[{"data":1,"prerenderedAt":7546},["Reactive",2],{"/":3},{"data":4,"headers":7518,"perPage":7544,"total":7545},{"stories":5,"cv":7515,"rels":7516,"links":7517},[6,998,1823,2364,3245,4038,5000,5590,6551],{"name":7,"created_at":8,"published_at":9,"updated_at":10,"id":11,"uuid":12,"content":13,"slug":988,"full_slug":989,"sort_by_date":69,"position":990,"tag_list":991,"is_startpage":28,"parent_id":992,"meta_data":69,"group_id":993,"first_published_at":994,"release_id":69,"lang":995,"path":996,"alternates":997,"default_full_slug":69,"translated_slugs":69},"Consolidating Debt With a Personal Loan","2025-04-07T18:30:14.666Z","2025-12-26T13:45:00.467Z","2025-12-26T13:45:00.499Z",651798155,"4cae09ea-ee1d-4740-bb2e-93abc4ad505b",{"seo":14,"_uid":20,"hero":21,"author":30,"category":31,"featured":28,"imageAlt":18,"component":32,"blogContents":33,"canonicalTag":985,"publishedDate":986,"_editable":987},{"_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","Consolidating Debt With a Personal Loan | Navient Marketplace","seo_metatags","","This financial strategy can give you the chance to simplify your debts and put you back in control. Learn whether this is the right solution for you.","39f3568e-f888-4c3e-816f-3647f7efec59",[22],{"id":18,"_uid":23,"image":24,"intro":19,"classes":18,"_editable":25,"blogTitle":7,"component":26,"imageLink":27,"blendImage":28,"backgroundColor":29},"ee81b4ff-6c03-4123-98ae-73405dea4592","//a.storyblok.com/f/110029/3579x2736/175a40617b/consolidating-debt-with-personal-loan.png","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798155\"}-->","NriBlogHero","/images/consolidating-debt-with-personal-loan.png",false,"#F6F2F7","natasha-khullar-relph","Personal Loans","NriBlogPost",[34],{"_uid":35,"color":36,"richText":37,"_editable":983,"component":984},"67b1c1a7-fbb7-4c3c-a267-87dc959687fb","#444444",{"type":38,"content":39},"doc",[40,55,81,88,98,129,137,144,153,174,181,189,196,203,211,232,241,304,312,386,394,401,409,416,423,444,452,459,497,518,526,533,609,625,633,654,675,682,690,697,718,726,747,755,762,769,777,784,913,921,928,956,965,974],{"type":41,"content":42},"paragraph",[43],{"text":44,"type":45,"marks":46},"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",[47,51],{"type":48,"attrs":49},"styled",{"class":50},"footer-text",{"type":52,"attrs":53},"textStyle",{"color":54},"#000000",{"type":41,"content":56},[57,62,76],{"text":58,"type":45,"marks":59},"Managing multiple debts can feel like a relentless juggling act, with each bill vying for your precious extra cash. Fortunately, there’s a potential solution that can simplify the choreography: consolidating debt with a ",[60],{"type":52,"attrs":61},{"color":54},{"text":63,"type":45,"marks":64},"personal loan",[65,72,74],{"type":66,"attrs":67},"link",{"href":68,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://marketplace.navient.com/blog/what-is-a-personal-loan/",null,"_blank","url",{"type":52,"attrs":73},{"color":54},{"type":75},"underline",{"text":77,"type":45,"marks":78},". This financial strategy can give you the chance to simplify your debts and put you back in control. ",[79],{"type":52,"attrs":80},{"color":54},{"type":41,"content":82},[83],{"text":84,"type":45,"marks":85},"Debt consolidation can offer both immediate relief and long-term financial gains. It can help you reduce your interest rates and your monthly payment amounts to help you get out of debt faster. Here’s how consolidating debt with a personal loan works.  ",[86],{"type":52,"attrs":87},{"color":54},{"type":89,"attrs":90,"content":92},"heading",{"level":91},2,[93],{"text":94,"type":45,"marks":95},"Key takeaways",[96],{"type":52,"attrs":97},{"color":54},{"type":99,"content":100},"bullet_list",[101,111,120],{"type":102,"content":103},"list_item",[104],{"type":41,"content":105},[106],{"text":107,"type":45,"marks":108},"A debt consolidation loan is a type of personal loan, designed to consolidate and repay existing debts.",[109],{"type":52,"attrs":110},{"color":54},{"type":102,"content":112},[113],{"type":41,"content":114},[115],{"text":116,"type":45,"marks":117},"Debt consolidation simplifies your financial life by combining multiple debts into a single, consistent monthly payment to a single lender. ",[118],{"type":52,"attrs":119},{"color":54},{"type":102,"content":121},[122],{"type":41,"content":123},[124],{"text":125,"type":45,"marks":126},"After you consolidate, it’s critical to maintain responsible financial habits while you repay your new personal loan. ",[127],{"type":52,"attrs":128},{"color":54},{"type":89,"attrs":130,"content":131},{"level":91},[132],{"text":133,"type":45,"marks":134},"Personal loan vs debt consolidation loan: What’s the difference? ",[135],{"type":52,"attrs":136},{"color":54},{"type":41,"content":138},[139],{"text":140,"type":45,"marks":141},"A personal loan is a type of debt consolidation loan. These loans can help people manage their debt more effectively. Here’s how they work:",[142],{"type":52,"attrs":143},{"color":54},{"type":89,"attrs":145,"content":147},{"level":146},3,[148],{"text":149,"type":45,"marks":150},"What is a personal loan? ",[151],{"type":52,"attrs":152},{"color":54},{"type":41,"content":154},[155,160,169],{"text":156,"type":45,"marks":157},"A personal loan is a type of loan that can be used for various purposes, including home improvements, medical expenses, or debt consolidation. It is usually an ",[158],{"type":52,"attrs":159},{"color":54},{"text":161,"type":45,"marks":162},"unsecured loan",[163,166,168],{"type":66,"attrs":164},{"href":165,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://marketplace.navient.com/blog/secured-vs-unsecured-loans/",{"type":52,"attrs":167},{"color":54},{"type":75},{"text":170,"type":45,"marks":171},", meaning it doesn't require collateral. ",[172],{"type":52,"attrs":173},{"color":54},{"type":41,"content":175},[176],{"text":177,"type":45,"marks":178},"With a personal loan, you receive a lump sum of money upfront, then repay it over a fixed period of time, typically in monthly installments with a fixed interest rate. The funds from a personal loan can be used at your discretion, and there are generally no restrictions on how you use the money.",[179],{"type":52,"attrs":180},{"color":54},{"type":89,"attrs":182,"content":183},{"level":146},[184],{"text":185,"type":45,"marks":186},"What is a debt consolidation loan? ",[187],{"type":52,"attrs":188},{"color":54},{"type":41,"content":190},[191],{"text":192,"type":45,"marks":193},"A debt consolidation loan is a type of personal loan designed to help people pay off and merge their existing debts into one single loan — essentially a DIY refinance. This involves taking out a new loan to pay off multiple debts, such as credit card debt, payday loans, or other high-interest loans. Instead of making multiple loan payments to different creditors each month, a debt consolidation loan allows you to make one monthly payment to a single lender.",[194],{"type":52,"attrs":195},{"color":54},{"type":41,"content":197},[198],{"text":199,"type":45,"marks":200},"The primary goal of a debt consolidation loan is to streamline your debt and potentially secure a lower interest rate, which could save you significant money over time. It's worth noting that while all debt consolidation loans are personal loans, not all personal loans are debt consolidation loans. The main difference between these two is that personal loans can be used for a wide range of purposes beyond debt consolidation, while debt consolidation loans serve the specific purpose of consolidating and repaying existing debts.",[201],{"type":52,"attrs":202},{"color":54},{"type":89,"attrs":204,"content":205},{"level":146},[206],{"text":207,"type":45,"marks":208},"The pros and cons of consolidating debt with a personal loan",[209],{"type":52,"attrs":210},{"color":54},{"type":41,"content":212},[213,218,227],{"text":214,"type":45,"marks":215},"Debt consolidation can be helpful, but it’s not for everyone. Carefully consider these pros and cons to decide whether consolidating debt ",[216],{"type":52,"attrs":217},{"color":54},{"text":219,"type":45,"marks":220},"with a personal loan",[221,224,226],{"type":66,"attrs":222},{"href":223,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://marketplace.navient.com/blog/pros-and-cons-of-personal-loans/",{"type":52,"attrs":225},{"color":54},{"type":75},{"text":228,"type":45,"marks":229}," is the right choice for you. ",[230],{"type":52,"attrs":231},{"color":54},{"type":89,"attrs":233,"content":235},{"level":234},4,[236],{"text":237,"type":45,"marks":238},"Pros of debt consolidation with a personal loan ",[239],{"type":52,"attrs":240},{"color":54},{"type":99,"content":242},[243,259,274,289],{"type":102,"content":244},[245],{"type":41,"content":246},[247,254],{"text":248,"type":45,"marks":249},"Simplified repayment:",[250,252],{"type":251},"bold",{"type":52,"attrs":253},{"color":54},{"text":255,"type":45,"marks":256}," One of the primary benefits of debt consolidation is the ability to streamline your debts into a single monthly payment. Instead of juggling multiple payment due dates and amounts, you can focus on making one fixed payment to a single lender.",[257],{"type":52,"attrs":258},{"color":54},{"type":102,"content":260},[261],{"type":41,"content":262},[263,269],{"text":264,"type":45,"marks":265},"Potentially lower interest rates:",[266,267],{"type":251},{"type":52,"attrs":268},{"color":54},{"text":270,"type":45,"marks":271}," If you have high-interest debts, such as credit card balances or payday loans, consolidating them with a personal loan may allow you to secure a lower interest rate, which can save you a significant amount of money in the long run. You may also be able to get a lower interest rate if your credit score has improved since you took out your original loan. ",[272],{"type":52,"attrs":273},{"color":54},{"type":102,"content":275},[276],{"type":41,"content":277},[278,284],{"text":279,"type":45,"marks":280},"Fixed monthly payments:",[281,282],{"type":251},{"type":52,"attrs":283},{"color":54},{"text":285,"type":45,"marks":286}," Personal loans often have fixed interest rates and clear repayment terms. That means you'll know exactly how much you need to pay each month and when you can expect to become debt-free. This can help you create a clear budget and financial timeline.",[287],{"type":52,"attrs":288},{"color":54},{"type":102,"content":290},[291],{"type":41,"content":292},[293,299],{"text":294,"type":45,"marks":295},"Manageable monthly bills:",[296,297],{"type":251},{"type":52,"attrs":298},{"color":54},{"text":300,"type":45,"marks":301}," Since personal loans often have longer loan terms than other financing options, your repayment period is spread out over more months, translating to lower monthly bills. ",[302],{"type":52,"attrs":303},{"color":54},{"type":89,"attrs":305,"content":306},{"level":234},[307],{"text":308,"type":45,"marks":309},"Cons of debt consolidation with a personal loan",[310],{"type":52,"attrs":311},{"color":54},{"type":99,"content":313},[314,341,356,371],{"type":102,"content":315},[316],{"type":41,"content":317},[318,324,329,336],{"text":319,"type":45,"marks":320},"Risk of accumulating new debt:",[321,322],{"type":251},{"type":52,"attrs":323},{"color":54},{"text":325,"type":45,"marks":326}," When you use a consolidation loan to pay off existing debts, you’ll have more credit available to use on those accounts. Without responsible financial habits, though, you may be at risk of accumulating new debt while still repaying the personal loan. Remember –– even though you’ve paid off all your outstanding debt with a personal loan, ",[327],{"type":52,"attrs":328},{"color":54},{"text":330,"type":45,"marks":331},"you’re still only replacing that debt with a different type of debt.",[332,334],{"type":333},"italic",{"type":52,"attrs":335},{"color":54},{"text":337,"type":45,"marks":338}," It is essential to exercise discipline and avoid falling back into old spending habits.",[339],{"type":52,"attrs":340},{"color":54},{"type":102,"content":342},[343],{"type":41,"content":344},[345,351],{"text":346,"type":45,"marks":347},"Potential origination or prepayment fees",[348,349],{"type":251},{"type":52,"attrs":350},{"color":54},{"text":352,"type":45,"marks":353},": Some lenders, including banks, credit unions, or online lenders, charge origination fees at the outset of the loan, which can add to its cost. Additionally, certain loans may have prepayment penalties if you choose to pay off the loan early. Be sure to carefully review the loan terms and any associated fees before proceeding with a debt consolidation loan.",[354],{"type":52,"attrs":355},{"color":54},{"type":102,"content":357},[358],{"type":41,"content":359},[360,366],{"text":361,"type":45,"marks":362},"Impact on credit score",[363,364],{"type":251},{"type":52,"attrs":365},{"color":54},{"text":367,"type":45,"marks":368},": Initially, applying for a personal loan may result in a temporary dip in your credit score due to the hard credit inquiry on your credit report. However, by making timely debt payments and reducing your debt load, your score should recover and potentially improve in the long run. ",[369],{"type":52,"attrs":370},{"color":54},{"type":102,"content":372},[373],{"type":41,"content":374},[375,381],{"text":376,"type":45,"marks":377},"Harder to qualify for",[378,379],{"type":251},{"type":52,"attrs":380},{"color":54},{"text":382,"type":45,"marks":383},": Since most personal loans are unsecured, they’re riskier for the lender than secured loans are. For that reason, you generally need a good credit score to qualify for an unsecured personal loan.",[384],{"type":52,"attrs":385},{"color":54},{"type":89,"attrs":387,"content":388},{"level":91},[389],{"text":390,"type":45,"marks":391},"How to get a debt consolidation loan",[392],{"type":52,"attrs":393},{"color":54},{"type":41,"content":395},[396],{"text":397,"type":45,"marks":398},"If you find yourself juggling multiple payments with high interest rates, debt consolidation may be right for you. Here’s how to get a debt consolidation loan.",[399],{"type":52,"attrs":400},{"color":54},{"type":89,"attrs":402,"content":403},{"level":146},[404],{"text":405,"type":45,"marks":406},"Step 1: Assess your debt",[407],{"type":52,"attrs":408},{"color":54},{"type":41,"content":410},[411],{"text":412,"type":45,"marks":413},"Before you apply for a debt consolidation loan, compile a comprehensive list of all your outstanding debts. This may include credit cards, personal loans, student loans, or medical bills. For each loan, write down your outstanding balances, interest rates, minimum monthly payments, and due dates. ",[414],{"type":52,"attrs":415},{"color":54},{"type":41,"content":417},[418],{"text":419,"type":45,"marks":420},"Next, Identify debts with high interest rates. These high-cost debts can wreak havoc on your finances and are therefore prime candidates for consolidation. If you don’t want to consolidate all your eligible debts, it may be worthwhile to prioritize those with the highest interest rates first. That’s because consolidating these can help you secure dramatically lower rates and, as a result, save you the most money. ",[421],{"type":52,"attrs":422},{"color":54},{"type":41,"content":424},[425,430,439],{"text":426,"type":45,"marks":427},"Once you’ve added up the outstanding balances of the debts you intend to consolidate, you’ll have a better idea of what size personal loan you’ll need. Once you have this number, you’ll be able to ",[428],{"type":52,"attrs":429},{"color":54},{"text":431,"type":45,"marks":432},"use a loan calculator",[433,436,438],{"type":66,"attrs":434},{"href":435,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.aarp.org/money/credit-loans-debt/debt_consolidation_calculator.html",{"type":52,"attrs":437},{"color":54},{"type":75},{"text":440,"type":45,"marks":441}," to estimate your monthly payments. Make sure you have the budget to comfortably make these payments.",[442],{"type":52,"attrs":443},{"color":54},{"type":89,"attrs":445,"content":446},{"level":146},[447],{"text":448,"type":45,"marks":449},"Step 2: Pull your credit report",[450],{"type":52,"attrs":451},{"color":54},{"type":41,"content":453},[454],{"text":455,"type":45,"marks":456},"Lenders offer various loan products based on creditworthiness. Generally, the better your credit, the more options you’ll have. ",[457],{"type":52,"attrs":458},{"color":54},{"type":99,"content":460},[461,470,479,488],{"type":102,"content":462},[463],{"type":41,"content":464},[465],{"text":466,"type":45,"marks":467},"An excellent credit score (typically 720 or higher) will qualify you for the lowest rates. ",[468],{"type":52,"attrs":469},{"color":54},{"type":102,"content":471},[472],{"type":41,"content":473},[474],{"text":475,"type":45,"marks":476},"A good credit score (670-719) still allows you to access competitive loan rates. ",[477],{"type":52,"attrs":478},{"color":54},{"type":102,"content":480},[481],{"type":41,"content":482},[483],{"text":484,"type":45,"marks":485},"A fair credit score (580-669) may limit your options for unsecured loans. Instead, you might want to consider a secured loan. ",[486],{"type":52,"attrs":487},{"color":54},{"type":102,"content":489},[490],{"type":41,"content":491},[492],{"text":493,"type":45,"marks":494},"If you have poor credit (below 580), explore secured loans, cosigner arrangements, or credit-building loans may be necessary.",[495],{"type":52,"attrs":496},{"color":54},{"type":41,"content":498},[499,504,513],{"text":500,"type":45,"marks":501},"If you have bad credit, this may be the time to work on improving your credit score. Pay down current debts, make timely payments, and avoid taking on new debts. Make sure to ",[502],{"type":52,"attrs":503},{"color":54},{"text":505,"type":45,"marks":506},"obtain your credit report",[507,510,512],{"type":66,"attrs":508},{"href":509,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.usa.gov/credit-reports",{"type":52,"attrs":511},{"color":54},{"type":75},{"text":514,"type":45,"marks":515}," and check for errors. If you find inaccuracies, file a dispute to correct these before applying for a new loan. ",[516],{"type":52,"attrs":517},{"color":54},{"type":89,"attrs":519,"content":520},{"level":146},[521],{"text":522,"type":45,"marks":523},"Step 3: Compare lenders",[524],{"type":52,"attrs":525},{"color":54},{"type":41,"content":527},[528],{"text":529,"type":45,"marks":530},"It’s important to compare lenders to secure the best personal loan rates and terms. Here are the factors to consider when evaluating lenders:",[531],{"type":52,"attrs":532},{"color":54},{"type":99,"content":534},[535,564,579,594],{"type":102,"content":536},[537],{"type":41,"content":538},[539,545,550,559],{"text":540,"type":45,"marks":541},"Interest rates:",[542,543],{"type":251},{"type":52,"attrs":544},{"color":54},{"text":546,"type":45,"marks":547}," Compare ",[548],{"type":52,"attrs":549},{"color":54},{"text":551,"type":45,"marks":552},"annual percentage rates (APRs)",[553,556,558],{"type":66,"attrs":554},{"href":555,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.consumerfinance.gov/ask-cfpb/what-is-a-credit-card-interest-rate-what-does-apr-mean-en-44/",{"type":52,"attrs":557},{"color":54},{"type":75},{"text":560,"type":45,"marks":561}," to understand how much your loan will cost with each lender. ",[562],{"type":52,"attrs":563},{"color":54},{"type":102,"content":565},[566],{"type":41,"content":567},[568,574],{"text":569,"type":45,"marks":570},"Fees: ",[571,572],{"type":251},{"type":52,"attrs":573},{"color":54},{"text":575,"type":45,"marks":576},"Be aware of origination fees, prepayment penalties, or other charges that could affect your loan’s affordability.",[577],{"type":52,"attrs":578},{"color":54},{"type":102,"content":580},[581],{"type":41,"content":582},[583,589],{"text":584,"type":45,"marks":585},"Loan terms:",[586,587],{"type":251},{"type":52,"attrs":588},{"color":54},{"text":590,"type":45,"marks":591}," Longer terms result in lower monthly payment amounts but higher interest costs over the life of the loan. ",[592],{"type":52,"attrs":593},{"color":54},{"type":102,"content":595},[596],{"type":41,"content":597},[598,604],{"text":599,"type":45,"marks":600},"Customer reviews: ",[601,602],{"type":251},{"type":52,"attrs":603},{"color":54},{"text":605,"type":45,"marks":606},"Research a lender’s reputation by reading online reviews and looking for customer service ratings. ",[607],{"type":52,"attrs":608},{"color":54},{"type":41,"content":610},[611,620],{"text":612,"type":45,"marks":613},"Personal loan marketplaces",[614,617,619],{"type":66,"attrs":615},{"href":616,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://marketplace.navient.com/blog/what-is-a-personal-loan-marketplace/",{"type":52,"attrs":618},{"color":54},{"type":75},{"text":621,"type":45,"marks":622}," such as Navient Marketplace allow you to compare loan offers from multiple lenders. By inputting your information once, you can receive multiple personalized loan options based on your needs and eligibility. Comparing lenders through loan marketplaces can help you discover loans that align with your financial needs while saving you money in the long run.",[623],{"type":52,"attrs":624},{"color":54},{"type":89,"attrs":626,"content":627},{"level":146},[628],{"text":629,"type":45,"marks":630},"Step 4: Get prequalified",[631],{"type":52,"attrs":632},{"color":54},{"type":41,"content":634},[635,640,649],{"text":636,"type":45,"marks":637},"Prequalification is a useful tool when you’re shopping for personal loans. It allows you to compare offers from different lenders without a ",[638],{"type":52,"attrs":639},{"color":54},{"text":641,"type":45,"marks":642},"hard credit check",[643,646,648],{"type":66,"attrs":644},{"href":645,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://navirefi.com/blog/soft-inquiry-vs-hard-inquiry/",{"type":52,"attrs":647},{"color":54},{"type":75},{"text":650,"type":45,"marks":651},". (A hard credit check, or hard credit inquiry, happens when lenders formally review your credit report and can result in a small, temporary drop to your credit score.) Prequalification provides a rough estimate of your borrowing potential and helps you identify lenders and loan products that align with your financial situation and needs. It only involves a “soft credit check,” which doesn’t impact your score.",[652],{"type":52,"attrs":653},{"color":54},{"type":41,"content":655},[656,661,670],{"text":657,"type":45,"marks":658},"To get prequalified, you’ll need to provide some basic information to a lender, typically online or through a quick phone call. Once they’ve performed a preliminary evaluation of your financial situation through a soft credit check, they’ll give you an estimate of how much money you can borrow and at what interest rate. The interest rate you’ll prequalify for is usually based on factors like your credit history, income, employment status, credit utilization ratio, and ",[659],{"type":52,"attrs":660},{"color":54},{"text":662,"type":45,"marks":663},"debt-to-income ratio",[664,667,669],{"type":66,"attrs":665},{"href":666,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.consumerfinance.gov/ask-cfpb/what-is-a-debt-to-income-ratio-en-1791/",{"type":52,"attrs":668},{"color":54},{"type":75},{"text":671,"type":45,"marks":672},". ",[673],{"type":52,"attrs":674},{"color":54},{"type":41,"content":676},[677],{"text":678,"type":45,"marks":679},"It’s important to note that prequalification is not a guarantee that you’ll be approved for a certain loan amount or interest rate. It’s simply an initial step that gives you an idea of what you may qualify for. ",[680],{"type":52,"attrs":681},{"color":54},{"type":89,"attrs":683,"content":684},{"level":146},[685],{"text":686,"type":45,"marks":687},"Step 5: Apply for the loan",[688],{"type":52,"attrs":689},{"color":54},{"type":41,"content":691},[692],{"text":693,"type":45,"marks":694},"Once you’ve selected a lender, it’s time to apply for the loan. Most lenders offer online applications for convenience. You’ll need to provide essential documentation, including proof of identity, income verification (such as pay stubs or tax returns), details about your outstanding debts, and bank statements. The application process usually takes anywhere from 15 minutes to an hour to complete, depending on the lender and the complexity of your financial situation.",[695],{"type":52,"attrs":696},{"color":54},{"type":41,"content":698},[699,704,713],{"text":700,"type":45,"marks":701},"After submission, the lender will review your loan application, conduct a credit check, and assess your eligibility. You can apply directly through the lender’s website, visit a physical branch, if available, or use a personal loan marketplace such as ",[702],{"type":52,"attrs":703},{"color":54},{"text":705,"type":45,"marks":706},"Navient Marketplace",[707,710,712],{"type":66,"attrs":708},{"href":709,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://marketplace.navient.com",{"type":52,"attrs":711},{"color":54},{"type":75},{"text":714,"type":45,"marks":715},", that allows you to compare multiple lenders and complete applications from a single platform.",[716],{"type":52,"attrs":717},{"color":54},{"type":89,"attrs":719,"content":720},{"level":146},[721],{"text":722,"type":45,"marks":723},"Step 6: Pay off existing debts",[724],{"type":52,"attrs":725},{"color":54},{"type":41,"content":727},[728,733,742],{"text":729,"type":45,"marks":730},"Once your loan is approved and the funds are disbursed, put the money to work by ",[731],{"type":52,"attrs":732},{"color":54},{"text":734,"type":45,"marks":735},"paying off your existing debts",[736,739,741],{"type":66,"attrs":737},{"href":738,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://marketplace.navient.com/blog/personal-loan-to-pay-off-credit-card/",{"type":52,"attrs":740},{"color":54},{"type":75},{"text":743,"type":45,"marks":744},". Allocate the funds strategically, starting with high-interest debts like credit cards or payday loans. By doing so, you can reduce the overall interest you’ll pay and free up more money for other financial goals. ",[745],{"type":52,"attrs":746},{"color":54},{"type":89,"attrs":748,"content":749},{"level":146},[750],{"text":751,"type":45,"marks":752},"Step 7: Create a repayment plan",[753],{"type":52,"attrs":754},{"color":54},{"type":41,"content":756},[757],{"text":758,"type":45,"marks":759},"Resist the temptation to accumulate new debts while you’re working on paying off existing ones. To create a repayment plan that aligns with your budget, start by assessing your monthly income and expenses. Determine how much you can comfortably allocate toward repaying the consolidation loan without straining your finances. ",[760],{"type":52,"attrs":761},{"color":54},{"type":41,"content":763},[764],{"text":765,"type":45,"marks":766},"Keep in mind that late payments could cost you fees, setting you back even further. Autopay can be a smart strategy to avoid this. Set up automatic transfers to your loan bank account on or just after each payday. Some lenders also provide a rate discount for borrowers who enroll in autopay. ",[767],{"type":52,"attrs":768},{"color":54},{"type":89,"attrs":770,"content":771},{"level":91},[772],{"text":773,"type":45,"marks":774},"Alternatives to consolidating debt with a personal loan ",[775],{"type":52,"attrs":776},{"color":54},{"type":41,"content":778},[779],{"text":780,"type":45,"marks":781},"Consolidating debt can be done with more than just a personal loan. If you don’t think a debt consolidation loan is right for you, here are some other options to explore: ",[782],{"type":52,"attrs":783},{"color":54},{"type":785,"attrs":786,"content":788},"ordered_list",{"order":787},1,[789,804,819,844,863,888],{"type":102,"content":790},[791],{"type":41,"content":792},[793,799],{"text":794,"type":45,"marks":795},"Balance transfer credit cards:",[796,797],{"type":251},{"type":52,"attrs":798},{"color":54},{"text":800,"type":45,"marks":801}," These credit cards allow you to transfer high-interest credit card balances to a new card with a lower or zero percent introductory interest rate. This can help save money on interest charges while consolidating debt. The rates on these cards generally skyrocket after the introductory period and there may be a balance transfer fee, so pay off as much as you can before it ends. ",[802],{"type":52,"attrs":803},{"color":54},{"type":102,"content":805},[806],{"type":41,"content":807},[808,814],{"text":809,"type":45,"marks":810},"Home equity loans and home equity lines of credit (HELOCs)",[811,812],{"type":251},{"type":52,"attrs":813},{"color":54},{"text":815,"type":45,"marks":816},": If you own a home and have built up equity, you may be able to use a home equity loan or HELOC to consolidate debt. These loans allow you to borrow against the equity in your home and typically offer lower rates than personal loans. Keep in mind, these are secured loans backed by your house ––  so if you default, the lender is within their rights to repossess your home. ",[817],{"type":52,"attrs":818},{"color":54},{"type":102,"content":820},[821],{"type":41,"content":822},[823,833,839],{"text":824,"type":45,"marks":825},"Debt management plans",[826,829,830,832],{"type":66,"attrs":827},{"href":828,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.debt.org/management-plans/",{"type":251},{"type":52,"attrs":831},{"color":54},{"type":75},{"text":834,"type":45,"marks":835}," (DMPs)",[836,837],{"type":251},{"type":52,"attrs":838},{"color":54},{"text":840,"type":45,"marks":841},": DMPs are offered by credit counseling agencies and involve consolidating multiple debts into a single payment. The agency negotiates with creditors to potentially reduce interest rates and create a manageable repayment plan. ",[842],{"type":52,"attrs":843},{"color":54},{"type":102,"content":845},[846],{"type":41,"content":847},[848,858],{"text":849,"type":45,"marks":850},"Debt settlement:",[851,854,855,857],{"type":66,"attrs":852},{"href":853,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.debt.org/settlement/",{"type":251},{"type":52,"attrs":856},{"color":54},{"type":75},{"text":859,"type":45,"marks":860}," Debt settlement involves negotiating with creditors to settle your debts for less than the full amount owed. This option typically requires working with a debt settlement company or negotiating directly with creditors.",[861],{"type":52,"attrs":862},{"color":54},{"type":102,"content":864},[865],{"type":41,"content":866},[867,877,883],{"text":868,"type":45,"marks":869},"401(k) Loans",[870,873,874,876],{"type":66,"attrs":871},{"href":872,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.irs.gov/retirement-plans/considering-a-loan-from-your-401k-plan",{"type":251},{"type":52,"attrs":875},{"color":54},{"type":75},{"text":878,"type":45,"marks":879},":",[880,881],{"type":251},{"type":52,"attrs":882},{"color":54},{"text":884,"type":45,"marks":885}," If you have a retirement savings account, such as a 401(k), you may be able to take out a loan against it to consolidate debt. It's important to carefully consider the potential impact on your retirement savings and consult with a financial advisor before opting for this approach. ",[886],{"type":52,"attrs":887},{"color":54},{"type":102,"content":889},[890],{"type":41,"content":891},[892,902,908],{"text":893,"type":45,"marks":894},"Peer-to-peer lending",[895,898,899,901],{"type":66,"attrs":896},{"href":897,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.debt.org/credit/solutions/peer-lending/",{"type":251},{"type":52,"attrs":900},{"color":54},{"type":75},{"text":903,"type":45,"marks":904},": ",[905,906],{"type":251},{"type":52,"attrs":907},{"color":54},{"text":909,"type":45,"marks":910},"Peer-to-peer lending platforms connect borrowers with individual investors who provide loans. This can be an alternative source of loan funding for debt consolidation, especially for those who may not qualify for traditional personal loans.",[911],{"type":52,"attrs":912},{"color":54},{"type":89,"attrs":914,"content":915},{"level":91},[916],{"text":917,"type":45,"marks":918},"Shop debt consolidation loans on Navient Marketplace ",[919],{"type":52,"attrs":920},{"color":54},{"type":41,"content":922},[923],{"text":924,"type":45,"marks":925},"Consolidating debt with a personal loan can be an easy way to refinance your debts and get back on track toward paying them off. However, it's important to approach this process with careful planning and research. Assess your debt, compare lenders, and calculate the total costs involved. Once you've made an informed decision, apply for the personal loan and use it to pay off your existing debts. ",[926],{"type":52,"attrs":927},{"color":54},{"type":41,"content":929},[930,935,943,951],{"text":931,"type":45,"marks":932},"Ready to shop for a personal loan? With Navient Marketplace, you can compare lenders for free all in one place. Just enter a few details about yourself and",[933],{"type":52,"attrs":934},{"color":54},{"text":936,"type":45,"marks":937}," ",[938,941],{"type":66,"attrs":939},{"href":940,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://marketplace.navient.com/",{"type":52,"attrs":942},{"color":54},{"text":944,"type":45,"marks":945},"get personalized results from debt consolidation lenders in