6943,"type":46,"marks":6944},"energy-efficient home credits",[6945,6948,6950],{"type":93,"attrs":6946},{"href":6947,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit#:~:text=The%20maximum%20credit%20you%20can,biomass%20stoves%20or%20biomass%20boilers",{"type":53,"attrs":6949},{"color":933},{"type":165},{"text":730,"type":46,"marks":6952},[6953],{"type":53,"attrs":6954},{"color":55},{"type":138,"content":6956},[6957],{"type":141,"content":6958},[6959],{"type":42,"content":6960},[6961,6967,6972,6981],{"text":6962,"type":46,"marks":6963},"Tax-advantaged accounts: ",[6964,6965],{"type":79},{"type":53,"attrs":6966},{"color":55},{"text":6968,"type":46,"marks":6969},"Retirement accounts, ",[6970],{"type":53,"attrs":6971},{"color":55},{"text":6973,"type":46,"marks":6974},"Health Savings Accounts",[6975,6978,6980],{"type":93,"attrs":6976},{"href":6977,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://marketplace.cms.gov/outreach-and-education/health-savings-account.pdf",{"type":53,"attrs":6979},{"color":933},{"type":165},{"text":6982,"type":46,"marks":6983}," (HSAs), and education savings accounts let you make contributions that may be tax deductible or allowed to grow tax-free. ",[6984],{"type":53,"attrs":6985},{"color":55},{"type":71,"attrs":6987,"content":6988},{"level":73},[6989],{"text":6990,"type":46,"marks":6991},"Compare personal finance products on Navient Marketplace",[6992],{"type":53,"attrs":6993},{"color":55},{"type":42,"content":6995},[6996,7001,7008],{"text":6997,"type":46,"marks":6998},"Looking for ways to improve your personal finance? Navient Marketplace offers customized quotes from the best providers across the web. If you’re looking for a credit card, student loan, home/auto insurance, a personal loan, or even a savings account, Navient can find you the product that best suits your situation. Check out ",[6999],{"type":53,"attrs":7000},{"color":55},{"text":2490,"type":46,"marks":7002},[7003,7005,7007],{"type":93,"attrs":7004},{"href":1833,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":7006},{"color":933},{"type":165},{"text":7009,"type":46,"marks":7010}," today to get your personalized rates.",[7011],{"type":53,"attrs":7012},{"color":55},{"type":42,"content":7014},[7015],{"text":789,"type":46,"marks":7016},[7017,7019],{"type":49,"attrs":7018},{"class":51},{"type":53,"attrs":7020},{"color":55},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798162\"}-->","https://www.marketplace.navient.com/blog/what-is-personal-finance/","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"39f3568e-f888-4c3e-816f-3647f7efec59\", \"id\": \"651798162\"}-->","what-is-personal-finance","navient_marketplace/blog/what-is-personal-finance",[],"3d6998ef-3e89-4cc5-a0cd-37ed7d70f71d","2023-09-26T16:16:47.915Z","blog/what-is-personal-finance/",[],{"name":7032,"created_at":7033,"published_at":7034,"updated_at":7035,"id":7036,"uuid":7037,"content":7038,"slug":7791,"full_slug":7792,"sort_by_date":96,"position":826,"tag_list":7793,"is_startpage":29,"parent_id":828,"meta_data":96,"group_id":7794,"first_published_at":7795,"release_id":96,"lang":831,"path":7796,"alternates":7797,"default_full_slug":96,"translated_slugs":96},"Can you get a HELOC on an Investment Property?","2025-04-07T18:30:16.392Z","2025-12-26T13:45:00.231Z","2025-12-26T13:45:00.300Z",651798156,"31fdca4f-48a2-44e2-b4fe-c5ee28b1c1a1",{"seo":7039,"_uid":20,"hero":7042,"author":31,"category":32,"featured":29,"imageAlt":18,"component":33,"blogContents":7049,"canonicalTag":7789,"publishedDate":822,"_editable":7790},{"_uid":15,"title":7040,"plugin":17,"og_image":18,"og_title":18,"description":7041,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"Can you get a HELOC on an Investment Property? | Navient Marketplace","It’s always smart to have a budget, especially when you’re tight It is possible to get a HELOC on investment property. However, qualifying for it can be more challenging than for a