[{"data":1,"prerenderedAt":7385},["Reactive",2],{"/":3},{"data":4,"headers":7357,"perPage":7383,"total":7384},{"stories":5,"cv":7354,"rels":7355,"links":7356},[6,834,1883,2824,3593,4529,5346,5883,6762],{"name":7,"created_at":8,"published_at":9,"updated_at":10,"id":11,"uuid":12,"content":13,"slug":824,"full_slug":825,"sort_by_date":96,"position":826,"tag_list":827,"is_startpage":29,"parent_id":828,"meta_data":96,"group_id":829,"first_published_at":830,"release_id":96,"lang":831,"path":832,"alternates":833,"default_full_slug":96,"translated_slugs":96},"How Does A Heloc Work?","2025-04-07T18:30:38.516Z","2025-12-26T13:44:56.923Z","2025-12-26T13:44:56.946Z",651798170,"149c25e0-c31c-483c-8cf0-f5104370e5bc",{"seo":14,"_uid":20,"hero":21,"author":31,"category":32,"featured":29,"imageAlt":18,"component":33,"blogContents":34,"canonicalTag":821,"publishedDate":822,"_editable":823},{"_uid":15,"title":16,"plugin":17,"og_image":18,"og_title":18,"description":19,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"77316249-bb90-485a-9a34-facfdf611141","How does a HELOC work? ","seo_metatags","","A home equity line of credit (HELOC) is when you use your home equity as leverage to take out new credit. Learn more about how to use these to your advantage.","39f3568e-f888-4c3e-816f-3647f7efec59",[22],{"id":18,"_uid":23,"image":24,"intro":19,"classes":18,"_editable":25,"blogTitle":26,"component":27,"imageLink":28,"blendImage":29,"backgroundColor":30},"ee81b4ff-6c03-4123-98ae-73405dea4592","//a.storyblok.com/f/110029/5658x3772/b8274780a7/how-does-a-heloc-work.png","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798170\"}-->","How Does a HELOC Work?","NriBlogHero","/images/how-does-a-heloc-work.png",false,"#F6F2F7","natasha-khullar-relph","Personal Loans","NriBlogPost",[35],{"_uid":36,"color":37,"richText":38,"_editable":819,"component":820},"67b1c1a7-fbb7-4c3c-a267-87dc959687fb","#444444",{"type":39,"content":40},"doc",[41,56,63,70,82,106,113,121,130,137,258,266,287,294,301,363,371,378,385,461,469,488,496,574,582,631,639,686,703,734,751,759,786,795,810],{"type":42,"content":43},"paragraph",[44],{"text":45,"type":46,"marks":47},"Navient may receive compensation when you click on links associated with this Navient Marketplace. Navient is not being compensated for any application, quotation, or the purchase of any financial products.","text",[48,52],{"type":49,"attrs":50},"styled",{"class":51},"footer-text",{"type":53,"attrs":54},"textStyle",{"color":55},"rgb(0, 0, 0)",{"type":42,"content":57},[58],{"text":59,"type":46,"marks":60},"If you’re a homeowner and find yourself strapped for cash, you may be overlooking the funds right under your nose: the value stored within your property. If you need money to cover an emergency expense, do some remodeling, or manage other debts, you can use your home equity as leverage to take out new credit. This is called a Home Equity Line of Credit (HELOC). ",[61],{"type":53,"attrs":62},{"color":55},{"type":42,"content":64},[65],{"text":66,"type":46,"marks":67},"With a HELOC, you put your home up as collateral in exchange for a flexible, reliable source of funds. But how does a HELOC work? And how can you decide if it’s right for you?",[68],{"type":53,"attrs":69},{"color":55},{"type":71,"attrs":72,"content":74},"heading",{"level":73},2,[75],{"text":76,"type":46,"marks":77},"What is a HELOC?",[78,80],{"type":79},"bold",{"type":53,"attrs":81},{"color":55},{"type":42,"content":83},[84,89,101],{"text":85,"type":46,"marks":86},"A ",[87],{"type":53,"attrs":88},{"color":55},{"text":90,"type":46,"marks":91},"home equity line of credit (HELOC)",[92,99],{"type":93,"attrs":94},"link",{"href":95,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://offers.moneylion.com/channelTrackingOfferRedirect/bcd695cb-0506-4838-b6cd-dc453bc187ca/70a8fc69-658a-4a1e-a98f-cef4814d2db2",null,"_blank","url",{"type":53,"attrs":100},{"color":55},{"text":102,"type":46,"marks":103}," allows homeowners to borrow money using the equity they’ve built up in their home as collateral. It provides a revolving credit line (somewhat like a credit card) that can be used for various purposes such as home improvements, debt consolidation, or other large expenses. ",[104],{"type":53,"attrs":105},{"color":55},{"type":42,"content":107},[108],{"text":109,"type":46,"marks":110},"A HELOC can prove particularly advantageous for projects characterized by uncertain costs and timelines. For instance, consider a home renovation project where the final expenses might fluctuate based on unexpected structural discoveries. In a situation like that, a HELOC would allow you to access funds incrementally as needed, enabling you to manage evolving costs without taking on unnecessary debt upfront. ",[111],{"type":53,"attrs":112},{"color":55},{"type":71,"attrs":114,"content":115},{"level":73},[116],{"text":117,"type":46,"marks":118},"How does a HELOC work? ",[119],{"type":53,"attrs":120},{"color":55},{"type":71,"attrs":122,"content":124},{"level":123},3,[125],{"text":126,"type":46,"marks":127},"Qualifying for a HELOC",[128],{"type":53,"attrs":129},{"color":55},{"type":42,"content":131},[132],{"text":133,"type":46,"marks":134},"To qualify for a HELOC, you’ll need to meet certain criteria.",[135],{"type":53,"attrs":136},{"color":55},{"type":138,"content":139},"bullet_list",[140,185,200,229],{"type":141,"content":142},"list_item",[143],{"type":42,"content":144},[145,151,156,166,171,180],{"text":146,"type":46,"marks":147},"Minimum amount of equity: ",[148,149],{"type":79},{"type":53,"attrs":150},{"color":55},{"text":152,"type":46,"marks":153},"To qualify for a HELOC, you typically need to have a certain amount of equity in your home. Equity is the difference between your home’s current market value and the outstanding mortgage balance. While specific requirements vary between lenders, the general guideline ranges between ",[154],{"type":53,"attrs":155},{"color":55},{"text":157,"type":46,"marks":158},"15 and 20%",[159,162,164],{"type":93,"attrs":160},{"href":161,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.cusocal.org/Learn/Financial-Guidance/Blog/how-soon-can-i-get-a-heloc",{"type":53,"attrs":163},{"color":55},{"type":165},"underline",{"text":167,"type":46,"marks":168},". The more equity you have in your home, the higher your chances of qualifying for a HELOC. Lenders will generally look at a metric called ",[169],{"type":53,"attrs":170},{"color":55},{"text":172,"type":46,"marks":173},"loan-to-value ratio (LTV ratio)",[174,177,179],{"type":93,"attrs":175},{"href":176,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/what-is-a-loan-to-value-ratio-and-how-does-it-relate-to-my-costs-en-121/",{"type":53,"attrs":178},{"color":55},{"type":165},{"text":181,"type":46,"marks":182},", which compares the amount you owe on your first mortgage to the home’s appraised value.",[183],{"type":53,"attrs":184},{"color":55},{"type":141,"content":186},[187],{"type":42,"content":188},[189,195],{"text":190,"type":46,"marks":191},"Credit score and financial situation: ",[192,193],{"type":79},{"type":53,"attrs":194},{"color":55},{"text":196,"type":46,"marks":197},"Lenders will also assess your creditworthiness, including your credit score and credit history. You may be more likely to qualify for a HELOC if you have a good credit score, typically above 620. Likewise, your application will be stronger if you can demonstrate responsible financial management, a history of on-time mortgage payments, and few other debts.",[198],{"type":53,"attrs":199},{"color":55},{"type":141,"content":201},[202],{"type":42,"content":203},[204,210,215,224],{"text":205,"type":46,"marks":206},"Income and debt-to-income ratio: ",[207,208],{"type":79},{"type":53,"attrs":209},{"color":55},{"text":211,"type":46,"marks":212},"Both your income and ",[213],{"type":53,"attrs":214},{"color":55},{"text":216,"type":46,"marks":217},"debt-to-income ratio",[218,221,223],{"type":93,"attrs":219},{"href":220,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/what-is-a-debt-to-income-ratio-en-1791/#:~:text=Your%20debt%2Dto%2Dincome%20ratio,will%20have%20different%20DTI%20limits.",{"type":53,"attrs":222},{"color":55},{"type":165},{"text":225,"type":46,"marks":226}," — the percentage of your monthly income that goes towards paying your debt — will play a role in determining how much you can borrow through a HELOC. Lenders will want to see that your income is sufficient to cover your existing debts as well as additional HELOC payments. ",[227],{"type":53,"attrs":228},{"color":55},{"type":141,"content":230},[231],{"type":42,"content":232},[233,239,244,253],{"text":234,"type":46,"marks":235},"Home appraisal: ",[236,237],{"type":79},{"type":53,"attrs":238},{"color":55},{"text":240,"type":46,"marks":241},"Lenders may require a professional appraisal to assess the market value of your home. The lender will then calculate your credit limit based on that value and your current home equity. ",[242],{"type":53,"attrs":243},{"color":55},{"text":245,"type":46,"marks":246},"Most lenders will allow you to access up to 80%",[247,250,252],{"type":93,"attrs":248},{"href":249,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.debt.org/real-estate/mortgages/home-equity-line-of-credit/",{"type":53,"attrs":251},{"color":55},{"type":165},{"text":254,"type":46,"marks":255}," of the amount of equity you have in your home. ",[256],{"type":53,"attrs":257},{"color":55},{"type":71,"attrs":259,"content":260},{"level":123},[261],{"text":262,"type":46,"marks":263},"The draw period",[264],{"type":53,"attrs":265},{"color":55},{"type":42,"content":267},[268,273,282],{"text":269,"type":46,"marks":270},"Once you qualify for a HELOC, you’ll be given a set credit limit and a time period during which you can withdraw funds. This is called the “draw period.” During this phase, you have the flexibility to borrow funds as needed, as with any other ",[271],{"type":53,"attrs":272},{"color":55},{"text":274,"type":46,"marks":275},"revolving line of credit",[276,279,281],{"type":93,"attrs":277},{"href":278,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.debt.org/credit/revolving/",{"type":53,"attrs":280},{"color":55},{"type":165},{"text":283,"type":46,"marks":284},". The draw period is what makes a HELOC different from other types of loans: it gives you the flexibility to borrow based on your changing needs rather than having to take out a specific amount or a single lump sum. While the draw period for each individual HELOC will depend on the terms of your loan and the lender’s policies, it should typically range from 5 to 10 years. ",[285],{"type":53,"attrs":286},{"color":55},{"type":42,"content":288},[289],{"text":290,"type":46,"marks":291},"While it may be tempting to borrow liberally during the draw period, it’s usually not advisable to rely on a HELOC for day-to-day expenses or speculative investing. Rather, it’s