minutes",[946,948,950],{"type":66,"attrs":947},{"href":940,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":949},{"color":54},{"type":75},{"text":952,"type":45,"marks":953},".",[954],{"type":52,"attrs":955},{"color":54},{"type":41,"content":957},[958],{"text":959,"type":45,"marks":960},"Disclaimer: This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.",[961,963],{"type":48,"attrs":962},{"class":50},{"type":52,"attrs":964},{"color":54},{"type":41,"content":966},[967],{"text":968,"type":45,"marks":969},"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. ",[970,972],{"type":48,"attrs":971},{"class":50},{"type":52,"attrs":973},{"color":54},{"type":41,"content":975},[976],{"text":977,"type":45,"marks":978},"Loan proceeds may not be used for postsecondary educational expenses, including refinancing federal or private student loans.",[979,981],{"type":48,"attrs":980},{"class":50},{"type":52,"attrs":982},{"color":54},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798155\"}-->","BlogText","https://www.marketplace.navient.com/blog/consolidating-debt-with-personal-loan/","Updated: September 20, 2023","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"39f3568e-f888-4c3e-816f-3647f7efec59\", \"id\": \"651798155\"}-->","consolidating-debt-with-personal-loan","navient_marketplace/blog/consolidating-debt-with-personal-loan",-500,[],651751493,"0563e536-901b-4d20-b00e-08df03779c14","2023-09-26T16:18:38.954Z","default","blog/consolidating-debt-with-personal-loan",[],{"name":999,"created_at":1000,"published_at":1001,"updated_at":1002,"id":1003,"uuid":1004,"content":1005,"slug":1817,"full_slug":1818,"sort_by_date":69,"position":990,"tag_list":1819,"is_startpage":28,"parent_id":992,"meta_data":69,"group_id":1820,"first_published_at":994,"release_id":69,"lang":995,"path":1821,"alternates":1822,"default_full_slug":69,"translated_slugs":69},"Why Are Personal Loan Rates So High? (Plus Tips on How to Lower Them)","2025-04-07T18:30:12.787Z","2025-12-26T13:45:00.724Z","2025-12-26T13:45:00.805Z",651798154,"a8e39f37-0cac-460b-ac11-6351cc3d0158",{"seo":1006,"_uid":20,"hero":1009,"author":30,"category":31,"featured":28,"imageAlt":18,"component":32,"blogContents":1014,"canonicalTag":1815,"publishedDate":986,"_editable":1816},{"_uid":15,"title":1007,"plugin":17,"og_image":18,"og_title":18,"description":1008,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"Why Are Personal Loan Rates So High? (Plus Tips on How to Lower Them) | Navient Marketplace","Personal loan rates are usually high because they’re unsecured, meaning there’s no collateral. Learn how to secure a low rate on a personal loan.",[1010],{"id":18,"_uid":23,"image":1011,"intro":1008,"classes":18,"_editable":1012,"blogTitle":999,"component":26,"imageLink":1013,"blendImage":28,"backgroundColor":29},"//a.storyblok.com/f/110029/6134x4089/c5b0067c0a/why-are-personal-loan-rates-so-high.png","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798154\"}-->","/images/why-are-personal-loan-rates-so-high.png",[1015],{"_uid":35,"color":36,"richText":1016,"_editable":1814,"component":984},{"type":38,"content":1017},[1018,1026,1046,1053,1091,1099,1119,1127,1147,1155,1162,1170,1177,1185,1192,1200,1207,1215,1222,1230,1237,1245,1252,1260,1267,1275,1282,1290,1297,1305,1312,1409,1417,1449,1470,1478,1485,1492,1500,1521,1582,1590,1597,1604,1612,1632,1640,1655,1663,1679,1700,1707,1714,1721,1729,1736,1744,1783,1791,1806],{"type":41,"content":1019},[1020],{"text":44,"type":45,"marks":1021},[1022,1024],{"type":48,"attrs":1023},{"class":50},{"type":52,"attrs":1025},{"color":54},{"type":41,"content":1027},[1028,1033,1041],{"text":1029,"type":45,"marks":1030},"A personal loan can be a useful tool for consolidating debt, making a significant purchase, or funding home renovations. But if you’ve ",[1031],{"type":52,"attrs":1032},{"color":54},{"text":1034,"type":45,"marks":1035},"shopped around for one",[1036,1038,1040],{"type":66,"attrs":1037},{"href":68,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":1039},{"color":54},{"type":75},{"text":1042,"type":45,"marks":1043},", you may have noticed that their interest rates can be higher than other types of loans, like home equity loans or car loans. So, why are personal loan rates so high? And what can you do to lower them?",[1044],{"type":52,"attrs":1045},{"color":54},{"type":89,"attrs":1047,"content":1048},{"level":91},[1049],{"text":94,"type":45,"marks":1050},[1051],{"type":52,"attrs":1052},{"color":54},{"type":99,"content":1054},[1055,1064,1073,1082],{"type":102,"content":1056},[1057],{"type":41,"content":1058},[1059],{"text":1060,"type":45,"marks":1061},"Personal loans are typically unsecured, which means there’s no collateral to back the loan.",[1062],{"type":52,"attrs":1063},{"color":54},{"type":102,"content":1065},[1066],{"type":41,"content":1067},[1068],{"text":1069,"type":45,"marks":1070},"Your credit score plays a significant role in determining your personal loan interest rate, and a poor credit score can result in a higher interest rate. ",[1071],{"type":52,"attrs":1072},{"color":54},{"type":102,"content":1074},[1075],{"type":41,"content":1076},[1077],{"text":1078,"type":45,"marks":1079},"Longer loan terms may come with higher interest rates, which allow lenders to mitigate the risk of future interest rate fluctuations.                                                                                 ",[1080],{"type":52,"attrs":1081},{"color":54},{"type":102,"content":1083},[1084],{"type":41,"content":1085},[1086],{"text":1087,"type":45,"marks":1088},"When the interest rates set by central banks rise, personal loan rates tend to follow suit. ",[1089],{"type":52,"attrs":1090},{"color":54},{"type":89,"attrs":1092,"content":1093},{"level":91},[1094],{"text":1095,"type":45,"marks":1096},"Six reasons personal loan rates can be high ",[1097],{"type":52,"attrs":1098},{"color":54},{"type":41,"content":1100},[1101,1106,1114],{"text":1102,"type":45,"marks":1103},"Considering a ",[1104],{"type":52,"attrs":1105},{"color":54},{"text":63,"type":45,"marks":1107},[1108,1111,1113],{"type":66,"attrs":1109},{"href":1110,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://marketplace.navient.com/blog/how-do-personal-loans-work/",{"type":52,"attrs":1112},{"color":54},{"type":75},{"text":1115,"type":45,"marks":1116},"? You might be surprised to find that their rates are higher than you expected. Here are six reasons why that can happen. ",[1117],{"type":52,"attrs":1118},{"color":54},{"type":89,"attrs":1120,"content":1121},{"level":146},[1122],{"text":1123,"type":45,"marks":1124},"No collateral ",[1125],{"type":52,"attrs":1126},{"color":54},{"type":41,"content":1128},[1129,1134,1142],{"text":1130,"type":45,"marks":1131},"One reason why personal loan rates are higher than other types of loan rates is that personal loans are often unsecured, meaning they do not require collateral. This is in contrast to ",[1132],{"type":52,"attrs":1133},{"color":54},{"text":1135,"type":45,"marks":1136},"secured loans",[1137,1139,1141],{"type":66,"attrs":1138},{"href":165,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":1140},{"color":54},{"type":75},{"text":1143,"type":45,"marks":1144},", like auto loans and mortgages, where the lender can seize the asset to recoup their losses if a borrower fails to repay the loan. With an unsecured loan, lenders face a greater risk of late payments or non-payment. That forces lenders to charge a higher interest rate to make up for any potential losses.",[1145],{"type":52,"attrs":1146},{"color":54},{"type":89,"attrs":1148,"content":1149},{"level":146},[1150],{"text":1151,"type":45,"marks":1152},"Credit score",[1153],{"type":52,"attrs":1154},{"color":54},{"type":41,"content":1156},[1157],{"text":1158,"type":45,"marks":1159},"Another factor that can influence personal loan rates is the borrower's FICO score. Your credit score is based on a range of financial data, including past credit history, payment behavior, and length of credit history. Generally, the higher the credit score, the lower the loan's interest rate. Borrowers with lower credit scores are considered riskier to lenders, so lenders may charge these borrowers higher interest rates to compensate for the higher risk.",[1160],{"type":52,"attrs":1161},{"color":54},{"type":89,"attrs":1163,"content":1164},{"level":146},[1165],{"text":1166,"type":45,"marks":1167},"Loan amount and term",[1168],{"type":52,"attrs":1169},{"color":54},{"type":41,"content":1171},[1172],{"text":1173,"type":45,"marks":1174},"Loan amount and term can also impact APR (annual percentage rate). Often, larger loan amounts or longer terms result in higher interest rates. With larger loan amounts, lenders are taking on risk by providing a more significant chunk of capital. With longer-term loans, there is more time for everything from economic factors to financial changes to increase the risk of missed payments.",[1175],{"type":52,"attrs":1176},{"color":54},{"type":89,"attrs":1178,"content":1179},{"level":146},[1180],{"text":1181,"type":45,"marks":1182},"Economic factors",[1183],{"type":52,"attrs":1184},{"color":54},{"type":41,"content":1186},[1187],{"text":1188,"type":45,"marks":1189},"The state of the broader American economy can also affect unsecured personal loan rates. During times of economic uncertainty, financial institutions may raise interest rates to cover the increased risk. Additionally, as inflation increases and the Federal Reserve raises national rates, borrowing costs will naturally follow.",[1190],{"type":52,"attrs":1191},{"color":54},{"type":89,"attrs":1193,"content":1194},{"level":146},[1195],{"text":1196,"type":45,"marks":1197},"Lender-specific factors",[1198],{"type":52,"attrs":1199},{"color":54},{"type":41,"content":1201},[1202],{"text":1203,"type":45,"marks":1204},"Lender-specific factors can also impact personal loan rates. Where one lender may not be willing to serve someone with a lower credit score, another might have a different, more holistic way of measuring creditworthiness that opens up their range of qualified applicants. That’s why it’s important to do your research and shop around for multiple quotes before settling on a personal loan provider.",[1205],{"type":52,"attrs":1206},{"color":54},{"type":89,"attrs":1208,"content":1209},{"level":91},[1210],{"text":1211,"type":45,"marks":1212},"When borrowing a personal loan makes sense ",[1213],{"type":52,"attrs":1214},{"color":54},{"type":41,"content":1216},[1217],{"text":1218,"type":45,"marks":1219},"Taking out a personal loan can be a useful financial tool for some people. However, it's essential to evaluate your individual circumstances carefully before deciding whether borrowing money through a personal loan is the right choice for you. Here are a few scenarios when taking out a personal loan can make sense:",[1220],{"type":52,"attrs":1221},{"color":54},{"type":89,"attrs":1223,"content":1224},{"level":146},[1225],{"text":1226,"type":45,"marks":1227},"Debt consolidation",[1228],{"type":52,"attrs":1229},{"color":54},{"type":41,"content":1231},[1232],{"text":1233,"type":45,"marks":1234},"Even when personal loan rates are high, they’re still generally lower than credit card rates. That’s why one of the most common reasons people take out personal loans is to consolidate high-interest credit card debt. If you’re in this position, taking out a personal loan to use as a debt consolidation loan can reduce the amount of interest paid over the life of the loan and potentially help pay off debt faster.",[1235],{"type":52,"attrs":1236},{"color":54},{"type":89,"attrs":1238,"content":1239},{"level":146},[1240],{"text":1241,"type":45,"marks":1242},"Large purchases",[1243],{"type":52,"attrs":1244},{"color":54},{"type":41,"content":1246},[1247],{"text":1248,"type":45,"marks":1249},"Let’s say you plan on making a significant purchase, such as a car or furniture. In that case, a personal loan may be a better option than using a credit card, which can carry a much higher interest rate. That said, if national rates are high now, or your credit score isn’t in ideal shape to qualify for a lender’s lowest rates, you may want to put that purchase on pause if you can. ",[1250],{"type":52,"attrs":1251},{"color":54},{"type":89,"attrs":1253,"content":1254},{"level":146},[1255],{"text":1256,"type":45,"marks":1257},"Emergency expenses",[1258],{"type":52,"attrs":1259},{"color":54},{"type":41,"content":1261},[1262],{"text":1263,"type":45,"marks":1264},"There are times when you can’t wait for the ideal conditions to borrow a personal loan. In case of unforeseen expenses, like medical bills, home emergencies, or other unexpected bills, a personal loan can help cover the costs. They can provide quick access to funds when you need them the most, potentially avoiding high-interest credit card debt.",[1265],{"type":52,"attrs":1266},{"color":54},{"type":89,"attrs":1268,"content":1269},{"level":146},[1270],{"text":1271,"type":45,"marks":1272},"Home improvements ",[1273],{"type":52,"attrs":1274},{"color":54},{"type":41,"content":1276},[1277],{"text":1278,"type":45,"marks":1279},"If you’re looking to make significant home improvements or repairs, a personal loan can be a good funding source. Though you may get the best rates with a home loan or a home equity line of credit (HELOC), you’ll also have to put up your home as collateral. That means if you default, the lender has the right to take your property. If you’re not comfortable with that idea, a personal loan may be a better option. ",[1280],{"type":52,"attrs":1281},{"color":54},{"type":89,"attrs":1283,"content":1284},{"level":91},[1285],{"text":1286,"type":45,"marks":1287},"What you can do to secure a lower rate on a personal loan ",[1288],{"type":52,"attrs":1289},{"color":54},{"type":41,"content":1291},[1292],{"text":1293,"type":45,"marks":1294},"Fortunately, there are ways to secure a lower interest rate on your next personal loan. This can save you money and make it easier for you to reach your financial goals. Here’s how to get a more favorable rate. ",[1295],{"type":52,"attrs":1296},{"color":54},{"type":89,"attrs":1298,"content":1299},{"level":146},[1300],{"text":1301,"type":45,"marks":1302},"1. Improve your credit score",[1303],{"type":52,"attrs":1304},{"color":54},{"type":41,"content":1306},[1307],{"text":1308,"type":45,"marks":1309},"A good credit score is key in securing a lower interest rate on a personal loan. You can improve your creditworthiness with these strategies:",[1310],{"type":52,"attrs":1311},{"color":54},{"type":99,"content":1313},[1314,1336,1359,1368,1377,1386],{"type":102,"content":1315},[1316],{"type":41,"content":1317},[1318,1323,1331],{"text":1319,"type":45,"marks":1320},"Regularly ",[1321],{"type":52,"attrs":1322},{"color":54},{"text":1324,"type":45,"marks":1325},"review your credit reports",[1326,1328,1330],{"type":66,"attrs":1327},{"href":509,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":1329},{"color":54},{"type":75},{"text":1332,"type":45,"marks":1333}," to ensure accuracy. Dispute any errors or inaccuracies and have them corrected promptly. ",[1334],{"type":52,"attrs":1335},{"color":54},{"type":102,"content":1337},[1338],{"type":41,"content":1339},[1340,1345,1354],{"text":1341,"type":45,"marks":1342},"Aim to reduce any credit card balances to below 30% of your total credit limit. So, if your total credit limit is $10,000, aim to have no more than $3,000 in credit card debt at any given time. Low ",[1343],{"type":52,"attrs":1344},{"color":54},{"text":1346,"type":45,"marks":1347},"credit utilization",[1348,1351,1353],{"type":66,"attrs":1349},{"href":1350,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.takechargeamerica.org/what-is-credit-utilization/",{"type":52,"attrs":1352},{"color":54},{"type":75},{"text":1355,"type":45,"marks":1356}," has a positive impact on your credit score. ",[1357],{"type":52,"attrs":1358},{"color":54},{"type":102,"content":1360},[1361],{"type":41,"content":1362},[1363],{"text":1364,"type":45,"marks":1365},"Consistently make on-time payments for all your bills, including credit cards, loans, and utilities. If staying organized is hard for you, sign up for autopay so you never miss a payment. ",[1366],{"type":52,"attrs":1367},{"color":54},{"type":102,"content":1369},[1370],{"type":41,"content":1371},[1372],{"text":1373,"type":45,"marks":1374},"If you have a diverse mix of credit accounts — such as credit cards, installment loans, and a mortgage, for example — this shows that you can balance many types of debts responsibly. ",[1375],{"type":52,"attrs":1376},{"color":54},{"type":102,"content":1378},[1379],{"type":41,"content":1380},[1381],{"text":1382,"type":45,"marks":1383},"The length of your credit history can affect your credit score. Avoid closing old credit card accounts, even if you don’t use them often. ",[1384],{"type":52,"attrs":1385},{"color":54},{"type":102,"content":1387},[1388],{"type":41,"content":1389},[1390,1395,1404],{"text":1391,"type":45,"marks":1392},"Only open new credit accounts when necessary. Each time you apply for credit, it leads to a ",[1393],{"type":52,"attrs":1394},{"color":54},{"text":1396,"type":45,"marks":1397},"hard inquiry",[1398,1401,1403],{"type":66,"attrs":1399},{"href":1400,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.badcredit.org/how-to/difference-between-hard-and-soft-credit-inquiries/",{"type":52,"attrs":1402},{"color":54},{"type":75},{"text":1405,"type":45,"marks":1406}," on your credit report, temporarily lowering your credit score. Too many accounts can also lead to a temptation to overspend. ",[1407],{"type":52,"attrs":1408},{"color":54},{"type":89,"attrs":1410,"content":1411},{"level":146},[1412],{"text":1413,"type":45,"marks":1414},"2. Use a lending marketplace",[1415],{"type":52,"attrs":1416},{"color":54},{"type":41,"content":1418},[1419,1424,1431,1436,1444],{"text":1420,"type":45,"marks":1421},"Lending marketplaces, such as ",[1422],{"type":52,"attrs":1423},{"color":54},{"text":705,"type":45,"marks":1425},[1426,1428,1430],{"type":66,"attrs":1427},{"href":940,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":1429},{"color":54},{"type":75},{"text":1432,"type":45,"marks":1433},", are online platforms that connect borrowers with loan offers from a wide network of investors and lenders. They offer an efficient way to shop for financial products and to discover the best personal loan for your financial needs. Plus, because ",[1434],{"type":52,"attrs":1435},{"color":54},{"text":1437,"type":45,"marks":1438},"personal loan marketplaces",[1439,1441,1443],{"type":66,"attrs":1440},{"href":616,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":1442},{"color":54},{"type":75},{"text":1445,"type":45,"marks":1446}," facilitate competition among lenders, you’re more likely to secure a loan with a competitive interest rate. ",[1447],{"type":52,"attrs":1448},{"color":54},{"type":41,"content":1450},[1451,1456,1465],{"text":1452,"type":45,"marks":1453},"Marketplaces are also useful for comparing options. They allow you to view interest rates, loan terms, origination fees, and other features all in one place. That side-by-side comparison can help you make sure you’re getting a good deal. Further, most marketplaces allow you to prequalify for multiple loans at once. ",[1454],{"type":52,"attrs":1455},{"color":54},{"text":1457,"type":45,"marks":1458},"Prequalification",[1459,1462,1464],{"type":66,"attrs":1460},{"href":1461,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.experian.com/blogs/ask-experian/how-to-prequalify-for-loan/",{"type":52,"attrs":1463},{"color":54},{"type":75},{"text":1466,"type":45,"marks":1467}," is usually fast, free, and won’t affect your credit score.",[1468],{"type":52,"attrs":1469},{"color":54},{"type":89,"attrs":1471,"content":1472},{"level":146},[1473],{"text":1474,"type":45,"marks":1475},"3. Consider a cosigner",[1476],{"type":52,"attrs":1477},{"color":54},{"type":41,"content":1479},[1480],{"text":1481,"type":45,"marks":1482},"A cosigner is an individual who agrees to take joint responsibility for the repayment of a loan alongside the primary borrower. When someone cosigns a loan, they are essentially offering a guarantee to the lender that if the primary borrower fails to make the required loan payments, the cosigner will step in and fulfill those obligations. ",[1483],{"type":52,"attrs":1484},{"color":54},{"type":41,"content":1486},[1487],{"text":1488,"type":45,"marks":1489},"Getting a cosigner can be a good idea if your creditworthiness, income, credit score, or financial history don’t qualify you for a lower rate. When you apply for a personal loan with a cosigner, the lender considers the cosigner’s creditworthiness and financial stability in addition to your own. So, if you have a bad credit score but you cosign a loan with someone who has an excellent credit score, lenders will be much more likely to offer you a competitive rate because of the reduced risk associated with the loan. ",[1490],{"type":52,"attrs":1491},{"color":54},{"type":89,"attrs":1493,"content":1494},{"level":146},[1495],{"text":1496,"type":45,"marks":1497},"4. Look for a lender with an alternative credit check",[1498],{"type":52,"attrs":1499},{"color":54},{"type":41,"content":1501},[1502,1507,1516],{"text":1503,"type":45,"marks":1504},"When looking for lower interest rates, it’s worth exploring lenders that offer alternative eligibility checks. ",[1505],{"type":52,"attrs":1506},{"color":54},{"text":1508,"type":45,"marks":1509},"Traditional lenders",[1510,1513,1515],{"type":66,"attrs":1511},{"href":1512,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://marketplace.navient.com/blog/is-it-better-to-get-a-loan-through-your-bank/",{"type":52,"attrs":1514},{"color":54},{"type":75},{"text":1517,"type":45,"marks":1518},", such as banks and credit unions, primarily rely on your credit history when assessing your ability to repay a loan. However, some alternative lenders consider factors beyond your traditional credit score. These may include:",[1519],{"type":52,"attrs":1520},{"color":54},{"type":99,"content":1522},[1523,1532,1541,1550,1573],{"type":102,"content":1524},[1525],{"type":41,"content":1526},[1527],{"text":1528,"type":45,"marks":1529},"Your income stability and employment history.",[1530],{"type":52,"attrs":1531},{"color":54},{"type":102,"content":1533},[1534],{"type":41,"content":1535},[1536],{"text":1537,"type":45,"marks":1538},"Bank statements, which can provide insights into your financial behavior.",[1539],{"type":52,"attrs":1540},{"color":54},{"type":102,"content":1542},[1543],{"type":41,"content":1544},[1545],{"text":1546,"type":45,"marks":1547},"Payment history for non-credit accounts, such as rent, utilities, or subscriptions.",[1548],{"type":52,"attrs":1549},{"color":54},{"type":102,"content":1551},[1552],{"type":41,"content":1553},[1554,1559,1568],{"text":1555,"type":45,"marks":1556},"Your assets, such as ",[1557],{"type":52,"attrs":1558},{"color":54},{"text":1560,"type":45,"marks":1561},"savings accounts",[1562,1565,1567],{"type":66,"attrs":1563},{"href":1564,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://marketplace.navient.com/blog/best-high-yield-savings-account/",{"type":52,"attrs":1566},{"color":54},{"type":75},{"text":1569,"type":45,"marks":1570}," or investments. ",[1571],{"type":52,"attrs":1572},{"color":54},{"type":102,"content":1574},[1575],{"type":41,"content":1576},[1577],{"text":1578,"type":45,"marks":1579},"Your debt-to-income ratio, i.e., the percentage of your income that you put towards debt repayment each month.",[1580],{"type":52,"attrs":1581},{"color":54},{"type":89,"attrs":1583,"content":1584},{"level":146},[1585],{"text":1586,"type":45,"marks":1587},"5. Wait for national rates to fall",[1588],{"type":52,"attrs":1589},{"color":54},{"type":41,"content":1591},[1592],{"text":1593,"type":45,"marks":1594},"If you take out a personal loan while national interest rates are high, you’ll end up paying more money in interest charges. You may be able to avoid this by delaying your personal loan application until national interest rates have decreased. This can both save you money over the life of the loan and make your monthly payments more affordable in the short term. ",[1595],{"type":52,"attrs":1596},{"color":54},{"type":41,"content":1598},[1599],{"text":1600,"type":45,"marks":1601},"However, predicting interest rate hikes or dips can be complex. Your personal financial situation will also play a role in your timing. So, while it can be helpful to wait for rates to fall, make sure it doesn’t come at the expense of your immediate needs and plans. ",[1602],{"type":52,"attrs":1603},{"color":54},{"type":89,"attrs":1605,"content":1606},{"level":91},[1607],{"text":1608,"type":45,"marks":1609},"Alternatives to a personal loan ",[1610],{"type":52,"attrs":1611},{"color":54},{"type":41,"content":1613},[1614,1619,1627],{"text":1615,"type":45,"marks":1616},"While personal loans are a ",[1617],{"type":52,"attrs":1618},{"color":54},{"text":1620,"type":45,"marks":1621},"popular and versatile option",[1622,1624,1626],{"type":66,"attrs":1623},{"href":223,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":1625},{"color":54},{"type":75},{"text":1628,"type":45,"marks":1629}," for getting your hands on some extra cash, they’re not the only route available. Here are some alternatives to consider. ",[1630],{"type":52,"attrs":1631},{"color":54},{"type":89,"attrs":1633,"content":1634},{"level":146},[1635],{"text":1636,"type":45,"marks":1637},"Credit cards",[1638],{"type":52,"attrs":1639},{"color":54},{"type":41,"content":1641},[1642,1650],{"text":1636,"type":45,"marks":1643},[1644,1647,1649],{"type":66,"attrs":1645},{"href":1646,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://marketplace.navient.com/blog/how-many-credit-cards-should-i-have/",{"type":52,"attrs":1648},{"color":54},{"type":75},{"text":1651,"type":45,"marks":1652}," may offer more flexibility and convenience than a personal loan. If you’re confident in your ability to repay your debt quickly and can secure a credit card with a low introductory interest rate, you may be able to put your near-term purchase on a card without having to worry about high personal loan interest rates. Just make sure you pay off the balance before the introductory period expires. Otherwise, you could face even higher interest charges than you’d get with a personal loan. ",[1653],{"type":52,"attrs":1654},{"color":54},{"type":89,"attrs":1656,"content":1657},{"level":146},[1658],{"text":1659,"type":45,"marks":1660},"Home equity loan or home equity line of credit",[1661],{"type":52,"attrs":1662},{"color":54},{"type":41,"content":1664},[1665,1674],{"text":1666,"type":45,"marks":1667},"Home equity loans",[1668,1671,1673],{"type":66,"attrs":1669},{"href":1670,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.consumerfinance.gov/ask-cfpb/what-is-a-home-equity-loan-en-106/",{"type":52,"attrs":1672},{"color":54},{"type":75},{"text":1675,"type":45,"marks":1676},", sometimes called second mortgages, provide homeowners with quick access to a lump sum of money that they can then repay with interest. Home equity loans typically come with fixed rates. These loans are most useful for one-time expenses, like a home renovation or debt consolidation. ",[1677],{"type":52,"attrs":1678},{"color":54},{"type":41,"content":1680},[1681,1686,1695],{"text":1682,"type":45,"marks":1683},"You may also want to consider a ",[1684],{"type":52,"attrs":1685},{"color":54},{"text":1687,"type":45,"marks":1688},"home equity line of credit (HELOC)",[1689,1692,1694],{"type":66,"attrs":1690},{"href":1691,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.consumerfinance.gov/ask-cfpb/my-lender-offered-me-a-home-equity-line-of-credit-heloc-what-is-a-heloc-en-107/",{"type":52,"attrs":1693},{"color":54},{"type":75},{"text":1696,"type":45,"marks":1697},", which is a revolving line of credit (similar to a credit card) with a variable interest rate. A variable interest rate is a type of interest rate that is not fixed over the life of a loan. Instead, it can change periodically, typically in response to fluctuations in a specified benchmark interest rate. ",[1698],{"type":52,"attrs":1699},{"color":54},{"type":41,"content":1701},[1702],{"text":1703,"type":45,"marks":1704},"Home equity loans and lines of credit often come with lower interest rates than most personal loans. That’s because they are secured by your home’s equity. As another bonus, this interest may also be tax-deductible, depending on the purpose of the loan and your local tax laws. In contrast, personal loan interest payments are rarely tax deductible. Just keep in mind that, like a home equity loan, the lender can seize your home if you fail to repay a HELOC. ",[1705],{"type":52,"attrs":1706},{"color":54},{"type":89,"attrs":1708,"content":1709},{"level":146},[1710],{"text":893,"type":45,"marks":1711},[1712],{"type":52,"attrs":1713},{"color":54},{"type":41,"content":1715},[1716],{"text":1717,"type":45,"marks":1718},"Peer-to-peer (P2P) lending involves borrowing from individuals or groups of individuals rather than traditional financial institutions like banks. Borrowers typically use online P2P lending platforms. Here, they can select from a variety of repayment terms and schedules, making it easier to find a loan that suits their specific needs. ",[1719],{"type":52,"attrs":1720},{"color":54},{"type":89,"attrs":1722,"content":1723},{"level":146},[1724],{"text":1725,"type":45,"marks":1726},"Cash-out refinance",[1727],{"type":52,"attrs":1728},{"color":54},{"type":41,"content":1730},[1731],{"text":1732,"type":45,"marks":1733},"A cash-out refinance is a popular type of mortgage refinancing option. It allows you to replace your existing mortgage with a new one that has a higher principal balance. You then receive the difference between the new mortgage balance and the old mortgage balance in cash. Since the average interest rates for mortgages are often lower than personal loan rates, homeowners can use this option to reduce their overall borrowing costs. ",[1734],{"type":52,"attrs":1735},{"color":54},{"type":89,"attrs":1737,"content":1738},{"level":91},[1739],{"text":1740,"type":45,"marks":1741},"Compare personal loan rates on Navient Marketplace",[1742],{"type":52,"attrs":1743},{"color":54},{"type":41,"content":1745},[1746,1751,1760,1765,1771,1779],{"text":1747,"type":45,"marks":1748},"A personal loan marketplace",[1749],{"type":52,"attrs":1750},{"color":54},{"text":1752,"type":45,"marks":1753},"1",[1754,1757,1758],{"type":48,"attrs":1755},{"class":1756},"superscript",{"type":1756},{"type":52,"attrs":1759},{"color":54},{"text":1761,"type":45,"marks":1762}," can help you make sure you’re getting the best loan for your needs. To streamline the process, Navient Marketplace offers a one-stop shop where borrowers can compare lenders,  get personalized loan rates, and access cash quickly and easily. Explore your loan options by",[1763],{"type":52,"attrs":1764},{"color":54},{"text":936,"type":45,"marks":1766},[1767,1769],{"type":66,"attrs":1768},{"href":940,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":1770},{"color":54},{"text":1772,"type":45,"marks":1773},"visiting our marketplace today",[1774,1776,1778],{"type":66,"attrs":1775},{"href":940,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":1777},{"color":54},{"type":75},{"text":952,"type":45,"marks":1780},[1781],{"type":52,"attrs":1782},{"color":54},{"type":41,"content":1784},[1785],{"text":959,"type":45,"marks":1786},[1787,1789],{"type":48,"attrs":1788},{"class":50},{"type":52,"attrs":1790},{"color":54},{"type":41,"content":1792},[1793,1799],{"text":1752,"type":45,"marks":1794},[1795,1797],{"type":48,"attrs":1796},{"class":1756},{"type":52,"attrs":1798},{"color":54},{"text":1800,"type":45,"marks":1801}," 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. ",[1802,1804],{"type":48,"attrs":1803},{"class":50},{"type":52,"attrs":1805},{"color":54},{"type":41,"content":1807},[1808],{"text":977,"type":45,"marks":1809},[1810,1812],{"type":48,"attrs":1811},{"class":50},{"type":52,"attrs":1813},{"color":54},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798154\"}-->","https://www.marketplace.navient.com/blog/why-are-personal-loan-rates-so-high/","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"39f3568e-f888-4c3e-816f-3647f7efec59\", \"id\": \"651798154\"}-->","why-are-personal-loan-rates-so-high","navient_marketplace/blog/why-are-personal-loan-rates-so-high",[],"dea2bb5b-7094-45fb-9329-d2c31ffeea39","blog/why-are-personal-loan-rates-so-high/",[],{"name":1824,"created_at":1825,"published_at":1826,"updated_at":1827,"id":1828,"uuid":1829,"content":1830,"slug":2358,"full_slug":2359,"sort_by_date":69,"position":990,"tag_list":2360,"is_startpage":28,"parent_id":992,"meta_data":69,"group_id":2361,"first_published_at":994,"release_id":69,"lang":995,"path":2362,"alternates":2363,"default_full_slug":69,"translated_slugs":69},"Should I buy a house or start a business?","2025-04-07T18:30:10.988Z","2025-12-26T13:45:00.962Z","2025-12-26T13:45:00.984Z",651798153,"ea8b16b5-8b11-4cd3-832a-23d19c662cca",{"seo":1831,"_uid":20,"hero":1834,"author":30,"category":31,"featured":28,"imageAlt":18,"component":32,"blogContents":1839,"canonicalTag":2356,"publishedDate":986,"_editable":2357},{"_uid":15,"title":1832,"plugin":17,"og_image":18,"og_title":18,"description":1833,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"Should I buy a house or start a business? | Navient Marketplace","Both options have unique perks, but this is a life-altering choice that will shape your financial future. Here’s what