primary residence. Here’s what you need to know.on money. Read our guide to take your budgeting skills to the next level.",[7043],{"id":18,"_uid":23,"image":7044,"intro":7045,"classes":18,"_editable":7046,"blogTitle":7047,"component":27,"imageLink":7048,"blendImage":29,"backgroundColor":30},"//a.storyblok.com/f/110029/4000x2664/2da5f975d2/can-you-get-a-heloc-on-an-investment-property.png","It is possible to get a HELOC on investment property. However, qualifying for it can be more challenging than for a primary residence. Here’s what you need to know.","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798156\"}-->","Can You Get a HELOC on an Investment Property?","/images/can-you-get-a-heloc-on-an-investment-property.webp",[7050],{"_uid":36,"color":37,"richText":7051,"_editable":7788,"component":820},{"type":39,"content":7052},[7053,7061,7068,7076,7083,7258,7266,7273,7281,7351,7359,7406,7414,7421,7429,7448,7455,7502,7509,7517,7524,7531,7569,7576,7584,7603,7623,7714,7721,7728,7749,7768,7774,7781],{"type":42,"content":7054},[7055],{"text":45,"type":46,"marks":7056},[7057,7059],{"type":49,"attrs":7058},{"class":51},{"type":53,"attrs":7060},{"color":3635},{"type":42,"content":7062},[7063],{"text":7064,"type":46,"marks":7065},"A home equity line of credit (HELOC) is a popular way to leverage real estate assets to access cash. A HELOC is a revolving line of credit based on the equity you have in your property. You can use that credit to finance further investments, cover renovation costs, or even manage emergency expenses. However, while a HELOC can be a great funding resource in many situations, not all property owners qualify. So how do you know if you’re eligible? And can you get a HELOC on an investment property? Here’s what you need to know. ",[7066],{"type":53,"attrs":7067},{"color":3635},{"type":71,"attrs":7069,"content":7070},{"level":73},[7071],{"text":7072,"type":46,"marks":7073},"So, can you get a HELOC on investment property?",[7074],{"type":53,"attrs":7075},{"color":3635},{"type":42,"content":7077},[7078],{"text":7079,"type":46,"marks":7080},"The good news is that it is possible to get a HELOC on investment property. The bad news is that, while some banks and credit unions do offer HELOCs to real estate investors, not all do. Further, qualifying for a HELOC for an investment property can be more challenging than qualifying for a primary residence. This is due to several factors:",[7081],{"type":53,"attrs":7082},{"color":3635},{"type":138,"content":7084},[7085,7114,7129,7144,7159,7187,7228,7243],{"type":141,"content":7086},[7087],{"type":42,"content":7088},[7089,7095,7100,7109],{"text":7090,"type":46,"marks":7091},"Eligibility criteria: ",[7092,7093],{"type":79},{"type":53,"attrs":7094},{"color":3635},{"text":7096,"type":46,"marks":7097},"HELOCs for investment properties tend to have stringent eligibility criteria. They often require borrowers to have ",[7098],{"type":53,"attrs":7099},{"color":3635},{"text":7101,"type":46,"marks":7102},"high credit scores",[7103,7106,7108],{"type":93,"attrs":7104},{"href":7105,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/what-is-a-credit-score-en-315/",{"type":53,"attrs":7107},{"color":3635},{"type":165},{"text":7110,"type":46,"marks":7111}," and good financial stability. In contrast, obtaining a HELOC for a primary residence is typically easier.",[7112],{"type":53,"attrs":7113},{"color":3635},{"type":141,"content":7115},[7116],{"type":42,"content":7117},[7118,7124],{"text":7119,"type":46,"marks":7120},"Equity: ",[7121,7122],{"type":79},{"type":53,"attrs":7123},{"color":3635},{"text":7125,"type":46,"marks":7126},"Lenders only offer HELOCs to borrowers who have enough equity in their investment properties — typically at least 20%. For a primary residence, on the other hand, you may only need 15% to qualify for a HELOC.",[7127],{"type":53,"attrs":7128},{"color":3635},{"type":141,"content":7130},[7131],{"type":42,"content":7132},[7133,7139],{"text":7134,"type":46,"marks":7135},"Interest