best to use the funds for expenses that are guaranteed to increase the value of your assets — like home renovations. ",[292],{"type":53,"attrs":293},{"color":55},{"type":42,"content":295},[296],{"text":297,"type":46,"marks":298},"Here are the key characteristics of the draw period: ",[299],{"type":53,"attrs":300},{"color":55},{"type":138,"content":302},[303,318,333,348],{"type":141,"content":304},[305],{"type":42,"content":306},[307,313],{"text":308,"type":46,"marks":309},"Access to funds:",[310,311],{"type":79},{"type":53,"attrs":312},{"color":55},{"text":314,"type":46,"marks":315}," During the 10-year draw period, you can access funds from the HELOC up to your approved credit limit. ",[316],{"type":53,"attrs":317},{"color":55},{"type":141,"content":319},[320],{"type":42,"content":321},[322,328],{"text":323,"type":46,"marks":324},"Flexible borrowing: ",[325,326],{"type":79},{"type":53,"attrs":327},{"color":55},{"text":329,"type":46,"marks":330},"You have the flexibility to borrow funds multiple times within the draw period, making it suitable for ongoing or variable expenses. If you want, you can repay the funds via monthly installments during the draw period. This replenishes the available credit in your HELOC, allowing you to borrow again as needed. ",[331],{"type":53,"attrs":332},{"color":55},{"type":141,"content":334},[335],{"type":42,"content":336},[337,343],{"text":338,"type":46,"marks":339},"Interest-only payments: ",[340,341],{"type":79},{"type":53,"attrs":342},{"color":55},{"text":344,"type":46,"marks":345},"Typically, you’re required to make interest-only payments during the draw period. These minimum payments tend to be quite low, which makes borrowing extremely affordable until the draw period ends. ",[346],{"type":53,"attrs":347},{"color":55},{"type":141,"content":349},[350],{"type":42,"content":351},[352,358],{"text":353,"type":46,"marks":354},"Variable interest rate: ",[355,356],{"type":79},{"type":53,"attrs":357},{"color":55},{"text":359,"type":46,"marks":360},"Most HELOC interest rates are variable, which means your rate can change based on fluctuations in the market.",[361],{"type":53,"attrs":362},{"color":55},{"type":71,"attrs":364,"content":365},{"level":123},[366],{"text":367,"type":46,"marks":368},"The repayment period",[369],{"type":53,"attrs":370},{"color":55},{"type":42,"content":372},[373],{"text":374,"type":46,"marks":375},"After the draw period ends, you’ll transition into the repayment period. During this phase, you’ll no longer be able to withdraw funds from your HELOC credit line. Instead, you’ll need to start making monthly payments on both the principal amount you borrowed and any interest that has accrued. ",[376],{"type":53,"attrs":377},{"color":55},{"type":42,"content":379},[380],{"text":381,"type":46,"marks":382},"Typically, the repayment period will span around 10 to 20 years, depending on the terms of your HELOC and the agreement you established with your lender. Here are the key characteristics of the repayment period: ",[383],{"type":53,"attrs":384},{"color":55},{"type":138,"content":386},[387,402,417,432],{"type":141,"content":388},[389],{"type":42,"content":390},[391,397],{"text":392,"type":46,"marks":393},"No more borrowing: ",[394,395],{"type":79},{"type":53,"attrs":396},{"color":55},{"text":398,"type":46,"marks":399},"The repayment period marks the end of the borrowing phase, meaning you can no longer access additional funds from your HELOC.",[400],{"type":53,"attrs":401},{"color":55},{"type":141,"content":403},[404],{"type":42,"content":405},[406,412],{"text":407,"type":46,"marks":408},"Regular monthly payments: ",[409,410],{"type":79},{"type":53,"attrs":411},{"color":55},{"text":413,"type":46,"marks":414},"During the repayment period, you’re required to make monthly payments on both your outstanding balance and any accrued interest. As you pay down the principal, your home equity increases. ",[415],{"type":53,"attrs":416},{"color":55},{"type":141,"content":418},[419],{"type":42,"content":420},[421,427],{"text":422,"type":46,"marks":423},"Fixed term: ",[424,425],{"type":79},{"type":53,"attrs":426},{"color":55},{"text":428,"type":46,"marks":429},"The repayment period has a fixed duration, often ranging from 10 to 20 years, depending on the terms of your HELOC agreement.",[430],{"type":53,"attrs":431},{"color":55},{"type":141,"content":433},[434],{"type":42,"content":435},[436,442,447,456],{"text":437,"type":46,"marks":438},"Amortization:",[439,440],{"type":79},{"type":53,"attrs":441},{"color":55},{"text":443,"type":46,"marks":444}," Your repayments will follow an ",[445],{"type":53,"attrs":446},{"color":55},{"text":448,"type":46,"marks":449},"amortization schedule",[450,453,455],{"type":93,"attrs":451},{"href":452,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://corporatefinanceinstitute.com/resources/commercial-lending/amortization-schedule/",{"type":53,"attrs":454},{"color":55},{"type":165},{"text":457,"type":46,"marks":458},". In the beginning, most of each payment will go toward paying down interest charges. But over time, as you pay that interest off, more and more of each payment will go toward paying off the principal.  ",[459],{"type":53,"attrs":460},{"color":55},{"type":71,"attrs":462,"content":463},{"level":73},[464],{"text":465,"type":46,"marks":466},"Pros and cons of a HELOC ",[467],{"type":53,"attrs":468},{"color":55},{"type":42,"content":470},[471,476,483],{"text":472,"type":46,"marks":473},"Think a ",[474],{"type":53,"attrs":475},{"color":55},{"text":477,"type":46,"marks":478},"HELOC is right for you",[479,481],{"type":93,"attrs":480},{"href":95,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":482},{"color":55},{"text":484,"type":46,"marks":485},"? Consider these pros and cons first.  ",[486],{"type":53,"attrs":487},{"color":55},{"type":71,"attrs":489,"content":490},{"level":123},[491],{"text":492,"type":46,"marks":493},"Pros:",[494],{"type":53,"attrs":495},{"color":55},{"type":497,"attrs":498,"content":500},"ordered_list",{"order":499},1,[501,515,530,545],{"type":141,"content":502},[503],{"type":42,"content":504},[505,510],{"text":308,"type":46,"marks":506},[507,508],{"type":79},{"type":53,"attrs":509},{"color":55},{"text":511,"type":46,"marks":512}," For most people, a home is the most prized asset they own, but it can be hard to access its value. A HELOC allows them to do that. It can be helpful for big expenses like home renovations, education costs, or debt consolidation.",[513],{"type":53,"attrs":514},{"color":55},{"type":141,"content":516},[517],{"type":42,"content":518},[519,525],{"text":520,"type":46,"marks":521},"Flexibility",[522,523],{"type":79},{"type":53,"attrs":524},{"color":55},{"text":526,"type":46,"marks":527},": Since you only pay interest and principal on what you withdraw, you can borrow as much or as little as you need. ",[528],{"type":53,"attrs":529},{"color":55},{"type":141,"content":531},[532],{"type":42,"content":533},[534,540],{"text":535,"type":46,"marks":536},"Lower interest rates",[537,538],{"type":79},{"type":53,"attrs":539},{"color":55},{"text":541,"type":46,"marks":542},": Because they’re secured by your home, HELOCs generally have lower interest rates compared to other types of loans.",[543],{"type":53,"attrs":544},{"color":55},{"type":141,"content":546},[547],{"type":42,"content":548},[549,555,560,569],{"text":550,"type":46,"marks":551},"Tax advantages:",[552,553],{"type":79},{"type":53,"attrs":554},{"color":55},{"text":556,"type":46,"marks":557}," Depending on how you use it, ",[558],{"type":53,"attrs":559},{"color":55},{"text":561,"type":46,"marks":562},"a HELOC may offer tax advantages",[563,566,568],{"type":93,"attrs":564},{"href":565,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.irs.gov/faqs/itemized-deductions-standard-deduction/real-estate-taxes-mortgage-interest-points-other-property-expenses/real-estate-taxes-mortgage-interest-points-other-property-expenses-2",{"type":53,"attrs":567},{"color":55},{"type":165},{"text":570,"type":46,"marks":571},". The Tax Cuts and Jobs Act of 2017 changed the tax deductions offered by HELOCs, so it's important to consult with a tax professional to understand the specific tax implications.",[572],{"type":53,"attrs":573},{"color":55},{"type":71,"attrs":575,"content":576},{"level":123},[577],{"text":578,"type":46,"marks":579},"Cons:",[580],{"type":53,"attrs":581},{"color":55},{"type":497,"attrs":583,"content":585},{"order":584},{"order":499},[586,601,616],{"type":141,"content":587},[588],{"type":42,"content":589},[590,596],{"text":591,"type":46,"marks":592},"Variable interest rates",[593,594],{"type":79},{"type":53,"attrs":595},{"color":55},{"text":597,"type":46,"marks":598},": HELOCs often come with variable interest rates, meaning that the interest rates can fluctuate over time. This can result in higher costs if national rates increase.",[599],{"type":53,"attrs":600},{"color":55},{"type":141,"content":602},[603],{"type":42,"content":604},[605,611],{"text":606,"type":46,"marks":607},"Fees",[608,609],{"type":79},{"type":53,"attrs":610},{"color":55},{"text":612,"type":46,"marks":613},": There may be upfront and ongoing fees associated with a HELOC, such as application fees, appraisal fees, or annual fees.",[614],{"type":53,"attrs":615},{"color":55},{"type":141,"content":617},[618],{"type":42,"content":619},[620,626],{"text":621,"type":46,"marks":622},"Collateral risk",[623,624],{"type":79},{"type":53,"attrs":625},{"color":55},{"text":627,"type":46,"marks":628},": Your home serves as collateral for the HELOC, which means that if you are unable to repay the loan, you risk foreclosure or losing your home.",[629],{"type":53,"attrs":630},{"color":55},{"type":71,"attrs":632,"content":633},{"level":73},[634],{"text":635,"type":46,"marks":636},"HELOC alternatives",[637],{"type":53,"attrs":638},{"color":55},{"type":138,"content":640},[641],{"type":141,"content":642},[643],{"type":42,"content":644},[645,651,656,664,672,681],{"text":646,"type":46,"marks":647},"Personal loans",[648,649],{"type":79},{"type":53,"attrs":650},{"color":55},{"text":652,"type":46,"marks":653},":",[654],{"type":53,"attrs":655},{"color":55},{"text":657,"type":46,"marks":658}," ",[659,662],{"type":93,"attrs":660},{"href":661,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://marketplace.navient.com/blog/how-do-personal-loans-work/",{"type":53,"attrs":663},{"color":55},{"text":665,"type":46,"marks":666},"A personal loan",[667,669,671],{"type":93,"attrs":668},{"href":661,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":670},{"color":55},{"type":165},{"text":673,"type":46,"marks":674},"1",[675,678,679],{"type":49,"attrs":676},{"class":677},"superscript",{"type":677},{"type":53,"attrs":680},{"color":55},{"text":682,"type":46,"marks":683}," is a type of loan that you can borrow from a bank, credit union, or online lender. You can use this