you need to consider.",[1835],{"id":18,"_uid":23,"image":1836,"intro":1833,"classes":18,"_editable":1837,"blogTitle":1824,"component":26,"imageLink":1838,"blendImage":28,"backgroundColor":29},"//a.storyblok.com/f/110029/5184x2920/bfb7a9110a/should-i-buy-a-house-or-start-a-business.png","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798153\"}-->","/images/should-i-buy-a-house-or-start-a-business.png",[1840],{"_uid":35,"color":36,"richText":1841,"_editable":2355,"component":984},{"type":38,"content":1842},[1843,1851,1859,1867,1874,1883,1905,1912,1941,1976,1984,1991,2067,2075,2095,2116,2137,2158,2166,2173,2194,2202,2218,2225,2232,2239,2247,2254,2261,2269,2276,2283,2290,2298,2305,2312,2319,2327,2347],{"type":41,"content":1844},[1845],{"text":44,"type":45,"marks":1846},[1847,1849],{"type":48,"attrs":1848},{"class":50},{"type":52,"attrs":1850},{"color":54},{"type":41,"content":1852},[1853],{"text":1854,"type":45,"marks":1855},"If you’re trying to decide which financial goal to prioritize next, you might be asking yourself: should I buy a house or start a business? Both options have unique perks, but this is a life-altering choice that will shape your financial future, your day-to-day life, and your long-term goals. So, what should you do? Here’s what you need to consider.",[1856],{"type":52,"attrs":1857},{"color":1858},"rgb(0, 0, 0)",{"type":89,"attrs":1860,"content":1861},{"level":91},[1862],{"text":1863,"type":45,"marks":1864},"Starting a business vs buying a home: 8 factors to consider ",[1865],{"type":52,"attrs":1866},{"color":1858},{"type":41,"content":1868},[1869],{"text":1870,"type":45,"marks":1871},"Starting a business and buying a home are both decisions that will significantly impact your life, your finances, and your future prospects. Which one should you focus on first? Think about the following before you decide.",[1872],{"type":52,"attrs":1873},{"color":1858},{"type":89,"attrs":1875,"content":1876},{"level":146},[1877],{"text":1878,"type":45,"marks":1879},"1. The market ",[1880],{"type":52,"attrs":1881},{"color":1882},"rgb(67, 67, 67)",{"type":41,"content":1884},[1885,1890,1900],{"text":1886,"type":45,"marks":1887},"First, assess the state of the housing market. Is it a good time to buy a house now? Are interest rates, housing inventory, and local market conditions working in your favor? A strong buyer’s market may make it easier to negotiate a low purchase price, while a ",[1888],{"type":52,"attrs":1889},{"color":1858},{"text":1891,"type":45,"marks":1892},"seller’s market",[1893,1896,1899],{"type":66,"attrs":1894},{"href":1895,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://myhome.freddiemac.com/blog/selling/what-sellers-market",{"type":52,"attrs":1897},{"color":1898},"rgb(17, 85, 204)",{"type":75},{"text":1901,"type":45,"marks":1902}," may put you in a more challenging position.",[1903],{"type":52,"attrs":1904},{"color":1858},{"type":41,"content":1906},[1907],{"text":1908,"type":45,"marks":1909},"If you’re leaning toward starting a business, consider the market demand for your product or service.",[1910],{"type":52,"attrs":1911},{"color":1858},{"type":99,"content":1913},[1914,1923,1932],{"type":102,"content":1915},[1916],{"type":41,"content":1917},[1918],{"text":1919,"type":45,"marks":1920},"Is there a clear need for what your business offers, and is the market receptive to new entrants?",[1921],{"type":52,"attrs":1922},{"color":1858},{"type":102,"content":1924},[1925],{"type":41,"content":1926},[1927],{"text":1928,"type":45,"marks":1929},"Is there a time-sensitive advantage to launching your business right now? ",[1930],{"type":52,"attrs":1931},{"color":1858},{"type":102,"content":1933},[1934],{"type":41,"content":1935},[1936],{"text":1937,"type":45,"marks":1938},"Is there a trend or emerging niche that your business can capitalize on?",[1939],{"type":52,"attrs":1940},{"color":1858},{"type":41,"content":1942},[1943,1948,1957,1962,1971],{"text":1944,"type":45,"marks":1945},"Stay informed about ",[1946],{"type":52,"attrs":1947},{"color":1858},{"text":1949,"type":45,"marks":1950},"economic trends",[1951,1954,1956],{"type":66,"attrs":1952},{"href":1953,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.nar.realtor/research-and-statistics/housing-statistics",{"type":52,"attrs":1955},{"color":1898},{"type":75},{"text":1958,"type":45,"marks":1959}," and market forecasts, too. In ",[1960],{"type":52,"attrs":1961},{"color":1858},{"text":1963,"type":45,"marks":1964},"the housing market",[1965,1968,1970],{"type":66,"attrs":1966},{"href":1967,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://sgp.fas.org/crs/misc/IF11327.pdf",{"type":52,"attrs":1969},{"color":1898},{"type":75},{"text":1972,"type":45,"marks":1973},", a strong economy might lead to rising house prices and make home ownership less affordable. In contrast, a robust economy can be good news for entrepreneurs: it often signals an increase in consumer spending. However, a strong economy can also result in higher operational costs. ",[1974],{"type":52,"attrs":1975},{"color":1858},{"type":89,"attrs":1977,"content":1978},{"level":146},[1979],{"text":1980,"type":45,"marks":1981},"2. Your financial situation",[1982],{"type":52,"attrs":1983},{"color":1882},{"type":41,"content":1985},[1986],{"text":1987,"type":45,"marks":1988},"Homeownership and business ownership each come with various costs, risks, and potential rewards. Be sure to analyze how each option would fit into your personal finances and consider speaking to a financial advisor. Especially consider the following factors: ",[1989],{"type":52,"attrs":1990},{"color":1858},{"type":99,"content":1992},[1993,2008,2023,2038],{"type":102,"content":1994},[1995],{"type":41,"content":1996},[1997,2003],{"text":1998,"type":45,"marks":1999},"Down payment and mortgage: ",[2000,2001],{"type":251},{"type":52,"attrs":2002},{"color":1858},{"text":2004,"type":45,"marks":2005},"In many cases, down payment and mortgage expenses can be substantial, especially in a competitive real estate market.",[2006],{"type":52,"attrs":2007},{"color":1858},{"type":102,"content":2009},[2010],{"type":41,"content":2011},[2012,2018],{"text":2013,"type":45,"marks":2014},"Startup costs:",[2015,2016],{"type":251},{"type":52,"attrs":2017},{"color":1858},{"text":2019,"type":45,"marks":2020}," In some cases, it costs less money to launch your own business than to buy a house first. This may be especially true if you’re launching a small business or an online business. When calculating potential upfront costs, be sure to consider expenses like product development, licensing fees, and marketing costs. ",[2021],{"type":52,"attrs":2022},{"color":1858},{"type":102,"content":2024},[2025],{"type":41,"content":2026},[2027,2033],{"text":2028,"type":45,"marks":2029},"Short-term profitability: ",[2030,2031],{"type":251},{"type":52,"attrs":2032},{"color":1858},{"text":2034,"type":45,"marks":2035},"Recognize that, in the short term, it may be challenging to turn a profit from a new business. Business ventures often require time to establish a customer base and generate a consistent income. This period of uncertainty can be financially challenging, especially if you haven’t saved up enough money to sustain your lifestyle during the early stages of your business. While it will also take time for your home to appreciate in value, your down payment provides some initial equity in the home.",[2036],{"type":52,"attrs":2037},{"color":1858},{"type":102,"content":2039},[2040],{"type":41,"content":2041},[2042,2048,2053,2062],{"text":2043,"type":45,"marks":2044},"Debt and financing: ",[2045,2046],{"type":251},{"type":52,"attrs":2047},{"color":1858},{"text":2049,"type":45,"marks":2050},"If you’re considering a mortgage, you’ll likely be taking on a significant amount of debt. Similarly, starting a business might involve loans or financing. Assess your willingness and capacity to manage and ",[2051],{"type":52,"attrs":2052},{"color":1858},{"text":2054,"type":45,"marks":2055},"pay off debt",[2056,2059,2061],{"type":66,"attrs":2057},{"href":2058,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://marketplace.navient.com/blog/how-to-pay-off-credit-card-debt-fast/",{"type":52,"attrs":2060},{"color":1898},{"type":75},{"text":2063,"type":45,"marks":2064}," in either scenario. Which will be greater — a home loan or a business loan, and can you afford the payments?",[2065],{"type":52,"attrs":2066},{"color":1858},{"type":89,"attrs":2068,"content":2069},{"level":146},[2070],{"text":2071,"type":45,"marks":2072},"3. Your financial goals",[2073],{"type":52,"attrs":2074},{"color":1882},{"type":41,"content":2076},[2077,2082,2091],{"text":2078,"type":45,"marks":2079},"Becoming a homeowner is a significant milestone for many. However, building significant equity can take several years—if not decades. It’s also difficult to access that equity unless you end up needing to take out a ",[2080],{"type":52,"attrs":2081},{"color":1858},{"text":2083,"type":45,"marks":2084},"Home Equity Line of Credit (HELOC) or a home equity loan",[2085,2088,2090],{"type":66,"attrs":2086},{"href":2087,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://marketplace.navient.com/blog/home-equity-loan-vs-line-of-credit/",{"type":52,"attrs":2089},{"color":1898},{"type":75},{"text":671,"type":45,"marks":2092},[2093],{"type":52,"attrs":2094},{"color":1858},{"type":41,"content":2096},[2097,2102,2111],{"text":2098,"type":45,"marks":2099},"Assess your long-term ",[2100],{"type":52,"attrs":2101},{"color":1858},{"text":2103,"type":45,"marks":2104},"personal finance",[2105,2108,2110],{"type":66,"attrs":2106},{"href":2107,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://marketplace.navient.com/blog/what-is-personal-finance/",{"type":52,"attrs":2109},{"color":1898},{"type":75},{"text":2112,"type":45,"marks":2113}," goals. If you want to prioritize long-term stability, buying a home can be a great option. However, if you’re looking for accelerated wealth accumulation and are comfortable with the entrepreneurial risks, a business might better align with your objectives. ",[2114],{"type":52,"attrs":2115},{"color":1858},{"type":41,"content":2117},[2118,2123,2132],{"text":2119,"type":45,"marks":2120},"It’s also wise to consider the potential return on investment (ROI) of a business compared to a home. While homes historically appreciate in value over time, ",[2121],{"type":52,"attrs":2122},{"color":1858},{"text":2124,"type":45,"marks":2125},"the ROI from a business",[2126,2129,2131],{"type":66,"attrs":2127},{"href":2128,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.kriya.co/knowledge-centre/calculating-the-return-on-investment-for-your-business",{"type":52,"attrs":2130},{"color":1898},{"type":75},{"text":2133,"type":45,"marks":2134}," has the potential to be significantly higher. ",[2135],{"type":52,"attrs":2136},{"color":1858},{"type":41,"content":2138},[2139,2144,2153],{"text":2140,"type":45,"marks":2141},"Businesses, particularly successful ones, can generate substantial returns, but they also come with greater risks and uncertainties. According to Bureau of Labor Statistics data, ",[2142],{"type":52,"attrs":2143},{"color":1858},{"text":2145,"type":45,"marks":2146},"20 percent of small businesses fail",[2147,2150,2152],{"type":66,"attrs":2148},{"href":2149,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.entrepreneur.com/starting-a-business/the-true-failure-rate-of-small-businesses/361350",{"type":52,"attrs":2151},{"color":1898},{"type":75},{"text":2154,"type":45,"marks":2155}," within the first year, and by the end of the decade, only 30 percent of those businesses will remain. ",[2156],{"type":52,"attrs":2157},{"color":1858},{"type":89,"attrs":2159,"content":2160},{"level":146},[2161],{"text":2162,"type":45,"marks":2163},"4. Your appetite for risk",[2164],{"type":52,"attrs":2165},{"color":1882},{"type":41,"content":2167},[2168],{"text":2169,"type":45,"marks":2170},"Purchasing residential property is generally considered a safe investment. That’s because real estate investing has a history of long-term value growth, and residential properties are tangible and appreciating assets. The housing market is less volatile than many other investment options, which can provide a sense of security if you have lower risk tolerance. ",[2171],{"type":52,"attrs":2172},{"color":1858},{"type":41,"content":2174},[2175,2180,2189],{"text":2176,"type":45,"marks":2177},"Starting a business, however, involves higher risks. When you launch a business, you’re essentially gambling on yourself and your entrepreneurial abilities. The success of the business is closely tied to your personal decision-making and the market’s response to your products or services. Your business may experience several years of limited cash flow as you work to get it off the ground. Many entrepreneurs must rely on ",[2178],{"type":52,"attrs":2179},{"color":1858},{"text":2181,"type":45,"marks":2182},"credit cards",[2183,2186,2188],{"type":66,"attrs":2184},{"href":2185,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://marketplace.navient.com/blog/how-to-choose-a-credit-card/",{"type":52,"attrs":2187},{"color":1898},{"type":75},{"text":2190,"type":45,"marks":2191}," or loans to fund new startups. ",[2192],{"type":52,"attrs":2193},{"color":1858},{"type":89,"attrs":2195,"content":2196},{"level":146},[2197],{"text":2198,"type":45,"marks":2199},"5. Your personal goals",[2200],{"type":52,"attrs":2201},{"color":1882},{"type":41,"content":2203},[2204,2213],{"text":2205,"type":45,"marks":2206},"Three-quarters of Americans",[2207,2210,2212],{"type":66,"attrs":2208},{"href":2209,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.nytimes.com/2022/06/02/realestate/homeownership-affordability-survey.html",{"type":52,"attrs":2211},{"color":1898},{"type":75},{"text":2214,"type":45,"marks":2215}," view owning their own home as a higher measure of achievement than having a successful career, raising a family, or earning a college degree. The sense of pride and accomplishment that comes from homeownership is unique and can contribute to your overall happiness. ",[2216],{"type":52,"attrs":2217},{"color":1858},{"type":41,"content":2219},[2220],{"text":2221,"type":45,"marks":2222},"In contrast, building a successful business can provide a different kind of fulfillment. The journey of entrepreneurship offers the opportunity to see your ideas come to life and make a meaningful impact. ",[2223],{"type":52,"attrs":2224},{"color":1858},{"type":41,"content":2226},[2227],{"text":2228,"type":45,"marks":2229},"Further, owning a business can provide a level of independence that homeownership can’t. As a business owner, you have the autonomy to make strategic decisions, set your own schedule, and pursue your entrepreneurial vision. This independence can be a driving force for individuals who value self-determination and creativity. ",[2230],{"type":52,"attrs":2231},{"color":1858},{"type":41,"content":2233},[2234],{"text":2235,"type":45,"marks":2236},"Some individuals seek a balanced life with a comfortable home, while others are driven by the excitement and challenges of business ownership. Assess how each choice contributes to your personal well-being and life satisfaction. ",[2237],{"type":52,"attrs":2238},{"color":1858},{"type":89,"attrs":2240,"content":2241},{"level":146},[2242],{"text":2243,"type":45,"marks":2244},"6. Time you’re willing to commit",[2245],{"type":52,"attrs":2246},{"color":1882},{"type":41,"content":2248},[2249],{"text":2250,"type":45,"marks":2251},"Launching and running a successful business demands a substantial time investment. Entrepreneurship is a full-time job. Business owners often work long hours planning, marketing, and managing day-to-day operations. ",[2252],{"type":52,"attrs":2253},{"color":1858},{"type":41,"content":2255},[2256],{"text":2257,"type":45,"marks":2258},"In contrast, buying a home typically requires less immediate time commitment. While the home-buying process can be intensive, it’s a one-time endeavor. Once you’ve secured your home, the time commitment is limited to maintenance and property management. ",[2259],{"type":52,"attrs":2260},{"color":1858},{"type":89,"attrs":2262,"content":2263},{"level":146},[2264],{"text":2265,"type":45,"marks":2266},"7. Your lifestyle",[2267],{"type":52,"attrs":2268},{"color":1882},{"type":41,"content":2270},[2271],{"text":2272,"type":45,"marks":2273},"Starting and running a business can offer a unique level of independence. As a business owner, you have the autonomy to make critical decisions, shape your company's direction, and create a work environment that aligns with your vision. ",[2274],{"type":52,"attrs":2275},{"color":1858},{"type":41,"content":2277},[2278],{"text":2279,"type":45,"marks":2280},"Depending on the type of business, entrepreneurship can provide you with the flexibility to adapt to changing life priorities. Whether you want to spend more time with family, pursue personal interests, or explore new opportunities, owning a business can offer the flexibility to accommodate these shifts. ",[2281],{"type":52,"attrs":2282},{"color":1858},{"type":41,"content":2284},[2285],{"text":2286,"type":45,"marks":2287},"On the other hand, homeownership ties you to a specific geographic area. When you purchase a home, you establish roots in a particular community. This could make it difficult to move or travel in the near future. However, it does make sense to lock down a home soon if you have a family or are planning to start one.",[2288],{"type":52,"attrs":2289},{"color":1858},{"type":89,"attrs":2291,"content":2292},{"level":146},[2293],{"text":2294,"type":45,"marks":2295},"8. Your knowledge",[2296],{"type":52,"attrs":2297},{"color":1882},{"type":41,"content":2299},[2300],{"text":2301,"type":45,"marks":2302},"Launching a successful business often requires a deep understanding of market dynamics, financial management, marketing, and business operations. If you lack the necessary knowledge, you may face a steep learning curve, which can be time-consuming and challenging. ",[2303],{"type":52,"attrs":2304},{"color":1858},{"type":41,"content":2306},[2307],{"text":2308,"type":45,"marks":2309},"While homeownership also comes with responsibilities, the knowledge required is generally more straightforward. Furthermore, it’s often easier to learn about property maintenance, mortgage terms, insurance requirements, and local property regulations on the fly. You can also hire a real estate agent to help you quickly get up to speed. ",[2310],{"type":52,"attrs":2311},{"color":1858},{"type":41,"content":2313},[2314],{"text":2315,"type":45,"marks":2316},"Before you make a decision, honestly assess your existing knowledge and your readiness to acquire new skills. ",[2317],{"type":52,"attrs":2318},{"color":1858},{"type":89,"attrs":2320,"content":2321},{"level":91},[2322],{"text":2323,"type":45,"marks":2324},"Compare loans on Navient Marketplace",[2325],{"type":52,"attrs":2326},{"color":1858},{"type":41,"content":2328},[2329,2334,2342],{"text":2330,"type":45,"marks":2331},"Owning a home and starting a business can both be fantastic next steps in your financial journey. However, as with all big goals, you may need some additional capital to get started. That’s where Navient Marketplace comes in. With Navient Marketplace, you can compare different lenders for free all in one place. Just enter a few details about yourself and ",[2332],{"type":52,"attrs":2333},{"color":1858},{"text":2335,"type":45,"marks":2336},"get personalized results from lenders",[2337,2339,2341],{"type":66,"attrs":2338},{"href":709,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":2340},{"color":1898},{"type":75},{"text":2343,"type":45,"marks":2344}," in minutes.",[2345],{"type":52,"attrs":2346},{"color":1858},{"type":41,"content":2348},[2349],{"text":959,"type":45,"marks":2350},[2351,2353],{"type":48,"attrs":2352},{"class":50},{"type":52,"attrs":2354},{"color":1858},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798153\"}-->","https://www.marketplace.navient.com/blog/should-i-buy-a-house-or-start-a-business/","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"39f3568e-f888-4c3e-816f-3647f7efec59\", \"id\": \"651798153\"}-->","should-i-buy-a-house-or-start-a-business","navient_marketplace/blog/should-i-buy-a-house-or-start-a-business",[],"fe58d417-3dae-4083-899b-b79660a5c2e4","blog/should-i-buy-a-house-or-start-a-business/",[],{"name":2365,"created_at":2366,"published_at":2367,"updated_at":2368,"id":2369,"uuid":2370,"content":2371,"slug":3239,"full_slug":3240,"sort_by_date":69,"position":990,"tag_list":3241,"is_startpage":28,"parent_id":992,"meta_data":69,"group_id":3242,"first_published_at":994,"release_id":69,"lang":995,"path":3243,"alternates":3244,"default_full_slug":69,"translated_slugs":69},"Should I take out a personal loan to start a business?","2025-04-07T18:30:09.389Z","2025-12-26T13:45:01.117Z","2025-12-26T13:45:01.144Z",651798152,"009400f4-09e7-470a-9e14-7f30c582d701",{"seo":2372,"_uid":20,"hero":2375,"author":30,"category":31,"featured":28,"imageAlt":18,"component":32,"blogContents":2380,"canonicalTag":3237,"publishedDate":986,"_editable":3238},{"_uid":15,"title":2373,"plugin":17,"og_image":18,"og_title":18,"description":2374,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"Should I take out a personal loan to start a business? | Navient Marketplace","The answer is a little complicated. Here’s when it’s wise to take out a personal loan for business, and the key aspects to consider before you do so.",[2376],{"id":18,"_uid":23,"image":2377,"intro":2374,"classes":18,"_editable":2378,"blogTitle":2365,"component":26,"imageLink":2379,"blendImage":28,"backgroundColor":29},"//a.storyblok.com/f/110029/8192x5461/de46e3a78a/should-i-take-out-a-personal-loan-to-start-a-business.png","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798152\"}-->","/images/should-i-take-out-a-personal-loan-to-start-a-business.png",[2381],{"_uid":35,"color":36,"richText":2382,"_editable":3236,"component":984},{"type":38,"content":2383},[2384,2392,2410,2418,2438,2445,2453,2460,2468,2475,2483,2490,2498,2505,2513,2520,2528,2535,2543,2550,2558,2607,2615,2664,2672,2679,2740,2748,2755,2772,2789,2819,2844,2852,2859,2876,2893,2910,2927,2944,2975,2983,3004,3011,3019,3026,3159,3166,3173,3205,3213,3228],{"type":41,"content":2385},[2386],{"text":44,"type":45,"marks":2387},[2388,2390],{"type":48,"attrs":2389},{"class":50},{"type":52,"attrs":2391},{"color":54},{"type":41,"content":2393},[2394,2399,2405],{"text":2395,"type":45,"marks":2396},"Launching a new business can be both exciting and fulfilling, but it’s not always easy to secure the funding you may need. Small business loans are one option, but they can be tricky to get. If that’s been your experience, you may find yourself wondering — s",[2397],{"type":52,"attrs":2398},{"color":54},{"text":2400,"type":45,"marks":2401},"hould I take out a personal loan to start a business?",[2402,2403],{"type":333},{"type":52,"attrs":2404},{"color":54},{"text":2406,"type":45,"marks":2407}," The answer is a little complicated. Here’s when it’s wise to take out a personal loan for business, and the key aspects to consider before you do so. ",[2408],{"type":52,"attrs":2409},{"color":54},{"type":89,"attrs":2411,"content":2412},{"level":91},[2413],{"text":2414,"type":45,"marks":2415},"Can I use a personal loan to start a business?",[2416],{"type":52,"attrs":2417},{"color":54},{"type":41,"content":2419},[2420,2425,2433],{"text":2421,"type":45,"marks":2422},"The short answer is that, yes, some lenders allow small business owners to use ",[2423],{"type":52,"attrs":2424},{"color":54},{"text":2426,"type":45,"marks":2427},"personal loans",[2428,2430,2432],{"type":66,"attrs":2429},{"href":68,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":2431},{"color":54},{"type":75},{"text":2434,"type":45,"marks":2435}," to kickstart a new business. Getting a personal loan is often quick and easy, and this approach allows you to secure funds based on personal creditworthiness rather than having to provide proof of your business history or assets. ",[2436],{"type":52,"attrs":2437},{"color":54},{"type":41,"content":2439},[2440],{"text":2441,"type":45,"marks":2442},"However, using a personal loan in this way involves merging your personal finances with your business finances. If your business faces challenges, you’ll also see your personal credit report take a hit. Also keep in mind that some lenders put restrictions on the way you can use personal loan funds. Not all financial institutions allow borrowers to use personal loans for commercial or business purposes. Be sure to review the loan terms beforehand to make certain. ",[2443],{"type":52,"attrs":2444},{"color":54},{"type":89,"attrs":2446,"content":2447},{"level":91},[2448],{"text":2449,"type":45,"marks":2450},"Business loans vs. personal loans: what’s the difference? ",[2451],{"type":52,"attrs":2452},{"color":54},{"type":41,"content":2454},[2455],{"text":2456,"type":45,"marks":2457},"With both personal and business loans, you’ll get a lump sum of cash, which you’ll then pay back over time with interest. However, there are key differences between each type of loan. ",[2458],{"type":52,"attrs":2459},{"color":54},{"type":89,"attrs":2461,"content":2462},{"level":146},[2463],{"text":2464,"type":45,"marks":2465},"Purpose",[2466],{"type":52,"attrs":2467},{"color":54},{"type":41,"content":2469},[2470],{"text":2471,"type":45,"marks":2472},"Personal loans are typically used for personal expenses like debt consolidation, home improvements, or major purchases. On the other hand, business loans are specifically designed to finance business-related expenses such as startup costs, equipment purchases, or working capital.",[2473],{"type":52,"attrs":2474},{"color":54},{"type":89,"attrs":2476,"content":2477},{"level":146},[2478],{"text":2479,"type":45,"marks":2480},"Qualification requirements",[2481],{"type":52,"attrs":2482},{"color":54},{"type":41,"content":2484},[2485],{"text":2486,"type":45,"marks":2487},"Personal loans are generally based on an individual's personal credit history, income, and debt-to-income ratio. In contrast, business loans take into account the creditworthiness and financial history of the business itself, including factors like business credit score, revenue, and length of time in operation.",[2488],{"type":52,"attrs":2489},{"color":54},{"type":89,"attrs":2491,"content":2492},{"level":146},[2493],{"text":2494,"type":45,"marks":2495},"Loan terms and amounts",[2496],{"type":52,"attrs":2497},{"color":54},{"type":41,"content":2499},[2500],{"text":2501,"type":45,"marks":2502},"Business loans typically offer higher loan amounts and longer repayment terms compared to personal loans, allowing businesses to access more substantial funding over an extended period. Personal loans, on the other hand, usually have smaller loan amounts and shorter repayment terms.",[2503],{"type":52,"attrs":2504},{"color":54},{"type":89,"attrs":2506,"content":2507},{"level":146},[2508],{"text":2509,"type":45,"marks":2510},"Interest rates and fees",[2511],{"type":52,"attrs":2512},{"color":54},{"type":41,"content":2514},[2515],{"text":2516,"type":45,"marks":2517},"Business loans may have lower interest rates than personal loans due to the reduced risk associated with a business's higher revenue potential. Also, business loans may come with specific fees related to business operations or loan administration. Personal loans, on the other hand, may have higher interest rates and fees due to the higher risk associated with individual borrowers.",[2518],{"type":52,"attrs":2519},{"color":54},{"type":89,"attrs":2521,"content":2522},{"level":146},[2523],{"text":2524,"type":45,"marks":2525},"Liability",[2526],{"type":52,"attrs":2527},{"color":54},{"type":41,"content":2529},[2530],{"text":2531,"type":45,"marks":2532},"When borrowing a business loan, the business is typically held responsible for repayment. This means that if the business is unable to repay the loan, the lender's recourse is limited to the business's assets. In contrast, with a personal loan, the borrower is personally liable, and both personal assets and credit can be at risk in case of default.",[2533],{"type":52,"attrs":2534},{"color":54},{"type":89,"attrs":2536,"content":2537},{"level":91},[2538],{"text":2539,"type":45,"marks":2540},"Pros and cons of using a personal loan to start a business",[2541],{"type":52,"attrs":2542},{"color":54},{"type":41,"content":2544},[2545],{"text":2546,"type":45,"marks":2547},"Deciding whether to use a personal loan to start a business requires careful consideration of the advantages and disadvantages. Here are some factors to consider:",[2548],{"type":52,"attrs":2549},{"color":54},{"type":89,"attrs":2551,"content":2552},{"level":146},[2553],{"text":2554,"type":45,"marks":2555},"Pros of using a personal loan for starting a business:",[2556],{"type":52,"attrs":2557},{"color":54},{"type":785,"attrs":2559,"content":2561},{"order":2560},{"order":787},[2562,2577,2592],{"type":102,"content":2563},[2564],{"type":41,"content":2565},[2566,2572],{"text":2567,"type":45,"marks":2568},"Accessibility",[2569,2570],{"type":251},{"type":52,"attrs":2571},{"color":54},{"text":2573,"type":45,"marks":2574},": Personal loans may be easier to obtain than traditional business loans, especially for individuals who don't have an established business or business credit history.",[2575],{"type":52,"attrs":2576},{"color":54},{"type":102,"content":2578},[2579],{"type":41,"content":2580},[2581,2587],{"text":2582,"type":45,"marks":2583},"Flexibility",[2584,2585],{"type":251},{"type":52,"attrs":2586},{"color":54},{"text":2588,"type":45,"marks":2589},": Personal loans can generally be used for any purpose, including starting a business. This provides you with the flexibility to allocate the funds as needed for various business expenses.",[2590],{"type":52,"attrs":2591},{"color":54},{"type":102,"content":2593},[2594],{"type":41,"content":2595},[2596,2602],{"text":2597,"type":45,"marks":2598},"Speed",[2599,2600],{"type":251},{"type":52,"attrs":2601},{"color":54},{"text":2603,"type":45,"marks":2604},": When applying for a personal loan, it’s not unusual to be approved in a single business day. On the other hand, a U.S. Small Business Administration or SBA loan, for example, can take as little as 10-14 days, or as long as 60-90 days to be approved for. ",[2605],{"type":52,"attrs":2606},{"color":54},{"type":89,"attrs":2608,"content":2609},{"level":146},[2610],{"text":2611,"type":45,"marks":2612},"Cons of using a personal loan for starting a business:",[2613],{"type":52,"attrs":2614},{"color":54},{"type":785,"attrs":2616,"content":2618},{"order":2617},{"order":787},[2619,2634,2649],{"type":102,"content":2620},[2621],{"type":41,"content":2622},[2623,2629],{"text":2624,"type":45,"marks":2625},"Personal liability: ",[2626,2627],{"type":251},{"type":52,"attrs":2628},{"color":54},{"text":2630,"type":45,"marks":2631},"When you use a personal loan for business purposes, you are personally responsible for the debt. This means that if your business fails, you are still obligated to repay the loan using your personal assets.",[2632],{"type":52,"attrs":2633},{"color":54},{"type":102,"content":2635},[2636],{"type":41,"content":2637},[2638,2644],{"text":2639,"type":45,"marks":2640},"Higher interest rates:",[2641,2642],{"type":251},{"type":52,"attrs":2643},{"color":54},{"text":2645,"type":45,"marks":2646}," Though you might be eligible for a low-rate personal loan, in general, business loans have lower interest rates. Taking out a personal loan to start a business can increase the overall cost of borrowing.",[2647],{"type":52,"attrs":2648},{"color":54},{"type":102,"content":2650},[2651],{"type":41,"content":2652},[2653,2659],{"text":2654,"type":45,"marks":2655},"Limited loan amounts:",[2656,2657],{"type":251},{"type":52,"attrs":2658},{"color":54},{"text":2660,"type":45,"marks":2661}," Personal loans don’t usually provide the same level of funding as business loans. Depending on the lender, you may be limited in the amount you can borrow, which could impact your ability to fully finance your business needs. ",[2662],{"type":52,"attrs":2663},{"color":54},{"type":89,"attrs":2665,"content":2666},{"level":91},[2667],{"text":2668,"type":45,"marks":2669},"When does it make sense to borrow a personal loan instead of a business loan?",[2670],{"type":52,"attrs":2671},{"color":54},{"type":41,"content":2673},[2674],{"text":2675,"type":45,"marks":2676},"Taking out a personal loan instead of a business loan can make sense in these situations:",[2677],{"type":52,"attrs":2678},{"color":54},{"type":99,"content":2680},[2681,2696,2725],{"type":102,"content":2682},[2683],{"type":41,"content":2684},[2685,2691],{"text":2686,"type":45,"marks":2687},"You have limited business history:",[2688,2689],{"type":251},{"type":52,"attrs":2690},{"color":54},{"text":2692,"type":45,"marks":2693}," If your business is in its early stages or lacks an established credit history, it may be challenging to secure a small business loan. In such cases, a personal loan might be more accessible.",[2694],{"type":52,"attrs":2695},{"color":54},{"type":102,"content":2697},[2698],{"type":41,"content":2699},[2700,2706,2711,2720],{"text":2701,"type":45,"marks":2702},"You have strong personal credit: ",[2703,2704],{"type":251},{"type":52,"attrs":2705},{"color":54},{"text":2707,"type":45,"marks":2708},"If you have an excellent