rates:",[7136,7137],{"type":79},{"type":53,"attrs":7138},{"color":3635},{"text":7140,"type":46,"marks":7141}," Interest rates for investment property HELOCs are typically higher than those for primary residence HELOCs. This reflects the perceived risk that many lenders associate with investment properties.",[7142],{"type":53,"attrs":7143},{"color":3635},{"type":141,"content":7145},[7146],{"type":42,"content":7147},[7148,7154],{"text":7149,"type":46,"marks":7150},"Cash reserves: ",[7151,7152],{"type":79},{"type":53,"attrs":7153},{"color":3635},{"text":7155,"type":46,"marks":7156},"Many lenders also have stricter requirements for cash reserves when it comes to investment property HELOCs. They often expect borrowers to have an emergency fund equivalent to at least six months of property-related expenses. If you have rental property, you may also need to provide evidence of long-term tenants.",[7157],{"type":53,"attrs":7158},{"color":3635},{"type":141,"content":7160},[7161],{"type":42,"content":7162},[7163,7169,7174,7182],{"text":7164,"type":46,"marks":7165},"Debt-to-income (DTI) ratio: ",[7166,7167],{"type":79},{"type":53,"attrs":7168},{"color":3635},{"text":7170,"type":46,"marks":7171},"Your ",[7172],{"type":53,"attrs":7173},{"color":3635},{"text":216,"type":46,"marks":7175},[7176,7179,7181],{"type":93,"attrs":7177},{"href":7178,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/what-is-a-debt-to-income-ratio-en-1791/",{"type":53,"attrs":7180},{"color":3635},{"type":165},{"text":7183,"type":46,"marks":7184}," will need to be between 40% and 50% to qualify for most investment property HELOCs. This ratio is often lower for primary residences.",[7185],{"type":53,"attrs":7186},{"color":3635},{"type":141,"content":7188},[7189],{"type":42,"content":7190},[7191,7197,7201,7209,7214,7223],{"text":7192,"type":46,"marks":7193},"Loan-to-value ratio:",[7194,7195],{"type":79},{"type":53,"attrs":7196},{"color":3635},{"text":657,"type":46,"marks":7198},[7199],{"type":53,"attrs":7200},{"color":3635},{"text":7202,"type":46,"marks":7203},"The loan-to-value ratio",[7204,7206,7208],{"type":93,"attrs":7205},{"href":176,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":7207},{"color":3635},{"type":165},{"text":7210,"type":46,"marks":7211},", or LTV ratio, is a financial metric used to assess the risk associated with a mortgage or loan. It represents the ratio of the loan amount to the appraised value of the property. With an investment property, you’ll need a ",[7212],{"type":53,"attrs":7213},{"color":3635},{"text":7215,"type":46,"marks":7216},"maximum LTV of 80%",[7217,7220,7222],{"type":93,"attrs":7218},{"href":7219,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://time.com/personal-finance/article/heloc-on-investment-property/",{"type":53,"attrs":7221},{"color":3635},{"type":165},{"text":7224,"type":46,"marks":7225},". For primary residences, the maximum LTV is typically closer to 90%.",[7226],{"type":53,"attrs":7227},{"color":3635},{"type":141,"content":7229},[7230],{"type":42,"content":7231},[7232,7238],{"text":7233,"type":46,"marks":7234},"Risk assessment and appraisals: ",[7235,7236],{"type":79},{"type":53,"attrs":7237},{"color":3635},{"text":7239,"type":46,"marks":7240},"When reviewing investment properties, lenders often conduct more thorough risk assessments and property appraisals. This can result in a longer application processing time than you might experience for a primary residence HELOC.",[7241],{"type":53,"attrs":7242},{"color":3635},{"type":141,"content":7244},[7245],{"type":42,"content":7246},[7247,7253],{"text":7248,"type":46,"marks":7249},"Credit score: ",[7250,7251],{"type":79},{"type":53,"attrs":7252},{"color":3635},{"text":7254,"type":46,"marks":7255},"When you apply for an investment property HELOC, your lender may require a credit score of 720 or higher. In contrast, for a primary