loan option for almost any purpose. Unlike a HELOC, a personal loan is usually unsecured, which means it doesn’t require any collateral. This also means that a personal loan will usually have a higher interest rate than a HELOC because the lender cannot recoup their losses if you fail to repay your loan. ",[684],{"type":53,"attrs":685},{"color":55},{"type":138,"content":687},[688],{"type":141,"content":689},[690],{"type":42,"content":691},[692,698],{"text":693,"type":46,"marks":694},"Home equity loans:",[695,696],{"type":79},{"type":53,"attrs":697},{"color":55},{"text":699,"type":46,"marks":700}," Like a HELOC, a home equity loan is a type of second mortgage that allows homeowners to borrow money using the available equity they have in their home. Unlike a HELOC, a home equity loan is a lump-sum loan with a fixed interest rate and a set term (no draw and repayment period). ",[701],{"type":53,"attrs":702},{"color":55},{"type":138,"content":704},[705],{"type":141,"content":706},[707],{"type":42,"content":708},[709,715,720,729],{"text":710,"type":46,"marks":711},"Credit cards",[712,713],{"type":79},{"type":53,"attrs":714},{"color":55},{"text":716,"type":46,"marks":717},": If your expense is smaller and you expect to have the cash to get out of debt soon, a credit card can work. Look for a 0% introductory APR and make sure you pay off all your credit card debt ",[718],{"type":53,"attrs":719},{"color":55},{"text":721,"type":46,"marks":722},"before the interest rate skyrockets",[723,726,728],{"type":93,"attrs":724},{"href":725,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.experian.com/blogs/ask-experian/how-do-0-apr-credit-cards-work/",{"type":53,"attrs":727},{"color":55},{"type":165},{"text":730,"type":46,"marks":731},". ",[732],{"type":53,"attrs":733},{"color":55},{"type":138,"content":735},[736],{"type":141,"content":737},[738],{"type":42,"content":739},[740,746],{"text":741,"type":46,"marks":742},"Cash-out refinance",[743,744],{"type":79},{"type":53,"attrs":745},{"color":55},{"text":747,"type":46,"marks":748},": A cash-out refinance is a refinancing option where you replace your current mortgage with a new, higher home loan. The difference between the two loan amounts is paid out in cash. A cash-out refinance can be a good option if your home has appreciated in value and you need cash for a major expense. ",[749],{"type":53,"attrs":750},{"color":55},{"type":71,"attrs":752,"content":753},{"level":73},[754],{"text":755,"type":46,"marks":756},"Compare loans with Navient Marketplace",[757],{"type":53,"attrs":758},{"color":55},{"type":42,"content":760},[761,766,773,781],{"text":762,"type":46,"marks":763},"If you feel uncertain about putting your home up as collateral for a HELOC, you may want to consider an unsecured personal loan to cover your upcoming expenses. Not sure where to get started? Navient Marketplace partners with Fiona, a leading personal loan search tool, to help borrowers find loans custom-tailored to their needs. Go to Navient Marketplace today to",[764],{"type":53,"attrs":765},{"color":55},{"text":657,"type":46,"marks":767},[768,771],{"type":93,"attrs":769},{"href":770,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://marketplace.navient.com/",{"type":53,"attrs":772},{"color":55},{"text":774,"type":46,"marks":775},"find and prequalify for flexible loans",[776,778,780],{"type":93,"attrs":777},{"href":770,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":779},{"color":55},{"type":165},{"text":782,"type":46,"marks":783}," from the country’s top lenders.",[784],{"type":53,"attrs":785},{"color":55},{"type":42,"content":787},[788],{"text":789,"type":46,"marks":790},"Disclaimer: This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.",[791,793],{"type":49,"attrs":792},{"class":51},{"type":53,"attrs":794},{"color":55},{"type":42,"content":796},[797,803],{"text":673,"type":46,"marks":798},[799,801],{"type":49,"attrs":800},{"class":677},{"type":53,"attrs":802},{"color":55},{"text":804,"type":46,"marks":805}," Navient customers are invited to consider personal loan offers through our partner Fiona. Navient has not shared your information with Fiona and is not involved in the personal loan application process in any manner. All information is submitted directly to Fiona and any personal loan offers are made directly by participants in Fiona’s lending platform, powered by Even Financial. Even Financial, Inc. is the industry-leading embedded financial marketplace and independent subsidiary of MoneyLion Inc. (“MoneyLion”) (NYSE:ML). Checking your rate will not affect your credit score. Eligibility is not guaranteed and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. ",[806,808],{"type":49,"attrs":807},{"class":51},{"type":53,"attrs":809},{"color":55},{"type":42,"content":811},[812],{"text":813,"type":46,"marks":814},"Loan proceeds may not be used for postsecondary educational expenses, including refinancing federal or private student loans. ",[815,817],{"type":49,"attrs":816},{"class":51},{"type":53,"attrs":818},{"color":55},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798170\"}-->","BlogText","https://www.marketplace.navient.com/blog/how-does-a-heloc-work","Updated: September 20, 2023","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"39f3568e-f888-4c3e-816f-3647f7efec59\", \"id\": \"651798170\"}-->","how-does-a-heloc-work","navient_marketplace/blog/how-does-a-heloc-work",-500,[],651751493,"1162ccad-df5d-4d7b-aa34-11a89d2b96e9","2023-09-26T16:22:24.242Z","default","blog/how-does-a-heloc-work",[],{"name":835,"created_at":836,"published_at":837,"updated_at":838,"id":839,"uuid":840,"content":841,"slug":1877,"full_slug":1878,"sort_by_date":96,"position":826,"tag_list":1879,"is_startpage":29,"parent_id":828,"meta_data":96,"group_id":1880,"first_published_at":1881,"release_id":96,"lang":831,"path":96,"alternates":1882,"default_full_slug":96,"translated_slugs":96},"Home Equity Loan vs. Line of Credit","2025-04-07T18:30:36.731Z","2025-12-26T13:44:57.177Z","2025-12-26T13:44:57.254Z",651798169,"a18482a3-561b-4e63-880e-f6c0a7ece8fc",{"seo":842,"_uid":20,"hero":845,"author":31,"category":32,"featured":29,"imageAlt":18,"component":33,"blogContents":851,"canonicalTag":1875,"publishedDate":822,"_editable":1876},{"_uid":15,"title":843,"plugin":17,"og_image":18,"og_title":18,"description":844,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"Home Equity Loan vs. Line of Credit: What's the Difference? | Navient Marketplace","Your home’s equity is great financial leverage for taking out new credit. Here’s how to choose the right option for your goals.",[846],{"id":18,"_uid":23,"image":847,"intro":844,"classes":18,"_editable":848,"blogTitle":849,"component":27,"imageLink":850,"blendImage":29,"backgroundColor":30},"//a.storyblok.com/f/110029/5408x3605/b2c5381fc5/home-equity-loan-vs-line-of-credit.png","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798169\"}-->","Home Equity Loan vs. Line of Credit: What's the Difference?","/images/home-equity-loan-vs-line-of-credit.png",[852],{"_uid":36,"color":37,"richText":853,"_editable":1874,"component":820},{"type":39,"content":854},[855,863,870,877,885,892,900,907,1071,1079,1088,1105,1122,1153,1170,1187,1195,1226,1257,1274,1291,1299,1306,1314,1321,1398,1406,1414,1431,1448,1465,1482,1508,1516,1533,1550,1567,1575,1582,1589,1618,1625,1663,1671,1678,1715,1746,1763,1780,1797,1814,1822,1842,1850,1865],{"type":42,"content":856},[857],{"text":45,"type":46,"marks":858},[859,861],{"type":49,"attrs":860},{"class":51},{"type":53,"attrs":862},{"color":55},{"type":42,"content":864},[865],{"text":866,"type":46,"marks":867},"As a homeowner, your home is one of your most prized assets. With each mortgage payment, you gradually build up the equity in your property. This — your home equity — is the percentage of your home’s value that you officially own. Building home equity is a great way to increase your net worth. But you can also use your home equity as financial leverage to take out new credit. ",[868],{"type":53,"attrs":869},{"color":55},{"type":42,"content":871},[872],{"text":873,"type":46,"marks":874},"There are two main types of credit you can get using your home’s equity: home equity loans and home equity lines of credit (HELOCs). Here’s how to choose the right option for your goals. ",[875],{"type":53,"attrs":876},{"color":55},{"type":71,"attrs":878,"content":879},{"level":73},[880],{"text":881,"type":46,"marks":882},"What is a home equity loan?",[883],{"type":53,"attrs":884},{"color":55},{"type":42,"content":886},[887],{"text":888,"type":46,"marks":889},"A home equity loan is a type of second mortgage that allows you to borrow against the equity you’ve built up in your property. Home equity loans are popular for debt consolidation as well as covering home repairs and remodels. If you qualify for a home equity loan, the bank will loan you a lump sum of money, which you’ll then repay via a series of fixed monthly payments over a predetermined period of time. ",[890],{"type":53,"attrs":891},{"color":55},{"type":71,"attrs":893,"content":894},{"level":73},[895],{"text":896,"type":46,"marks":897},"How does a home equity loan work?",[898],{"type":53,"attrs":899},{"color":55},{"type":42,"content":901},[902],{"text":903,"type":46,"marks":904},"Here’s how to take out, use, and pay back a home equity loan. ",[905],{"type":53,"attrs":906},{"color":55},{"type":497,"attrs":908,"content":909},{"order":499},[910,953,982,997,1026,1041,1056],{"type":141,"content":911},[912],{"type":42,"content":913},[914,920,925,935,940,948],{"text":915,"type":46,"marks":916},"Check your eligibility: ",[917,918],{"type":79},{"type":53,"attrs":919},{"color":55},{"text":921,"type":46,"marks":922},"To qualify for a home equity loan, you’ll need to have a significant amount of equity in your property, as well as a ",[923],{"type":53,"attrs":924},{"color":55},{"text":926,"type":46,"marks":927},"good credit score",[928,931,934],{"type":93,"attrs":929},{"href":930,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.usa.gov/credit-score",{"type":53,"attrs":932},{"color":933},"rgb(17, 85, 204)",{"type":165},{"text":936,"type":46,"marks":937}," and a stable income. To determine your equity, lenders typically look at your ",[938],{"type":53,"attrs":939},{"color":55},{"text":941,"type":46,"marks":942},"loan-to-value ratio (LTV)",[943,945,947],{"type":93,"attrs":944},{"href":176,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":946},{"color":933},{"type":165},{"text":949,"type":46,"marks":950},". This number, expressed as a percentage, is the remaining balance of your mortgage loan divided by the cost of your house. So, if your house is valued at $300,000 and you have $250,000 left on your mortgage, your LTV is $250,000 / $300,000, or 83%. Lenders typically require an LTV of around 80% or