personal credit score, but your business has relatively ",[2709],{"type":52,"attrs":2710},{"color":54},{"text":2712,"type":45,"marks":2713},"bad credit",[2714,2717,2719],{"type":66,"attrs":2715},{"href":2716,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.sba.gov/business-guide/plan-your-business/establish-business-credit",{"type":52,"attrs":2718},{"color":54},{"type":75},{"text":2721,"type":45,"marks":2722},", lenders may be more willing to extend a personal loan than a business loan. ",[2723],{"type":52,"attrs":2724},{"color":54},{"type":102,"content":2726},[2727],{"type":41,"content":2728},[2729,2735],{"text":2730,"type":45,"marks":2731},"You need to move fast:",[2732,2733],{"type":251},{"type":52,"attrs":2734},{"color":54},{"text":2736,"type":45,"marks":2737}," Personal loans, which are often available through nimble online lenders, often require less documentation and have quicker approval processes than business loans. That makes personal loans ideal for businesses operating on tight timelines. ",[2738],{"type":52,"attrs":2739},{"color":54},{"type":89,"attrs":2741,"content":2742},{"level":91},[2743],{"text":2744,"type":45,"marks":2745},"What do you need to qualify for a personal loan?",[2746],{"type":52,"attrs":2747},{"color":54},{"type":41,"content":2749},[2750],{"text":2751,"type":45,"marks":2752},"Specific eligibility requirements can vary among lenders. That said, you’ll likely need to have these things to secure a personal loan: ",[2753],{"type":52,"attrs":2754},{"color":54},{"type":99,"content":2756},[2757],{"type":102,"content":2758},[2759],{"type":41,"content":2760},[2761,2767],{"text":2762,"type":45,"marks":2763},"Good credit history:",[2764,2765],{"type":251},{"type":52,"attrs":2766},{"color":54},{"text":2768,"type":45,"marks":2769}," Personal loan lenders will issue a credit check before approving a loan. If you have a good credit score, you’ll have better chances of qualifying for a personal loan and may qualify for better interest rates. ",[2770],{"type":52,"attrs":2771},{"color":54},{"type":99,"content":2773},[2774],{"type":102,"content":2775},[2776],{"type":41,"content":2777},[2778,2784],{"text":2779,"type":45,"marks":2780},"Stable income: ",[2781,2782],{"type":251},{"type":52,"attrs":2783},{"color":54},{"text":2785,"type":45,"marks":2786},"Lenders typically look for a consistent and stable source of income. This assures them you have the financial capacity to repay the loan. ",[2787],{"type":52,"attrs":2788},{"color":54},{"type":99,"content":2790},[2791],{"type":102,"content":2792},[2793],{"type":41,"content":2794},[2795,2801,2806,2814],{"text":2796,"type":45,"marks":2797},"Low debt-to-income ratio: ",[2798,2799],{"type":251},{"type":52,"attrs":2800},{"color":54},{"text":2802,"type":45,"marks":2803},"The ",[2804],{"type":52,"attrs":2805},{"color":54},{"text":2807,"type":45,"marks":2808},"debt-to-income (DTI) ratio",[2809,2811,2813],{"type":66,"attrs":2810},{"href":666,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":2812},{"color":54},{"type":75},{"text":2815,"type":45,"marks":2816}," is the percentage of an individual’s gross monthly income allocated to debt repayment. A lower DTI indicates that you have sufficient income to cover your existing debts, along with the new loan. ",[2817],{"type":52,"attrs":2818},{"color":54},{"type":99,"content":2820},[2821],{"type":102,"content":2822},[2823],{"type":41,"content":2824},[2825,2831,2839],{"text":2826,"type":45,"marks":2827},"Collateral: ",[2828,2829],{"type":251},{"type":52,"attrs":2830},{"color":54},{"text":2832,"type":45,"marks":2833},"Secured loans",[2834,2836,2838],{"type":66,"attrs":2835},{"href":165,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":2837},{"color":54},{"type":75},{"text":2840,"type":45,"marks":2841}," may require you to put up collateral, such as a vehicle or savings account, to back the loan and reduce the risk for the lender. But if you go with an unsecured personal loan option, you shouldn’t need collateral. ",[2842],{"type":52,"attrs":2843},{"color":54},{"type":89,"attrs":2845,"content":2846},{"level":91},[2847],{"text":2848,"type":45,"marks":2849},"What do you need to qualify for a business loan?",[2850],{"type":52,"attrs":2851},{"color":54},{"type":41,"content":2853},[2854],{"text":2855,"type":45,"marks":2856},"If you meet the following eligibility criteria, you’ll likely qualify for a business loan: ",[2857],{"type":52,"attrs":2858},{"color":54},{"type":99,"content":2860},[2861],{"type":102,"content":2862},[2863],{"type":41,"content":2864},[2865,2871],{"text":2866,"type":45,"marks":2867},"Business plan: ",[2868,2869],{"type":251},{"type":52,"attrs":2870},{"color":54},{"text":2872,"type":45,"marks":2873},"Lenders often require a detailed business plan outlining your business model, target market, financial projections, and operational plans. ",[2874],{"type":52,"attrs":2875},{"color":54},{"type":99,"content":2877},[2878],{"type":102,"content":2879},[2880],{"type":41,"content":2881},[2882,2888],{"text":2883,"type":45,"marks":2884},"Good credit history: ",[2885,2886],{"type":251},{"type":52,"attrs":2887},{"color":54},{"text":2889,"type":45,"marks":2890},"As with personal loans, a good credit history is crucial. Both the business and the business owner’s credit may be evaluated. ",[2891],{"type":52,"attrs":2892},{"color":54},{"type":99,"content":2894},[2895],{"type":102,"content":2896},[2897],{"type":41,"content":2898},[2899,2905],{"text":2900,"type":45,"marks":2901},"Financial statements:",[2902,2903],{"type":251},{"type":52,"attrs":2904},{"color":54},{"text":2906,"type":45,"marks":2907}," You may need to submit your business’s financial statements — including income statements, balance sheets, and cash flow statements — to establish its financial health. ",[2908],{"type":52,"attrs":2909},{"color":54},{"type":99,"content":2911},[2912],{"type":102,"content":2913},[2914],{"type":41,"content":2915},[2916,2922],{"text":2917,"type":45,"marks":2918},"Collateral:",[2919,2920],{"type":251},{"type":52,"attrs":2921},{"color":54},{"text":2923,"type":45,"marks":2924}," Secured business loans may require collateral — such as business assets, real estate, or personal assets — to back the loan. ",[2925],{"type":52,"attrs":2926},{"color":54},{"type":99,"content":2928},[2929],{"type":102,"content":2930},[2931],{"type":41,"content":2932},[2933,2939],{"text":2934,"type":45,"marks":2935},"Stability: ",[2936,2937],{"type":251},{"type":52,"attrs":2938},{"color":54},{"text":2940,"type":45,"marks":2941},"Lenders often prefer businesses with a track record of stability and financial performance. As a result, it can be harder to secure funding for startups than for established businesses.",[2942],{"type":52,"attrs":2943},{"color":54},{"type":99,"content":2945},[2946],{"type":102,"content":2947},[2948],{"type":41,"content":2949},[2950,2956,2961,2970],{"text":2951,"type":45,"marks":2952},"Personal guarantees: ",[2953,2954],{"type":251},{"type":52,"attrs":2955},{"color":54},{"text":2957,"type":45,"marks":2958},"Entrepreneurs may need to ",[2959],{"type":52,"attrs":2960},{"color":54},{"text":2962,"type":45,"marks":2963},"provide personal guarantees",[2964,2967,2969],{"type":66,"attrs":2965},{"href":2966,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.business.org/finance/loans/what-is-a-personal-guarantee/",{"type":52,"attrs":2968},{"color":54},{"type":75},{"text":2971,"type":45,"marks":2972},", especially for small businesses or startups, making them personally responsible for the loan. ",[2973],{"type":52,"attrs":2974},{"color":54},{"type":89,"attrs":2976,"content":2977},{"level":91},[2978],{"text":2979,"type":45,"marks":2980},"Are personal loans for business tax-deductible?",[2981],{"type":52,"attrs":2982},{"color":54},{"type":41,"content":2984},[2985,2990,2999],{"text":2986,"type":45,"marks":2987},"If you take out a loan for business-related costs, the monthly payments are not tax deductible, but ",[2988],{"type":52,"attrs":2989},{"color":54},{"text":2991,"type":45,"marks":2992},"the loan interest is",[2993,2996,2998],{"type":66,"attrs":2994},{"href":2995,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.sba.gov/blog/5-tax-rules-deducting-interest-payments",{"type":52,"attrs":2997},{"color":54},{"type":75},{"text":3000,"type":45,"marks":3001},". This applies not only to large businesses but also to freelancers or consultants with side gigs. ",[3002],{"type":52,"attrs":3003},{"color":54},{"type":41,"content":3005},[3006],{"text":3007,"type":45,"marks":3008},"For instance, paying interest on a loan used to buy supplies to create a product or furnish a rental property could be considered a business expense. Therefore, you can deduct it from your taxes. Keep in mind that if you use a personal loan for both personal and business needs, you can only deduct the interest related to the business portion. ",[3009],{"type":52,"attrs":3010},{"color":54},{"type":89,"attrs":3012,"content":3013},{"level":91},[3014],{"text":3015,"type":45,"marks":3016},"Alternative funding sources for starting a business",[3017],{"type":52,"attrs":3018},{"color":54},{"type":41,"content":3020},[3021],{"text":3022,"type":45,"marks":3023},"To avoid relying solely on loans, consider these funding options for your business: ",[3024],{"type":52,"attrs":3025},{"color":54},{"type":99,"content":3027},[3028,3043,3084,3099,3114,3129,3144],{"type":102,"content":3029},[3030],{"type":41,"content":3031},[3032,3038],{"text":3033,"type":45,"marks":3034},"Bootstrapping: ",[3035,3036],{"type":251},{"type":52,"attrs":3037},{"color":54},{"text":3039,"type":45,"marks":3040},"This is the classic DIY approach. It involves using your own savings and any revenue generated by the business to fund its growth. This way, you maintain full control without accumulating debt.",[3041],{"type":52,"attrs":3042},{"color":54},{"type":102,"content":3044},[3045],{"type":41,"content":3046},[3047,3053,3058,3065,3070,3079],{"text":3048,"type":45,"marks":3049},"Business credit cards or lines of credit:",[3050,3051],{"type":251},{"type":52,"attrs":3052},{"color":54},{"text":3054,"type":45,"marks":3055}," Like other ",[3056],{"type":52,"attrs":3057},{"color":54},{"text":2181,"type":45,"marks":3059},[3060,3062,3064],{"type":66,"attrs":3061},{"href":2185,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":3063},{"color":54},{"type":75},{"text":3066,"type":45,"marks":3067},", business credit cards offer a revolving credit line that allow you to make purchases up to a predetermined limit. That makes them ideal for day-to-day expenses. A business line of credit is a similar product, often available through banks and credit unions. A ",[3068],{"type":52,"attrs":3069},{"color":54},{"text":3071,"type":45,"marks":3072},"line of credit",[3073,3076,3078],{"type":66,"attrs":3074},{"href":3075,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.debt.org/credit/lines/",{"type":52,"attrs":3077},{"color":54},{"type":75},{"text":3080,"type":45,"marks":3081}," gives you access to a set amount of capital that you can draw upon when needed.",[3082],{"type":52,"attrs":3083},{"color":54},{"type":102,"content":3085},[3086],{"type":41,"content":3087},[3088,3094],{"text":3089,"type":45,"marks":3090},"Angel investors: ",[3091,3092],{"type":251},{"type":52,"attrs":3093},{"color":54},{"text":3095,"type":45,"marks":3096},"Some individuals are interested in investing their money in promising startups. These “angel investors” often provide valuable mentorship and industry connections as well as capital. ",[3097],{"type":52,"attrs":3098},{"color":54},{"type":102,"content":3100},[3101],{"type":41,"content":3102},[3103,3109],{"text":3104,"type":45,"marks":3105},"Venture capital: ",[3106,3107],{"type":251},{"type":52,"attrs":3108},{"color":54},{"text":3110,"type":45,"marks":3111},"Aimed at high-growth startups, venture capital is a type of funding available from investment firms looking for substantial returns. In exchange for the cash injection, these firms typically take an equity stake in your business. ",[3112],{"type":52,"attrs":3113},{"color":54},{"type":102,"content":3115},[3116],{"type":41,"content":3117},[3118,3124],{"text":3119,"type":45,"marks":3120},"Crowdfunding: ",[3121,3122],{"type":251},{"type":52,"attrs":3123},{"color":54},{"text":3125,"type":45,"marks":3126},"It’s becoming more and more popular to use online platforms to raise small amounts of money from large numbers of people. It’s an excellent way to validate your business idea and build a community around it.",[3127],{"type":52,"attrs":3128},{"color":54},{"type":102,"content":3130},[3131],{"type":41,"content":3132},[3133,3139],{"text":3134,"type":45,"marks":3135},"Grants: ",[3136,3137],{"type":251},{"type":52,"attrs":3138},{"color":54},{"text":3140,"type":45,"marks":3141},"Some government agencies, non-profits, and corporations offer grants to support specific industries and types of businesses. Grants typically come with fewer strings attached than other financing options. ",[3142],{"type":52,"attrs":3143},{"color":54},{"type":102,"content":3145},[3146],{"type":41,"content":3147},[3148,3154],{"text":3149,"type":45,"marks":3150},"Small business competitions:",[3151,3152],{"type":251},{"type":52,"attrs":3153},{"color":54},{"text":3155,"type":45,"marks":3156}," Many organizations and universities organize competitions where startups pitch their ideas. Winners often gain access to cash prizes or business support services. ",[3157],{"type":52,"attrs":3158},{"color":54},{"type":89,"attrs":3160,"content":3161},{"level":91},[3162],{"text":2323,"type":45,"marks":3163},[3164],{"type":52,"attrs":3165},{"color":54},{"type":41,"content":3167},[3168],{"text":3169,"type":45,"marks":3170},"Having enough capital to operate and market your business can be the difference between success and failure. A personal loan can help you meet your business financing needs in the early days before the profits start rolling in. ",[3171],{"type":52,"attrs":3172},{"color":54},{"type":41,"content":3174},[3175,3180,3187,3192,3200],{"text":3176,"type":45,"marks":3177},"With Navient Marketplace",[3178],{"type":52,"attrs":3179},{"color":54},{"text":1752,"type":45,"marks":3181},[3182,3184,3185],{"type":48,"attrs":3183},{"class":1756},{"type":1756},{"type":52,"attrs":3186},{"color":54},{"text":3188,"type":45,"marks":3189},", you can compare lenders for free all in one place. Just enter a few details about yourself and get personalized results from lenders in minutes. ",[3190],{"type":52,"attrs":3191},{"color":54},{"text":3193,"type":45,"marks":3194},"Create a profile today",[3195,3197,3199],{"type":66,"attrs":3196},{"href":709,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":3198},{"color":54},{"type":75},{"text":3201,"type":45,"marks":3202}," to discover how we can help you with your business needs. ",[3203],{"type":52,"attrs":3204},{"color":54},{"type":41,"content":3206},[3207],{"text":959,"type":45,"marks":3208},[3209,3211],{"type":48,"attrs":3210},{"class":50},{"type":52,"attrs":3212},{"color":54},{"type":41,"content":3214},[3215,3221],{"text":1752,"type":45,"marks":3216},[3217,3219],{"type":48,"attrs":3218},{"class":1756},{"type":52,"attrs":3220},{"color":54},{"text":3222,"type":45,"marks":3223}," 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.",[3224,3226],{"type":48,"attrs":3225},{"class":50},{"type":52,"attrs":3227},{"color":54},{"type":41,"content":3229},[3230],{"text":977,"type":45,"marks":3231},[3232,3234],{"type":48,"attrs":3233},{"class":50},{"type":52,"attrs":3235},{"color":54},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798152\"}-->","https://www.marketplace.navient.com/blog/should-i-take-out-a-personal-loan-to-start-a-business/","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"39f3568e-f888-4c3e-816f-3647f7efec59\", \"id\": \"651798152\"}-->","should-i-take-out-a-personal-loan-to-start-a-business","navient_marketplace/blog/should-i-take-out-a-personal-loan-to-start-a-business",[],"95cb7418-fbc0-4ed1-b87c-fd1f9867ea9d","/blog/should-i-take-out-a-personal-loan-to-start-a-business/",[],{"name":3246,"created_at":3247,"published_at":3248,"updated_at":3249,"id":3250,"uuid":3251,"content":3252,"slug":4031,"full_slug":4032,"sort_by_date":69,"position":990,"tag_list":4033,"is_startpage":28,"parent_id":992,"meta_data":69,"group_id":4034,"first_published_at":4035,"release_id":69,"lang":995,"path":4036,"alternates":4037,"default_full_slug":69,"translated_slugs":69},"What is Buy Now, Pay Later?","2025-04-07T18:30:07.668Z","2025-12-26T13:45:01.530Z","2025-12-26T13:45:01.570Z",651798150,"eab77288-c488-4f12-933d-e7418a976d9d",{"seo":3253,"_uid":20,"hero":3256,"author":30,"category":3261,"featured":28,"imageAlt":18,"component":32,"blogContents":3262,"canonicalTag":4028,"publishedDate":4029,"_editable":4030},{"_uid":15,"title":3254,"plugin":17,"og_image":18,"og_title":18,"description":3255,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"What is Buy Now, Pay Later? | Navient Marketplace","Buy Now, Pay Later allows you to defer payment over a certain time period. Here’s how to make an informed financial choice the next time you shop.",[3257],{"id":18,"_uid":23,"image":3258,"intro":3255,"classes":18,"_editable":3259,"blogTitle":3246,"component":26,"imageLink":3260,"blendImage":28,"backgroundColor":29},"//a.storyblok.com/f/110029/1280x853/8e94adc89b/what-is-buy-now-pay-later.png","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798150\"}-->","/images/what-is-buy-now-pay-later.png","Finance 101",[3263],{"_uid":35,"color":36,"richText":3264,"_editable":4027,"component":984},{"type":38,"content":3265},[3266,3273,3294,3302,3309,3316,3323,3331,3338,3345,3352,3359,3367,3374,3382,3390,3397,3405,3412,3420,3427,3435,3443,3450,3458,3465,3473,3480,3488,3515,3523,3544,3552,3559,3567,3588,3595,3602,3609,3617,3624,3686,3694,3701,3718,3735,3752,3769,3786,3803,3820,3828,3835,3842,3888,3896,3918,3925,3945,3952,3959,3984,3992,4001,4010,4019],{"type":41,"content":3267},[3268],{"text":3269,"type":45,"marks":3270},"Given the rising cost of living, you may have begun to find some necessary purchases out of reach. To help alleviate that burden, Buy Now, Pay Later (BNPL) has emerged as a popular alternative to traditional payment methods. ",[3271],{"type":52,"attrs":3272},{"color":54},{"type":41,"content":3274},[3275,3280,3289],{"text":3276,"type":45,"marks":3277},"In fact, as as many as ",[3278],{"type":52,"attrs":3279},{"color":54},{"text":3281,"type":45,"marks":3282},"42% of American consumers",[3283,3286,3288],{"type":66,"attrs":3284},{"href":3285,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.consumerfinance.gov/about-us/blog/should-you-buy-now-and-pay-later/",{"type":52,"attrs":3287},{"color":54},{"type":75},{"text":3290,"type":45,"marks":3291}," say they’ve used BNPL at least once. While BNPL offers flexibility and convenience, it’s important to understand the mechanisms, benefits, and potential drawbacks to this payment method. Here’s how to make an informed financial choice the next time you shop.",[3292],{"type":52,"attrs":3293},{"color":54},{"type":89,"attrs":3295,"content":3296},{"level":91},[3297],{"text":3298,"type":45,"marks":3299},"What is Buy Now, Pay Later (BNPL)?",[3300],{"type":52,"attrs":3301},{"color":54},{"type":41,"content":3303},[3304],{"text":3305,"type":45,"marks":3306},"Buy Now, Pay Later (BNPL) is a payment method that allows consumers to defer payment over a certain time period. With BNPL, you can acquire a product or service immediately, then pay for it in a series of installments spread over several weeks or months. ",[3307],{"type":52,"attrs":3308},{"color":54},{"type":41,"content":3310},[3311],{"text":3312,"type":45,"marks":3313},"Often, these installments can be made interest-free. This approach offers flexibility and convenience in managing your finances while giving you immediate access to the things you need. ",[3314],{"type":52,"attrs":3315},{"color":54},{"type":41,"content":3317},[3318],{"text":3319,"type":45,"marks":3320},"Many retailers now offer BNPL options during checkout. Before you click that button, though, make sure you understand the terms, fees, and payment schedules, as these can change from vendor to vendor.",[3321],{"type":52,"attrs":3322},{"color":54},{"type":89,"attrs":3324,"content":3325},{"level":91},[3326],{"text":3327,"type":45,"marks":3328},"How does Buy Now, Pay Later work?",[3329],{"type":52,"attrs":3330},{"color":54},{"type":41,"content":3332},[3333],{"text":3334,"type":45,"marks":3335},"The Buy Now, Pay Later (BNPL) process is fairly simple. Instead of paying the total cost upfront at checkout, you’ll enter your information into the retailer’s BNPL platform. ",[3336],{"type":52,"attrs":3337},{"color":54},{"type":41,"content":3339},[3340],{"text":3341,"type":45,"marks":3342},"Then, the platform will split your total payment into equal weekly, bi-weekly, or monthly payments, depending on the provider. You’ll pay the first installment when you make the purchase and the remaining installments over a predetermined time period. Some BNPL services may also offer extended plans for larger purchases. ",[3343],{"type":52,"attrs":3344},{"color":54},{"type":41,"content":3346},[3347],{"text":3348,"type":45,"marks":3349},"To use BNPL, you’ll typically need to sign up with a BNPL provider or partner at the point of sale. You may also need to create an account linked to your payment details. Approval is often quick and doesn’t require extensive credit checks, making it accessible to a wide range of shoppers. ",[3350],{"type":52,"attrs":3351},{"color":54},{"type":41,"content":3353},[3354],{"text":3355,"type":45,"marks":3356},"Few BNPL platforms charge interest. However, if you miss a payment, you could incur late fees and take a hit to your credit score. Whenever you choose to use BNPL, staying on top of your payments is absolutely critical.",[3357],{"type":52,"attrs":3358},{"color":54},{"type":89,"attrs":3360,"content":3361},{"level":91},[3362],{"text":3363,"type":45,"marks":3364},"The pros and cons of Buy Now, Pay Later ",[3365],{"type":52,"attrs":3366},{"color":54},{"type":41,"content":3368},[3369],{"text":3370,"type":45,"marks":3371},"BNPL has recently gained traction as a convenient payment option, but it’s not without its drawbacks. Here are the key pros and cons of Buy Now, Pay Later. ",[3372],{"type":52,"attrs":3373},{"color":54},{"type":89,"attrs":3375,"content":3376},{"level":146},[3377],{"text":3378,"type":45,"marks":3379},"Pros of BNPL",[3380],{"type":52,"attrs":3381},{"color":54},{"type":89,"attrs":3383,"content":3384},{"level":234},[3385],{"text":3386,"type":45,"marks":3387},"Convenient and Flexible",[3388],{"type":52,"attrs":3389},{"color":54},{"type":41,"content":3391},[3392],{"text":3393,"type":45,"marks":3394},"The biggest advantage of BNPL is its convenience and flexibility. Customers can purchase products they want without worrying about upfront payment or high interest rates. With the option to pay in installments over time, Buy Now, Pay Later plans can make pricey purchases more manageable for people on a tight budget.",[3395],{"type":52,"attrs":3396},{"color":54},{"type":89,"attrs":3398,"content":3399},{"level":234},[3400],{"text":3401,"type":45,"marks":3402},"No Interest or Hidden Fees",[3403],{"type":52,"attrs":3404},{"color":54},{"type":41,"content":3406},[3407],{"text":3408,"type":45,"marks":3409},"Another benefit of Buy Now, Pay Later loans is that they often come with 0% interest rates or hidden fees (though this varies based on provider). This makes it easier for shoppers to budget their expenses, knowing the exact amount they’ll pay without any extra charges.",[3410],{"type":52,"attrs":3411},{"color":54},{"type":89,"attrs":3413,"content":3414},{"level":234},[3415],{"text":3416,"type":45,"marks":3417},"Boosts sales for merchants ",[3418],{"type":52,"attrs":3419},{"color":54},{"type":41,"content":3421},[3422],{"text":3423,"type":45,"marks":3424},"BNPL can also benefit merchants and businesses. Offering this payment option enables merchants to potentially boost sales and increase their customer base. Customers who may not have been able to make an upfront payment can now pay for the product in manageable installments.",[3425],{"type":52,"attrs":3426},{"color":54},{"type":89,"attrs":3428,"content":3429},{"level":146},[3430],{"text":3431,"type":45,"marks":3432},"Cons of BNPL",[3433],{"type":52,"attrs":3434},{"color":54},{"type":89,"attrs":3436,"content":3437},{"level":234},[3438],{"text":3439,"type":45,"marks":3440},"Risk of overspending",[3441],{"type":52,"attrs":3442},{"color":54},{"type":41,"content":3444},[3445],{"text":3446,"type":45,"marks":3447},"One of the biggest issues with BNPL is the risk of overspending. When you’re not paying for your purchases upfront, there’s a possibility of losing track of expenses and exceeding your budget. This could add stress and difficulty to your financial situation. ",[3448],{"type":52,"attrs":3449},{"color":54},{"type":89,"attrs":3451,"content":3452},{"level":234},[3453],{"text":3454,"type":45,"marks":3455},"Potential for debt",[3456],{"type":52,"attrs":3457},{"color":54},{"type":41,"content":3459},[3460],{"text":3461,"type":45,"marks":3462},"The convenience of BNPL can be misleading and may lead to an accumulation of debt if you’re not careful. Failure to pay required installment payments on time could lead to late fees and penalties, and ultimately hurt your credit score.",[3463],{"type":52,"attrs":3464},{"color":54},{"type":89,"attrs":3466,"content":3467},{"level":234},[3468],{"text":3469,"type":45,"marks":3470},"Approval criteria varies",[3471],{"type":52,"attrs":3472},{"color":54},{"type":41,"content":3474},[3475],{"text":3476,"type":45,"marks":3477},"Though you may be eligible even if you have bad credit, the BNPL provider could perform a soft credit check and choose not to allow you this payment option if you don’t meet their criteria. This is entirely dependent on the provider, so you may qualify in some cases but not in others. ",[3478],{"type":52,"attrs":3479},{"color":54},{"type":89,"attrs":3481,"content":3482},{"level":234},[3483],{"text":3484,"type":45,"marks":3485},"Some BNPL companies charge high interest rates and fees",[3486],{"type":52,"attrs":3487},{"color":54},{"type":41,"content":3489},[3490,3495,3502,3510],{"text":3491,"type":45,"marks":3492},"The popular “pay-in-four” model, which splits your purchase into four equal payments,",[3493],{"type":52,"attrs":3494},{"color":54},{"text":936,"type":45,"marks":3496},[3497,3500],{"type":66,"attrs":3498},{"href":3499,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://npr.org/2022/06/12/1104460692/who-actually-pays-with-buy-now-pay-later-companies-like-klarna-and-affirm",{"type":52,"attrs":3501},{"color":54},{"text":3503,"type":45,"marks":3504},"doesn't usually charge interest or late fees",[3505,3507,3509],{"type":66,"attrs":3506},{"href":3499,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":3508},{"color":54},{"type":75},{"text":3511,"type":45,"marks":3512},". This is not always true of long-term BNPL plans. So it’s important to make sure you’re clear on your provider’s terms and conditions so you’re not stuck with a nasty surprise bill later. ",[3513],{"type":52,"attrs":3514},{"color":54},{"type":89,"attrs":3516,"content":3517},{"level":234},[3518],{"text":3519,"type":45,"marks":3520},"Lack of consumer protections ",[3521],{"type":52,"attrs":3522},{"color":54},{"type":41,"content":3524},[3525,3530,3539],{"text":3526,"type":45,"marks":3527},"BNPL lenders often fall under different regulatory frameworks than credit card or loan providers. As a result, consumers may be less protected with some BNPL providers than others. A recent Consumer Financial Protection Bureau ",[3528],{"type":52,"attrs":3529},{"color":54},{"text":3531,"type":45,"marks":3532},"study on BNPL",[3533,3536,3538],{"type":66,"attrs":3534},{"href":3535,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.consumerfinance.gov/about-us/newsroom/cfpb-study-details-the-rapid-growth-of-buy-now-pay-later-lending/",{"type":52,"attrs":3537},{"color":54},{"type":75},{"text":3540,"type":45,"marks":3541}," also warns that BNPL users may have limited recourse in case of disputes or fraud.",[3542],{"type":52,"attrs":3543},{"color":54},{"type":89,"attrs":3545,"content":3546},{"level":234},[3547],{"text":3548,"type":45,"marks":3549},"Complicated returns ",[3550],{"type":52,"attrs":3551},{"color":54},{"type":41,"content":3553},[3554],{"text":3555,"type":45,"marks":3556},"If you’ve made partial payments for an item through BNPL and wish to return it, the process isn’t always straightforward. Some merchants or BNPL services may issue refunds directly to your original payment method, whether that’s your bank account or credit card. Others might credit the refunded amount back to your BNPL account, potentially adjusting the subsequent installment payments or reducing the remaining balance owed. ",[3557],{"type":52,"attrs":3558},{"color":54},{"type":89,"attrs":3560,"content":3561},{"level":91},[3562],{"text":3563,"type":45,"marks":3564},"Does Buy Now, Pay Later affect your credit score?",[3565],{"type":52,"attrs":3566},{"color":54},{"type":41,"content":3568},[3569,3574,3583],{"text":3570,"type":45,"marks":3571},"BNPL services typically don’t conduct ",[3572],{"type":52,"attrs":3573},{"color":54},{"text":3575,"type":45,"marks":3576},"hard credit checks",[3577,3580,3582],{"type":66,"attrs":3578},{"href":3579,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.consumerfinance.gov/ask-cfpb/whats-a-credit-inquiry-en-1317/",{"type":52,"attrs":3581},{"color":54},{"type":75},{"text":3584,"type":45,"marks":3585}," when you sign up or make purchases. Instead, they often rely on soft credit checks, which don’t affect your credit. ",[3586],{"type":52,"attrs":3587},{"color":54},{"type":41,"content":3589},[3590],{"text":3591,"type":45,"marks":3592},"However, some BPNL providers may choose to perform hard credit inquiries in specific cases, like granting higher credit limits or when switching you to a different payment plan. These hard inquiries could temporarily drop your credit score. ",[3593],{"type":52,"attrs":3594},{"color":54},{"type":41,"content":3596},[3597],{"text":3598,"type":45,"marks":3599},"In addition, most BNPL services will report late payments or defaults to credit bureaus. This negative reporting will show up on your credit report and could negatively affect your score. Conversely, timely payments might positively impact your credit score if the BNPL provider reports to credit bureaus. ",[3600],{"type":52,"attrs":3601},{"color":54},{"type":41,"content":3603},[3604],{"text":3605,"type":45,"marks":3606},"Be sure to review the terms and conditions of the BNPL service you use to understand if and how they report payment behavior to credit bureaus. This can help you gauge how BNPL usage might affect your credit score. ",[3607],{"type":52,"attrs":3608},{"color":54},{"type":89,"attrs":3610,"content":3611},{"level":91},[3612],{"text":3613,"type":45,"marks":3614},"Should you use Buy Now, Pay Later?",[3615],{"type":52,"attrs":3616},{"color":54},{"type":41,"content":3618},[3619],{"text":3620,"type":45,"marks":3621},"To use BNPL responsibly, you’ll need a firm understanding of your current financial situation and a clear repayment strategy. Here are some things to consider.",[3622],{"type":52,"attrs":3623},{"color":54},{"type":99,"content":3625},[3626,3641,3656,3671],{"type":102,"content":3627},[3628],{"type":41,"content":3629},[3630,3636],{"text":3631,"type":45,"marks":3632},"Nonessential purchases: ",[3633,3634],{"type":251},{"type":52,"attrs":3635},{"color":54},{"text":3637,"type":45,"marks":3638},"BNPL generally isn’t recommended for nonessential purchases. It’s usually wiser to budget carefully, save your money, and purchase the product when you can afford to pay for it upfront. ",[3639],{"type":52,"attrs":3640},{"color":54},{"type":102,"content":3642},[3643],{"type":41,"content":3644},[3645,3651],{"text":3646,"type":45,"marks":3647},"Essential purchases:",[3648,3649],{"type":251},{"type":52,"attrs":3650},{"color":54},{"text":3652,"type":45,"marks":3653}," BNPL can be helpful for essential purchases, like groceries, as long as you’re confident in your ability to make timely payments. With low interest rates, they can be a low-risk alternative to credit cards.",[3654],{"type":52,"attrs":3655},{"color":54},{"type":102,"content":3657},[3658],{"type":41,"content":3659},[3660,3666],{"text":3661,"type":45,"marks":3662},"Interest and fees: ",[3663,3664],{"type":251},{"type":52,"attrs":3665},{"color":54},{"text":3667,"type":45,"marks":3668},"BNPL services don’t often charge interest if payments are made on time. But delayed payments could leave you with fees or interest charges, impacting your overall expenses.",[3669],{"type":52,"attrs":3670},{"color":54},{"type":102,"content":3672},[3673],{"type":41,"content":3674},[3675,3681],{"text":3676,"type":45,"marks":3677},"Credit score: ",[3678,3679],{"type":251},{"type":52,"attrs":3680},{"color":54},{"text":3682,"type":45,"marks":3683},"BNPL can affect your credit score if you miss payments or default. If you’re concerned about credit impacts, consider alternative payment strategies. ",[3684],{"type":52,"attrs":3685},{"color":54},{"type":89,"attrs":3687,"content":3688},{"level":91},[3689],{"text":3690,"type":45,"marks":3691},"Buy Now, Pay Later Apps",[3692],{"type":52,"attrs":3693},{"color":54},{"type":41,"content":3695},[3696],{"text":3697,"type":45,"marks":3698},"Several