home HELOC, a credit score of 620 or above is typically acceptable.",[7256],{"type":53,"attrs":7257},{"color":3635},{"type":71,"attrs":7259,"content":7260},{"level":73},[7261],{"text":7262,"type":46,"marks":7263},"The pros and cons of getting a HELOC on an investment property",[7264],{"type":53,"attrs":7265},{"color":3635},{"type":42,"content":7267},[7268],{"text":7269,"type":46,"marks":7270},"Using a HELOC on an investment property also comes with specific risks, such as variable interest rates and the potential for over-leveraging your equity. Here are a few things to think about before you apply for a HELOC.",[7271],{"type":53,"attrs":7272},{"color":3635},{"type":71,"attrs":7274,"content":7275},{"level":123},[7276],{"text":7277,"type":46,"marks":7278},"Pros",[7279],{"type":53,"attrs":7280},{"color":3635},{"type":138,"content":7282},[7283,7292,7301,7324,7333,7342],{"type":141,"content":7284},[7285],{"type":42,"content":7286},[7287],{"text":7288,"type":46,"marks":7289},"The interest rates on HELOCs are often lower compared to other forms of financing, such as home equity loans and other types of second mortgages. ",[7290],{"type":53,"attrs":7291},{"color":3635},{"type":141,"content":7293},[7294],{"type":42,"content":7295},[7296],{"text":7297,"type":46,"marks":7298},"It may be better to take out a HELOC on an investment property than on a primary residence since you won’t risk losing your home if you default on an investment property HELOC.",[7299],{"type":53,"attrs":7300},{"color":3635},{"type":141,"content":7302},[7303],{"type":42,"content":7304},[7305,7310,7319],{"text":7306,"type":46,"marks":7307},"During the ",[7308],{"type":53,"attrs":7309},{"color":3635},{"text":7311,"type":46,"marks":7312},"HELOC draw period",[7313,7316,7318],{"type":93,"attrs":7314},{"href":7315,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/my-lender-offered-me-a-home-equity-line-of-credit-heloc-what-is-a-heloc-en-107/",{"type":53,"attrs":7317},{"color":3635},{"type":165},{"text":7320,"type":46,"marks":7321},", you may be able to make interest-only payments rather than the larger minimum payments required for home equity loans. This may result in more manageable monthly bills.",[7322],{"type":53,"attrs":7323},{"color":3635},{"type":141,"content":7325},[7326],{"type":42,"content":7327},[7328],{"text":7329,"type":46,"marks":7330},"The interest you pay on your HELOC may be tax-deductible if the funds are used for qualified investment purposes. ",[7331],{"type":53,"attrs":7332},{"color":3635},{"type":141,"content":7334},[7335],{"type":42,"content":7336},[7337],{"text":7338,"type":46,"marks":7339},"You can use HELOC funds for property upgrades or renovations, potentially increasing the property’s value and your future rental income. ",[7340],{"type":53,"attrs":7341},{"color":3635},{"type":141,"content":7343},[7344],{"type":42,"content":7345},[7346],{"text":7347,"type":46,"marks":7348},"A HELOC can be a great way for new property owners to manage cash flow if your initial rental income doesn’t cover all your required expenses.",[7349],{"type":53,"attrs":7350},{"color":3635},{"type":71,"attrs":7352,"content":7353},{"level":123},[7354],{"text":7355,"type":46,"marks":7356},"Cons",[7357],{"type":53,"attrs":7358},{"color":3635},{"type":138,"content":7360},[7361,7370,7379,7388,7397],{"type":141,"content":7362},[7363],{"type":42,"content":7364},[7365],{"text":7366,"type":46,"marks":7367},"Not all lenders offer HELOCs on investment properties, and the limited availability can make it challenging to find suitable options. ",[7368],{"type":53,"attrs":7369},{"color":3635},{"type":141,"content":7371},[7372],{"type":42,"content":7373},[7374],{"text":7375,"type":46,"marks":7376},"You might pay higher interest rates than you would for a HELOC on a primary residence. ",[7377],{"type":53,"attrs":7378},{"color":3635},{"type":141,"content":7380},[7381],{"type":42,"content":7382},[7383],{"text":7384,"type":46,"marks":7385},"Most