lower.",[951],{"type":53,"attrs":952},{"color":55},{"type":141,"content":954},[955],{"type":42,"content":956},[957,963,968,977],{"text":958,"type":46,"marks":959},"Get prequalified",[960,961],{"type":79},{"type":53,"attrs":962},{"color":55},{"text":964,"type":46,"marks":965},": Before starting the official loan application process, you can opt for ",[966],{"type":53,"attrs":967},{"color":55},{"text":969,"type":46,"marks":970},"prequalification",[971,974,976],{"type":93,"attrs":972},{"href":973,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/owning-a-home/explore/get-prequalification-or-preapproval-letter/",{"type":53,"attrs":975},{"color":933},{"type":165},{"text":978,"type":46,"marks":979},". This step involves providing basic financial information to the lender to get an estimate of the loan amount and terms you may qualify for.",[980],{"type":53,"attrs":981},{"color":55},{"type":141,"content":983},[984],{"type":42,"content":985},[986,992],{"text":987,"type":46,"marks":988},"Fill out a loan application: ",[989,990],{"type":79},{"type":53,"attrs":991},{"color":55},{"text":993,"type":46,"marks":994},"If you think you qualify, you’ll fill out an application with the lender of your choice. You’ll need to provide proof of income, property details, and your credit history.",[995],{"type":53,"attrs":996},{"color":55},{"type":141,"content":998},[999],{"type":42,"content":1000},[1001,1007,1012,1021],{"text":1002,"type":46,"marks":1003},"Receive a property appraisal: ",[1004,1005],{"type":79},{"type":53,"attrs":1006},{"color":55},{"text":1008,"type":46,"marks":1009},"Before approving your application, the new lender will conduct a ",[1010],{"type":53,"attrs":1011},{"color":55},{"text":1013,"type":46,"marks":1014},"property appraisal",[1015,1018,1020],{"type":93,"attrs":1016},{"href":1017,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/what-are-appraisals-and-why-do-i-need-to-look-at-them-en-167/",{"type":53,"attrs":1019},{"color":933},{"type":165},{"text":1022,"type":46,"marks":1023}," to determine the market value of your home. The maximum amount of money they’ll lend you is generally up to 80% of the equity you hold. ",[1024],{"type":53,"attrs":1025},{"color":55},{"type":141,"content":1027},[1028],{"type":42,"content":1029},[1030,1036],{"text":1031,"type":46,"marks":1032},"Agree on repayment terms: ",[1033,1034],{"type":79},{"type":53,"attrs":1035},{"color":55},{"text":1037,"type":46,"marks":1038},"If approved, you’ll receive the approved loan amount in a single lump sum. (Once you take out the loan, your home equity will drop by an equivalent amount.) You’ll pay interest on your loan amount with each monthly payment. Most home equity loans have fixed interest rates, which means your monthly payment will remain the same throughout the life of the loan. The rate you qualify for will be based on your credit score, loan amount, and current loan-to-value ratio.",[1039],{"type":53,"attrs":1040},{"color":55},{"type":141,"content":1042},[1043],{"type":42,"content":1044},[1045,1051],{"text":1046,"type":46,"marks":1047},"Use the funds:",[1048,1049],{"type":79},{"type":53,"attrs":1050},{"color":55},{"text":1052,"type":46,"marks":1053}," Unlike other types of loans, like home loans or auto loans, home equity loans can be used for almost any purpose.",[1054],{"type":53,"attrs":1055},{"color":55},{"type":141,"content":1057},[1058],{"type":42,"content":1059},[1060,1066],{"text":1061,"type":46,"marks":1062},"Pay back the loan:",[1063,1064],{"type":79},{"type":53,"attrs":1065},{"color":55},{"text":1067,"type":46,"marks":1068}," Once you take out the loan, you’ll make monthly loan payments until the entire loan balance is paid off. When the loan is paid off fully, the amount of equity you own in your home will return to its previous level. ",[1069],{"type":53,"attrs":1070},{"color":55},{"type":71,"attrs":1072,"content":1073},{"level":73},[1074],{"text":1075,"type":46,"marks":1076},"Pros and cons of a home equity loan",[1077],{"type":53,"attrs":1078},{"color":55},{"type":71,"attrs":1080,"content":1081},{"level":123},[1082],{"text":1083,"type":46,"marks":1084},"Pros of home equity loans ",[1085],{"type":53,"attrs":1086},{"color":1087},"rgb(67, 67, 67)",{"type":138,"content":1089},[1090],{"type":141,"content":1091},[1092],{"type":42,"content":1093},[1094,1100],{"text":1095,"type":46,"marks":1096},"Fixed interest rate: ",[1097,1098],{"type":79},{"type":53,"attrs":1099},{"color":55},{"text":1101,"type":46,"marks":1102},"Home equity loans tend to have fixed interest rates, which means stable, consistent monthly payments. These rates tend to be lower compared to rates on other types of credit, such as personal loans or credit cards. ",[1103],{"type":53,"attrs":1104},{"color":55},{"type":138,"content":1106},[1107],{"type":141,"content":1108},[1109],{"type":42,"content":1110},[1111,1117],{"text":1112,"type":46,"marks":1113},"Lump sum payment: ",[1114,1115],{"type":79},{"type":53,"attrs":1116},{"color":55},{"text":1118,"type":46,"marks":1119},"Borrowers receive all the funds upfront in a single lump sum, which can be useful for large, one-time expenses.",[1120],{"type":53,"attrs":1121},{"color":55},{"type":138,"content":1123},[1124],{"type":141,"content":1125},[1126],{"type":42,"content":1127},[1128,1134,1139,1148],{"text":1129,"type":46,"marks":1130},"Tax deductions: ",[1131,1132],{"type":79},{"type":53,"attrs":1133},{"color":55},{"text":1135,"type":46,"marks":1136},"While the rules for tax deductions on home equity loans changed with the ",[1137],{"type":53,"attrs":1138},{"color":55},{"text":1140,"type":46,"marks":1141},"Tax Cuts and Jobs Act",[1142,1145,1147],{"type":93,"attrs":1143},{"href":1144,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.irs.gov/newsroom/tax-cuts-and-jobs-act-a-comparison-for-businesses#:~:text=The%20Tax%20Cuts%20and%20Jobs,the%20changes%20and%20plan%20accordingly.",{"type":53,"attrs":1146},{"color":933},{"type":165},{"text":1149,"type":46,"marks":1150},", you may still be able to claim a deduction on the interest you pay. Check with a tax professional.",[1151],{"type":53,"attrs":1152},{"color":55},{"type":138,"content":1154},[1155],{"type":141,"content":1156},[1157],{"type":42,"content":1158},[1159,1165],{"text":1160,"type":46,"marks":1161},"Longer repayment terms: ",[1162,1163],{"type":79},{"type":53,"attrs":1164},{"color":55},{"text":1166,"type":46,"marks":1167},"Home equity loans often come with long repayment terms, ranging from five to 30 years. A long term can mean more manageable monthly payments. ",[1168],{"type":53,"attrs":1169},{"color":55},{"type":138,"content":1171},[1172],{"type":141,"content":1173},[1174],{"type":42,"content":1175},[1176,1182],{"text":1177,"type":46,"marks":1178},"No restrictions on use:",[1179,1180],{"type":79},{"type":53,"attrs":1181},{"color":55},{"text":1183,"type":46,"marks":1184}," You can use the funds for a wide range of purposes, from home improvement projects to emergency expenses. ",[1185],{"type":53,"attrs":1186},{"color":55},{"type":71,"attrs":1188,"content":1189},{"level":123},[1190],{"text":1191,"type":46,"marks":1192},"Cons of home equity loans",[1193],{"type":53,"attrs":1194},{"color":1087},{"type":138,"content":1196},[1197],{"type":141,"content":1198},[1199],{"type":42,"content":1200},[1201,1207,1212,1221],{"text":1202,"type":46,"marks":1203},"Risk of foreclosure: ",[1204,1205],{"type":79},{"type":53,"attrs":1206},{"color":55},{"text":1208,"type":46,"marks":1209},"When you take out a home equity loan, you use your home as collateral. That means that if you default on the loan, you risk losing your property through ",[1210],{"type":53,"attrs":1211},{"color":55},{"text":1213,"type":46,"marks":1214},"foreclosure",[1215,1218,1220],{"type":93,"attrs":1216},{"href":1217,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/how-does-foreclosure-work-en-287/",{"type":53,"attrs":1219},{"color":933},{"type":165},{"text":1222,"type":46,"marks":1223},".",[1224],{"type":53,"attrs":1225},{"color":55},{"type":138,"content":1227},[1228],{"type":141,"content":1229},[1230],{"type":42,"content":1231},[1232,1238,1243,1252],{"text":1233,"type":46,"marks":1234},"Multiple mortgages: ",[1235,1236],{"type":79},{"type":53,"attrs":1237},{"color":55},{"text":1239,"type":46,"marks":1240},"Taking out a home equity loan adds to your existing debt burden. You’ll end up having to pay for that loan on top of your first mortgage. If you also have ",[1241],{"type":53,"attrs":1242},{"color":55},{"text":1244,"type":46,"marks":1245},"student loans",[1246,1249,1251],{"type":93,"attrs":1247},{"href":1248,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://navient.com/education-financing/",{"type":53,"attrs":1250},{"color":933},{"type":165},{"text":1253,"type":46,"marks":1254}," or credit card debt, adding a home equity loan could make your debt difficult to manage.",[1255],{"type":53,"attrs":1256},{"color":55},{"type":138,"content":1258},[1259],{"type":141,"content":1260},[1261],{"type":42,"content":1262},[1263,1269],{"text":1264,"type":46,"marks":1265},"Closing costs",[1266,1267],{"type":79},{"type":53,"attrs":1268},{"color":55},{"text":1270,"type":46,"marks":1271},": Your home equity loan may come with closing costs, including application fees, origination fees, appraisal fees, or title search fees. ",[1272],{"type":53,"attrs":1273},{"color":55},{"type":138,"content":1275},[1276],{"type":141,"content":1277},[1278],{"type":42,"content":1279},[1280,1286],{"text":1281,"type":46,"marks":1282},"Negative equity:",[1283,1284],{"type":79},{"type":53,"attrs":1285},{"color":55},{"text":1287,"type":46,"marks":1288}," When you take out a home equity loan, the equity you own in your property decreases. If the market value of your home goes down after this point, you may end up owing more on your home than it’s worth. This negative equity can make it challenging if you need to sell or refinance in the future. ",[1289],{"type":53,"attrs":1290},{"color":55},{"type":71,"attrs":1292,"content":1293},{"level":73},[1294],{"text":1295,"type":46,"marks":1296},"What is a home equity line of credit (HELOC)?",[1297],{"type":53,"attrs":1298},{"color":55},{"type":42,"content":1300},[1301],{"text":1302,"type":46,"marks":1303},"A home equity line of credit (HELOC) is a more flexible borrowing option for homeowners. Unlike a home equity loan, where you receive a lump sum upfront, a HELOC provides a revolving line of credit that you can draw from as needed, similar to a credit card. Your credit limit will be based on your home equity, your creditworthiness, and other factors. ",[1304],{"type":53,"attrs":1305},{"color":55},{"type":71,"attrs":1307,"content":1308},{"level":73},[1309],{"text":1310,"type":46,"marks":1311},"How does a HELOC work?",[1312],{"type":53,"attrs":1313},{"color":55},{"type":42,"content":1315},[1316],{"text":1317,"type":46,"marks":1318},"Similar to a home equity loan, a HELOC allows you to borrow against the equity in your home. However, there are a few significant differences. Here’s how a HELOC works.  ",[1319],{"type":53,"attrs":1320},{"color":55},{"type":497,"attrs":1322,"content":1323},{"order":499},[1324,1339,1354,1383],{"type":141,"content":1325},[1326],{"type":42,"content":1327},[1328,1334],{"text":1329,"type":46,"marks":1330},"Determine your eligibility:",[1331,1332],{"type":79},{"type":53,"attrs":1333},{"color":55},{"text":1335,"type":46,"marks":1336}," As with a home equity loan, you’ll need to have a good credit score and a stable income to qualify for a HELOC. Lenders typically look for a loan-to-value ratio (LTV) of 85% or lower. ",[1337],{"type":53,"attrs":1338},{"color":55},{"type":141,"content":1340},[1341],{"type":42,"content":1342},[1343,1349],{"text":1344,"type":46,"marks":1345},"Get a property appraisal: ",[1346,1347],{"type":79},{"type":53,"attrs":1348},{"color":55},{"text":1350,"type":46,"marks":1351},"After you fill out an application, the lender will conduct a property appraisal. Once again, your maximum credit limit will be a percentage of the home’s appraised value, which can typically be up to 80-85% of the equity you hold. ",[1352],{"type":53,"attrs":1353},{"color":55},{"type":141,"content":1355},[1356],{"type":42,"content":1357},[1358,1364,1369,1378],{"text":1359,"type":46,"marks":1360},"Use the funds: ",[1361,1362],{"type":79},{"type":53,"attrs":1363},{"color":55},{"text":1365,"type":46,"marks":1366},"Once your line of credit is open, you can access funding as needed up to your approved credit limit. Most HELOCs let you make withdrawals within an initial “",[1367],{"type":53,"attrs":1368},{"color":55},{"text":1370,"type":46,"marks":1371},"draw period",[1372,1375,1377],{"type":93,"attrs":1373},{"href":1374,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.experian.com/blogs/ask-experian/how-does-heloc-repayment-work/",{"type":53,"attrs":1376},{"color":933},{"type":165},{"text":1379,"type":46,"marks":1380},",” which usually lasts 5 to 10 years. During this period of time, you only have to pay interest on the funds you take out — you don’t have to pay back the funds themselves until the draw period ends.  ",[1381],{"type":53,"attrs":1382},{"color":55},{"type":141,"content":1384},[1385],{"type":42,"content":1386},[1387,1393],{"text":1388,"type":46,"marks":1389},"Pay back the principal: ",[1390,1391],{"type":79},{"type":53,"attrs":1392},{"color":55},{"text":1394,"type":46,"marks":1395},"After the draw period ends, the repayment period begins. During this period of time, which usually lasts 10 to 20 years, you must pay back the principal along with any interest. Most HELOCs have variable interest rates. Once you enter the repayment period, you can no longer withdraw funds. ",[1396],{"type":53,"attrs":1397},{"color":55},{"type":71,"attrs":1399,"content":1400},{"level":73},[1401],{"text":1402,"type":46,"marks":1403},"Pros and cons of a home equity line of credit",[1404],{"type":53,"attrs":1405},{"color":55},{"type":71,"attrs":1407,"content":1408},{"level":123},[1409],{"text":1410,"type":46,"marks":1411},"Pros of HELOCs ",[1412],{"type":53,"attrs":1413},{"color":1087},{"type":138,"content":1415},[1416],{"type":141,"content":1417},[1418],{"type":42,"content":1419},[1420,1426],{"text":1421,"type":46,"marks":1422},"Flexible borrowing:",[1423,1424],{"type":79},{"type":53,"attrs":1425},{"color":55},{"text":1427,"type":46,"marks":1428}," A HELOC provides a revolving line of credit. This means you can take out funds as needed — up to the approved credit limit — without having to apply for a new loan each time. ",[1429],{"type":53,"attrs":1430},{"color":55},{"type":138,"content":1432},[1433],{"type":141,"content":1434},[1435],{"type":42,"content":1436},[1437,1443],{"text":1438,"type":46,"marks":1439},"Lower interest rates: ",[1440,1441],{"type":79},{"type":53,"attrs":1442},{"color":55},{"text":1444,"type":46,"marks":1445},"HELOCs tend to have lower interest rates compared to other forms of credit, such as credit cards or personal loans.",[1446],{"type":53,"attrs":1447},{"color":55},{"type":138,"content":1449},[1450],{"type":141,"content":1451},[1452],{"type":42,"content":1453},[1454,1460],{"text":1455,"type":46,"marks":1456},"Various repayment options:",[1457,1458],{"type":79},{"type":53,"attrs":1459},{"color":55},{"text":1461,"type":46,"marks":1462}," During the draw period, you have the option to make interest-only payments, which put less of a strain on your budget. ",[1463],{"type":53,"attrs":1464},{"color":55},{"type":138,"content":1466},[1467],{"type":141,"content":1468},[1469],{"type":42,"content":1470},[1471,1477],{"text":1472,"type":46,"marks":1473},"Minimal upfront costs:",[1474,1475],{"type":79},{"type":53,"attrs":1476},{"color":55},{"text":1478,"type":46,"marks":1479}," Unlike home equity loans, HELOCs often have few upfront costs or application fees, making them a more affordable option for homeowners. ",[1480],{"type":53,"attrs":1481},{"color":55},{"type":138,"content":1483},[1484],{"type":141,"content":1485},[1486],{"type":42,"content":1487},[1488,1494,1499],{"text":1489,"type":46,"marks":1490},"Continue building equity:",[1491,1492],{"type":79},{"type":53,"attrs":1493},{"color":55},{"text":1495,"type":46,"marks":1496}," With a HELOC, you can continue building equity in your property as you make your mortgage payments. You’re less likely to end up with ",[1497],{"type":53,"attrs":1498},{"color":55},{"text":1500,"type":46,"marks":1501},"negative equity. ",[1502,1505,1507],{"type":93,"attrs":1503},{"href":1504,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://corporatefinanceinstitute.com/resources/accounting/negative-equity/",{"type":53,"attrs":1506},{"color":933},{"type":165},{"type":71,"attrs":1509,"content":1510},{"level":123},[1511],{"text":1512,"type":46,"marks":1513},"Cons of HELOCs",[1514],{"type":53,"attrs":1515},{"color":1087},{"type":138,"content":1517},[1518],{"type":141,"content":1519},[1520],{"type":42,"content":1521},[1522,1528],{"text":1523,"type":46,"marks":1524},"Variable interest rates:",[1525,1526],{"type":79},{"type":53,"attrs":1527},{"color":55},{"text":1529,"type":46,"marks":1530}," HELOCs typically come with variable interest rates. That means your monthly payment could increase over time. ",[1531],{"type":53,"attrs":1532},{"color":55},{"type":138,"content":1534},[1535],{"type":141,"content":1536},[1537],{"type":42,"content":1538},[1539,1545],{"text":1540,"type":46,"marks":1541},"Limited credit: ",[1542,1543],{"type":79},{"type":53,"attrs":1544},{"color":55},{"text":1546,"type":46,"marks":1547},"The amount of credit available through a HELOC is contingent on your available equity. If the property’s value declines, or if your financial situation changes, your credit limit could decrease accordingly. ",[1548],{"type":53,"attrs":1549},{"color":55},{"type":138,"content":1551},[1552],{"type":141,"content":1553},[1554],{"type":42,"content":1555},[1556,1562],{"text":1557,"type":46,"marks":1558},"Risk of property foreclosure: ",[1559,1560],{"type":79},{"type":53,"attrs":1561},{"color":55},{"text":1563,"type":46,"marks":1564},"As with a home equity loan, a HELOC relies on your home as collateral. Failure to repay the borrowed amount could result in foreclosure. ",[1565],{"type":53,"attrs":1566},{"color":55},{"type":71,"attrs":1568,"content":1569},{"level":73},[1570],{"text":1571,"type":46,"marks":1572},"Which is right for me, a HELOC or a home equity loan?",[1573],{"type":53,"attrs":1574},{"color":55},{"type":42,"content":1576},[1577],{"text":1578,"type":46,"marks":1579},"Your perfect loan choice will come down to your specific financial needs, preferences, and circumstances. Here are some guidelines to consider. ",[1580],{"type":53,"attrs":1581},{"color":55},{"type":42,"content":1583},[1584],{"text":1585,"type":46,"marks":1586},"Choose a home equity loan if:",[1587],{"type":53,"attrs":1588},{"color":55},{"type":138,"content":1590},[1591,1600,1609],{"type":141,"content":1592},[1593],{"type":42,"content":1594},[1595],{"text":1596,"type":46,"marks":1597},"You prefer predictable payments.",[1598],{"type":53,"attrs":1599},{"color":55},{"type":141,"content":1601},[1602],{"type":42,"content":1603},[1604],{"text":1605,"type":46,"marks":1606},"You need to cover a large, one-time expense.",[1607],{"type":53,"attrs":1608},{"color":55},{"type":141,"content":1610},[1611],{"type":42,"content":1612},[1613],{"text":1614,"type":46,"marks":1615},"You want to lock in a low interest rate.",[1616],{"type":53,"attrs":1617},{"color":55},{"type":42,"content":1619},[1620],{"text":1621,"type":46,"marks":1622},"Choose a HELOC if:",[1623],{"type":53,"attrs":1624},{"color":55},{"type":138,"content":1626},[1627,1636,1645,1654],{"type":141,"content":1628},[1629],{"type":42,"content":1630},[1631],{"text":1632,"type":46,"marks":1633},"You need flexibility.",[1634],{"type":53,"attrs":1635},{"color":55},{"type":141,"content":1637},[1638],{"type":42,"content":1639},[1640],{"text":1641,"type":46,"marks":1642},"You’re comfortable with potential interest rate fluctuations and want to take advantage of lower rates during the draw period. ",[1643],{"type":53,"attrs":1644},{"color":55},{"type":141,"content":1646},[1647],{"type":42,"content":1648},[1649],{"text":1650,"type":46,"marks":1651},"You’re uncertain about your exact funding needs. ",[1652],{"type":53,"attrs":1653},{"color":55},{"type":141,"content":1655},[1656],{"type":42,"content":1657},[1658],{"text":1659,"type":46,"marks":1660},"You have an airtight plan to pay back the funds during the repayment period. ",[1661],{"type":53,"attrs":1662},{"color":55},{"type":71,"attrs":1664,"content":1665},{"level":73},[1666],{"text":1667,"type":46,"marks":1668},"Alternatives to HELOCs and home equity loans ",[1669],{"type":53,"attrs":1670},{"color":55},{"type":42,"content":1672},[1673],{"text":1674,"type":46,"marks":1675},"If you decide that neither a home equity loan nor a home equity line of credit is right for you, consider these alternatives.",[1676],{"type":53,"attrs":1677},{"color":55},{"type":138,"content":1679},[1680],{"type":141,"content":1681},[1682],{"type":42,"content":1683},[1684,1690,1694,1703,1710],{"text":1685,"type":46,"marks":1686},"Personal loans:",[1687,1688],{"type":79},{"type":53,"attrs":1689},{"color":55},{"text":657,"type":46,"marks":1691},[1692],{"type":53,"attrs":1693},{"color":55},{"text":1695,"type":46,"marks":1696},"Unsecured personal loans",[1697,1700,1702],{"type":93,"attrs":1698},{"href":1699,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://marketplace.navient.com/blog/what-is-a-personal-loan/",{"type":53,"attrs":1701},{"color":933},{"type":165},{"text":673,"type":46,"marks":1704},[1705,1707,1708],{"type":49,"attrs":1706},{"class":677},{"type":677},{"type":53,"attrs":1709},{"color":18},{"text":1711,"type":46,"marks":1712}," are available from banks, credit unions, and online lenders. While