apps offer Buy Now, Pay Later services, allowing users to make purchases and split payments into manageable installments. Some of the popular BNPL apps include:",[3699],{"type":52,"attrs":3700},{"color":54},{"type":99,"content":3702},[3703],{"type":102,"content":3704},[3705],{"type":41,"content":3706},[3707,3713],{"text":3708,"type":45,"marks":3709},"Afterpay:",[3710,3711],{"type":251},{"type":52,"attrs":3712},{"color":54},{"text":3714,"type":45,"marks":3715}," Afterpay partners with stores like Old Navy and Gap, and provides shoppers with interest-free pay-in-four plans. It also offers six- and 12-month plans with an APR range of 0% to 35.99%. Afterpay charges no fees if payments are on time, but may charge up to $8 for payments made at least 10 days late.",[3716],{"type":52,"attrs":3717},{"color":54},{"type":99,"content":3719},[3720],{"type":102,"content":3721},[3722],{"type":41,"content":3723},[3724,3730],{"text":3725,"type":45,"marks":3726},"Affirm:",[3727,3728],{"type":251},{"type":52,"attrs":3729},{"color":54},{"text":3731,"type":45,"marks":3732}," This app can be used for online purchases from retailers like Amazon and Walmart. Affirm offers flexible payment plans with transparent interest rates and terms. It also offers a zero-interest pay-in-four plan. Monthly plans (of up to 60 months) can charge 0% to 36% APR. However, there are no late fees. ",[3733],{"type":52,"attrs":3734},{"color":54},{"type":99,"content":3736},[3737],{"type":102,"content":3738},[3739],{"type":41,"content":3740},[3741,3747],{"text":3742,"type":45,"marks":3743},"Apple Pay Later: ",[3744,3745],{"type":251},{"type":52,"attrs":3746},{"color":54},{"text":3748,"type":45,"marks":3749},"Pay Later can be used for purchases up to $1,000 online or in-app with zero interest or fees for the pay-in-four plan. You can connect this platform to a debit card and manage it via the Apple Wallet app.",[3750],{"type":52,"attrs":3751},{"color":54},{"type":99,"content":3753},[3754],{"type":102,"content":3755},[3756],{"type":41,"content":3757},[3758,3764],{"text":3759,"type":45,"marks":3760},"Klarna: ",[3761,3762],{"type":251},{"type":52,"attrs":3763},{"color":54},{"text":3765,"type":45,"marks":3766},"Available at both Sephora and Macy’s, Klarna provides a convenient interest-free pay-in-four plan. However, late payments beyond 10 days may result in a fee of up to $7. APR can range from 0% to 29.99%. ",[3767],{"type":52,"attrs":3768},{"color":54},{"type":99,"content":3770},[3771],{"type":102,"content":3772},[3773],{"type":41,"content":3774},[3775,3781],{"text":3776,"type":45,"marks":3777},"Paypal: ",[3778,3779],{"type":251},{"type":52,"attrs":3780},{"color":54},{"text":3782,"type":45,"marks":3783},"The pay-in-four option is interest-free, while the six, 12, and 24-month plans carry an APR ranging from 9.99% to 29.99%. There are no late fees applied. ",[3784],{"type":52,"attrs":3785},{"color":54},{"type":99,"content":3787},[3788],{"type":102,"content":3789},[3790],{"type":41,"content":3791},[3792,3798],{"text":3793,"type":45,"marks":3794},"Sezzle: ",[3795,3796],{"type":251},{"type":52,"attrs":3797},{"color":54},{"text":3799,"type":45,"marks":3800},"This app is compatible with multiple retailers, including Target. Their pay-in-four plan comes with zero interest and doesn’t entail late fees. However, failing to make a payment deactivates the account after 48 hours, necessitating a $10 reactivation fee. ",[3801],{"type":52,"attrs":3802},{"color":54},{"type":99,"content":3804},[3805],{"type":102,"content":3806},[3807],{"type":41,"content":3808},[3809,3815],{"text":3810,"type":45,"marks":3811},"Zip: ",[3812,3813],{"type":251},{"type":52,"attrs":3814},{"color":54},{"text":3816,"type":45,"marks":3817},"This app is accepted wherever Visa is. Zip charges a per-installment fee (typically $1) for pay-in-four plans. It also charges state-dependent late fees ($5, $7, or $10) for missed payments. ",[3818],{"type":52,"attrs":3819},{"color":54},{"type":89,"attrs":3821,"content":3822},{"level":91},[3823],{"text":3824,"type":45,"marks":3825},"Alternatives to BNPL",[3826],{"type":52,"attrs":3827},{"color":54},{"type":41,"content":3829},[3830],{"text":3831,"type":45,"marks":3832},"If you’re struggling to make a purchase, BNPL is not your only financing option. Each of the following alternatives offer distinct advantages based on your financial needs.",[3833],{"type":52,"attrs":3834},{"color":54},{"type":89,"attrs":3836,"content":3837},{"level":146},[3838],{"text":1636,"type":45,"marks":3839},[3840],{"type":52,"attrs":3841},{"color":54},{"type":41,"content":3843},[3844,3851,3858,3863,3871,3876,3884],{"text":1636,"type":45,"marks":3845},[3846,3848,3850],{"type":66,"attrs":3847},{"href":2185,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":3849},{"color":54},{"type":75},{"text":1752,"type":45,"marks":3852},[3853,3855,3856],{"type":48,"attrs":3854},{"class":1756},{"type":1756},{"type":52,"attrs":3857},{"color":54},{"text":3859,"type":45,"marks":3860}," can be beneficial for everyday purchases, emergencies, or larger expenses due to their widespread acceptance and convenience. They might be preferable over BNPL when you need a more extended repayment period, want to ",[3861],{"type":52,"attrs":3862},{"color":54},{"text":3864,"type":45,"marks":3865},"build credit history",[3866,3868,3870],{"type":66,"attrs":3867},{"href":1646,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":3869},{"color":54},{"type":75},{"text":3872,"type":45,"marks":3873},", or enjoy perks like cashback, rewards, or travel benefits",[3874],{"type":52,"attrs":3875},{"color":54},{"text":3877,"type":45,"marks":3878},"2",[3879,3881,3882],{"type":48,"attrs":3880},{"class":1756},{"type":1756},{"type":52,"attrs":3883},{"color":54},{"text":671,"type":45,"marks":3885},[3886],{"type":52,"attrs":3887},{"color":54},{"type":89,"attrs":3889,"content":3890},{"level":146},[3891],{"text":3892,"type":45,"marks":3893},"Personal loans",[3894],{"type":52,"attrs":3895},{"color":54},{"type":41,"content":3897},[3898,3905,3913],{"text":3892,"type":45,"marks":3899},[3900,3902,3904],{"type":66,"attrs":3901},{"href":68,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":3903},{"color":54},{"type":75},{"text":3906,"type":45,"marks":3907},"3",[3908,3910,3911],{"type":48,"attrs":3909},{"class":1756},{"type":1756},{"type":52,"attrs":3912},{"color":54},{"text":3914,"type":45,"marks":3915}," are ideal for significant expenses like home renovations, medical bills, or debt consolidation. Personal loans are a type of installment loan. They can provide you with a substantial, fixed amount of money and a structured, long-term repayment plan. ",[3916],{"type":52,"attrs":3917},{"color":54},{"type":89,"attrs":3919,"content":3920},{"level":146},[3921],{"text":2832,"type":45,"marks":3922},[3923],{"type":52,"attrs":3924},{"color":54},{"type":41,"content":3926},[3927,3932,3940],{"text":3928,"type":45,"marks":3929},"A ",[3930],{"type":52,"attrs":3931},{"color":54},{"text":3933,"type":45,"marks":3934},"secured loan",[3935,3937,3939],{"type":66,"attrs":3936},{"href":165,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":3938},{"color":54},{"type":75},{"text":3941,"type":45,"marks":3942}," is a type of personal loan that’s backed by collateral like property or assets. Secured loans are useful for larger purchases, such as real estate or major investments. They might be preferred when you require a substantial amount of funding for a specific purpose and are willing to provide collateral to secure the loan. ",[3943],{"type":52,"attrs":3944},{"color":54},{"type":89,"attrs":3946,"content":3947},{"level":91},[3948],{"text":2323,"type":45,"marks":3949},[3950],{"type":52,"attrs":3951},{"color":54},{"type":41,"content":3953},[3954],{"text":3955,"type":45,"marks":3956},"BNPL can be a good option to explore for short-term purchases that you can easily pay off in four to six installments. However, if you’re looking for a more substantial sum to make a big purchase, a personal loan might be the way to go. ",[3957],{"type":52,"attrs":3958},{"color":54},{"type":41,"content":3960},[3961,3966,3972,3980],{"text":3962,"type":45,"marks":3963},"On Navienet Marketplace, you can use our free personal loan search tool to get swift access to cash at lower interest rates than credit cards or open lines of credit. Explore your options and find personalized loan rates by",[3964],{"type":52,"attrs":3965},{"color":54},{"text":936,"type":45,"marks":3967},[3968,3970],{"type":66,"attrs":3969},{"href":940,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":3971},{"color":54},{"text":3973,"type":45,"marks":3974},"visiting our marketplace",[3975,3977,3979],{"type":66,"attrs":3976},{"href":940,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":3978},{"color":54},{"type":75},{"text":952,"type":45,"marks":3981},[3982],{"type":52,"attrs":3983},{"color":54},{"type":41,"content":3985},[3986],{"text":959,"type":45,"marks":3987},[3988,3990],{"type":48,"attrs":3989},{"class":50},{"type":52,"attrs":3991},{"color":54},{"type":41,"content":3993},[3994],{"text":3995,"type":45,"marks":3996},"1 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.",[3997,3999],{"type":48,"attrs":3998},{"class":50},{"type":52,"attrs":4000},{"color":54},{"type":41,"content":4002},[4003],{"text":4004,"type":45,"marks":4005},"2 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. ",[4006,4008],{"type":48,"attrs":4007},{"class":50},{"type":52,"attrs":4009},{"color":54},{"type":41,"content":4011},[4012],{"text":4013,"type":45,"marks":4014},"3 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.",[4015,4017],{"type":48,"attrs":4016},{"class":50},{"type":52,"attrs":4018},{"color":54},{"type":41,"content":4020},[4021],{"text":977,"type":45,"marks":4022},[4023,4025],{"type":48,"attrs":4024},{"class":50},{"type":52,"attrs":4026},{"color":54},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798150\"}-->","https://www.marketplace.navient.com/blog/what-is-buy-now-pay-later/","January 4, 2024","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"39f3568e-f888-4c3e-816f-3647f7efec59\", \"id\": \"651798150\"}-->","what-is-buy-now-pay-later","navient_marketplace/blog/what-is-buy-now-pay-later",[],"6267a2b9-e935-4885-aedc-86fd254532a1","2024-01-04T08:57:00.000Z","/blog/what-is-buy-now-pay-later/",[],{"name":4039,"created_at":4040,"published_at":4041,"updated_at":4042,"id":4043,"uuid":4044,"content":4045,"slug":4993,"full_slug":4994,"sort_by_date":69,"position":990,"tag_list":4995,"is_startpage":28,"parent_id":992,"meta_data":69,"group_id":4996,"first_published_at":4997,"release_id":69,"lang":995,"path":4998,"alternates":4999,"default_full_slug":69,"translated_slugs":69},"What To Know About Student Loan Payments Restarting","2025-04-07T18:30:05.973Z","2025-12-26T13:45:01.641Z","2025-12-26T13:45:01.719Z",651798148,"ac498460-2bb2-48e4-8392-b98a495dbd01",{"seo":4046,"_uid":20,"hero":4049,"author":30,"category":4054,"featured":28,"imageAlt":18,"component":32,"blogContents":4055,"canonicalTag":4990,"publishedDate":4991,"_editable":4992},{"_uid":15,"title":4047,"plugin":17,"og_image":18,"og_title":18,"description":4048,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"What To Know About Student Loan Payments Restarting | Navient Marketplace","Here are the top eight things you need to know about student loan payments restarting.",[4050],{"id":18,"_uid":23,"image":4051,"intro":4048,"classes":18,"_editable":4052,"blogTitle":4039,"component":26,"imageLink":4053,"blendImage":28,"backgroundColor":29},"//a.storyblok.com/f/110029/7680x5120/bd63cb6975/student-loan-payments-restarting.png","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798148\"}-->","/images/student-loan-payments-restarting.png","Student Loan Refinance",[4056],{"_uid":35,"color":36,"richText":4057,"_editable":4989,"component":984},{"type":38,"content":4058},[4059,4092,4099,4107,4128,4135,4142,4150,4157,4164,4227,4235,4256,4304,4312,4333,4340,4347,4399,4407,4441,4448,4469,4531,4539,4546,4554,4575,4602,4610,4617,4624,4640,4648,4655,4663,4689,4696,4704,4740,4747,4755,4770,4777,4784,4811,4819,4834,4853,4860,4867,4874,4901,4909,4935,4943,4974],{"type":41,"content":4060},[4061,4066,4075,4080,4087],{"text":4062,"type":45,"marks":4063},"Due to recent legislation passed by Congress, ",[4064],{"type":52,"attrs":4065},{"color":54},{"text":4067,"type":45,"marks":4068},"more than 28 million Americans have resumed making payments",[4069,4072,4074],{"type":66,"attrs":4070},{"href":4071,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.npr.org/2023/10/02/1202937029/pause-on-federal-student-loans-ends-millions-have-to-make-payments-again",{"type":52,"attrs":4073},{"color":54},{"type":75},{"text":4076,"type":45,"marks":4077}," on their loans after a three-year pause",[4078],{"type":52,"attrs":4079},{"color":54},{"text":1752,"type":45,"marks":4081},[4082,4084,4085],{"type":48,"attrs":4083},{"class":1756},{"type":1756},{"type":52,"attrs":4086},{"color":54},{"text":4088,"type":45,"marks":4089},". For many federal student loan borrowers, the resumed payments could come as a shock to the system. ",[4090],{"type":52,"attrs":4091},{"color":54},{"type":41,"content":4093},[4094],{"text":4095,"type":45,"marks":4096},"The good news is that the restart will be gradual, and there’s still plenty of time to prepare. Here are the top eight things you need to know about student loan payments restarting. ",[4097],{"type":52,"attrs":4098},{"color":54},{"type":89,"attrs":4100,"content":4101},{"level":91},[4102],{"text":4103,"type":45,"marks":4104},"1. Your bills can be found in your student loan servicer account",[4105],{"type":52,"attrs":4106},{"color":54},{"type":41,"content":4108},[4109,4114,4123],{"text":4110,"type":45,"marks":4111},"You’ll receive an official notice when your student loan payments resume. However, your student loan bills should be visible either on your ",[4112],{"type":52,"attrs":4113},{"color":54},{"text":4115,"type":45,"marks":4116},"Federal Student Aid",[4117,4120,4122],{"type":66,"attrs":4118},{"href":4119,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://studentaid.gov/",{"type":52,"attrs":4121},{"color":54},{"type":75},{"text":4124,"type":45,"marks":4125}," account or your student loan servicer account. ",[4126],{"type":52,"attrs":4127},{"color":54},{"type":41,"content":4129},[4130],{"text":4131,"type":45,"marks":4132},"A student loan servicer is the company designated by the government to manage the administrative aspects of federal or private student loans. They handle the billing, repayment options, and customer service for borrowers, serving as the intermediary between the borrower and lender. ",[4133],{"type":52,"attrs":4134},{"color":54},{"type":41,"content":4136},[4137],{"text":4138,"type":45,"marks":4139},"If you’re not sure who your servicer is, don’t fret. You can typically locate your servicer’s name by logging into your federal student aid account, or by looking for past mail or email communications that your servicer has sent about your loan. ",[4140],{"type":52,"attrs":4141},{"color":54},{"type":89,"attrs":4143,"content":4144},{"level":91},[4145],{"text":4146,"type":45,"marks":4147},"2. Your loan servicer may have changed",[4148],{"type":52,"attrs":4149},{"color":54},{"type":41,"content":4151},[4152],{"text":4153,"type":45,"marks":4154},"Often, the federal government transfers loans to new service providers when it terminates or swaps contracts with various financial partners. That’s happened for millions of borrowers since the pandemic. Before you restart your loan payments, contact your loan servicer to make sure your loans haven’t been changed over to a new provider.",[4155],{"type":52,"attrs":4156},{"color":54},{"type":41,"content":4158},[4159],{"text":4160,"type":45,"marks":4161},"Here’s how to contact your loan servicer:",[4162],{"type":52,"attrs":4163},{"color":54},{"type":99,"content":4165},[4166,4175,4204],{"type":102,"content":4167},[4168],{"type":41,"content":4169},[4170],{"text":4171,"type":45,"marks":4172},"Check recent emails or letters from your previous servicer or the U.S. Department of Education, as they often provide details about the transfer. They often tend to list your servicer’s contact information.",[4173],{"type":52,"attrs":4174},{"color":54},{"type":102,"content":4176},[4177],{"type":41,"content":4178},[4179,4184,4191,4199],{"text":4180,"type":45,"marks":4181},"Log into your student loan account on",[4182],{"type":52,"attrs":4183},{"color":54},{"text":936,"type":45,"marks":4185},[4186,4189],{"type":66,"attrs":4187},{"href":4188,"uuid":69,"anchor":69,"target":69,"linktype":71},"http://studentaid.gov",{"type":52,"attrs":4190},{"color":54},{"text":4192,"type":45,"marks":4193},"StudentAid.gov",[4194,4196,4198],{"type":66,"attrs":4195},{"href":4071,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":4197},{"color":54},{"type":75},{"text":4200,"type":45,"marks":4201}," to check your loan details and current servicer information.",[4202],{"type":52,"attrs":4203},{"color":54},{"type":102,"content":4205},[4206],{"type":41,"content":4207},[4208,4213,4222],{"text":4209,"type":45,"marks":4210},"Visit the ",[4211],{"type":52,"attrs":4212},{"color":54},{"text":4214,"type":45,"marks":4215},"National Student Loan Data System",[4216,4219,4221],{"type":66,"attrs":4217},{"href":4218,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://nsldsfap.ed.gov/login",{"type":52,"attrs":4220},{"color":54},{"type":75},{"text":4223,"type":45,"marks":4224}," (NSLDS) website. Here, you can access information about your federal student loans, including your loan servicer’s contact details. ",[4225],{"type":52,"attrs":4226},{"color":54},{"type":89,"attrs":4228,"content":4229},{"level":91},[4230],{"text":4231,"type":45,"marks":4232},"3. Interest has begun accruing again",[4233],{"type":52,"attrs":4234},{"color":54},{"type":41,"content":4236},[4237,4242,4251],{"text":4238,"type":45,"marks":4239},"During the student loan payment pause, interest charges did not accumulate on federal student loans. However, this accumulation, ",[4240],{"type":52,"attrs":4241},{"color":54},{"text":4243,"type":45,"marks":4244},"called “interest accrual,”",[4245,4248,4250],{"type":66,"attrs":4246},{"href":4247,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.experian.com/blogs/ask-experian/what-is-accrued-interest/",{"type":52,"attrs":4249},{"color":54},{"type":75},{"text":4252,"type":45,"marks":4253}," will restart this year. This resumption applies to most federal loans, but there may be exceptions. These include:",[4254],{"type":52,"attrs":4255},{"color":54},{"type":99,"content":4257},[4258,4281],{"type":102,"content":4259},[4260],{"type":41,"content":4261},[4262,4267,4276],{"text":4263,"type":45,"marks":4264},"The U.S. Department of Education has ",[4265],{"type":52,"attrs":4266},{"color":54},{"text":4268,"type":45,"marks":4269},"stopped capitalizing interest",[4270,4273,4275],{"type":66,"attrs":4271},{"href":4272,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.ed.gov/news/press-releases/education-department-releases-final-regulations-expand-and-improve-targeted-debt-relief-programs",{"type":52,"attrs":4274},{"color":54},{"type":75},{"text":4277,"type":45,"marks":4278}," on federally held Direct Loans. There are exceptions for borrowers exiting deferment or leaving specific income-driven student loan repayment plans.",[4279],{"type":52,"attrs":4280},{"color":54},{"type":102,"content":4282},[4283],{"type":41,"content":4284},[4285,4290,4299],{"text":4286,"type":45,"marks":4287},"Participants of the Biden administration’s new ",[4288],{"type":52,"attrs":4289},{"color":54},{"text":4291,"type":45,"marks":4292},"SAVE plan",[4293,4296,4298],{"type":66,"attrs":4294},{"href":4295,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://studentaid.gov/announcements-events/save-plan",{"type":52,"attrs":4297},{"color":54},{"type":75},{"text":4300,"type":45,"marks":4301}," won’t accrue interest beyond their obligatory payments. These plan participants can achieve total debt forgiveness in 10 years for balances under $12,000. That’s much faster than the standard 20-year period.",[4302],{"type":52,"attrs":4303},{"color":54},{"type":89,"attrs":4305,"content":4306},{"level":91},[4307],{"text":4308,"type":45,"marks":4309},"4. If you’re having trouble making payments, there are new hardship options ",[4310],{"type":52,"attrs":4311},{"color":54},{"type":41,"content":4313},[4314,4319,4328],{"text":4315,"type":45,"marks":4316},"The other good news is that federal student loan payments won’t resume right away. Instead, there’s ",[4317],{"type":52,"attrs":4318},{"color":54},{"text":4320,"type":45,"marks":4321},"an on-ramp period",[4322,4325,4327],{"type":66,"attrs":4323},{"href":4324,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://studentaid.gov/manage-loans/repayment/prepare-payments-restart",{"type":52,"attrs":4326},{"color":54},{"type":75},{"text":4329,"type":45,"marks":4330}," designed to help borrowers readjust to making monthly payments. ",[4331],{"type":52,"attrs":4332},{"color":54},{"type":41,"content":4334},[4335],{"text":4336,"type":45,"marks":4337},"The student loan on-ramp lets students delay their payments for another 12 months after the pause ends. During this period, missed payments won’t be reported to credit bureaus, and borrowers who take advantage of this delay won’t suffer damage to their credit scores. The on-ramp period program spans from October 1, 2023, to September 30, 2024. ",[4338],{"type":52,"attrs":4339},{"color":54},{"type":41,"content":4341},[4342],{"text":4343,"type":45,"marks":4344},"Do bear in mind, however, that interest will continue to accrue during the on-ramp period, which could increase the long-term cost of your loan. Consider the following when deciding whether to pay your student loans during the on-ramp: ",[4345],{"type":52,"attrs":4346},{"color":54},{"type":99,"content":4348},[4349,4358,4367,4376],{"type":102,"content":4350},[4351],{"type":41,"content":4352},[4353],{"text":4354,"type":45,"marks":4355},"Can you afford payments without straining your budget significantly?",[4356],{"type":52,"attrs":4357},{"color":54},{"type":102,"content":4359},[4360],{"type":41,"content":4361},[4362],{"text":4363,"type":45,"marks":4364},"How much will you save in interest if you continue to make monthly payments during the on-ramp?",[4365],{"type":52,"attrs":4366},{"color":54},{"type":102,"content":4368},[4369],{"type":41,"content":4370},[4371],{"text":4372,"type":45,"marks":4373},"Does your repayment plan align with forgiveness programs that require qualifying payments?",[4374],{"type":52,"attrs":4375},{"color":54},{"type":102,"content":4377},[4378],{"type":41,"content":4379},[4380,4385,4394],{"text":4381,"type":45,"marks":4382},"Do you want to ",[4383],{"type":52,"attrs":4384},{"color":54},{"text":4386,"type":45,"marks":4387},"pay off your loans faster",[4388,4391,4393],{"type":66,"attrs":4389},{"href":4390,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://navirefi.com/blog/should-i-pay-off-my-student-loans-early/",{"type":52,"attrs":4392},{"color":54},{"type":75},{"text":4395,"type":45,"marks":4396}," so you can focus on other financial goals, such as paying off credit cards, buying a house, or investing in further higher education?",[4397],{"type":52,"attrs":4398},{"color":54},{"type":89,"attrs":4400,"content":4401},{"level":146},[4402],{"text":4403,"type":45,"marks":4404},"The SAVE plan",[4405],{"type":52,"attrs":4406},{"color":54},{"type":41,"content":4408},[4409,4414,4423,4428,4436],{"text":4410,"type":45,"marks":4411},"Following the ",[4412],{"type":52,"attrs":4413},{"color":54},{"text":4415,"type":45,"marks":4416},"Supreme Court’s block",[4417,4420,4422],{"type":66,"attrs":4418},{"href":4419,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://navirefi.com/blog/student-loan-forgiveness-decision/",{"type":52,"attrs":4421},{"color":54},{"type":75},{"text":4424,"type":45,"marks":4425}," on student debt cancellation in June, the Department of Education introduced its new income-driven repayment plan, ",[4426],{"type":52,"attrs":4427},{"color":54},{"text":4429,"type":45,"marks":4430},"Saving on a Valuable Education (SAVE)",[4431,4433,4435],{"type":66,"attrs":4432},{"href":4295,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":4434},{"color":54},{"type":75},{"text":4437,"type":45,"marks":4438},". This new program replaces the previous REPAYE plan. ",[4439],{"type":52,"attrs":4440},{"color":54},{"type":41,"content":4442},[4443],{"text":4444,"type":45,"marks":4445},"The SAVE plan offers a number of benefits. For example, individuals earning under $32,800 and families earning under $67,500 receive $0 monthly student loan bills.",[4446],{"type":52,"attrs":4447},{"color":54},{"type":41,"content":4449},[4450,4455,4464],{"text":4451,"type":45,"marks":4452},"As of November 8, approximately 5.5 million borrowers are enrolled in SAVE, with more than 2.9 million qualifying for $0 monthly payments. Here’s what makes SAVE different from ",[4453],{"type":52,"attrs":4454},{"color":54},{"text":4456,"type":45,"marks":4457},"other IDR programs",[4458,4461,4463],{"type":66,"attrs":4459},{"href":4460,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://studentaid.gov/manage-loans/repayment/plans/income-driven",{"type":52,"attrs":4462},{"color":54},{"type":75},{"text":4465,"type":45,"marks":4466},": ",[4467],{"type":52,"attrs":4468},{"color":54},{"type":99,"content":4470},[4471,4486,4501,4516],{"type":102,"content":4472},[4473],{"type":41,"content":4474},[4475,4481],{"text":4476,"type":45,"marks":4477},"Expanding access:",[4478,4479],{"type":251},{"type":52,"attrs":4480},{"color":54},{"text":4482,"type":45,"marks":4483}," This new plan alters the calculation for payments, now setting discretionary income at 225% of the federal poverty guideline. That makes more borrowers eligible.",[4484],{"type":52,"attrs":4485},{"color":54},{"type":102,"content":4487},[4488],{"type":41,"content":4489},[4490,4496],{"text":4491,"type":45,"marks":4492},"Halving the required payments: ",[4493,4494],{"type":251},{"type":52,"attrs":4495},{"color":54},{"text":4497,"type":45,"marks":4498},"Undergraduate borrowers on the SAVE plan pay just 5% of their discretionary income toward their student loan debt each month. Before, they had to pay at least 10%.",[4499],{"type":52,"attrs":4500},{"color":54},{"type":102,"content":4502},[4503],{"type":41,"content":4504},[4505,4511],{"text":4506,"type":45,"marks":4507},"Expediting forgiveness:",[4508,4509],{"type":251},{"type":52,"attrs":4510},{"color":54},{"text":4512,"type":45,"marks":4513}," Borrowers with principal loan balances under $12,000 can achieve forgiveness in just 10 years instead of the previous 20 to 25. Each additional $1,000 borrowed above this threshold extends the forgiveness timeline by one year.",[4514],{"type":52,"attrs":4515},{"color":54},{"type":102,"content":4517},[4518],{"type":41,"content":4519},[4520,4526],{"text":4521,"type":45,"marks":4522},"Canceling unpaid interest: ",[4523,4524],{"type":251},{"type":52,"attrs":4525},{"color":54},{"text":4527,"type":45,"marks":4528},"The government agrees to cover any unpaid monthly interest as long as the borrower maintains timely monthly payments. ",[4529],{"type":52,"attrs":4530},{"color":54},{"type":89,"attrs":4532,"content":4533},{"level":91},[4534],{"text":4535,"type":45,"marks":4536},"5. You may have to re-enroll in autopay",[4537],{"type":52,"attrs":4538},{"color":54},{"type":41,"content":4540},[4541],{"text":4542,"type":45,"marks":4543},"When payments restart, you’ll need to double-check that you’re still enrolled in autopay. Some servicers may have automatically removed individuals from the service when the payment pause began. You can usually resume automatic payments through your loan servicer’s website.",[4544],{"type":52,"attrs":4545},{"color":54},{"type":89,"attrs":4547,"content":4548},{"level":91},[4549],{"text":4550,"type":45,"marks":4551},"6. Your IDR information may need recertifying",[4552],{"type":52,"attrs":4553},{"color":54},{"type":41,"content":4555},[4556,4561,4570],{"text":4557,"type":45,"marks":4558},"If you were enrolled in an ",[4559],{"type":52,"attrs":4560},{"color":54},{"text":4562,"type":45,"marks":4563},"Income-Driven Repayment (IDR) plan",[4564,4567,4569],{"type":66,"attrs":4565},{"href":4566,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://navirefi.com/blog/what-is-income-based-student-loan-repayment/",{"type":52,"attrs":4568},{"color":54},{"type":75},{"text":4571,"type":45,"marks":4572},", you may be due for your annual recertification. This process recalculates your monthly payment amount based on your current income and any recent family changes. Recertification is mandatory each year. ",[4573],{"type":52,"attrs":4574},{"color":54},{"type":41,"content":4576},[4577,4582,4589,4597],{"text":4578,"type":45,"marks":4579},"If you were an IDR participant before the payment pause, your window for recertification extends six months after the pause ends (March 2024). If your income dropped or family size changed,",[4580],{"type":52,"attrs":4581},{"color":54},{"text":936,"type":45,"marks":4583},[4584,4587],{"type":66,"attrs":4585},{"href":4586,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://studentaid.gov/help-center/answers/article/recertify-my-income-driven-repayment-idr-plan",{"type":52,"attrs":4588},{"color":54},{"text":4590,"type":45,"marks":4591},"consider early recertification",[4592,4594,4596],{"type":66,"attrs":4593},{"href":4586,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":4595},{"color":54},{"type":75},{"text":4598,"type":45,"marks":4599}," for reduced payments.",[4600],{"type":52,"attrs":4601},{"color":54},{"type":89,"attrs":4603,"content":4604},{"level":91},[4605],{"text":4606,"type":45,"marks":4607},"7. You may benefit from the one-time IDR adjustment",[4608],{"type":52,"attrs":4609},{"color":54},{"type":41,"content":4611},[4612],{"text":4613,"type":45,"marks":4614},"The one-time IDR adjustment is a program aimed at recalculating payments for eligible borrowers in Income-Driven Repayment Plans or who are pursuing the Public Service Loan Forgiveness program (PSLF). It reviews and adjusts payment counts, potentially accelerating loan forgiveness.",[4615],{"type":52,"attrs":4616},{"color":54},{"type":41,"content":4618},[4619],{"text":4620,"type":45,"marks":4621},"You’ll benefit from this adjustment if you’re currently on an IDR plan or were in the past. Additionally, those aiming for PSLF or who have Direct or Federal Family Education Loan (FFEL) program loans held by the U.S. Department of Education are included. ",[4622],{"type":52,"attrs":4623},{"color":54},{"type":41,"content":4625},[4626,4631],{"text":4627,"type":45,"marks":4628},"To find out if you’re eligible or will benefit, check if you’re enrolled in an IDR plan, pursuing PSLF, or have FFEL loans. Review notifications from the Education Department or your loan servicer for any updates regarding your payment counts, due dates, student loan forgiveness, or any adjustments made to your account. You won’t have to take action – the Department of Education ",[4629],{"type":52,"attrs":4630},{"color":54},{"text":4632,"type":45,"marks":4633},"should notify you if you qualify. ",[4634,4637,4639],{"type":66,"attrs":4635},{"href":4636,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://studentaid.gov/announcements-events/idr-account-adjustment",{"type":52,"attrs":4638},{"color":54},{"type":75},{"type":89,"attrs":4641,"content":4642},{"level":91},[4643],{"text":4644,"type":45,"marks":4645},"8. You may be eligible to lower or pause your payments ",[4646],{"type":52,"attrs":4647},{"color":54},{"type":41,"content":4649},[4650],{"text":4651,"type":45,"marks":4652},"President Joe Biden’s new SAVE plan and the student loan on-ramp aren’t the only ways to get student debt relief from student loan debt. Here are some other ways for you to lower your payments, pause them, and get out of debt sooner. ",[4653],{"type":52,"attrs":4654},{"color":54},{"type":89,"attrs":4656,"content":4657},{"level":146},[4658],{"text":4659,"type":45,"marks":4660},"Income-driven repayment",[4661],{"type":52,"attrs":4662},{"color":54},{"type":41,"content":4664},[4665,4670,4676,4684],{"text":4666,"type":45,"marks":4667},"The new SAVE plan is just one of",[4668],{"type":52,"attrs":4669},{"color":54},{"text":936,"type":45,"marks":4671},[4672,4674],{"type":66,"attrs":4673},{"href":4460,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":4675},{"color":54},{"text":4677,"type":45,"marks":4678},"four income-driven repayment plans",[4679,4681,4683],{"type":66,"attrs":4680},{"href":4460,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":4682},{"color":54},{"type":75},{"text":4685,"type":45,"marks":4686}," that cap your monthly bills at a percentage of your income. Depending on your family size, location, and income, you could be eligible to have your payments reduced to as low as $0 in some extreme circumstances. ",[4687],{"type":52,"attrs":4688},{"color":54},{"type":41,"content":4690},[4691],{"text":4692,"type":45,"marks":4693},"Keep in mind that as your family and income change, so will your eligibility for income-driven repayment, which is why it’s important to report these updates to the federal government regularly. ",[4694],{"type":52,"attrs":4695},{"color":54},{"type":89,"attrs":4697,"content":4698},{"level":146},[4699],{"text":4700,"type":45,"marks":4701},"Deferment