HELOCs come with annual fees as well as early cancellation or termination fees. ",[7386],{"type":53,"attrs":7387},{"color":3635},{"type":141,"content":7389},[7390],{"type":42,"content":7391},[7392],{"text":7393,"type":46,"marks":7394},"Tenant turnover, unexpected property maintenance expenses, and market dynamics could affect your ability to repay your HELOC, which could lead to increased financial stress. ",[7395],{"type":53,"attrs":7396},{"color":3635},{"type":141,"content":7398},[7399],{"type":42,"content":7400},[7401],{"text":7402,"type":46,"marks":7403},"Lenders may impose stricter eligibility criteria for investment property HELOCs. They may require you to have significant equity in the property, a high credit score, and a low loan-to-value ratio. That can make it more difficult to qualify.",[7404],{"type":53,"attrs":7405},{"color":3635},{"type":71,"attrs":7407,"content":7408},{"level":73},[7409],{"text":7410,"type":46,"marks":7411},"Alternatives to a HELOC on an investment property ",[7412],{"type":53,"attrs":7413},{"color":3635},{"type":42,"content":7415},[7416],{"text":7417,"type":46,"marks":7418},"If you decide not to pursue a HELOC for your investment property, consider these alternative loan options. ",[7419],{"type":53,"attrs":7420},{"color":3635},{"type":71,"attrs":7422,"content":7423},{"level":123},[7424],{"text":7425,"type":46,"marks":7426},"HELOC on your primary home",[7427],{"type":53,"attrs":7428},{"color":3635},{"type":42,"content":7430},[7431,7436,7443],{"text":7432,"type":46,"marks":7433},"Homebuyers in need of fast cash may want to consider a ",[7434],{"type":53,"attrs":7435},{"color":3635},{"text":7437,"type":46,"marks":7438},"primary home HELOC",[7439,7441],{"type":93,"attrs":7440},{"href":95,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":7442},{"color":3635},{"text":7444,"type":46,"marks":7445}," instead of an investment property HELOC. Because lenders often view primary residences as less risky collateral than investment properties, HELOCs on primary residences usually come with lower interest rates. This can result in lower borrowing costs.",[7446],{"type":53,"attrs":7447},{"color":3635},{"type":42,"content":7449},[7450],{"text":7451,"type":46,"marks":7452},"Additional benefits include:",[7453],{"type":53,"attrs":7454},{"color":3635},{"type":138,"content":7456},[7457,7472,7487],{"type":141,"content":7458},[7459],{"type":42,"content":7460},[7461,7467],{"text":7462,"type":46,"marks":7463},"Higher equity position: ",[7464,7465],{"type":79},{"type":53,"attrs":7466},{"color":3635},{"text":7468,"type":46,"marks":7469},"Most borrowers have higher equity in their primary residences than on their investment properties. Maybe you made a substantial down payment, have years of mortgage payments under your belt, or have worked to increase your home’s value. This can result in a higher equity position and therefore a higher HELOC credit limit.",[7470],{"type":53,"attrs":7471},{"color":3635},{"type":141,"content":7473},[7474],{"type":42,"content":7475},[7476,7482],{"text":7477,"type":46,"marks":7478},"Easier qualification:",[7479,7480],{"type":79},{"type":53,"attrs":7481},{"color":3635},{"text":7483,"type":46,"marks":7484}," Lenders often demand fewer personal finance qualification requirements for primary residence HELOCs, which makes them easier to obtain.",[7485],{"type":53,"attrs":7486},{"color":3635},{"type":141,"content":7488},[7489],{"type":42,"content":7490},[7491,7497],{"text":7492,"type":46,"marks":7493},"Additional services: ",[7494,7495],{"type":79},{"type":53,"attrs":7496},{"color":3635},{"text":7498,"type":46,"marks":7499},"Some lenders may offer additional benefits or services to homeowners with primary residence HELOCs, such as financial planning assistance or existing-relationship discounts. ",[7500],{"type":53,"attrs":7501},{"color":3635},{"type":42,"content":7503},[7504],{"text":7505,"type":46,"marks":7506},"Remember