they don’t require collateral and can be used for various purposes, the interest rates on personal loans may be higher than what you’d get on a home equity loan.",[1713],{"type":53,"attrs":1714},{"color":55},{"type":138,"content":1716},[1717],{"type":141,"content":1718},[1719],{"type":42,"content":1720},[1721,1727,1732,1741],{"text":1722,"type":46,"marks":1723},"Cash-out refinance:",[1724,1725],{"type":79},{"type":53,"attrs":1726},{"color":55},{"text":1728,"type":46,"marks":1729}," A ",[1730],{"type":53,"attrs":1731},{"color":55},{"text":1733,"type":46,"marks":1734},"cash-out refinance",[1735,1738,1740],{"type":93,"attrs":1736},{"href":1737,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.experian.com/blogs/ask-experian/what-is-a-cash-out-refinance/",{"type":53,"attrs":1739},{"color":933},{"type":165},{"text":1742,"type":46,"marks":1743}," involves refinancing your existing mortgage for a higher amount and receiving the difference as cash. This can be a good option if you have significant equity in your home and your current mortgage rate is low. ",[1744],{"type":53,"attrs":1745},{"color":55},{"type":138,"content":1747},[1748],{"type":141,"content":1749},[1750],{"type":42,"content":1751},[1752,1758],{"text":1753,"type":46,"marks":1754},"Credit cards:",[1755,1756],{"type":79},{"type":53,"attrs":1757},{"color":55},{"text":1759,"type":46,"marks":1760}," For smaller expenses, a credit card with a low interest rate or an 0% introductory annual percentage rate (APR) may be suitable. It’s important to pay off balances quickly, however, as high interest rates can lead to expensive credit card debt. ",[1761],{"type":53,"attrs":1762},{"color":55},{"type":138,"content":1764},[1765],{"type":141,"content":1766},[1767],{"type":42,"content":1768},[1769,1775],{"text":1770,"type":46,"marks":1771},"Personal lines of credit: ",[1772,1773],{"type":79},{"type":53,"attrs":1774},{"color":55},{"text":1776,"type":46,"marks":1777},"Personal lines of credit are another flexible borrowing option. These credit lines often have higher interest rates than HELOCs, but they don’t require home equity as collateral. ",[1778],{"type":53,"attrs":1779},{"color":55},{"type":138,"content":1781},[1782],{"type":141,"content":1783},[1784],{"type":42,"content":1785},[1786,1792],{"text":1787,"type":46,"marks":1788},"Home improvement loans:",[1789,1790],{"type":79},{"type":53,"attrs":1791},{"color":55},{"text":1793,"type":46,"marks":1794}," Some lenders offer loans designed specifically for home improvement or home renovation projects. These loans tend to have fixed interest rates, making them more predictable and budget-friendly. ",[1795],{"type":53,"attrs":1796},{"color":55},{"type":138,"content":1798},[1799],{"type":141,"content":1800},[1801],{"type":42,"content":1802},[1803,1809],{"text":1804,"type":46,"marks":1805},"Peer-to-peer lending: ",[1806,1807],{"type":79},{"type":53,"attrs":1808},{"color":55},{"text":1810,"type":46,"marks":1811},"P2P lending platforms connect borrowers with individual investors willing to fund loans. Terms and rates vary based on your creditworthiness and each investor’s risk tolerance. ",[1812],{"type":53,"attrs":1813},{"color":55},{"type":71,"attrs":1815,"content":1816},{"level":73},[1817],{"text":1818,"type":46,"marks":1819},"Compare loans on Navient Marketplace",[1820],{"type":53,"attrs":1821},{"color":55},{"type":42,"content":1823},[1824,1829,1837],{"text":1825,"type":46,"marks":1826},"If you’re looking for a personal loan to cover your upcoming expenses, consider using Navient Marketplace to get started. Navient partners with MoneyLion, a leading personal loan search tool, to help borrowers find loans custom-tailored to their needs. Go to Navient Marketplace today to ",[1827],{"type":53,"attrs":1828},{"color":55},{"text":774,"type":46,"marks":1830},[1831,1834,1836],{"type":93,"attrs":1832},{"href":1833,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://marketplace.navient.com",{"type":53,"attrs":1835},{"color":933},{"type":165},{"text":1838,"type":46,"marks":1839}," from the country’s top lenders. ",[1840],{"type":53,"attrs":1841},{"color":55},{"type":42,"content":1843},[1844],{"text":789,"type":46,"marks":1845},[1846,1848],{"type":49,"attrs":1847},{"class":51},{"type":53,"attrs":1849},{"color":55},{"type":42,"content":1851},[1852,1858],{"text":673,"type":46,"marks":1853},[1854,1856],{"type":49,"attrs":1855},{"class":677},{"type":53,"attrs":1857},{"color":55},{"text":1859,"type":46,"marks":1860}," Navient customers are invited to consider personal loan offers through our partner MoneyLion. Navient has not shared your information with MoneyLion and is not involved in the personal loan application process in any manner. All information is submitted directly to MoneyLion and any personal loan offers are made directly by participants in MoneyLion’s lending platform. Engine by MoneyLion is the industry-leading embedded financial marketplace and independent subsidiary of MoneyLion Inc. (“MoneyLion”) (NYSE:ML). Checking your rate will not affect your credit score. Eligibility is not guaranteed and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. ",[1861,1863],{"type":49,"attrs":1862},{"class":51},{"type":53,"attrs":1864},{"color":55},{"type":42,"content":1866},[1867],{"text":1868,"type":46,"marks":1869},"Loan proceeds may not be used for postsecondary educational expenses, including refinancing federal or private student loans.",[1870,1872],{"type":49,"attrs":1871},{"class":51},{"type":53,"attrs":1873},{"color":55},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798169\"}-->","https://www.marketplace.navient.com/blog/home-equity-loan-vs-line-of-credit/","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"39f3568e-f888-4c3e-816f-3647f7efec59\", \"id\": \"651798169\"}-->","home-equity-loan-vs-line-of-credit","navient_marketplace/blog/home-equity-loan-vs-line-of-credit",[],"51312662-1d37-4013-8926-52d7f9f63a37","2023-09-26T16:16:20.075Z",[],{"name":1884,"created_at":1885,"published_at":1886,"updated_at":1887,"id":1888,"uuid":1889,"content":1890,"slug":2817,"full_slug":2818,"sort_by_date":96,"position":826,"tag_list":2819,"is_startpage":29,"parent_id":828,"meta_data":96,"group_id":2820,"first_published_at":2821,"release_id":96,"lang":831,"path":2822,"alternates":2823,"default_full_slug":96,"translated_slugs":96},"How to Get a Personal Loan When You Have Bad Credit","2025-04-07T18:30:35.165Z","2025-12-26T13:44:57.421Z","2025-12-26T13:44:57.502Z",651798168,"188547f2-42ed-4b3c-a93c-b01ef544436f",{"seo":1891,"_uid":20,"hero":1894,"author":31,"category":32,"featured":29,"imageAlt":18,"component":33,"blogContents":1899,"canonicalTag":2815,"publishedDate":822,"_editable":2816},{"_uid":15,"title":1892,"plugin":17,"og_image":18,"og_title":18,"description":1893,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"How to Get a Personal Loan When You Have Bad Credit | Navient Marketplace","Bad credit doesn’t mean the end of your borrowing opportunities. Here’s how to set your self up for success when you’re applying for a personal loan with bad credit.",[1895],{"id":18,"_uid":23,"image":1896,"intro":1893,"classes":18,"_editable":1897,"blogTitle":1884,"component":27,"imageLink":1898,"blendImage":29,"backgroundColor":30},"//a.storyblok.com/f/110029/6586x4391/2bed9636e3/how-to-get-a-personal-loan-with-bad-credit.png","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798168\"}-->","/images/how-to-get-a-personal-loan-with-bad-credit.png",[1900],{"_uid":36,"color":37,"richText":1901,"_editable":2814,"component":820},{"type":39,"content":1902},[1903,1911,1918,1926,1933,1940,1961,1968,2073,2081,2089,2116,2151,2159,2206,2223,2240,2257,2274,2291,2308,2325,2332,2340,2347,2502,2510,2517,2524,2532,2553,2561,2568,2575,2596,2603,2611,2618,2717,2725,2732,2739,2746,2784,2792,2806],{"type":42,"content":1904},[1905],{"text":45,"type":46,"marks":1906},[1907,1909],{"type":49,"attrs":1908},{"class":51},{"type":53,"attrs":1910},{"color":55},{"type":42,"content":1912},[1913],{"text":1914,"type":46,"marks":1915},"If life’s thrown you a few curveballs and you find yourself left with a less-than-ideal credit score, know this: bad credit doesn’t have to mean the end of your borrowing opportunities. If you find yourself in need of a personal loan to address short-term emergency expenses, meet certain goals, or for debt consolidation, there are still avenues open to you. Here’s how to get a loan when you have bad credit.",[1916],{"type":53,"attrs":1917},{"color":55},{"type":71,"attrs":1919,"content":1920},{"level":73},[1921],{"text":1922,"type":46,"marks":1923},"Can you get a loan if you have bad credit?",[1924],{"type":53,"attrs":1925},{"color":55},{"type":42,"content":1927},[1928],{"text":1929,"type":46,"marks":1930},"A common question people with bad credit histories ask is whether it’s possible to get a loan with a low credit score. The answer is yes. ",[1931],{"type":53,"attrs":1932},{"color":55},{"type":42,"content":1934},[1935],{"text":1936,"type":46,"marks":1937},"Bad credit means you have a spotty credit history or a low credit score. Credit scores are commonly calculated based on factors such as your payment history, the length of your credit history, how many new credit accounts you’ve opened lately, and the types of credit you use. If you have poor credit, it could be due to missed loan payments, defaults, high credit card balances, or bankruptcies in your past. ",[1938],{"type":53,"attrs":1939},{"color":55},{"type":42,"content":1941},[1942,1947,1956],{"text":1943,"type":46,"marks":1944},"While traditional lenders may be hesitant to extend loans to individuals with bad credit, some specialized lenders cater specifically to these kinds of borrowers. These lenders are often referred to as “subprime” or “bad credit” lenders and will consider factors beyond credit score when evaluating loan applications. Some classic examples of subprime lenders include online lenders, ",[1945],{"type":53,"attrs":1946},{"color":55},{"text":1948,"type":46,"marks":1949},"credit unions",[1950,1953,1955],{"type":93,"attrs":1951},{"href":1952,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://mycreditunion.gov/about-credit-unions/credit-union-different-than-a-bank",{"type":53,"attrs":1954},{"color":55},{"type":165},{"text":1957,"type":46,"marks":1958},", and peer-to-peer (P2P) lending platforms.",[1959],{"type":53,"attrs":1960},{"color":55},{"type":42,"content":1962},[1963],{"text":1964,"type":46,"marks":1965},"While there are legitimate subprime lenders out there, it’s important to watch out for unscrupulous operators. Borrowers with bad credit can be particularly vulnerable to scams and predatory lenders, who may take advantage of their desperation and charge higher interest rates and fees. Here are some common traps to steer clear of: ",[1966],{"type":53,"attrs":1967},{"color":55},{"type":138,"content":1969},[1970,1985,2000,2029,2058],{"type":141,"content":1971},[1972],{"type":42,"content":1973},[1974,1980],{"text":1975,"type":46,"marks":1976},"Payday loans: ",[1977,1978],{"type":79},{"type":53,"attrs":1979},{"color":55},{"text":1981,"type":46,"marks":1982},"Payday loans may seem like a quick solution for immediate cash needs, but they often come with high interest rates and short repayment periods, trapping borrowers in a cycle of debt.",[1983],{"type":53,"attrs":1984},{"color":55},{"type":141,"content":1986},[1987],{"type":42,"content":1988},[1989,1995],{"text":1990,"type":46,"marks":1991},"No credit-check loans: “",[1992,1993],{"type":79},{"type":53,"attrs":1994},{"color":55},{"text":1996,"type":46,"marks":1997},"No credit-check loans” may seem convenient on the surface, but they come with high interest rates and fees. Any lender who doesn’t perform a credit inquiry is likely taking advantage of your financial situation.",[1998],{"type":53,"attrs":1999},{"color":55},{"type":141,"content":2001},[2002],{"type":42,"content":2003},[2004,2010,2015,2024],{"text":2005,"type":46,"marks":2006},"Paying for cosigners:",[2007,2008],{"type":79},{"type":53,"attrs":2009},{"color":55},{"text":2011,"type":46,"marks":2012}," Many lenders offer their best loan terms to borrowers with ",[2013],{"type":53,"attrs":2014},{"color":55},{"text":2016,"type":46,"marks":2017},"cosigners",[2018,2021,2023],{"type":93,"attrs":2019},{"href":2020,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/what-is-a-co-signer-en-745/",{"type":53,"attrs":2022},{"color":55},{"type":165},{"text":2025,"type":46,"marks":2026},". However, if a lender asks for an upfront payment to secure a cosigner, run.",[2027],{"type":53,"attrs":2028},{"color":55},{"type":141,"content":2030},[2031],{"type":42,"content":2032},[2033,2039,2044,2053],{"text":2034,"type":46,"marks":2035},"Advance fee scams: ",[2036,2037],{"type":79},{"type":53,"attrs":2038},{"color":55},{"text":2040,"type":46,"marks":2041},"If you’re asked to pay ",[2042],{"type":53,"attrs":2043},{"color":55},{"text":2045,"type":46,"marks":2046},"origination fees",[2047,2050,2052],{"type":93,"attrs":2048},{"href":2049,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.debt.org/credit/loans/origination-fees/",{"type":53,"attrs":2051},{"color":55},{"type":165},{"text":2054,"type":46,"marks":2055}," or monthly payments before being granted a loan, it’s likely a scam. Legitimate lenders typically deduct fees from the loan amount itself rather than demanding them upfront",[2056],{"type":53,"attrs":2057},{"color":55},{"type":141,"content":2059},[2060],{"type":42,"content":2061},[2062,2068],{"text":2063,"type":46,"marks":2064},"Pressure tactics: ",[2065,2066],{"type":79},{"type":53,"attrs":2067},{"color":55},{"text":2069,"type":46,"marks":2070},"Scammers often try to pressure borrowers into making hasty decisions. Legitimate lenders will give you ample time to review and understand the loan terms before committing.",[2071],{"type":53,"attrs":2072},{"color":55},{"type":71,"attrs":2074,"content":2075},{"level":73},[2076],{"text":2077,"type":46,"marks":2078},"How to get a loan if you have bad credit ",[2079],{"type":53,"attrs":2080},{"color":55},{"type":71,"attrs":2082,"content":2083},{"level":123},[2084],{"text":2085,"type":46,"marks":2086},"Pull your credit report ",[2087],{"type":53,"attrs":2088},{"color":55},{"type":42,"content":2090},[2091,2096,2103,2112],{"text":2092,"type":46,"marks":2093},"Before you begin the process of obtaining a loan, it’s important to have a clear understanding of where you stand. You can get free copies of your credit reports from the three major credit bureaus — Equifax, Experian, and TransUnion — via",[2094],{"type":53,"attrs":2095},{"color":55},{"text":657,"type":46,"marks":2097},[2098,2101],{"type":93,"attrs":2099},{"href":2100,"uuid":96,"anchor":96,"target":96,"linktype":98},"http://annualcreditreport.com",{"type":53,"attrs":2102},{"color":55},{"text":2104,"type":46,"marks":2105},"AnnualCreditReport.com",[2106,2109,2111],{"type":93,"attrs":2107},{"href":2108,"uuid":96,"anchor":96,"target":97,"linktype":98},"http://AnnualCreditReport.com",{"type":53,"attrs":2110},{"color":55},{"type":165},{"text":1222,"type":46,"marks":2113},[2114],{"type":53,"attrs":2115},{"color":55},{"type":42,"content":2117},[2118,2123,2132,2137,2146],{"text":2119,"type":46,"marks":2120},"Once you have your report, take a look at your credit score. A ",[2121],{"type":53,"attrs":2122},{"color":55},{"text":2124,"type":46,"marks":2125},"FICO score",[2126,2129,2131],{"type":93,"attrs":2127},{"href":2128,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.fico.com/en/products/fico-score",{"type":53,"attrs":2130},{"color":55},{"type":165},{"text":2133,"type":46,"marks":2134}," below 580 is considered low. Also keep an eye out for inaccuracies. Reporting errors can inadvertently lower your credit score. If you spot anything that seems incorrect, ",[2135],{"type":53,"attrs":2136},{"color":55},{"text":2138,"type":46,"marks":2139},"take swift action to dispute the error",[2140,2143,2145],{"type":93,"attrs":2141},{"href":2142,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/how-do-i-dispute-an-error-on-my-credit-report-en-314/",{"type":53,"attrs":2144},{"color":55},{"type":165},{"text":2147,"type":46,"marks":2148},". It could boost your score. ",[2149],{"type":53,"attrs":2150},{"color":55},{"type":71,"attrs":2152,"content":2153},{"level":123},[2154],{"text":2155,"type":46,"marks":2156},"Improve your credit score ",[2157],{"type":53,"attrs":2158},{"color":55},{"type":42,"content":2160},[2161,2166,2173,2181,2186,2193,2201],{"text":2162,"type":46,"marks":2163},"Improving your credit score might seem like a long-term solution to your problem, but you might be surprised to discover that you can actually build credit in",[2164],{"type":53,"attrs":2165},{"color":55},{"text":657,"type":46,"marks":2167},[2168,2171],{"type":93,"attrs":2169},{"href":2170,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.experian.com/blogs/ask-experian/how-to-get-a-loan-with-bad-credit/",{"type":53,"attrs":2172},{"color":55},{"text":2174,"type":46,"marks":2175},"as little as a few months",[2176,2178,2180],{"type":93,"attrs":2177},{"href":2170,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":2179},{"color":55},{"type":165},{"text":2182,"type":46,"marks":2183},". Some tactics, like using",[2184],{"type":53,"attrs":2185},{"color":55},{"text":657,"type":46,"marks":2187},[2188,2191],{"type":93,"attrs":2189},{"href":2190,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.experian.com/blogs/ask-experian/what-is-experian-boost/",{"type":53,"attrs":2192},{"color":55},{"text":2194,"type":46,"marks":2195},"Experian Boost",[2196,2198,2200],{"type":93,"attrs":2197},{"href":2190,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":2199},{"color":55},{"type":165},{"text":2202,"type":46,"marks":2203}," or enlisting the help of rent-reporting services, can actually boost your credit score fairly immediately. If you can wait a while to take out your loan, here are some other, more traditional ways to do it: ",[2204],{"type":53,"attrs":2205},{"color":55},{"type":138,"content":2207},[2208],{"type":141,"content":2209},[2210],{"type":42,"content":2211},[2212,2218],{"text":2213,"type":46,"marks":2214},"Pay bills on time:",[2215,2216],{"type":79},{"type":53,"attrs":2217},{"color":55},{"text":2219,"type":46,"marks":2220}," The most important factor affecting your credit score is your payment history. Make sure to pay all your bills, including credit card payments, loans, and utilities, on time.",[2221],{"type":53,"attrs":2222},{"color":55},{"type":138,"content":2224},[2225],{"type":141,"content":2226},[2227],{"type":42,"content":2228},[2229,2235],{"text":2230,"type":46,"marks":2231},"Reduce credit card balances",[2232,2233],{"type":79},{"type":53,"attrs":2234},{"color":55},{"text":2236,"type":46,"marks":2237},": Keep your credit card balances low and aim to pay off your credit card debt and streamline it through a debt consolidation loan. High credit utilization can negatively impact your credit score, so try to use only a small percentage of your available credit.",[2238],{"type":53,"attrs":2239},{"color":55},{"type":138,"content":2241},[2242],{"type":141,"content":2243},[2244],{"type":42,"content":2245},[2246,2252],{"text":2247,"type":46,"marks":2248},"Don't close old accounts",[2249,2250],{"type":79},{"type":53,"attrs":2251},{"color":55},{"text":2253,"type":46,"marks":2254},": Closing old credit accounts can decrease your overall credit history and potentially lower your credit score range. Consider keeping those accounts open but inactive to maintain a longer credit history.",[2255],{"type":53,"attrs":2256},{"color":55},{"type":138,"content":2258},[2259],{"type":141,"content":2260},[2261],{"type":42,"content":2262},[2263,2269],{"text":2264,"type":46,"marks":2265},"Limit new credit applications",[2266,2267],{"type":79},{"type":53,"attrs":2268},{"color":55},{"text":2270,"type":46,"marks":2271},": Applying for multiple new credit accounts in a short period can raise red flags for lenders and lower your credit score. Only apply for new credit when necessary and spaced out over time.",[2272],{"type":53,"attrs":2273},{"color":55},{"type":138,"content":2275},[2276],{"type":141,"content":2277},[2278],{"type":42,"content":2279},[2280,2286],{"text":2281,"type":46,"marks":2282},"Monitor your credit report: ",[2283,2284],{"type":79},{"type":53,"attrs":2285},{"color":55},{"text":2287,"type":46,"marks":2288},"Regularly review your credit report for any errors or inaccuracies. If you find any, dispute them with the credit bureau to have them corrected. A clean and accurate credit report can positively impact your credit score.",[2289],{"type":53,"attrs":2290},{"color":55},{"type":138,"content":2292},[2293],{"type":141,"content":2294},[2295],{"type":42,"content":2296},[2297,2303],{"text":2298,"type":46,"marks":2299},"Diversify your credit mix",[2300,2301],{"type":79},{"type":53,"attrs":2302},{"color":55},{"text":2304,"type":46,"marks":2305},": Having a mix of different types of credit, such as credit cards, loans, and a mortgage, can help improve your credit score. This shows lenders that you can handle various forms of credit responsibly.",[2306],{"type":53,"attrs":2307},{"color":55},{"type":138,"content":2309},[2310],{"type":141,"content":2311},[2312],{"type":42,"content":2313},[2314,2320],{"text":2315,"type":46,"marks":2316},"Become an authorized user",[2317,2318],{"type":79},{"type":53,"attrs":2319},{"color":55},{"text":2321,"type":46,"marks":2322},": If someone you trust has a credit card with a long and positive history, they can add you as an authorized user. This allows you to piggyback off the account holder’s good credit history. ",[2323],{"type":53,"attrs":2324},{"color":55},{"type":42,"content":2326},[2327],{"text":2328,"type":46,"marks":2329},"Remember, improving