or forbearance ",[4702],{"type":52,"attrs":4703},{"color":54},{"type":41,"content":4705},[4706,4715,4720,4727,4735],{"text":4707,"type":45,"marks":4708},"Deferment and forbearance",[4709,4712,4714],{"type":66,"attrs":4710},{"href":4711,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://studentaid.gov/help-center/answers/article/difference-between-deferment-and-forbearance",{"type":52,"attrs":4713},{"color":54},{"type":75},{"text":4716,"type":45,"marks":4717}," are both temporary payment pauses offered by the federal government for borrowers experiencing hardship. In forbearance, interest accrues on all types of direct loans, but in",[4718],{"type":52,"attrs":4719},{"color":54},{"text":936,"type":45,"marks":4721},[4722,4725],{"type":66,"attrs":4723},{"href":4724,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://navirefi.com/blog/student-loan-deferment/",{"type":52,"attrs":4726},{"color":54},{"text":4728,"type":45,"marks":4729},"deferment",[4730,4732,4734],{"type":66,"attrs":4731},{"href":4724,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":4733},{"color":54},{"type":75},{"text":4736,"type":45,"marks":4737},", interest accrues on only some types of direct loans.",[4738],{"type":52,"attrs":4739},{"color":54},{"type":41,"content":4741},[4742],{"text":4743,"type":45,"marks":4744},"Deferment and forbearance aren’t long-term solutions, and should only be used in extreme circumstances since they’re likely to add more interest to your student loan debt in the long run. ",[4745],{"type":52,"attrs":4746},{"color":54},{"type":89,"attrs":4748,"content":4749},{"level":146},[4750],{"text":4751,"type":45,"marks":4752},"Student loan consolidation",[4753],{"type":52,"attrs":4754},{"color":54},{"type":41,"content":4756},[4757,4765],{"text":4751,"type":45,"marks":4758},[4759,4762,4764],{"type":66,"attrs":4760},{"href":4761,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://navirefi.com/blog/pros-and-cons-of-consolidating-student-loans/",{"type":52,"attrs":4763},{"color":54},{"type":75},{"text":4766,"type":45,"marks":4767}," is the process of combining multiple federal student loans into a single Direct Consolidation Loan from the U.S. Department of Education. ",[4768],{"type":52,"attrs":4769},{"color":54},{"type":41,"content":4771},[4772],{"text":4773,"type":45,"marks":4774},"Consolidation can simplify your monthly payments, making it easier to stay organized and less likely for you to miss payments because you can’t keep track of your bills. ",[4775],{"type":52,"attrs":4776},{"color":54},{"type":41,"content":4778},[4779],{"text":4780,"type":45,"marks":4781},"It can also lower your monthly payment when you choose to extend your repayment plan to 20 or 25 years, for example, because your payments will be spread out over a longer time period than the standard 10-year repayment plan for many federal student loans. Keep in mind that extending your repayment term will likely increase the amount of interest paid over the life of the loan.",[4782],{"type":52,"attrs":4783},{"color":54},{"type":41,"content":4785},[4786,4791,4798,4806],{"text":4787,"type":45,"marks":4788},"Student loan consolidation,",[4789],{"type":52,"attrs":4790},{"color":54},{"text":936,"type":45,"marks":4792},[4793,4796],{"type":66,"attrs":4794},{"href":4795,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://navirefi.com/blog/student-loan-consolidation-vs-refinancing/",{"type":52,"attrs":4797},{"color":54},{"text":4799,"type":45,"marks":4800},"unlike student loan refinancing",[4801,4803,4805],{"type":66,"attrs":4802},{"href":4795,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":4804},{"color":54},{"type":75},{"text":4807,"type":45,"marks":4808}," (which is done with a private lender), allows you to maintain eligibility for federal benefits like forgiveness, forbearance, deferment, and income-driven repayment. However, you can only consolidate federal student loans. Private student loans can only be combined through student loan refinancing. ",[4809],{"type":52,"attrs":4810},{"color":54},{"type":89,"attrs":4812,"content":4813},{"level":146},[4814],{"text":4815,"type":45,"marks":4816},"Student loan refinancing",[4817],{"type":52,"attrs":4818},{"color":54},{"type":41,"content":4820},[4821,4829],{"text":4815,"type":45,"marks":4822},[4823,4826,4828],{"type":66,"attrs":4824},{"href":4825,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://navirefi.com/blog/what-is-student-loan-refinancing/",{"type":52,"attrs":4827},{"color":54},{"type":75},{"text":4830,"type":45,"marks":4831}," is the process of borrowing a loan from a private lender to pay off your old loans, either federal or private, or a combination of both. ",[4832],{"type":52,"attrs":4833},{"color":54},{"type":41,"content":4835},[4836,4841,4848],{"text":4837,"type":45,"marks":4838},"This new loan will have a new repayment term and interest rate, and if your financial situation (credit score, income, debt-to-income ratio) has improved since you took out your original loan, you may be eligible for a lower interest rate",[4839],{"type":52,"attrs":4840},{"color":54},{"text":3877,"type":45,"marks":4842},[4843,4845,4846],{"type":48,"attrs":4844},{"class":1756},{"type":1756},{"type":52,"attrs":4847},{"color":54},{"text":4849,"type":45,"marks":4850}," than you had on your original loans. ",[4851],{"type":52,"attrs":4852},{"color":54},{"type":41,"content":4854},[4855],{"text":4856,"type":45,"marks":4857},"Student loan refinancing is the one way to get a lower interest rate on your loans. Federal student loan consolidation will result in a new interest rate, but it will simply be a weighted average of the interest rate on your current loans. ",[4858],{"type":52,"attrs":4859},{"color":54},{"type":41,"content":4861},[4862],{"text":4863,"type":45,"marks":4864},"When you pick your new repayment plan, you can also choose a longer term than your original loans, which can lower your monthly bill. Or you can choose a shorter repayment term and pay off your loans faster. ",[4865],{"type":52,"attrs":4866},{"color":54},{"type":41,"content":4868},[4869],{"text":4870,"type":45,"marks":4871},"Keep in mind that when you extend your repayment term, you’re likely to spend more on interest over the life of the loan, and when you shorten it, you’re likely to have higher monthly payments. ",[4872],{"type":52,"attrs":4873},{"color":54},{"type":41,"content":4875},[4876,4881,4888,4896],{"text":4877,"type":45,"marks":4878},"Still,",[4879],{"type":52,"attrs":4880},{"color":54},{"text":936,"type":45,"marks":4882},[4883,4886],{"type":66,"attrs":4884},{"href":4885,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://navirefi.com/blog/pros-and-cons-of-refinancing-student-loans/",{"type":52,"attrs":4887},{"color":54},{"text":4889,"type":45,"marks":4890},"these trade-offs may be worth it",[4891,4893,4895],{"type":66,"attrs":4892},{"href":4885,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":4894},{"color":54},{"type":75},{"text":4897,"type":45,"marks":4898}," if you need some breathing room in your monthly budget, or you want to get out of student loan debt as fast as possible. ",[4899],{"type":52,"attrs":4900},{"color":54},{"type":89,"attrs":4902,"content":4903},{"level":91},[4904],{"text":4905,"type":45,"marks":4906},"Get a free rate check from NaviRefi",[4907],{"type":52,"attrs":4908},{"color":54},{"type":41,"content":4910},[4911,4916,4923,4931],{"text":4912,"type":45,"marks":4913},"One way to potentially save money and get a fresh start is through student loan refinancing. If you qualify, you could lower your interest rate or reduce your monthly payments. That could save you money in the long term and even accelerate your journey towards debt freedom. Ready to refinance your student loan debt? Check your new rate and monthly payment for free at",[4914],{"type":52,"attrs":4915},{"color":54},{"text":936,"type":45,"marks":4917},[4918,4921],{"type":66,"attrs":4919},{"href":4920,"uuid":69,"anchor":69,"target":69,"linktype":71},"http://navirefi.com",{"type":52,"attrs":4922},{"color":54},{"text":4924,"type":45,"marks":4925},"NaviRefi.com",[4926,4928,4930],{"type":66,"attrs":4927},{"href":4071,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":4929},{"color":54},{"type":75},{"text":952,"type":45,"marks":4932},[4933],{"type":52,"attrs":4934},{"color":54},{"type":41,"content":4936},[4937],{"text":959,"type":45,"marks":4938},[4939,4941],{"type":48,"attrs":4940},{"class":50},{"type":52,"attrs":4942},{"color":54},{"type":41,"content":4944},[4945,4951,4958,4967],{"text":1752,"type":45,"marks":4946},[4947,4949],{"type":48,"attrs":4948},{"class":1756},{"type":52,"attrs":4950},{"color":54},{"text":4952,"type":45,"marks":4953},"As was announced by the U.S. Department of Education (ED), federal student loans have resumed accruing interest starting September 1, 2023, and federal student loan payments were reinstated starting in October. Please note that you may lose benefits associated with your underlying federal loans, such as federal Income-driven Repayment Plans (an example of which is the SAVE plan), Economic Hardship Deferment, Public Service Loan Forgiveness, or other deferment and forbearance options, if you refinance into a private loan. If you file for bankruptcy, you may still be required to pay back this loan. See ",[4954,4956],{"type":48,"attrs":4955},{"class":50},{"type":52,"attrs":4957},{"color":54},{"text":4959,"type":45,"marks":4960},"https://studentaid.gov",[4961,4963,4965],{"type":66,"attrs":4962},{"href":4071,"uuid":69,"anchor":69,"target":69,"linktype":71},{"type":48,"attrs":4964},{"class":50},{"type":52,"attrs":4966},{"color":54},{"text":4968,"type":45,"marks":4969}," for more information.",[4970,4972],{"type":48,"attrs":4971},{"class":50},{"type":52,"attrs":4973},{"color":54},{"type":41,"content":4975},[4976,4982],{"text":3877,"type":45,"marks":4977},[4978,4980],{"type":48,"attrs":4979},{"class":1756},{"type":52,"attrs":4981},{"color":54},{"text":4983,"type":45,"marks":4984}," 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 the total cost of your refinanced loan.",[4985,4987],{"type":48,"attrs":4986},{"class":50},{"type":52,"attrs":4988},{"color":54},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798148\"}-->","https://www.marketplace.navient.com/blog/student-loan-payments-restarting/","January 25, 2024","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"39f3568e-f888-4c3e-816f-3647f7efec59\", \"id\": \"651798148\"}-->","student-loan-payments-restarting","navient_marketplace/blog/student-loan-payments-restarting",[],"13fe3090-2e86-4455-9532-b9195523dba7","2024-01-25T08:57:00.000Z","/student-loan-payments-restarting",[],{"name":5001,"created_at":5002,"published_at":5003,"updated_at":5004,"id":5005,"uuid":5006,"content":5007,"slug":5584,"full_slug":5585,"sort_by_date":69,"position":990,"tag_list":5586,"is_startpage":28,"parent_id":992,"meta_data":69,"group_id":5587,"first_published_at":4997,"release_id":69,"lang":995,"path":5588,"alternates":5589,"default_full_slug":69,"translated_slugs":69},"15 Realistic Ways to Save Money on a Wedding","2025-04-07T18:30:04.159Z","2025-12-26T13:45:01.892Z","2025-12-26T13:45:01.966Z",651798147,"508900ea-adf7-4b0c-a73f-5f4e3f0ed065",{"seo":5008,"_uid":20,"hero":5011,"author":30,"category":31,"featured":28,"imageAlt":18,"component":32,"blogContents":5016,"canonicalTag":5582,"publishedDate":4991,"_editable":5583},{"_uid":15,"title":5009,"plugin":17,"og_image":18,"og_title":18,"description":5010,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"15 Realistic Ways to Save Money on a Wedding | Navient Marketplace","There are a number of ways to throw a celebration that you can actually afford. Here’s how to save money on a wedding without compromising on the magic.",[5012],{"id":18,"_uid":23,"image":5013,"intro":5010,"classes":18,"_editable":5014,"blogTitle":5001,"component":26,"imageLink":5015,"blendImage":28,"backgroundColor":29},"//a.storyblok.com/f/110029/1280x853/4b9062046d/how-to-save-money-on-a-wedding.png","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798147\"}-->","/images/how-to-save-money-on-a-wedding.png",[5017],{"_uid":35,"color":36,"richText":5018,"_editable":5581,"component":984},{"type":38,"content":5019},[5020,5028,5035,5042,5050,5070,5078,5099,5107,5114,5121,5128,5136,5143,5163,5171,5178,5186,5207,5214,5235,5243,5259,5266,5274,5281,5288,5296,5303,5311,5318,5326,5333,5341,5348,5355,5363,5390,5397,5405,5412,5420,5427,5434,5461,5469,5476,5484,5491,5498,5505,5513,5520,5551,5559,5573],{"type":41,"content":5021},[5022],{"text":44,"type":45,"marks":5023},[5024,5026],{"type":48,"attrs":5025},{"class":50},{"type":52,"attrs":5027},{"color":54},{"type":41,"content":5029},[5030],{"text":5031,"type":45,"marks":5032},"For many couples, getting married is one of the most joyous occasions of their lives — that is, until they look at the price tag. Once you add up the cost of engagement rings, flowers, photography, catering, and venues, total costs can quickly balloon into the six figures. ",[5033],{"type":52,"attrs":5034},{"color":54},{"type":41,"content":5036},[5037],{"text":5038,"type":45,"marks":5039},"Looking at that kind of an invoice can suck the joy out of the room pretty quickly. Fortunately, there are a number of ways to throw a beautiful and memorable celebration that you can actually afford. Here are some smart ways to save money on a wedding without compromising on the magic. ",[5040],{"type":52,"attrs":5041},{"color":54},{"type":89,"attrs":5043,"content":5044},{"level":91},[5045],{"text":5046,"type":45,"marks":5047},"15 ways to save money on a wedding",[5048],{"type":52,"attrs":5049},{"color":54},{"type":41,"content":5051},[5052,5057,5065],{"text":5053,"type":45,"marks":5054},"Celebrating your love is important, but you may not want to blow your savings on a one-day party, especially if you have other financial goals — such as ",[5055],{"type":52,"attrs":5056},{"color":54},{"text":5058,"type":45,"marks":5059},"paying off credit card debt",[5060,5062,5064],{"type":66,"attrs":5061},{"href":2058,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":5063},{"color":54},{"type":75},{"text":5066,"type":45,"marks":5067},", buying a home, or contributing to retirement. Here are some ways to save on your big day.",[5068],{"type":52,"attrs":5069},{"color":54},{"type":89,"attrs":5071,"content":5072},{"level":146},[5073],{"text":5074,"type":45,"marks":5075},"1. Get married close to home ",[5076],{"type":52,"attrs":5077},{"color":54},{"type":41,"content":5079},[5080,5085,5094],{"text":5081,"type":45,"marks":5082},"According to wedding resource The Knot, the ",[5083],{"type":52,"attrs":5084},{"color":54},{"text":5086,"type":45,"marks":5087},"average cost of a wedding in 2022",[5088,5091,5093],{"type":66,"attrs":5089},{"href":5090,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.theknot.com/content/wedding-data-insights/real-weddings-study",{"type":52,"attrs":5092},{"color":54},{"type":75},{"text":5095,"type":45,"marks":5096}," was $30,000, and about 20% of couples opted for destination weddings. A ceremony in Cabo might sound dreamy, but getting married far from home isn’t always practical. Getting married close to home can save you a significant amount in transportation costs. ",[5097],{"type":52,"attrs":5098},{"color":54},{"type":89,"attrs":5100,"content":5101},{"level":146},[5102],{"text":5103,"type":45,"marks":5104},"2. Choose an off-peak wedding season or day of the week",[5105],{"type":52,"attrs":5106},{"color":54},{"type":41,"content":5108},[5109],{"text":5110,"type":45,"marks":5111},"Getting married outside of peak wedding season (May to October) can significantly trim expenses. During these off-peak seasons, many vendors offer reduced prices on venues, services, and accommodations. ",[5112],{"type":52,"attrs":5113},{"color":54},{"type":41,"content":5115},[5116],{"text":5117,"type":45,"marks":5118},"You can also save money by choosing a less-popular day. Weekends tend to be the most popular wedding days. If possible, consider a weekday wedding or a brunch wedding, as venues often offer lower rates outside evenings and weekends. ",[5119],{"type":52,"attrs":5120},{"color":54},{"type":41,"content":5122},[5123],{"text":5124,"type":45,"marks":5125},"Also consider buying items like decorations or attire off-season, that is, outside the May to October window. You’ll be able to get more discounts during the winter months, for example, when wedding planning isn’t in full force. ",[5126],{"type":52,"attrs":5127},{"color":54},{"type":89,"attrs":5129,"content":5130},{"level":146},[5131],{"text":5132,"type":45,"marks":5133},"3. Borrow or rent instead of buying",[5134],{"type":52,"attrs":5135},{"color":54},{"type":41,"content":5137},[5138],{"text":5139,"type":45,"marks":5140},"It can be tempting to buy a brand-new wedding dress or decor for your special day, but many big-ticket items — including wedding gowns and bridesmaids’ dresses — can be rented at a fraction of the cost. ",[5141],{"type":52,"attrs":5142},{"color":54},{"type":41,"content":5144},[5145,5150,5159],{"text":5146,"type":45,"marks":5147},"Centerpieces, linens, and even specialty items such as arches or lighting are available for short-term rentals. You can also rent sound systems and photo booths for a reasonable price. Renting can allow you to enjoy your dream wedding without purchasing items you may never use again. And if you want to save even more money, ",[5148],{"type":52,"attrs":5149},{"color":54},{"text":5151,"type":45,"marks":5152},"consider borrowing instead",[5153,5156,5158],{"type":66,"attrs":5154},{"href":5155,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.wisebread.com/5-big-ticket-wedding-items-you-should-borrow-instead-of-buy",{"type":52,"attrs":5157},{"color":54},{"type":75},{"text":671,"type":45,"marks":5160},[5161],{"type":52,"attrs":5162},{"color":54},{"type":89,"attrs":5164,"content":5165},{"level":146},[5166],{"text":5167,"type":45,"marks":5168},"4. Choose a non-traditional cake",[5169],{"type":52,"attrs":5170},{"color":54},{"type":41,"content":5172},[5173],{"text":5174,"type":45,"marks":5175},"A traditional wedding cake can cost hundreds of dollars. Before you say yes to that triple-tiered confection, ask yourself whether you could do something different. Many couples these days opt for a sheet cake or a small ceremonial cake, and then provide cupcakes, donuts, or other pastries for their guests. ",[5176],{"type":52,"attrs":5177},{"color":54},{"type":89,"attrs":5179,"content":5180},{"level":146},[5181],{"text":5182,"type":45,"marks":5183},"5. Negotiate prices",[5184],{"type":52,"attrs":5185},{"color":54},{"type":41,"content":5187},[5188,5193,5202],{"text":5189,"type":45,"marks":5190},"When it comes to managing wedding expenses, don’t shy away from ",[5191],{"type":52,"attrs":5192},{"color":54},{"text":5194,"type":45,"marks":5195},"negotiating prices",[5196,5199,5201],{"type":66,"attrs":5197},{"href":5198,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.brides.com/planners-share-how-negotiate-with-venue-5295732",{"type":52,"attrs":5200},{"color":54},{"type":75},{"text":5203,"type":45,"marks":5204}," or asking vendors if they offer discounts for early bookings or package deals. Many vendors, such as venues, caterers, videographers, and wedding photographers, allow you to bundle services for a discounted rate. ",[5205],{"type":52,"attrs":5206},{"color":54},{"type":41,"content":5208},[5209],{"text":5210,"type":45,"marks":5211},"Some of the more comprehensive packages could include venue rental, catering, decor, and more, all rolled into one cost-effective deal. By opting for these bundled offerings, you not only streamline the planning process, but also benefit from potential savings compared to booking each service individually.",[5212],{"type":52,"attrs":5213},{"color":54},{"type":41,"content":5215},[5216,5221,5230],{"text":5217,"type":45,"marks":5218},"Also remember: the ",[5219],{"type":52,"attrs":5220},{"color":54},{"text":5222,"type":45,"marks":5223},"earlier you book your venue",[5224,5227,5229],{"type":66,"attrs":5225},{"href":5226,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.firehousekc.com/blog/how-far-in-advance-to-book-wedding-venue#:~:text=Booking%20your%20dream%20wedding%20venue,venue%2015%20months%20in%20advance.",{"type":52,"attrs":5228},{"color":54},{"type":75},{"text":5231,"type":45,"marks":5232},", caterer, and photographer, the cheaper their services are likely to be. Typically, early bookings start around 12 to 18 months before the wedding date. ",[5233],{"type":52,"attrs":5234},{"color":54},{"type":89,"attrs":5236,"content":5237},{"level":146},[5238],{"text":5239,"type":45,"marks":5240},"6. Create a wedding website",[5241],{"type":52,"attrs":5242},{"color":54},{"type":41,"content":5244},[5245,5254],{"text":5246,"type":45,"marks":5247},"Crafting a wedding website",[5248,5251,5253],{"type":66,"attrs":5249},{"href":5250,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.hitched.co.uk/wedding-planning/organising-and-planning/how-to-create-a-wedding-website/",{"type":52,"attrs":5252},{"color":54},{"type":75},{"text":5255,"type":45,"marks":5256}," isn’t just a modern touch—it’s also a savvy way to cut costs on invitation inserts. Instead of including multiple cards or extra details in your invitations, direct wedding guests to your website for additional information. ",[5257],{"type":52,"attrs":5258},{"color":54},{"type":41,"content":5260},[5261],{"text":5262,"type":45,"marks":5263},"On the site, share details like venue directions, accommodation suggestions, and the schedule of events. Include an RSVP section where guests can confirm attendance. Personalize the site to reflect your wedding theme and style, and you’ll not only save on paper and printing expenses but also offer guests a convenient source for all essential wedding details. ",[5264],{"type":52,"attrs":5265},{"color":54},{"type":89,"attrs":5267,"content":5268},{"level":146},[5269],{"text":5270,"type":45,"marks":5271},"7. Repurpose elements of your wedding",[5272],{"type":52,"attrs":5273},{"color":54},{"type":41,"content":5275},[5276],{"text":5277,"type":45,"marks":5278},"With a little clever wedding planning, many accessories can do double duty. Consider using your wedding ceremony chairs at the rehearsal and reception to avoid renting separate seating. Likewise, you can repurpose ceremony flowers as table centerpieces later. You can also rework decorations or signage from the ceremony for the reception area. ",[5279],{"type":52,"attrs":5280},{"color":54},{"type":41,"content":5282},[5283],{"text":5284,"type":45,"marks":5285},"By repurposing these elements creatively, you not only cut down on rental and floral arrangement expenses but also add cohesion and continuity to the aesthetic of your wedding.",[5286],{"type":52,"attrs":5287},{"color":54},{"type":89,"attrs":5289,"content":5290},{"level":146},[5291],{"text":5292,"type":45,"marks":5293},"8. Subscribe to email lists early and wait for discounts",[5294],{"type":52,"attrs":5295},{"color":54},{"type":41,"content":5297},[5298],{"text":5299,"type":45,"marks":5300},"Many wedding vendors send out email newsletters announcing sales and special offers. To improve your odds of getting one, subscribe to vendors’ email lists months (if not years) ahead of your wedding day. Then, wait for exclusive deals, promotions, or early-bird discounts before making any purchases. Many vendors also offer their subscribers introductory discounts or seasonal sales on various wedding essentials. ",[5301],{"type":52,"attrs":5302},{"color":54},{"type":89,"attrs":5304,"content":5305},{"level":146},[5306],{"text":5307,"type":45,"marks":5308},"9. Host your wedding and reception in the same venue",[5309],{"type":52,"attrs":5310},{"color":54},{"type":41,"content":5312},[5313],{"text":5314,"type":45,"marks":5315},"By hosting both the ceremony and reception at one venue, you eliminate the need for additional transportation to move your guests or wedding party between locations. This cuts down on costs associated with renting multiple venues, hiring transportation services, or arranging guest shuttles. Furthermore, when your venue plays double duty, it simplifies logistics, reduces travel time, and ensures a seamless transition from ceremony to celebration. ",[5316],{"type":52,"attrs":5317},{"color":54},{"type":89,"attrs":5319,"content":5320},{"level":146},[5321],{"text":5322,"type":45,"marks":5323},"10. Opt for buffet or food stations",[5324],{"type":52,"attrs":5325},{"color":54},{"type":41,"content":5327},[5328],{"text":5329,"type":45,"marks":5330},"Buffets give guests more menu options and more choices in portion size, often at a lower per-person cost. They can also feel less stuffy and provide guests with a more relaxed dining experience. With food stations, guests can choose their preferred dishes and don’t require wait staff to take orders and serve plated meals. That translates to serious savings on staffing coats. ",[5331],{"type":52,"attrs":5332},{"color":54},{"type":89,"attrs":5334,"content":5335},{"level":146},[5336],{"text":5337,"type":45,"marks":5338},"11. Bring your own alcohol ",[5339],{"type":52,"attrs":5340},{"color":54},{"type":41,"content":5342},[5343],{"text":5344,"type":45,"marks":5345},"Many venues charge hefty markups on drinks sold on-site. While many venues require guests to purchase alcohol through them, some let couples bring in their own alcohol. That provision can give you greater control over your guests’ beverage choices and help you reduce costs. ",[5346],{"type":52,"attrs":5347},{"color":54},{"type":41,"content":5349},[5350],{"text":5351,"type":45,"marks":5352},"Just be sure to check the venue’s policies, corkage fees, and any licensing requirements beforehand to ensure compliance and a smooth setup. If bringing your own alcohol isn’t possible, consider limiting the open bar to a certain time period. ",[5353],{"type":52,"attrs":5354},{"color":54},{"type":89,"attrs":5356,"content":5357},{"level":146},[5358],{"text":5359,"type":45,"marks":5360},"12. Opt for a less traditional venue",[5361],{"type":52,"attrs":5362},{"color":54},{"type":41,"content":5364},[5365,5370,5377,5385],{"text":5366,"type":45,"marks":5367},"Rather than booking a popular wedding venue, consider alternative options like a public park, beach, backyard, or barn.",[5368],{"type":52,"attrs":5369},{"color":54},{"text":936,"type":45,"marks":5371},[5372,5375],{"type":66,"attrs":5373},{"href":5374,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.reddit.com/r/weddingplanning/comments/5pu2ea/comment/dctyov2/",{"type":52,"attrs":5376},{"color":54},{"text":5378,"type":45,"marks":5379},"One Reddit user",[5380,5382,5384],{"type":66,"attrs":5381},{"href":5374,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":5383},{"color":54},{"type":75},{"text":5386,"type":45,"marks":5387}," mentioned getting married in a lighthouse. These non-traditional venues are often surprisingly affordable and can still offer a beautiful and unique setting for a traditional wedding. ",[5388],{"type":52,"attrs":5389},{"color":54},{"type":41,"content":5391},[5392],{"text":5393,"type":45,"marks":5394},"If you go this route, just make sure you know what’s included in each venue. A park may be cheaper, but one of the reasons is because all the decorations, tables, chairs, etc. are your responsibility. ",[5395],{"type":52,"attrs":5396},{"color":54},{"type":89,"attrs":5398,"content":5399},{"level":146},[5400],{"text":5401,"type":45,"marks":5402},"12. Prioritize essential vendors",[5403],{"type":52,"attrs":5404},{"color":54},{"type":41,"content":5406},[5407],{"text":5408,"type":45,"marks":5409},"Which vendors are most important to you? Can you forgo a band for a DJ? A DJ for a curated playlist so you can afford a better photographer (or multiple)? Determine your priorities and allocate a larger portion of your budget to the things that matter most on your big day. ",[5410],{"type":52,"attrs":5411},{"color":54},{"type":89,"attrs":5413,"content":5414},{"level":146},[5415],{"text":5416,"type":45,"marks":5417},"13. Dial down the decor",[5418],{"type":52,"attrs":5419},{"color":54},{"type":41,"content":5421},[5422],{"text":5423,"type":45,"marks":5424},"Instead of hiring a professional florist or decorator, consider doing the décor yourself. You can save a lot of money by buying wedding flowers and décor materials in bulk and creating your own centerpieces, bridesmaids’ bouquets, boutonnieres, or other decorations. There are plenty of DIY wedding decoration tutorials that can guide you on how to create stunning décor on a budget. Plus, the DIY option eliminates the need for a wedding planner. ",[5425],{"type":52,"attrs":5426},{"color":54},{"type":41,"content":5428},[5429],{"text":5430,"type":45,"marks":5431},"Opt for in-season flowers or choose greenery and foliage as a more budget-friendly alternative to expensive blooms. Consider DIY flower arrangements or use non-floral elements like candles or lanterns to cut costs. ",[5432],{"type":52,"attrs":5433},{"color":54},{"type":41,"content":5435},[5436,5441,5448,5456],{"text":5437,"type":45,"marks":5438},"Or,",[5439],{"type":52,"attrs":5440},{"color":54},{"text":936,"type":45,"marks":5442},[5443,5446],{"type":66,"attrs":5444},{"href":5445,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.reddit.com/r/weddingplanning/comments/5pu2ea/comment/dcu3bdf/",{"type":52,"attrs":5447},{"color":54},{"text":5449,"type":45,"marks":5450},"as one couple did",[5451,5453,5455],{"type":66,"attrs":5452},{"href":5445,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":5454},{"color":54},{"type":75},{"text":5457,"type":45,"marks":5458},", consider dialing down the decorations altogether: They shared: “I see all these posts about DIYing tons of flowers, backdrops, centerpieces, organizing uplighting, favors, cake table decor, gift table decor, what to put down the aisle, what to put on the chairs, etc etc. We're just not doing any of it. We're happy with the basic linens and plain chairs because when was the last time you went to a wedding and thought ‘This is nice but this chair really needed an organza sash?” Well said.",[5459],{"type":52,"attrs":5460},{"color":54},{"type":89,"attrs":5462,"content":5463},{"level":146},[5464],{"text":5465,"type":45,"marks":5466},"14. Make the wedding intimate",[5467],{"type":52,"attrs":5468},{"color":54},{"type":41,"content":5470},[5471],{"text":5472,"type":45,"marks":5473},"If it’s possible, consider limiting your number of guests to close loved ones. Of all these saving tips, this is probably the most effective way to save money. And that’s because nearly everything hinges on the guest list. By inviting only close family members and friends and having a small bridal party and groomsmen, you can reduce catering costs, venue size requirements, and even save on wedding invitations and favors.",[5474],{"type":52,"attrs":5475},{"color":54},{"type":89,"attrs":5477,"content":5478},{"level":146},[5479],{"text":5480,"type":45,"marks":5481},"15. Skip the extras",[5482],{"type":52,"attrs":5483},{"color":54},{"type":41,"content":5485},[5486],{"text":5487,"type":45,"marks":5488},"Look at your bottom-line wedding expenses and try to identify any non-essentials that may inflate your budget, like wedding favors, wait staff, passed apps, elaborate transportation, or extravagant decor. ",[5489],{"type":52,"attrs":5490},{"color":54},{"type":41,"content":5492},[5493],{"text":5494,"type":45,"marks":5495},"Do you really need personalized napkins? A party bus to take you from the church to the reception? Envelope liner and thick card stock for the invitations? ",[5496],{"type":52,"attrs":5497},{"color":54},{"type":41,"content":5499},[5500],{"text":5501,"type":45,"marks":5502},"Make a list of your wedding costs from highest to lowest. Are there some high up on the list that really won’t make much of an impact on your special day? These are the extras that should be cut first. ",[5503],{"type":52,"attrs":5504},{"color":54},{"type":89,"attrs":5506,"content":5507},{"level":91},[5508],{"text":5509,"type":45,"marks":5510},"Shop wedding loans on Navient Marketplace ",[5511],{"type":52,"attrs":5512},{"color":54},{"type":41,"content":5514},[5515],{"text":5516,"type":45,"marks":5517},"There are a number of ways to throw a memorable celebration without blowing your wedding budget. That said, while these strategies and hacks can help you save money, it’s still important to make sure your special day feels, well, special. ",[5518],{"type":52,"attrs":5519},{"color":54},{"type":41,"content":5521},[5522,5527,5534,5539,5546],{"text":5523,"type":45,"marks":5524},"If you need a little more financial support to make that happen, consider exploring wedding loans on ",[5525],{"type":52,"attrs":5526},{"color":54},{"text":705,"type":45,"marks":5528},[5529,5531,5533],{"type":66,"attrs":5530},{"href":709,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":5532},{"color":54},{"type":75},{"text":5535,"type":45,"marks":5536},". A personal loan",[5537],{"type":52,"attrs":5538},{"color":54},{"text":1752,"type":45,"marks":5540},[5541,5543,5544],{"type":48,"attrs":5542},{"class":1756},{"type":1756},{"type":52,"attrs":5545},{"color":54},{"text":5547,"type":45,"marks":5548}," with flexible terms and a low interest rate could help you enhance your celebrations without compromising your vision—or your financial