that, while a primary residence HELOC offers some advantages, it also involves using your primary home as collateral. Similar to a primary home loan, you’ll risk foreclosure on your home if you fail to make your payments. So, before you sign up for a HELOC, carefully consider your ability to meet your repayment obligations. ",[7507],{"type":53,"attrs":7508},{"color":3635},{"type":71,"attrs":7510,"content":7511},{"level":123},[7512],{"text":7513,"type":46,"marks":7514},"Cash-out refinance ",[7515],{"type":53,"attrs":7516},{"color":3635},{"type":42,"content":7518},[7519],{"text":7520,"type":46,"marks":7521},"A cash-out refinance is a type of mortgage refinancing where you borrow more than what you currently owe on your mortgage and receive the difference in cash. Essentially, it allows you to tap into the equity you have built in your property and use it for other expenses or investments. The new mortgage loan replaces the old one and has a higher balance, reflecting the amount of cash you receive.",[7522],{"type":53,"attrs":7523},{"color":3635},{"type":42,"content":7525},[7526],{"text":7527,"type":46,"marks":7528},"Here's how it works in general:",[7529],{"type":53,"attrs":7530},{"color":3635},{"type":138,"content":7532},[7533,7542,7551,7560],{"type":141,"content":7534},[7535],{"type":42,"content":7536},[7537],{"text":7538,"type":46,"marks":7539},"You apply for a cash-out refinance with a lender of your choice.",[7540],{"type":53,"attrs":7541},{"color":3635},{"type":141,"content":7543},[7544],{"type":42,"content":7545},[7546],{"text":7547,"type":46,"marks":7548},"The lender evaluates your eligibility based on factors such as credit score, loan-to-value ratio, income, and debt-to-income ratio.",[7549],{"type":53,"attrs":7550},{"color":3635},{"type":141,"content":7552},[7553],{"type":42,"content":7554},[7555],{"text":7556,"type":46,"marks":7557},"If approved, you receive the cash difference between the new amount borrowed and your old mortgage balance.",[7558],{"type":53,"attrs":7559},{"color":3635},{"type":141,"content":7561},[7562],{"type":42,"content":7563},[7564],{"text":7565,"type":46,"marks":7566},"You can use the cash for various purposes such as home improvements, debt consolidation, education, or investments.",[7567],{"type":53,"attrs":7568},{"color":3635},{"type":42,"content":7570},[7571],{"text":7572,"type":46,"marks":7573},"It's important to note that a cash-out refinance typically comes with closing costs, which can range from 2% to 5% of the total loan amount. Additionally, it can lead to higher monthly loan payments and a longer repayment period than your original mortgage.",[7574],{"type":53,"attrs":7575},{"color":3635},{"type":71,"attrs":7577,"content":7578},{"level":123},[7579],{"text":7580,"type":46,"marks":7581},"Personal loan ",[7582],{"type":53,"attrs":7583},{"color":3635},{"type":42,"content":7585},[7586,7591,7598],{"text":7587,"type":46,"marks":7588},"An unsecured ",[7589],{"type":53,"attrs":7590},{"color":3635},{"text":3161,"type":46,"marks":7592},[7593,7595,7597],{"type":93,"attrs":7594},{"href":1699,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":7596},{"color":3635},{"type":165},{"text":7599,"type":46,"marks":7600}," is a type of loan that doesn't require any collateral. Secured loans (including HELOCs) are backed by assets like a house or car, which can be repossessed by the lender if the borrower defaults. Unsecured personal loans, on the other hand, are approved based on the borrower's creditworthiness and ability to repay the loan.",[7601],{"type":53,"attrs":7602},{"color":3635},{"type":42,"content":7604},[7605,7610,7619],{"text":7606,"type":46,"marks":7607},"Here are some ",[7608],{"type":53,"attrs":7609},{"color":3635},{"text":7611,"type":46,"marks":7612},"key points about unsecured personal