goals. ",[5549],{"type":52,"attrs":5550},{"color":54},{"type":41,"content":5552},[5553],{"text":959,"type":45,"marks":5554},[5555,5557],{"type":48,"attrs":5556},{"class":50},{"type":52,"attrs":5558},{"color":54},{"type":41,"content":5560},[5561,5567],{"text":1752,"type":45,"marks":5562},[5563,5565],{"type":48,"attrs":5564},{"class":1756},{"type":52,"attrs":5566},{"color":54},{"text":3222,"type":45,"marks":5568},[5569,5571],{"type":48,"attrs":5570},{"class":50},{"type":52,"attrs":5572},{"color":54},{"type":41,"content":5574},[5575],{"text":977,"type":45,"marks":5576},[5577,5579],{"type":48,"attrs":5578},{"class":50},{"type":52,"attrs":5580},{"color":54},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798147\"}-->","https://www.marketplace.navient.com/blog/how-to-save-money-on-a-wedding/","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"39f3568e-f888-4c3e-816f-3647f7efec59\", \"id\": \"651798147\"}-->","how-to-save-money-on-a-wedding","navient_marketplace/blog/how-to-save-money-on-a-wedding",[],"74acb761-215d-453d-9385-ea533f86ae4c","/how-to-save-money-on-a-wedding",[],{"name":5591,"created_at":5592,"published_at":5593,"updated_at":5594,"id":5595,"uuid":5596,"content":5597,"slug":6546,"full_slug":6547,"sort_by_date":69,"position":990,"tag_list":6548,"is_startpage":28,"parent_id":992,"meta_data":69,"group_id":6549,"first_published_at":4997,"release_id":69,"lang":995,"path":69,"alternates":6550,"default_full_slug":69,"translated_slugs":69},"8 Ways to Improve Credit Score ASAP","2025-04-07T18:30:02.322Z","2025-12-26T13:45:02.306Z","2025-12-26T13:45:02.389Z",651798145,"240d24c4-4990-4696-9f34-c3abcdf06f2e",{"seo":5598,"_uid":20,"hero":5601,"author":30,"category":3261,"featured":28,"imageAlt":18,"component":32,"blogContents":5606,"canonicalTag":6544,"publishedDate":4991,"_editable":6545},{"_uid":15,"title":5599,"plugin":17,"og_image":18,"og_title":18,"description":5600,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"8 Ways to Improve Credit Score ASAP | Navient Marketplace","A low credit score can mean low odds of loan approval or higher interest rates. Here are 8 tested strategies to improve your credit score fast.",[5602],{"id":18,"_uid":23,"image":5603,"intro":5600,"classes":18,"_editable":5604,"blogTitle":5591,"component":26,"imageLink":5605,"blendImage":28,"backgroundColor":29},"//a.storyblok.com/f/110029/1600x1066/08633c1d9f/how-to-improve-credit-score.png","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798145\"}-->","/images/how-to-improve-credit-score.webp",[5607],{"_uid":35,"color":36,"richText":5608,"_editable":6543,"component":984},{"type":38,"content":5609},[5610,5618,5625,5633,5653,5660,5667,5675,5682,5689,5696,5703,5710,5718,5725,5732,5739,5747,5768,5775,5783,5790,5797,5878,5885,5893,5913,5933,5940,5947,5955,5962,5975,5988,6001,6008,6016,6023,6044,6051,6059,6066,6074,6081,6128,6136,6143,6160,6191,6208,6225,6256,6264,6271,6434,6442,6449,6498,6506,6520,6528],{"type":41,"content":5611},[5612],{"text":44,"type":45,"marks":5613},[5614,5616],{"type":48,"attrs":5615},{"class":50},{"type":52,"attrs":5617},{"color":54},{"type":41,"content":5619},[5620],{"text":5621,"type":45,"marks":5622},"Maintaining a good credit score is central to achieving financial well-being. A higher credit score not only makes it easier to get approved loans and credit cards, but also leads to lower interest rates and favorable terms. If you’re trying to figure out how to improve your credit score quickly, here are some proven strategies to consider. ",[5623],{"type":52,"attrs":5624},{"color":54},{"type":89,"attrs":5626,"content":5627},{"level":91},[5628],{"text":5629,"type":45,"marks":5630},"Review and dispute errors in your credit report",[5631],{"type":52,"attrs":5632},{"color":54},{"type":41,"content":5634},[5635,5640,5649],{"text":5636,"type":45,"marks":5637},"Start by pulling a copy of your credit report from all three major credit bureaus (Equifax, Experian, and TransUnion). You can also obtain a free credit report and credit score from ",[5638],{"type":52,"attrs":5639},{"color":54},{"text":5641,"type":45,"marks":5642},"AnnualCreditReport.com",[5643,5646,5648],{"type":66,"attrs":5644},{"href":5645,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.annualcreditreport.com/index.action",{"type":52,"attrs":5647},{"color":54},{"type":75},{"text":671,"type":45,"marks":5650},[5651],{"type":52,"attrs":5652},{"color":54},{"type":41,"content":5654},[5655],{"text":5656,"type":45,"marks":5657},"Carefully review your own credit report for any inaccuracies like incorrect personal information, fraudulent credit card accounts, identity theft, or late payments that were incorrectly reported. ",[5658],{"type":52,"attrs":5659},{"color":54},{"type":41,"content":5661},[5662],{"text":5663,"type":45,"marks":5664},"Dispute these errors by contacting credit bureaus through a written letter or an online dispute form. Their timely removal can result in a significant and speedy improvement in your credit score.",[5665],{"type":52,"attrs":5666},{"color":54},{"type":89,"attrs":5668,"content":5669},{"level":91},[5670],{"text":5671,"type":45,"marks":5672},"Pay your bills on time ",[5673],{"type":52,"attrs":5674},{"color":54},{"type":41,"content":5676},[5677],{"text":5678,"type":45,"marks":5679},"One of the biggest factors impacting your credit score is your payment history, which is why it’s crucial to always make payments on time and in full. ",[5680],{"type":52,"attrs":5681},{"color":54},{"type":41,"content":5683},[5684],{"text":5685,"type":45,"marks":5686},"To lenders and credit bureaus, when you miss a payment or submit it late, you’re showing a lack of responsibility in managing credit obligations. This can signal financial instability and lead to a decrease in your credit score.",[5687],{"type":52,"attrs":5688},{"color":54},{"type":41,"content":5690},[5691],{"text":5692,"type":45,"marks":5693},"Late payments don’t typically appear on your credit report until they are 30 days past due or delinquent –– but once they’re reported, they can remain on your credit report for up to seven years. ",[5694],{"type":52,"attrs":5695},{"color":54},{"type":41,"content":5697},[5698],{"text":5699,"type":45,"marks":5700},"The severity of the impact that late payments have on your credit score depends on several factors, including the timeliness and frequency of late payments. Multiple late payments and a pattern of delinquency can result in a more significant negative impact on your credit score.",[5701],{"type":52,"attrs":5702},{"color":54},{"type":41,"content":5704},[5705],{"text":5706,"type":45,"marks":5707},"To minimize the negative impact of late payments on your credit score, it’s important to make timely payments and avoid missing due dates. Setting up automatic payments or reminders can help ensure that you stay on track with your monthly payments.",[5708],{"type":52,"attrs":5709},{"color":54},{"type":89,"attrs":5711,"content":5712},{"level":91},[5713],{"text":5714,"type":45,"marks":5715},"Reduce credit utilization ratio",[5716],{"type":52,"attrs":5717},{"color":54},{"type":41,"content":5719},[5720],{"text":5721,"type":45,"marks":5722},"Another major contributor to your credit score ranges, credit utilization ratio (CUR) refers to the percentage of your available credit that you’re currently using. For example, if you’re using $2,000 every month of your available $10,000 credit limit, your credit utilization ratio is 20%. ",[5723],{"type":52,"attrs":5724},{"color":54},{"type":41,"content":5726},[5727],{"text":5728,"type":45,"marks":5729},"High credit utilization can negatively impact your credit score. Aim to keep your credit utilization below 30% of your total credit limit. Any higher, and this could demonstrate to credit bureaus that you’re spending above your means. Ideally, lenders are looking for you to use your line of credit without leaning on it too much. ",[5730],{"type":52,"attrs":5731},{"color":54},{"type":41,"content":5733},[5734],{"text":5735,"type":45,"marks":5736},"If your current credit utilization ratio is higher, consider paying down your debts aggressively and using your debit card for your monthly purchases. Lowering it will demonstrate responsible credit management and positively impact your credit score.",[5737],{"type":52,"attrs":5738},{"color":54},{"type":89,"attrs":5740,"content":5741},{"level":91},[5742],{"text":5743,"type":45,"marks":5744},"Request a credit limit increase",[5745],{"type":52,"attrs":5746},{"color":54},{"type":41,"content":5748},[5749,5754,5763],{"text":5750,"type":45,"marks":5751},"When you request a credit limit increase, you’re essentially asking your credit card issuer to raise the maximum amount you can borrow on your card. This increased credit limit provides a larger buffer between your outstanding balances and your total available credit. The result is a lower ",[5752],{"type":52,"attrs":5753},{"color":54},{"text":5755,"type":45,"marks":5756},"credit utilization ratio",[5757,5760,5762],{"type":66,"attrs":5758},{"href":5759,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://corporatefinanceinstitute.com/resources/commercial-lending/credit-utilization-ratio/",{"type":52,"attrs":5761},{"color":54},{"type":75},{"text":5764,"type":45,"marks":5765},".  ",[5766],{"type":52,"attrs":5767},{"color":54},{"type":41,"content":5769},[5770],{"text":5771,"type":45,"marks":5772},"You’re more likely to be considered for a credit limit increase if you’ve consistently demonstrated responsible credit behavior, such as making timely payments. To apply for a credit limit increase, you may need to provide your current income, employment status, and other relevant financial details. ",[5773],{"type":52,"attrs":5774},{"color":54},{"type":89,"attrs":5776,"content":5777},{"level":91},[5778],{"text":5779,"type":45,"marks":5780},"Diversify your credit mix",[5781],{"type":52,"attrs":5782},{"color":54},{"type":41,"content":5784},[5785],{"text":5786,"type":45,"marks":5787},"Credit mix refers to the variety of credit types that an individual has access to, such as credit card debt, mortgages, installment loans, and student loans. A diverse credit mix is important because it provides a more comprehensive view of an individual’s ability to manage different types of credit. Lenders and credit scoring models view a well-rounded credit mix as a sign of responsible credit behavior. ",[5788],{"type":52,"attrs":5789},{"color":54},{"type":41,"content":5791},[5792],{"text":5793,"type":45,"marks":5794},"To diversify your credit mix, consider these options: ",[5795],{"type":52,"attrs":5796},{"color":54},{"type":99,"content":5798},[5799,5827,5855],{"type":102,"content":5800},[5801],{"type":41,"content":5802},[5803,5809,5814,5822],{"text":5804,"type":45,"marks":5805},"Credit builder loans:",[5806,5807],{"type":251},{"type":52,"attrs":5808},{"color":54},{"text":5810,"type":45,"marks":5811}," These loans are designed to help individuals establish a credit profile for the first time. They can also help with credit repair. To get a ",[5812],{"type":52,"attrs":5813},{"color":54},{"text":5815,"type":45,"marks":5816},"credit builder loan",[5817,5820],{"type":66,"attrs":5818},{"href":5819,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.moneylion.com/network/navient/credit-builders/explore/",{"type":52,"attrs":5821},{"color":54},{"text":5823,"type":45,"marks":5824},", you’ll first make a deposit, which the lender will keep in a secure bank account. As you repay the loan, the lender will report your positive payment history to the credit bureaus, contributing to your credit history and overall mix. Then, at the end of the term, you will receive the loan balance.",[5825],{"type":52,"attrs":5826},{"color":54},{"type":102,"content":5828},[5829],{"type":41,"content":5830},[5831,5837,5842,5850],{"text":5832,"type":45,"marks":5833},"Personal loans:",[5834,5835],{"type":251},{"type":52,"attrs":5836},{"color":54},{"text":5838,"type":45,"marks":5839}," This type of installment loan is popular for debt consolidation, paying for home improvements, or covering unexpected expenses. Including a ",[5840],{"type":52,"attrs":5841},{"color":54},{"text":63,"type":45,"marks":5843},[5844,5847,5849],{"type":66,"attrs":5845},{"href":5846,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://marketplace.navient.com/blog/how-to-get-a-personal-loan-with-bad-credit/",{"type":52,"attrs":5848},{"color":54},{"type":75},{"text":5851,"type":45,"marks":5852}," in your credit mix demonstrates your ability to manage and repay unsecured installment debt. ",[5853],{"type":52,"attrs":5854},{"color":54},{"type":102,"content":5856},[5857],{"type":41,"content":5858},[5859,5865,5873],{"text":5860,"type":45,"marks":5861},"Secured credit cards: ",[5862,5863],{"type":251},{"type":52,"attrs":5864},{"color":54},{"text":5866,"type":45,"marks":5867},"Secured credit cards",[5868,5870,5872],{"type":66,"attrs":5869},{"href":165,"uuid":69,"anchor":69,"target":69,"linktype":71},{"type":52,"attrs":5871},{"color":54},{"type":75},{"text":5874,"type":45,"marks":5875}," require a security deposit. Your credit limit is typically capped at the amount of your deposit. Responsibly using a secured credit card and making on-time payments can help you establish a positive credit history. Unlike loans, secured credit cards are a type of revolving credit, adding diversity to your credit mix. ",[5876],{"type":52,"attrs":5877},{"color":54},{"type":41,"content":5879},[5880],{"text":5881,"type":45,"marks":5882},"While diversifying your credit mix is beneficial, it’s essential to do so responsibly. Opening multiple credit accounts within a short timeframe — or using the extra accounts as a justification to take on more debt — can have negative impacts on your credit score. ",[5883],{"type":52,"attrs":5884},{"color":54},{"type":89,"attrs":5886,"content":5887},{"level":91},[5888],{"text":5889,"type":45,"marks":5890},"Be cautious about opening new accounts",[5891],{"type":52,"attrs":5892},{"color":54},{"type":41,"content":5894},[5895,5900,5908],{"text":5896,"type":45,"marks":5897},"When you apply for new credit, the lender typically pulls your credit file, conducting what’s called a “",[5898],{"type":52,"attrs":5899},{"color":54},{"text":1396,"type":45,"marks":5901},[5902,5905,5907],{"type":66,"attrs":5903},{"href":5904,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://time.com/personal-finance/article/what-is-a-hard-inquiry/",{"type":52,"attrs":5906},{"color":54},{"type":75},{"text":5909,"type":45,"marks":5910},"”. Each hard inquiry can lead to a slight decrease in your credit score. ",[5911],{"type":52,"attrs":5912},{"color":54},{"type":41,"content":5914},[5915,5920,5928],{"text":5916,"type":45,"marks":5917},"While the impact is usually small, multiple inquiries can add up, potentially resulting in a more significant decrease. This is particularly relevant when you’re actively seeking new credit, such as ",[5918],{"type":52,"attrs":5919},{"color":54},{"text":5921,"type":45,"marks":5922},"applying for credit cards",[5923,5925,5927],{"type":66,"attrs":5924},{"href":2185,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":5926},{"color":54},{"type":75},{"text":5929,"type":45,"marks":5930},", loans, or mortgages. ",[5931],{"type":52,"attrs":5932},{"color":54},{"type":41,"content":5934},[5935],{"text":5936,"type":45,"marks":5937},"Lenders and credit score models, including VantageScore and FICO Score, interpret a flurry of new credit applications as a sign of risky financial behavior. Opening multiple new lines of credit in a short timeframe may suggest financial instability or the potential for taking on more debt than you can manage. ",[5938],{"type":52,"attrs":5939},{"color":54},{"type":41,"content":5941},[5942],{"text":5943,"type":45,"marks":5944},"Hard inquiries typically stay on your credit report for about two years. However, their influence on your score is most significant in the first few months. ",[5945],{"type":52,"attrs":5946},{"color":54},{"type":89,"attrs":5948,"content":5949},{"level":91},[5950],{"text":5951,"type":45,"marks":5952},"Become an authorized user",[5953],{"type":52,"attrs":5954},{"color":54},{"type":41,"content":5956},[5957],{"text":5958,"type":45,"marks":5959},"If you have a trusted family member or friend with a long-standing, positive credit history, ask them to include you as an authorized user on their credit card. Becoming an authorized user means you can use the credit card as if it were your own, and also piggyback off the account holder’s credit history. Here are some ways it can improve your credit score: ",[5960],{"type":52,"attrs":5961},{"color":54},{"type":41,"content":5963},[5964,5970],{"text":5965,"type":45,"marks":5966},"1. Building positive payment history",[5967,5968],{"type":251},{"type":52,"attrs":5969},{"color":54},{"text":5971,"type":45,"marks":5972},": If the primary cardholder has a history of making timely payments and maintaining a low credit utilization ratio, that positive payment history can be reflected on your credit report. This can help boost your credit score and demonstrate your creditworthiness.",[5973],{"type":52,"attrs":5974},{"color":54},{"type":41,"content":5976},[5977,5983],{"text":5978,"type":45,"marks":5979},"2. Establishing credit history:",[5980,5981],{"type":251},{"type":52,"attrs":5982},{"color":54},{"text":5984,"type":45,"marks":5985}," If you're new to credit or have a limited credit history, being added as an authorized user can help you establish a credit history. The primary cardholder's credit account, with its positive payment history, can provide a foundation for your credit profile.",[5986],{"type":52,"attrs":5987},{"color":54},{"type":41,"content":5989},[5990,5996],{"text":5991,"type":45,"marks":5992},"3. Increasing your available credit:",[5993,5994],{"type":251},{"type":52,"attrs":5995},{"color":54},{"text":5997,"type":45,"marks":5998}," Being an authorized user can also increase your available credit. The credit limit on the primary cardholder's account will be factored into your credit utilization ratio depending on the credit model. A lower credit utilization ratio, which is the amount of credit you're using compared to your total available credit, is generally better for your credit score. ",[5999],{"type":52,"attrs":6000},{"color":54},{"type":41,"content":6002},[6003],{"text":6004,"type":45,"marks":6005},"It's important to note that the impact of being an authorized user on your credit score can vary. It depends on factors such as the credit card company's policies, how long you've been an authorized user, and the overall health of the primary cardholder's credit account. Additionally, not all credit scoring models may consider authorized user accounts in the same way, so the impact on your credit score may vary across different scoring models. ",[6006],{"type":52,"attrs":6007},{"color":54},{"type":89,"attrs":6009,"content":6010},{"level":91},[6011],{"text":6012,"type":45,"marks":6013},"Address debt in collections",[6014],{"type":52,"attrs":6015},{"color":54},{"type":41,"content":6017},[6018],{"text":6019,"type":45,"marks":6020},"When a debt goes to collections, it means the original creditor has given up on collecting the payment and has enlisted the services of a third-party debt collector to do so for them. Addressing any debt you have in collections is a proactive step toward improving your credit score and financial standing. ",[6021],{"type":52,"attrs":6022},{"color":54},{"type":41,"content":6024},[6025,6030,6039],{"text":6026,"type":45,"marks":6027},"First, obtain detailed information about any debts that are currently in collections. Contact the debt collector to ",[6028],{"type":52,"attrs":6029},{"color":54},{"text":6031,"type":45,"marks":6032},"negotiate a settlement",[6033,6036,6038],{"type":66,"attrs":6034},{"href":6035,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.consumerfinance.gov/ask-cfpb/how-do-i-negotiate-a-settlement-with-a-debt-collector-en-1447/",{"type":52,"attrs":6037},{"color":54},{"type":75},{"text":6040,"type":45,"marks":6041},". Many collectors are willing to agree to a reduced payment amount if it means they can get at least some of their investment back. Document any agreements in writing before making payments. ",[6042],{"type":52,"attrs":6043},{"color":54},{"type":41,"content":6045},[6046],{"text":6047,"type":45,"marks":6048},"After settling the debt, check your credit report to make sure the account is either removed or marked as paid. Keeping an eye on your report is essential to confirm that the negative information is accurately reflected. ",[6049],{"type":52,"attrs":6050},{"color":54},{"type":89,"attrs":6052,"content":6053},{"level":91},[6054],{"text":6055,"type":45,"marks":6056},"Frequently Asked Questions",[6057],{"type":52,"attrs":6058},{"color":54},{"type":41,"content":6060},[6061],{"text":6062,"type":45,"marks":6063},"Building credit can be a tricky process. Here are some answers to commonly asked questions about it. ",[6064],{"type":52,"attrs":6065},{"color":54},{"type":89,"attrs":6067,"content":6068},{"level":146},[6069],{"text":6070,"type":45,"marks":6071},"How quickly can you improve your credit score?",[6072],{"type":52,"attrs":6073},{"color":54},{"type":41,"content":6075},[6076],{"text":6077,"type":45,"marks":6078},"While there’s no instant credit-score fix, you can make significant improvements to your score by working diligently over time. ",[6079],{"type":52,"attrs":6080},{"color":54},{"type":99,"content":6082},[6083,6098,6113],{"type":102,"content":6084},[6085],{"type":41,"content":6086},[6087,6093],{"text":6088,"type":45,"marks":6089},"Short-term improvements:",[6090,6091],{"type":251},{"type":52,"attrs":6092},{"color":54},{"text":6094,"type":45,"marks":6095}," Some tasks can improve your score in just a few weeks to a few months. These include disputing errors on your credit report, negotiating with collections companies, and paying off small balances to reduce your overall debt-to-income ratio. ",[6096],{"type":52,"attrs":6097},{"color":54},{"type":102,"content":6099},[6100],{"type":41,"content":6101},[6102,6108],{"text":6103,"type":45,"marks":6104},"Mid-term improvements:",[6105,6106],{"type":251},{"type":52,"attrs":6107},{"color":54},{"text":6109,"type":45,"marks":6110}," You can improve your score over the course of several months by more seriously reducing credit card balances and maintaining consistent on-time payments, which will result in an improved payment history.",[6111],{"type":52,"attrs":6112},{"color":54},{"type":102,"content":6114},[6115],{"type":41,"content":6116},[6117,6123],{"text":6118,"type":45,"marks":6119},"Long-term improvements: ",[6120,6121],{"type":251},{"type":52,"attrs":6122},{"color":54},{"text":6124,"type":45,"marks":6125},"To improve your score within a year to several years, pay off your bigger debts, wait for negative information to age off your credit score, and allow the length of your credit history to grow. ",[6126],{"type":52,"attrs":6127},{"color":54},{"type":89,"attrs":6129,"content":6130},{"level":146},[6131],{"text":6132,"type":45,"marks":6133},"How is credit score calculated?",[6134],{"type":52,"attrs":6135},{"color":54},{"type":41,"content":6137},[6138],{"text":6139,"type":45,"marks":6140},"Credit scores are calculated using complex algorithms designed to analyze an individual’s credit history. While the exact formulas used by credit scoring models are proprietary, here’s what we know about the key elements. As an example, here’s how FICO’s credit score calculations work:",[6141],{"type":52,"attrs":6142},{"color":54},{"type":99,"content":6144},[6145],{"type":102,"content":6146},[6147],{"type":41,"content":6148},[6149,6155],{"text":6150,"type":45,"marks":6151},"Payment history (35%): ",[6152,6153],{"type":251},{"type":52,"attrs":6154},{"color":54},{"text":6156,"type":45,"marks":6157},"The most significant factor is your payment history. This is a measure of how consistently you’ve paid your bills on time. Late payments, missed payments, defaults, bankruptcies, and other negative payment behaviors can significantly impact your score.",[6158],{"type":52,"attrs":6159},{"color":54},{"type":99,"content":6161},[6162],{"type":102,"content":6163},[6164],{"type":41,"content":6165},[6166,6172,6177,6186],{"text":6167,"type":45,"marks":6168},"Credit utilization (30%): ",[6169,6170],{"type":251},{"type":52,"attrs":6171},{"color":54},{"text":6173,"type":45,"marks":6174},"Your credit utilization rate measures the ratio of your credit card balances to your maximum credit limits. Lenders see lower utilization rates as positive, which is why you should try to ",[6175],{"type":52,"attrs":6176},{"color":54},{"text":6178,"type":45,"marks":6179},"keep this ratio below 30%",[6180,6183,6185],{"type":66,"attrs":6181},{"href":6182,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://time.com/personal-finance/article/credit-utilization-ratio/",{"type":52,"attrs":6184},{"color":54},{"type":75},{"text":6187,"type":45,"marks":6188}," when you can.",[6189],{"type":52,"attrs":6190},{"color":54},{"type":99,"content":6192},[6193],{"type":102,"content":6194},[6195],{"type":41,"content":6196},[6197,6203],{"text":6198,"type":45,"marks":6199},"Length of credit history (15%): ",[6200,6201],{"type":251},{"type":52,"attrs":6202},{"color":54},{"text":6204,"type":45,"marks":6205},"This is a measure of how long your credit accounts have been active. It considers both the average age of your accounts and the age of your oldest account. The longer your credit history, the stronger this portion of your score. ",[6206],{"type":52,"attrs":6207},{"color":54},{"type":99,"content":6209},[6210],{"type":102,"content":6211},[6212],{"type":41,"content":6213},[6214,6220],{"text":6215,"type":45,"marks":6216},"Credit mix (10%): ",[6217,6218],{"type":251},{"type":52,"attrs":6219},{"color":54},{"text":6221,"type":45,"marks":6222},"Credit scoring models assess the variety of credit accounts you have, including credit cards, installment loans, mortgages, and other types of credit. ",[6223],{"type":52,"attrs":6224},{"color":54},{"type":99,"content":6226},[6227],{"type":102,"content":6228},[6229],{"type":41,"content":6230},[6231,6237,6242,6251],{"text":6232,"type":45,"marks":6233},"New credit (10%): ",[6234,6235],{"type":251},{"type":52,"attrs":6236},{"color":54},{"text":6238,"type":45,"marks":6239},"Credit inquiries and newly opened credit accounts fall under this category. Opening multiple accounts in a short period can negatively affect your credit score. However, certain types of inquiries, like those related to ",[6240],{"type":52,"attrs":6241},{"color":54},{"text":6243,"type":45,"marks":6244},"rate shopping",[6245,6248,6250],{"type":66,"attrs":6246},{"href":6247,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.badcredit.org/how-to/how-rate-shopping-affects-your-credit-scores/",{"type":52,"attrs":6249},{"color":54},{"type":75},{"text":6252,"type":45,"marks":6253}," for a mortgage or auto loan, are treated differently. ",[6254],{"type":52,"attrs":6255},{"color":54},{"type":89,"attrs":6257,"content":6258},{"level":146},[6259],{"text":6260,"type":45,"marks":6261},"How can I build credit if I have bad or no credit?",[6262],{"type":52,"attrs":6263},{"color":54},{"type":41,"content":6265},[6266],{"text":6267,"type":45,"marks":6268},"Building credit when you have bad credit or no credit history can be challenging, but it’s possible with these strategic steps. ",[6269],{"type":52,"attrs":6270},{"color":54},{"type":99,"content":6272},[6273,6288,6303,6318,6340,6355,6370,6399],{"type":102,"content":6274},[6275],{"type":41,"content":6276},[6277,6283],{"text":6278,"type":45,"marks":6279},"Get a secured credit card: ",[6280,6281],{"type":251},{"type":52,"attrs":6282},{"color":54},{"text":6284,"type":45,"marks":6285},"These require a cash deposit. Responsible use establishes a positive credit history.",[6286],{"type":52,"attrs":6287},{"color":54},{"type":102,"content":6289},[6290],{"type":41,"content":6291},[6292,6298],{"text":6293,"type":45,"marks":6294},"Become an authorized user: ",[6295,6296],{"type":251},{"type":52,"attrs":6297},{"color":54},{"text":6299,"type":45,"marks":6300},"Ask someone with good credit if you can be an authorized user on their credit card account. Their positive history may reflect on your credit report. ",[6301],{"type":52,"attrs":6302},{"color":54},{"type":102,"content":6304},[6305],{"type":41,"content":6306},[6307,6313],{"text":6308,"type":45,"marks":6309},"Apply for a retail store credit card: ",[6310,6311],{"type":251},{"type":52,"attrs":6312},{"color":54},{"text":6314,"type":45,"marks":6315},"Obtain a new credit card with lenient approval terms. Make small purchases and pay the balance in full each month. ",[6316],{"type":52,"attrs":6317},{"color":54},{"type":102,"content":6319},[6320],{"type":41,"content":6321},[6322,6330,6335],{"text":6323,"type":45,"marks":6324},"Take out a credit builder loan",[6325,6327,6328],{"type":66,"attrs":6326},{"href":5819,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":251},{"type":52,"attrs":6329},{"color":54},{"text":903,"type":45,"marks":6331},[6332,6333],{"type":251},{"type":52,"attrs":6334},{"color":54},{"text":6336,"type":45,"marks":6337},"These secured loans require an initial deposit, but lenders start reporting your responsible repayment behavior to credit bureaus right away. ",[6338],{"type":52,"attrs":6339},{"color":54},{"type":102,"content":6341},[6342],{"type":41,"content":6343},[6344,6350],{"text":6345,"type":45,"marks":6346},"Sign up for rent reporting services: ",[6347,6348],{"type":251},{"type":52,"attrs":6349},{"color":54},{"text":6351,"type":45,"marks":6352},"Some services report rent payments to credit bureaus, helping you build credit. ",[6353],{"type":52,"attrs":6354},{"color":54},{"type":102,"content":6356},[6357],{"type":41,"content":6358},[6359,6365],{"text":6360,"type":45,"marks":6361},"Get a student credit card:",[6362,6363],{"type":251},{"type":52,"attrs":6364},{"color":54},{"text":6366,"type":45,"marks":6367}," These are one of the best credit card options for students, as they come with student-specific perks and manageable credit limits.",[6368],{"type":52,"attrs":6369},{"color":54},{"type":102,"content":6371},[6372],{"type":41,"content":6373},[6374,6380,6385,6394],{"text":6375,"type":45,"marks":6376},"Use a credit-boosting service: ",[6377,6378],{"type":251},{"type":52,"attrs":6379},{"color":54},{"text":6381,"type":45,"marks":6382},"Services like ",[6383],{"type":52,"attrs":6384},{"color":54},{"text":6386,"type":45,"marks":6387},"Experian Boost",[6388,6391,6393],{"type":66,"attrs":6389},{"href":6390,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.experian.com/consumer-products/score-boost.html?pc=sem_exp_google&cc=sem_exp_google_ad_1651407997_65972645920_379826966571_kwd-585063777506_e___k_Cj0KCQiAtaOtBhCwARIsAN_x-3JxBdllvyaXTtM6vhzDyr_SSZYf5X0qHzA6elCWxliFGNZ6eCd8ctYaAkAhEALw_wcB_k_&ref=brand&awsearchcpc=1&gad_source=1&gclid=Cj0KCQiAtaOtBhCwARIsAN_x-3JxBdllvyaXTtM6vhzDyr_SSZYf5X0qHzA6elCWxliFGNZ6eCd8ctYaAkAhEALw_wcB",{"type":52,"attrs":6392},{"color":54},{"type":75},{"text":6395,"type":45,"marks":6396}," will broaden the scope of payments credit bureaus consider when calculating your score. These could include regular bills or subscription services as well as credit card and loan payments.",[6397],{"type":52,"attrs":6398},{"color":54},{"type":102,"content":6400},[6401],{"type":41,"content":6402},[6403,6409,6414,6423,6428],{"text":6404,"type":45,"marks":6405},"Sign up for credit monitoring:",[6406,6407],{"type":251},{"type":52,"attrs":6408},{"color":54},{"text":6410,"type":45,"marks":6411}," Borrowers can sign up for ",[6412],{"type":52,"attrs":6413},{"color":54},{"text":6415,"type":45,"marks":6416},"credit monitoring services",[6417,6420,6422],{"type":66,"attrs":6418},{"href":6419,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.consumerfinance.gov/ask-cfpb/what-is-a-credit-monitoring-service-en-1365/",{"type":52,"attrs":6421},{"color":54},{"type":75},{"text":6424,"type":45,"marks":6425},", which send out alerts whenever credit accounts are updated. This can help you keep better track of your credit over time.",[6426],{"type":52,"attrs":6427},{"color":54},{"text":6429,"type":45,"marks":6430}," ",[6431,6432],{"type":251},{"type":52,"attrs":6433},{"color":54},{"type":89,"attrs":6435,"content":6436},{"level":91},[6437],{"text":6438,"type":45,"marks":6439},"Get financial products customized to your needs",[6440],{"type":52,"attrs":6441},{"color":54},{"type":41,"content":6443},[6444],{"text":6445,"type":45,"marks":6446},"An excellent credit score can help you get approved for new lines of credit, qualify for better interest rates, and get closer to your personal finance goals. Some of the best ways to improve your score include lowering your credit utilization ratio or adding to your credit mix. ",[6447],{"type":52,"attrs":6448},{"color":54},{"type":41,"content":6450},[6451,6456,6463,6468,6475,6480,6486,6494],{"text":6452,"type":45,"marks":6453},"If you’re looking to take out a new loan or apply for a new credit card with a higher credit limit, consider shopping through Navient Marketplace. With Navient Marketplace, you can compare lenders",[6454],{"type":52,"attrs":6455},{"color":54},{"text":1752,"type":45,"marks":6457},[6458,6460,6461],{"type":48,"attrs":6459},{"class":1756},{"type":1756},{"type":52,"attrs":6462},{"color":54},{"text":6464,"type":45,"marks":6465}," and credit card issuers",[6466],{"type":52,"attrs":6467},{"color":54},{"text":3877,"type":45,"marks":6469},[6470,6472,6473],{"type":48,"attrs":6471},{"class":1756},{"type":1756},{"type":52,"attrs":6474},{"color":54},{"text":6476,"type":45,"marks":6477}," for free all in one place. Just enter a few details about yourself and",[6478],{"type":52,"attrs":6479},{"color":54},{"text":936,"type":45,"marks":6481},[6482,6484],{"type":66,"attrs":6483},{"href":940,"uuid":69,"anchor":69,"target":69,"linktype":71},{"type":52,"attrs":6485},{"color":54},{"text":6487,"type":45,"marks":6488},"get personalized results from lenders in seconds.",[6489,6491,6493],{"type":66,"attrs":6490},{"href":940,"uuid":69,"anchor":69,"target":69,"linktype":71},{"type":52,"attrs":6492},{"color":54},{"type":75},{"text":952,"type":45,"marks":6495},[6496],{"type":52,"attrs":6497},{"color":54},{"type":41,"content":6499},[6500],{"text":959,"type":45,"marks":6501},[6502,6504],{"type":48,"attrs":6503},{"class":50},{"type":52,"attrs":6505},{"color":54},{"type":41,"content":6507},[6508,6514],{"text":1752,"type":45,"marks":6509},[6510,6512],{"type":48,"attrs":6511},{"class":1756},{"type":52,"attrs":6513},{"color":54},{"text":3222,"type":45,"marks":6515},[6516,6518],{"type":48,"attrs":6517},{"class":50},{"type":52,"attrs":6519},{"color":54},{"type":41,"content":6521},[6522],{"text":977,"type":45,"marks":6523},[6524,6526],{"type":48,"attrs":6525},{"class":50},{"type":52,"attrs":6527},{"color":54},{"type":41,"content":6529},[6530,6536],{"text":3877,"type":45,"marks":6531},[6532,6534],{"type":48,"attrs":6533},{"class":1756},{"type":52,"attrs":6535},{"color":54},{"text":6537,"type":45,"marks":6538}," 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. ",[6539,6541],{"type":48,"attrs":6540},{"class":50},{"type":52,"attrs":6542},{"color":54},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798145\"}-->","https://www.marketplace.navient.com/blog/how-to-improve-credit-score/","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"39f3568e-f888-4c3e-816f-3647f7efec59\", \"id\": \"651798145\"}-->","how-to-improve-credit-score","navient_marketplace/blog/how-to-improve-credit-score",[],"a6f3c215-4f67-4646-92ec-c00c09579ae6",[],{"name":6552,"created_at":6553,"published_at":6554,"updated_at":6555,"id":6556,"uuid":6557,"content":6558,"slug":7509,"full_slug":7510,"sort_by_date":69,"position":990,"tag_list":7511,"is_startpage":28,"parent_id":992,"meta_data":69,"group_id":7512,"first_published_at":4997,"release_id":69,"lang":995,"path":7513,"alternates":7514,"default_full_slug":69,"translated_slugs":69},"9 Ways to Lower Debt-to-Income Ratio Fast","2025-04-07T18:30:00.642Z","2025-12-26T13:45:02.436Z","2025-12-26T13:45:02.470Z",651798144,"7380346d-c2f9-4ac6-89a3-c5300bf585a8",{"seo":6559,"_uid":20,"hero":6562,"author":30,"category":3261,"featured":28,"imageAlt":18,"component":32,"blogContents":6568,"canonicalTag":7507,"publishedDate":4991,"_editable":7508},{"_uid":15,"title":6560,"plugin":17,"og_image":18,"og_title":18,"description":6561,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"9 Ways to Lower Debt-to-Income Ratio Fast | Navient Marketplace","Debt-to-income ratio (DTI) affects everything from credit score to loan approval. Here’s how to improve yours to get the best rates possible.",[6563],{"id":18,"_uid":23,"image":6564,"intro":6561,"classes":18,"_editable":6565,"blogTitle":6566,"component":26,"imageLink":6567,"blendImage":28,"backgroundColor":29},"//a.storyblok.com/f/110029/1600x1066/423b00f45a/how-to-lower-debt-to-income-ratio.png","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798144\"}-->","9 Ways to Lower Your Debt-to-Income Ratio Fast","/images/how-to-lower-debt-to-income-ratio.webp",[6569],{"_uid":35,"color":36,"richText":6570,"_editable":7506,"component":984},{"type":38,"content":6571},[6572,6580,6587,6594,6601,6609,6616,6624,6631,6639,6646,6653,6672,6680,6687,6719,6739,6747,6754,6762,6769,6777,6816,6823,6852,6859,6915,6922,6969,6976,6983,7009,7039,7065,7073,7093,7100,7117,7134,7141,7158,7175,7182,7189,7197,7204,7225,7232,7240,7247,7254,7262,7281,7299,7306,7313,7321,7328,7335,7343,7350,7357,7365,7372,7390,7397,7404,7411,7446,7454,7469,7483,7498],{"type":41,"content":6573},[6574],{"text":44,"type":45,"marks":6575},[6576,6578],{"type":48,"attrs":6577},{"class":50},{"type":52,"attrs":6579},{"color":54},{"type":41,"content":6581},[6582],{"text":6583,"type":45,"marks":6584},"Your debt-to-income ratio is an important measure of your financial health — and one that can determine whether or not you qualify for new credit cards or loans. It tells lenders whether you can handle debt responsibly. ",[6585],{"type":52,"attrs":6586},{"color":54},{"type":41,"content":6588},[6589],{"text":6590,"type":45,"marks":6591},"It’s also an important component of your credit score. The lower your debt-to-income (DTI) ratio, the better your score. So, if you’re looking to refinance or apply for additional loans, you’ll need to check your DTI ratio first. ",[6592],{"type":52,"attrs":6593},{"color":54},{"type":41,"content":6595},[6596],{"text":6597,"type":45,"marks":6598},"Here’s what you need to know about debt-to-income ratio – what it is, where to find it, and how to lower it fast. ",[6599],{"type":52,"attrs":6600},{"color":54},{"type":89,"attrs":6602,"content":6603},{"level":91},[6604],{"text":6605,"type":45,"marks":6606},"What is debt-to-income ratio (DTI)?",[6607],{"type":52,"attrs":6608},{"color":54},{"type":41,"content":6610},[6611],{"text":6612,"type":45,"marks":6613},"Your debt-to-income ratio is a financial metric that measures the percentage of your monthly income that goes towards paying debts. It’s calculated by dividing your total monthly debt payments by your gross monthly income and then multiplying the result by 100. For example, if your monthly income is $5,000 and your monthly debt payments amount to $1500, your debt-to-income ratio is 30% (1,500/5,000). ",[6614],{"type":52,"attrs":6615},{"color":54},{"type":89,"attrs":6617,"content":6618},{"level":91},[6619],{"text":6620,"type":45,"marks":6621},"Why is DTI important?",[6622],{"type":52,"attrs":6623},{"color":54},{"type":41,"content":6625},[6626],{"text":6627,"type":45,"marks":6628},"Debt-to-income ratio is important because it gives lenders an idea of your ability to manage debt and make monthly payments on time. A high debt-to-income ratio indicates that a significant portion of your income is already allocated towards debt obligations. This can limit your financial flexibility, affect your ability to qualify for new loans or credit, and impact your overall financial stability.",[6629],{"type":52,"attrs":6630},{"color":54},{"type":89,"attrs":6632,"content":6633},{"level":91},[6634],{"text":6635,"type":45,"marks":6636},"What’s a good debt-to-income ratio?",[6637],{"type":52,"attrs":6638},{"color":54},{"type":41,"content":6640},[6641],{"text":6642,"type":45,"marks":6643},"A high DTI suggests that you may be strapped for cash. If you’re using a high proportion of your income to pay off creditors, you won’t look like a good candidate for new credit. ",[6644],{"type":52,"attrs":6645},{"color":54},{"type":41,"content":6647},[6648],{"text":6649,"type":45,"marks":6650},"In contrast, a low DTI makes you appear more creditworthy to lenders. That’s because a lower DTI ratio suggests that you have more disposable income available after meeting your debt obligations. It means you likely have the funds required to take on new lines of credit. ",[6651],{"type":52,"attrs":6652},{"color":54},{"type":41,"content":6654},[6655,6660,6667],{"text":6656,"type":45,"marks":6657},"Achieving a lower DTI can also positively impact your ",[6658],{"type":52,"attrs":6659},{"color":54},{"text":5755,"type":45,"marks":6661},[6662,6664,6666],{"type":66,"attrs":6663},{"href":5759,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":6665},{"color":54},{"type":75},{"text":6668,"type":45,"marks":6669},", another important financial metric. That’s because paying off debts will reduce the proportion of debt you have compared to your total available credit. A good debt-to-income ratio is typically considered to be below 36%.",[6670],{"type":52,"attrs":6671},{"color":54},{"type":89,"attrs":6673,"content":6674},{"level":146},[6675],{"text":6676,"type":45,"marks":6677},"Front-end versus back-end DTI",[6678],{"type":52,"attrs":6679},{"color":54},{"type":41,"content":6681},[6682],{"text":6683,"type":45,"marks":6684},"Front-end DTI and back-end DTI ratios are two components used to assess your financial health and borrowing capacity. ",[6685],{"type":52,"attrs":6686},{"color":54},{"type":99,"content":6688},[6689,6704],{"type":102,"content":6690},[6691],{"type":41,"content":6692},[6693,6699],{"text":6694,"type":45,"marks":6695},"The front-end ratio",[6696,6697],{"type":251},{"type":52,"attrs":6698},{"color":54},{"text":6700,"type":45,"marks":6701}," (also known as the housing ratio) focuses specifically on housing-related expenses. It includes the percentage of your income allocated to rent or monthly mortgage payments, property taxes, homeowners insurance, and, if applicable, homeowners association (HOA) fees.",[6702],{"type":52,"attrs":6703},{"color":54},{"type":102,"content":6705},[6706],{"type":41,"content":6707},[6708,6714],{"text":6709,"type":45,"marks":6710},"Back-end DTI ",[6711,6712],{"type":251},{"type":52,"attrs":6713},{"color":54},{"text":6715,"type":45,"marks":6716},"(also known as total DTI), on the other hand, considers all monthly debt obligations, including housing-related expenses like mortgage loans and rent payments. Car loans or auto loans, credit card balances, student loans, and any other outstanding debts are considered part of back-end DTI ",[6717],{"type":52,"attrs":6718},{"color":54},{"type":41,"content":6720},[6721,6726,6735],{"text":6722,"type":45,"marks":6723},"Lenders often use both front-end and back-end ratios when evaluating borrowers’ credit history. Many mortgage lenders look for a back-end DTI that’s 28% or lower for conventional home loans and 43% or lower for ",[6724],{"type":52,"attrs":6725},{"color":54},{"text":6727,"type":45,"marks":6728},"FHA loans",[6729,6732,6734],{"type":66,"attrs":6730},{"href":6731,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.hud.gov/buying/loans",{"type":52,"attrs":6733},{"color":54},{"type":75},{"text":952,"type":45,"marks":6736},[6737],{"type":52,"attrs":6738},{"color":54},{"type":89,"attrs":6740,"content":6741},{"level":91},[6742],{"text":6743,"type":45,"marks":6744},"How to lower your debt-to-income ratio",[6745],{"type":52,"attrs":6746},{"color":54},{"type":41,"content":6748},[6749],{"text":6750,"type":45,"marks":6751},"Here are some practical approaches to reduce your DTI ratio and improve your credit score.",[6752],{"type":52,"attrs":6753},{"color":54},{"type":89,"attrs":6755,"content":6756},{"level":146},[6757],{"text":6758,"type":45,"marks":6759},"1. Evaluate your debt",[6760],{"type":52,"attrs":6761},{"color":54},{"type":41,"content":6763},[6764],{"text":6765,"type":45,"marks":6766},"First, take a closer look at the total amount of debt you have. Then, for each debt, write down the interest rate, minimum payment, type of loan, and how much you still owe. This way, you have a solid baseline to start from. ",[6767],{"type":52,"attrs":6768},{"color":54},{"type":89,"attrs":6770,"content":6771},{"level":146},[6772],{"text":6773,"type":45,"marks":6774},"2. Try a budgeting model",[6775],{"type":52,"attrs":6776},{"color":54},{"type":41,"content":6778},[6779,6784,6793,6798,6805,6811],{"text":6780,"type":45,"marks":6781},"The goal of ",[6782],{"type":52,"attrs":6783},{"color":54},{"text":6785,"type":45,"marks":6786},"budgeting",[6787,6790,6792],{"type":66,"attrs":6788},{"href":6789,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://marketplace.navient.com/blog/how-to-budget-when-youre-broke/",{"type":52,"attrs":6791},{"color":54},{"type":75},{"text":6794,"type":45,"marks":6795}," is not to restrict, but to empower. It’s about directing your money consciously toward your ",[6796],{"type":52,"attrs":6797},{"color":54},{"text":2103,"type":45,"marks":6799},[6800,6802,6804],{"type":66,"attrs":6801},{"href":2107,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":6803},{"color":54},{"type":75},{"text":1752,"type":45,"marks":6806},[6807,6809],{"type":48,"attrs":6808},{"class":1756},{"type":52,"attrs":6810},{"color":54},{"text":6812,"type":45,"marks":6813}," goals, whether that’s tackling debt, building savings, or putting together the down payment for a house. ",[6814],{"type":52,"attrs":6815},{"color":54},{"type":41,"content":6817},[6818],{"text":6819,"type":45,"marks":6820},"Start by writing down your regular sources of income, like… ",[6821],{"type":52,"attrs":6822},{"color":54},{"type":99,"content":6824},[6825,6834,6843],{"type":102,"content":6826},[6827],{"type":41,"content":6828},[6829],{"text":6830,"type":45,"marks":6831},"salary",[6832],{"type":52,"attrs":6833},{"color":54},{"type":102,"content":6835},[6836],{"type":41,"content":6837},[6838],{"text":6839,"type":45,"marks":6840},"passive income",[6841],{"type":52,"attrs":6842},{"color":54},{"type":102,"content":6844},[6845],{"type":41,"content":6846},[6847],{"text":6848,"type":45,"marks":6849},"side hustles",[6850],{"type":52,"attrs":6851},{"color":54},{"type":41,"content":6853},[6854],{"text":6855,"type":45,"marks":6856},"Then, list your fixed monthly expenses, like… ",[6857],{"type":52,"attrs":6858},{"color":54},{"type":99,"content":6860},[6861,6870,6879,6888,6897,6906],{"type":102,"content":6862},[6863],{"type":41,"content":6864},[6865],{"text":6866,"type":45,"marks":6867},"rent or mortgage payment",[6868],{"type":52,"attrs":6869},{"color":54},{"type":102,"content":6871},[6872],{"type":41,"content":6873},[6874],{"text":6875,"type":45,"marks":6876},"utilities",[6877],{"type":52,"attrs":6878},{"color":54},{"type":102,"content":6880},[6881],{"type":41,"content":6882},[6883],{"text":6884,"type":45,"marks":6885},"groceries",[6886],{"type":52,"attrs":6887},{"color":54},{"type":102,"content":6889},[6890],{"type":41,"content":6891},[6892],{"text":6893,"type":45,"marks":6894},"alimony",[6895],{"type":52,"attrs":6896},{"color":54},{"type":102,"content":6898},[6899],{"type":41,"content":6900},[6901],{"text":6902,"type":45,"marks":6903},"child support",[6904],{"type":52,"attrs":6905},{"color":54},{"type":102,"content":6907},[6908],{"type":41,"content":6909},[6910],{"text":6911,"type":45,"marks":6912},"transportation expenses ",[6913],{"type":52,"attrs":6914},{"color":54},{"type":41,"content":6916},[6917],{"text":6918,"type":45,"marks":6919},"Finally, add in variable expenses like… ",[6920],{"type":52,"attrs":6921},{"color":54},{"type":99,"content":6923},[6924,6933,6942,6951,6960],{"type":102,"content":6925},[6926],{"type":41,"content":6927},[6928],{"text":6929,"type":45,"marks":6930},"dining out",[6931],{"type":52,"attrs":6932},{"color":54},{"type":102,"content":6934},[6935],{"type":41,"content":6936},[6937],{"text":6938,"type":45,"marks":6939},"rideshares  ",[6940],{"type":52,"attrs":6941},{"color":54},{"type":102,"content":6943},[6944],{"type":41,"content":6945},[6946],{"text":6947,"type":45,"marks":6948},"streaming platforms ",[6949],{"type":52,"attrs":6950},{"color":54},{"type":102,"content":6952},[6953],{"type":41,"content":6954},[6955],{"text":6956,"type":45,"marks":6957},"subscription box services  ",[6958],{"type":52,"attrs":6959},{"color":54},{"type":102,"content":6961},[6962],{"type":41,"content":6963},[6964],{"text":6965,"type":45,"marks":6966},"paid apps",[6967],{"type":52,"attrs":6968},{"color":54},{"type":41,"content":6970},[6971],{"text":6972,"type":45,"marks":6973},"Next, turn a spotlight on where your money is going. Are there areas where you can trim expenses? Maybe it’s finding a cheaper phone plan, brewing your coffee at home, or cutting subscriptions. These steps can free up cash, which you can redirect toward debt repayment. ",[6974],{"type":52,"attrs":6975},{"color":54},{"type":41,"content":6977},[6978],{"text":6979,"type":45,"marks":6980},"Remember there is no one-size-fits-all approach to budgeting, so it’s worth exploring different models to see what works for you. Some popular budgeting methods include:",[6981],{"type":52,"attrs":6982},{"color":54},{"type":99,"content":6984},[6985],{"type":102,"content":6986},[6987],{"type":41,"content":6988},[6989,6995,7004],{"text":6990,"type":45,"marks":6991},"50/30/20: ",[6992,6993],{"type":251},{"type":52,"attrs":6994},{"color":54},{"text":6996,"type":45,"marks":6997},"This model",[6998,7001,7003],{"type":66,"attrs":6999},{"href":7000,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.khanacademy.org/college-careers-more/financial-literacy/xa6995ea67a8e9fdd:budgeting-and-saving/xa6995ea67a8e9fdd:budgeting/v/budgeting-and-the-503020-rule",{"type":52,"attrs":7002},{"color":54},{"type":75},{"text":7005,"type":45,"marks":7006}," suggests allocating 50% of your income to needs, 30% to wants, and 20% to savings and debt repayment. ",[7007],{"type":52,"attrs":7008},{"color":54},{"type":99,"content":7010},[7011],{"type":102,"content":7012},[7013],{"type":41,"content":7014},[7015,7021,7025,7034],{"text":7016,"type":45,"marks":7017},"Zero-based budgeting:",[7018,7019],{"type":251},{"type":52,"attrs":7020},{"color":54},{"text":936,"type":45,"marks":7022},[7023],{"type":52,"attrs":7024},{"color":54},{"text":7026,"type":45,"marks":7027},"Zero-based budgeting",[7028,7031,7033],{"type":66,"attrs":7029},{"href":7030,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.ramseysolutions.com/budgeting/how-to-make-a-zero-based-budget",{"type":52,"attrs":7032},{"color":54},{"type":75},{"text":7035,"type":45,"marks":7036}," assigns every dollar a specific purpose. Allocate your income to various categories, ensuring that your budget balances to zero. ",[7037],{"type":52,"attrs":7038},{"color":54},{"type":99,"content":7040},[7041],{"type":102,"content":7042},[7043],{"type":41,"content":7044},[7045,7051,7060],{"text":7046,"type":45,"marks":7047},"The envelope system: ",[7048,7049],{"type":251},{"type":52,"attrs":7050},{"color":54},{"text":7052,"type":45,"marks":7053},"This system",[7054,7057,7059],{"type":66,"attrs":7055},{"href":7056,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.debt.org/advice/dave-ramseys-envelope-system-explained/",{"type":52,"attrs":7058},{"color":54},{"type":75},{"text":7061,"type":45,"marks":7062}," involves designating spending categories and using physical envelopes to manage cash flow. This approach can be effective for those who prefer a tangible way to track their spending. ",[7063],{"type":52,"attrs":7064},{"color":54},{"type":89,"attrs":7066,"content":7067},{"level":146},[7068],{"text":7069,"type":45,"marks":7070},"3. Prioritize debt payments",[7071],{"type":52,"attrs":7072},{"color":54},{"type":41,"content":7074},[7075,7080,7088],{"text":7076,"type":45,"marks":7077},"If you want to lower your debt-to-income ratio, the most obvious way to start is by ",[7078],{"type":52,"attrs":7079},{"color":54},{"text":7081,"type":45,"marks":7082},"paying off your debt",[7083,7085,7087],{"type":66,"attrs":7084},{"href":2058,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":7086},{"color":54},{"type":75},{"text":7089,"type":45,"marks":7090},". Now that you’ve looked over your budget and found ways to cut expenses, consider which debt to allocate that extra income to. ",[7091],{"type":52,"attrs":7092},{"color":54},{"type":41,"content":7094},[7095],{"text":7096,"type":45,"marks":7097},"Two popular debt repayment strategies are the snowball method and the avalanche method. Both methods focus on making minimum payments on all your debts except for one, which you put all your extra income toward to pay off as quickly as possible. ",[7098],{"type":52,"attrs":7099},{"color":54},{"type":99,"content":7101},[7102],{"type":102,"content":7103},[7104],{"type":41,"content":7105},[7106,7112],{"text":7107,"type":45,"marks":7108},"With the snowball method,",[7109,7110],{"type":251},{"type":52,"attrs":7111},{"color":54},{"text":7113,"type":45,"marks":7114}," you pay off the smallest debt first and move up the ladder to the next smallest, then the next, and the next, until all your debt is gone. The snowball method does not take into account interest rate –– just the balance of each debt. ",[7115],{"type":52,"attrs":7116},{"color":54},{"type":99,"content":7118},[7119],{"type":102,"content":7120},[7121],{"type":41,"content":7122},[7123,7129],{"text":7124,"type":45,"marks":7125},"With the debt avalanche method",[7126,7127],{"type":251},{"type":52,"attrs":7128},{"color":54},{"text":7130,"type":45,"marks":7131},", you focus on paying off the debt with the highest interest rate first. Once that’s paid off, you move to the next highest interest rate, then the next, and the next, until all your debts are paid off. The debt avalanche method focuses only on interest rate, not balance. ",[7132],{"type":52,"attrs":7133},{"color":54},{"type":41,"content":7135},[7136],{"text":7137,"type":45,"marks":7138},"The method you choose is very much dependent the type of person you are: ",[7139],{"type":52,"attrs":7140},{"color":54},{"type":99,"content":7142},[7143],{"type":102,"content":7144},[7145],{"type":41,"content":7146},[7147,7153],{"text":7148,"type":45,"marks":7149},"The avalanche method",[7150,7151],{"type":251},{"type":52,"attrs":7152},{"color":54},{"text":7154,"type":45,"marks":7155}," is ideal for self-motivated people who want to save the most money possible, since this method will result in paying off the highest-interest debt which will cost more in the long run. ",[7156],{"type":52,"attrs":7157},{"color":54},{"type":99,"content":7159},[7160],{"type":102,"content":7161},[7162],{"type":41,"content":7163},[7164,7170],{"text":7165,"type":45,"marks":7166},"The debt snowball method",[7167,7168],{"type":251},{"type":52,"attrs":7169},{"color":54},{"text":7171,"type":45,"marks":7172}," is valuable for people who prefer the psychological benefit of quick wins. If you’re able to pay off a small credit card debt, for example, it can give you the motivation you need to move on to say, a car loan or a personal loan payment, and continue until all your debts are paid off. ",[7173],{"type":52,"attrs":7174},{"color":54},{"type":41,"content":7176},[7177],{"text":7178,"type":45,"marks":7179},"The debt avalanche method will save you the most money, but it can also be very difficult to stick with (if your loan with the largest interest rate has a large balance, it could be years before you pay off your first debt). ",[7180],{"type":52,"attrs":7181},{"color":54},{"type":41,"content":7183},[7184],{"text":7185,"type":45,"marks":7186},"The debt snowball method, on the other hand, won’t save you as much money on interest in the long run, but it’s much easier to stick to because of its emphasis on psychological quick wins. ",[7187],{"type":52,"attrs":7188},{"color":54},{"type":89,"attrs":7190,"content":7191},{"level":146},[7192],{"text":7193,"type":45,"marks":7194},"4. Boost your income",[7195],{"type":52,"attrs":7196},{"color":54},{"type":41,"content":7198},[7199],{"text":7200,"type":45,"marks":7201},"It’s great to request a promotion or secure a new job. However, that’s not always possible. Consider taking on a side gig, renting out equipment you already own, or selling crafts on Etsy. ",[7202],{"type":52,"attrs":7203},{"color":54},{"type":41,"content":7205},[7206,7211,7220],{"text":7207,"type":45,"marks":7208},"Remember that the income considered for DTI is typically ",[7209],{"type":52,"attrs":7210},{"color":54},{"text":7212,"type":45,"marks":7213},"gross income, not net income",[7214,7217,7219],{"type":66,"attrs":7215},{"href":7216,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.experian.com/blogs/ask-experian/gross-vs-net-income/",{"type":52,"attrs":7218},{"color":54},{"type":75},{"text":7221,"type":45,"marks":7222},". Making withdrawals from investment accounts may provide a temporary income boost — and in turn, a possible credit score boost. ",[7223],{"type":52,"attrs":7224},{"color":54},{"type":41,"content":7226},[7227],{"text":7228,"type":45,"marks":7229},"Additionally, taking fewer deductions on your taxes might increase your gross income, positively influencing your DTI ratio. However, these can be tricky decisions to make. Ensure they align with your overall financial well-being and goals before moving forward. ",[7230],{"type":52,"attrs":7231},{"color":54},{"type":89,"attrs":7233,"content":7234},{"level":146},[7235],{"text":7236,"type":45,"marks":7237},"5.Negotiate with creditors",[7238],{"type":52,"attrs":7239},{"color":54},{"type":41,"content":7241},[7242],{"text":7243,"type":45,"marks":7244},"Many creditors are willing to negotiate interest rates or lower payments if you’re struggling to pay your debts. This approach is particularly effective for medical bills, as healthcare providers often recognize how challenging unexpected medical expenses can be.",[7245],{"type":52,"attrs":7246},{"color":54},{"type":41,"content":7248},[7249],{"text":7250,"type":45,"marks":7251},"If you’re facing financial hardship, call your creditor and be transparent about your situation. Sharing your specific circumstances may lead to more personalized solutions. ",[7252],{"type":52,"attrs":7253},{"color":54},{"type":89,"attrs":7255,"content":7256},{"level":146},[7257],{"text":7258,"type":45,"marks":7259},"6. Consider refinancing ",[7260],{"type":52,"attrs":7261},{"color":54},{"type":41,"content":7263},[7264,7269,7276],{"text":7265,"type":45,"marks":7266},"If you have multiple high-interest debts, consider refinancing",[7267],{"type":52,"attrs":7268},{"color":54},{"text":1752,"type":45,"marks":7270},[7271,7273,7274],{"type":48,"attrs":7272},{"class":1756},{"type":1756},{"type":52,"attrs":7275},{"color":54},{"text":7277,"type":45,"marks":7278},". With refinancing, a lender pays off your loans and issues you a single new loan in their place. ",[7279],{"type":52,"attrs":7280},{"color":54},{"type":41,"content":7282},[7283,7288,7295],{"text":7284,"type":45,"marks":7285},"This new loan will have a new interest rate, new terms, etc, and if you’re in a better financial situation than you were when you took out your original loans, you may be eligible for a lower interest rate, which could lower your monthly payment and/or save you a significant amount in interest over the life of the loan",[7286],{"type":52,"attrs":7287},{"color":54},{"text":3877,"type":45,"marks":7289},[7290,7292,7293],{"type":48,"attrs":7291},{"class":1756},{"type":1756},{"type":52,"attrs":7294},{"color":54},{"text":671,"type":45,"marks":7296},[7297],{"type":52,"attrs":7298},{"color":54},{"type":41,"content":7300},[7301],{"text":7302,"type":45,"marks":7303},"When you refinance, you’ll also have the option to negotiate new terms, like a longer repayment term, which can lower your monthly payment and in turn your DTI.",[7304],{"type":52,"attrs":7305},{"color":54},{"type":41,"content":7307},[7308],{"text":7309,"type":45,"marks":7310},"Keep in mind, if you extend your repayment term, you will most likely spend more in interest over the life of the loan. However, this may be worth it to you if it lowers your DTI to a range that improves your eligibility for the line of credit you’re seeking. ",[7311],{"type":52,"attrs":7312},{"color":54},{"type":89,"attrs":7314,"content":7315},{"level":146},[7316],{"text":7317,"type":45,"marks":7318},"7. Avoid taking on new debt",[7319],{"type":52,"attrs":7320},{"color":54},{"type":41,"content":7322},[7323],{"text":7324,"type":45,"marks":7325},"Successfully paying off current debt can sometimes create a false sense of financial freedom. It’s important to view this achievement as a milestone in your journey rather than an invitation to revert to old spending habits. Maintaining discipline is key. ",[7326],{"type":52,"attrs":7327},{"color":54},{"type":41,"content":7329},[7330],{"text":7331,"type":45,"marks":7332},"Recognize potential triggers or temptations that might lead you to incur new debt. Whether it’s the allure of a sale, peer pressure, or the desire for instant gratification, understanding these factors empowers you to make mindful decisions and resist unnecessary spending. ",[7333],{"type":52,"attrs":7334},{"color":54},{"type":89,"attrs":7336,"content":7337},{"level":146},[7338],{"text":7339,"type":45,"marks":7340},"8. Build an emergency fund",[7341],{"type":52,"attrs":7342},{"color":54},{"type":41,"content":7344},[7345],{"text":7346,"type":45,"marks":7347},"An emergency fund provides a financial safety net. It’s a cushion against unexpected expenses that might otherwise push you toward relying on credit cards or loans. An emergency fund can help you weather unforeseen challenges without accumulating additional debt. ",[7348],{"type":52,"attrs":7349},{"color":54},{"type":41,"content":7351},[7352],{"text":7353,"type":45,"marks":7354},"Financial experts often recommend saving three to six months’ worth of living expenses as your emergency fund. This can provide a solid foundation to cover essential costs in case of job loss, medical emergencies, or other unexpected events. Adjustments may be necessary based on factors such as income stability, the nature of your expenses, and personal risk tolerance. ",[7355],{"type":52,"attrs":7356},{"color":54},{"type":89,"attrs":7358,"content":7359},{"level":146},[7360],{"text":7361,"type":45,"marks":7362},"9. Use windfalls wisely",[7363],{"type":52,"attrs":7364},{"color":54},{"type":41,"content":7366},[7367],{"text":7368,"type":45,"marks":7369},"Windfalls refer to unexpected or sudden financial gains that come your way. These can include bonuses, tax refunds, family inheritance, work-related incentives, or even lottery winnings. ",[7370],{"type":52,"attrs":7371},{"color":54},{"type":41,"content":7373},[7374,7379,7386],{"text":7375,"type":45,"marks":7376},"When you receive a windfall, resist the temptation to splurge on non-essential items. Instead, use the cash to reduce existing debts. This could involve paying down your mortgage, making additional credit card payments, or settling outstanding ",[7377],{"type":52,"attrs":7378},{"color":54},{"text":2426,"type":45,"marks":7380},[7381,7383,7385],{"type":66,"attrs":7382},{"href":223,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":7384},{"color":54},{"type":75},{"text":671,"type":45,"marks":7387},[7388],{"type":52,"attrs":7389},{"color":54},{"type":89,"attrs":7391,"content":7392},{"level":91},[7393],{"text":6438,"type":45,"marks":7394},[7395],{"type":52,"attrs":7396},{"color":54},{"type":41,"content":7398},[7399],{"text":7400,"type":45,"marks":7401},"A higher DTI is a sign of financial instability. A lower DTI ratio, on the other hand, generally signals a healthy credit report. Low DTI is critical for qualifying for new credit cards and loans. ",[7402],{"type":52,"attrs":7403},{"color":54},{"type":41,"content":7405},[7406],{"text":7407,"type":45,"marks":7408},"Fortunately, different lenders assess DTI differently. If you’re looking to refinance, take out a new personal loan, or secure a balance transfer or debt consolidation loan, be sure to compare lender requirements before you apply. ",[7409],{"type":52,"attrs":7410},{"color":54},{"type":41,"content":7412},[7413,7418,7423,7428,7434,7442],{"text":7414,"type":45,"marks":7415},"One of the best ways to do that is through an online marketplace like Navient Marketplace. Navient Marketplace lets you compare dozens of lenders",[7416],{"type":52,"attrs":7417},{"color":54},{"text":3906,"type":45,"marks":7419},[7420,7421],{"type":1756},{"type":52,"attrs":7422},{"color":54},{"text":7424,"type":45,"marks":7425}," for free, all in one place. Just enter a few details about yourself and",[7426],{"type":52,"attrs":7427},{"color":54},{"text":936,"type":45,"marks":7429},[7430,7432],{"type":66,"attrs":7431},{"href":940,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":7433},{"color":54},{"text":7435,"type":45,"marks":7436},"get personalized results in seconds",[7437,7439,7441],{"type":66,"attrs":7438},{"href":940,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":7440},{"color":54},{"type":75},{"text":671,"type":45,"marks":7443},[7444],{"type":52,"attrs":7445},{"color":54},{"type":41,"content":7447},[7448],{"text":959,"type":45,"marks":7449},[7450,7452],{"type":48,"attrs":7451},{"class":50},{"type":52,"attrs":7453},{"color":54},{"type":41,"content":7455},[7456,7462],{"text":1752,"type":45,"marks":7457},[7458,7460],{"type":48,"attrs":7459},{"class":1756},{"type":52,"attrs":7461},{"color":54},{"text":7463,"type":45,"marks":7464}," You may lose benefits associated with your underlying federal and/or private loans if you refinance such as federal Income-driven Repayment Plans, Economic Hardship Deferment, Public Service Loan Forgiveness, or other deferment and forbearance options. If you file for bankruptcy, you may still be required to pay back this loan.",[7465,7467],{"type":48,"attrs":7466},{"class":50},{"type":52,"attrs":7468},{"color":54},{"type":41,"content":7470},[7471,7477],{"text":3877,"type":45,"marks":7472},[7473,7475],{"type":48,"attrs":7474},{"class":1756},{"type":52,"attrs":7476},{"color":54},{"text":4983,"type":45,"marks":7478},[7479,7481],{"type":48,"attrs":7480},{"class":50},{"type":52,"attrs":7482},{"color":54},{"type":41,"content":7484},[7485,7491],{"text":3906,"type":45,"marks":7486},[7487,7489],{"type":48,"attrs":7488},{"class":1756},{"type":52,"attrs":7490},{"color":54},{"text":7492,"type":45,"marks":7493}," 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. 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