loans",[7613,7616,7618],{"type":93,"attrs":7614},{"href":7615,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://marketplace.navient.com/blog/pros-and-cons-of-personal-loans/",{"type":53,"attrs":7617},{"color":3635},{"type":165},{"text":652,"type":46,"marks":7620},[7621],{"type":53,"attrs":7622},{"color":3635},{"type":138,"content":7624},[7625,7640,7655,7670,7699],{"type":141,"content":7626},[7627],{"type":42,"content":7628},[7629,7635],{"text":7630,"type":46,"marks":7631},"No collateral",[7632,7633],{"type":79},{"type":53,"attrs":7634},{"color":3635},{"text":7636,"type":46,"marks":7637},": Unsecured personal loans are not tied to any specific asset. This means that borrowers don't need to pledge their property or possessions as collateral.",[7638],{"type":53,"attrs":7639},{"color":3635},{"type":141,"content":7641},[7642],{"type":42,"content":7643},[7644,7650],{"text":7645,"type":46,"marks":7646},"Based on creditworthiness",[7647,7648],{"type":79},{"type":53,"attrs":7649},{"color":3635},{"text":7651,"type":46,"marks":7652},": Lenders evaluate the borrower's credit history, income, employment stability, and other factors to determine their creditworthiness and the terms of the loan, such as interest rate and loan amount.",[7653],{"type":53,"attrs":7654},{"color":3635},{"type":141,"content":7656},[7657],{"type":42,"content":7658},[7659,7665],{"text":7660,"type":46,"marks":7661},"Higher rates: ",[7662,7663],{"type":79},{"type":53,"attrs":7664},{"color":3635},{"text":7666,"type":46,"marks":7667},"Since unsecured personal loans are riskier for lenders than secured loans, they generally come with higher interest rates to compensate for the lack of collateral.",[7668],{"type":53,"attrs":7669},{"color":3635},{"type":141,"content":7671},[7672],{"type":42,"content":7673},[7674,7680,7685,7694],{"text":7675,"type":46,"marks":7676},"Flexible use of funds",[7677,7678],{"type":79},{"type":53,"attrs":7679},{"color":3635},{"text":7681,"type":46,"marks":7682},": Borrowers can typically use the funds from an unsecured personal loan for any purpose, including ",[7683],{"type":53,"attrs":7684},{"color":3635},{"text":7686,"type":46,"marks":7687},"consolidating debt",[7688,7691,7693],{"type":93,"attrs":7689},{"href":7690,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://marketplace.navient.com/blog/personal-loan-to-pay-off-credit-card/",{"type":53,"attrs":7692},{"color":3635},{"type":165},{"text":7695,"type":46,"marks":7696},", financing home improvements, or covering medical expenses.",[7697],{"type":53,"attrs":7698},{"color":3635},{"type":141,"content":7700},[7701],{"type":42,"content":7702},[7703,7709],{"text":7704,"type":46,"marks":7705},"Lower loan amounts",[7706,7707],{"type":79},{"type":53,"attrs":7708},{"color":3635},{"text":7710,"type":46,"marks":7711},": Compared to secured loans, unsecured personal loans usually come with lower loan amounts, as lenders may be more cautious about granting larger sums without collateral.",[7712],{"type":53,"attrs":7713},{"color":3635},{"type":42,"content":7715},[7716],{"text":7717,"type":46,"marks":7718},"Keep in mind that, because you have no collateral securing the loan, defaulting on an unsecured personal loan could result in legal action, damage to your credit score, and collection efforts by the lender.",[7719],{"type":53,"attrs":7720},{"color":3635},{"type":71,"attrs":7722,"content":7723},{"level":73},[7724],{"text":1818,"type":46,"marks":7725},[7726],{"type":53,"attrs":7727},{"color":3635},{"type":42,"content":7729},[7730,7735,7744],{"text":7731,"type":46,"marks":7732},"A HELOC is a great real estate investing tool and a good way to tap into your property’s equity to get a large cash injection. This can be useful for managing business cash flow or for meeting surprise expenses. However, HELOCs aren’t the best choice for every property owner. If you’re looking for alternative funding options, ",[7733],{"type":53,"attrs":7734},{"color":3635},{"text":7736,"type":46,"marks":7737},"consider a personal loan",[7738,7741,7743],{"type":93,"attrs":7739},{"href":7740,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://marketplace.navient.com/blog/should-i-get-a-personal-loan/",{"type":53,"attrs":7742},{"color":3635},{"type":165},{"text":7745,"type":46,"marks":7746},". Personal loans can provide swift access to large lump sums of cash. They also tend to offer lower interest rates than credit cards or open lines of credit. ",[7747],{"type":53,"attrs":7748},{"color":3635},{"type":42,"content":7750},[7751,7756,7764],{"text":7752,"type":46,"marks":7753},"A personal loan marketplace can give you a better idea of your options and help ensure that you’re getting the best rates. To further streamline the process, Navient Marketplace collaborates with MoneyLion, a leading personal loan search tool. Explore your options and find personalized loan rates by visiting",[7754],{"type":53,"attrs":7755},{"color":3635},{"text":7757,"type":46,"marks":7758}," our marketplace",[7759,7761,7763],{"type":93,"attrs":7760},{"href":770,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":7762},{"color":3635},{"type":165},{"text":2780,"type":46,"marks":7765},[7766],{"type":53,"attrs":7767},{"color":3635},{"type":42,"content":7769},[7770],{"text":789,"type":46,"marks":7771},[7772],{"type":49,"attrs":7773},{"class":51},{"type":42,"content":7775},[7776],{"text":7777,"type":46,"marks":7778},"Navient customers are invited to consider personal loan offers through our partner MoneyLion. Navient has not shared your information with MoneyLion and is not involved in the personal loan application process in any manner. All information is submitted directly to MoneyLion and any personal loan offers are made directly by participants in MoneyLion’s lending platform. Engine by MoneyLion is the industry-leading embedded financial marketplace and independent subsidiary of MoneyLion Inc. (“MoneyLion”) (NYSE:ML). Checking your rate will not affect your credit score. Eligibility is not guaranteed and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. ",[7779],{"type":49,"attrs":7780},{"class":51},{"type":42,"content":7782},[7783],{"text":7784,"type":46,"marks":7785},"Loan proceeds may not be used for postsecondary educational expenses, including refinancing federal or private student loans.",[7786],{"type":49,"attrs":7787},{"class":51},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798156\"}-->","https://www.marketplace.navient.com/blog/can-you-get-a-heloc-on-an-investment-property/","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"39f3568e-f888-4c3e-816f-3647f7efec59\", \"id\": \"651798156\"}-->","can-you-get-a-heloc-on-an-investment-property","navient_marketplace/blog/can-you-get-a-heloc-on-an-investment-property",[],"b4d32726-e8b3-4d34-a661-867737ea0c28","2023-09-26T16:18:38.954Z","/blog/can-you-get-a-heloc-on-an-investment-property/",[],1775068324,[],[],{"cache-control":7802,"connection":7803,"content-encoding":7804,"content-type":7805,"date":7806,"etag":7807,"per-page":7808,"referrer-policy":7809,"sb-be-version":7810,"server":7811,"total":7812,"transfer-encoding":7813,"vary":7814,"via":7815,"x-amz-cf-id":7816,"x-amz-cf-pop":7817,"x-cache":7818,"x-content-type-options":7819,"x-frame-options":7820,"x-permitted-cross-domain-policies":7821,"x-ratelimit":7822,"x-ratelimit-policy":7823,"x-request-id":7824,"x-runtime":7825,"x-xss-protection":7826},"max-age=0, private, must-revalidate","keep-alive","gzip","application/json; charset=utf-8","Wed, 01 Apr 2026 18:53:59 GMT","W/\"b6201816232e18979afbbc302ed81b5a\"","9","strict-origin-when-cross-origin","5.706.0","nginx/1.29.1","37","chunked","Origin,Accept-Encoding","1.1 7b8786f0e652fedd7412f7b89b9ac2ba.cloudfront.net (CloudFront)","EcFAwDTB9NukhoPZoM0YS-ri4gkqMtBWIbua5tfCJxwKzxY3JcuhjQ==","SFO53-P10","RefreshHit from cloudfront","nosniff","SAMEORIGIN","none","\"space-concurrent-requests\";r=29","\"space-concurrent-requests\";q=30","7e32fdad-28c9-444d-bc67-dac6de3315bd","0.441844","0",9,37,1775069638762]