your credit score is a gradual process, and there are no quick fixes. Be proactive, establish excellent credit habits, and you'll see positive changes in your credit score over time.",[2330],{"type":53,"attrs":2331},{"color":55},{"type":71,"attrs":2333,"content":2334},{"level":123},[2335],{"text":2336,"type":46,"marks":2337},"Research alternative lenders",[2338],{"type":53,"attrs":2339},{"color":55},{"type":42,"content":2341},[2342],{"text":2343,"type":46,"marks":2344},"Some alternative lenders assess more than just credit score. Instead, they focus on an individual’s overall financial health, employment history, and repayment capability. Some of these lenders include: ",[2345],{"type":53,"attrs":2346},{"color":55},{"type":138,"content":2348},[2349,2364,2379,2416,2445,2460,2474],{"type":141,"content":2350},[2351],{"type":42,"content":2352},[2353,2359],{"text":2354,"type":46,"marks":2355},"Online lenders: ",[2356,2357],{"type":79},{"type":53,"attrs":2358},{"color":55},{"text":2360,"type":46,"marks":2361},"Some online lenders provide loans specifically to borrowers with bad credit scores. Many online lenders offer a streamlined application process and quicker loan approval times.",[2362],{"type":53,"attrs":2363},{"color":55},{"type":141,"content":2365},[2366],{"type":42,"content":2367},[2368,2374],{"text":2369,"type":46,"marks":2370},"Credit unions:",[2371,2372],{"type":79},{"type":53,"attrs":2373},{"color":55},{"text":2375,"type":46,"marks":2376}," Credit unions are not-for-profit financial institutions that may be more willing to work with individuals with bad credit. They offer lower interest rates compared to traditional banks. ",[2377],{"type":53,"attrs":2378},{"color":55},{"type":141,"content":2380},[2381],{"type":42,"content":2382},[2383,2389,2398,2403,2411],{"text":2384,"type":46,"marks":2385},"Community Development Financial Institutions (CDFIs): ",[2386,2387],{"type":79},{"type":53,"attrs":2388},{"color":55},{"text":2390,"type":46,"marks":2391},"CDFIs",[2392,2395,2397],{"type":93,"attrs":2393},{"href":2394,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://cdfi.org/what-are-cdfis/",{"type":53,"attrs":2396},{"color":55},{"type":165},{"text":2399,"type":46,"marks":2400}," focus on underserved and economically disadvantaged communities. They offer a range of financial products, including ",[2401],{"type":53,"attrs":2402},{"color":55},{"text":2404,"type":46,"marks":2405},"personal loans",[2406,2408,2410],{"type":93,"attrs":2407},{"href":1699,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":2409},{"color":55},{"type":165},{"text":2412,"type":46,"marks":2413},", small business loans, auto loans, and housing loans.",[2414],{"type":53,"attrs":2415},{"color":55},{"type":141,"content":2417},[2418],{"type":42,"content":2419},[2420,2426,2431,2440],{"text":2421,"type":46,"marks":2422},"Credit builder loans: ",[2423,2424],{"type":79},{"type":53,"attrs":2425},{"color":55},{"text":2427,"type":46,"marks":2428},"Some financial institutions offer ",[2429],{"type":53,"attrs":2430},{"color":55},{"text":2432,"type":46,"marks":2433},"credit builder",[2434,2437,2439],{"type":93,"attrs":2435},{"href":2436,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.equifax.com/personal/education/credit-cards/articles/-/learn/credit-builder-loan/",{"type":53,"attrs":2438},{"color":55},{"type":165},{"text":2441,"type":46,"marks":2442}," or bad credit loans designed to help borrowers establish or improve their credit. These loans are typically between $500 and $5,000.",[2443],{"type":53,"attrs":2444},{"color":55},{"type":141,"content":2446},[2447],{"type":42,"content":2448},[2449,2455],{"text":2450,"type":46,"marks":2451},"Microlenders: ",[2452,2453],{"type":79},{"type":53,"attrs":2454},{"color":55},{"text":2456,"type":46,"marks":2457},"Microlenders provide small-dollar loans to individuals and small businesses, particularly those with limited access to traditional financing. ",[2458],{"type":53,"attrs":2459},{"color":55},{"type":141,"content":2461},[2462],{"type":42,"content":2463},[2464,2469],{"text":1804,"type":46,"marks":2465},[2466,2467],{"type":79},{"type":53,"attrs":2468},{"color":55},{"text":2470,"type":46,"marks":2471},"P2P lending platforms connect borrowers directly with individual investors willing to fund loans. These platforms may have more flexible lending criteria than traditional banks.",[2472],{"type":53,"attrs":2473},{"color":55},{"type":141,"content":2475},[2476],{"type":42,"content":2477},[2478,2484,2489,2497],{"text":2479,"type":46,"marks":2480},"Online personal loan marketplaces: ",[2481,2482],{"type":79},{"type":53,"attrs":2483},{"color":55},{"text":2485,"type":46,"marks":2486},"Online personal loan marketplaces, such as ",[2487],{"type":53,"attrs":2488},{"color":55},{"text":2490,"type":46,"marks":2491},"Navient Marketplace",[2492,2494,2496],{"type":93,"attrs":2493},{"href":770,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":2495},{"color":55},{"type":165},{"text":2498,"type":46,"marks":2499},", use loan comparison tools to help borrowers compare various loan options. You can receive tailored loan offers that align with your specific needs and financial circumstances. Loan comparison tools also allow you to explore a range of lending options without triggering multiple hard inquiries, which can negatively impact your credit score.",[2500],{"type":53,"attrs":2501},{"color":55},{"type":71,"attrs":2503,"content":2504},{"level":123},[2505],{"text":2506,"type":46,"marks":2507},"Consider a secured loan",[2508],{"type":53,"attrs":2509},{"color":55},{"type":42,"content":2511},[2512],{"text":2513,"type":46,"marks":2514},"A secured loan is a lending arrangement where the borrower provides collateral in exchange for the loan. This collateral provides the lender with a form of repayment if the borrower defaults. Collateral can include real estate, vehicles, savings accounts, or other valuable assets. Home equity loans are just one example of secured loans. ",[2515],{"type":53,"attrs":2516},{"color":55},{"type":42,"content":2518},[2519],{"text":2520,"type":46,"marks":2521},"Unsecured loans, including unsecured personal loans, typically require fair credit, if not good to excellent credit. Secured loans, on the other hand, don’t always have a minimum credit score requirement. ",[2522],{"type":53,"attrs":2523},{"color":55},{"type":71,"attrs":2525,"content":2526},{"level":123},[2527],{"text":2528,"type":46,"marks":2529},"Shop smart ",[2530],{"type":53,"attrs":2531},{"color":55},{"type":42,"content":2533},[2534,2539,2548],{"text":2535,"type":46,"marks":2536},"Before you commit to a bad credit loan, make sure to review the repayment terms. Understand what kind of late fees you’ll be charged if you file a late payment, and check to see if you’ll be charged prepayment penalties if you decide to get out of debt faster. Some lenders may offer special discounts, as well. Many of the best bad credit loans will provide an interest rate discount if you sign up for ",[2537],{"type":53,"attrs":2538},{"color":55},{"text":2540,"type":46,"marks":2541},"autopay",[2542,2545,2547],{"type":93,"attrs":2543},{"href":2544,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/how-do-automatic-debit-payments-from-my-bank-account-work-en-2021/",{"type":53,"attrs":2546},{"color":55},{"type":165},{"text":2549,"type":46,"marks":2550},", for example. ",[2551],{"type":53,"attrs":2552},{"color":55},{"type":71,"attrs":2554,"content":2555},{"level":123},[2556],{"text":2557,"type":46,"marks":2558},"Find a cosigner",[2559],{"type":53,"attrs":2560},{"color":55},{"type":42,"content":2562},[2563],{"text":2564,"type":46,"marks":2565},"A cosigner is a creditworthy individual who agrees to take joint responsibility for a loan along with the primary borrower. This is typically a trusted family member, though it can also be a good friend. Unlike a co-borrower, the cosigner doesn’t receive an equal share of the loan. Instead, they promise the lender that they’ll help pay back the loan if the primary borrower becomes unable to. This extra layer of creditworthiness gives lenders more security, which means they may be able to offer you lower rates.",[2566],{"type":53,"attrs":2567},{"color":55},{"type":71,"attrs":2569,"content":2570},{"level":123},[2571],{"text":958,"type":46,"marks":2572},[2573],{"type":53,"attrs":2574},{"color":55},{"type":42,"content":2576},[2577,2582,2591],{"text":2578,"type":46,"marks":2579},"Prequalification is a preliminary step in the loan application process that allows you to gauge your potential eligibility for a loan before formally applying. To get prequalified, you first provide some basic personal information to a lender. That lender then conducts a ",[2580],{"type":53,"attrs":2581},{"color":55},{"text":2583,"type":46,"marks":2584},"soft credit check",[2585,2588,2590],{"type":93,"attrs":2586},{"href":2587,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/whats-a-credit-inquiry-en-1317/",{"type":53,"attrs":2589},{"color":55},{"type":165},{"text":2592,"type":46,"marks":2593}," and gives you an estimate of what loan amount you’ll qualify for. ",[2594],{"type":53,"attrs":2595},{"color":55},{"type":42,"content":2597},[2598],{"text":2599,"type":46,"marks":2600},"It’s important to note that prequalification is not a guarantee of a loan approval. The actual approval process, which involves a more comprehensive review of your financial history and credit score, occurs when you submit a formal loan application. ",[2601],{"type":53,"attrs":2602},{"color":55},{"type":71,"attrs":2604,"content":2605},{"level":123},[2606],{"text":2607,"type":46,"marks":2608},"Gather documentation",[2609],{"type":53,"attrs":2610},{"color":55},{"type":42,"content":2612},[2613],{"text":2614,"type":46,"marks":2615},"You’ll likely need to provide these main documents during the loan application: ",[2616],{"type":53,"attrs":2617},{"color":55},{"type":138,"content":2619},[2620,2635,2650,2665,2680,2695],{"type":141,"content":2621},[2622],{"type":42,"content":2623},[2624,2630],{"text":2625,"type":46,"marks":2626},"Proof of identity: ",[2627,2628],{"type":79},{"type":53,"attrs":2629},{"color":55},{"text":2631,"type":46,"marks":2632},"A government-issued photo ID and social security number",[2633],{"type":53,"attrs":2634},{"color":55},{"type":141,"content":2636},[2637],{"type":42,"content":2638},[2639,2645],{"text":2640,"type":46,"marks":2641},"Proof of income:",[2642,2643],{"type":79},{"type":53,"attrs":2644},{"color":55},{"text":2646,"type":46,"marks":2647}," Recent pay stubs, tax returns, W-2 forms, or other proof of income",[2648],{"type":53,"attrs":2649},{"color":55},{"type":141,"content":2651},[2652],{"type":42,"content":2653},[2654,2660],{"text":2655,"type":46,"marks":2656},"Bank statements:",[2657,2658],{"type":79},{"type":53,"attrs":2659},{"color":55},{"text":2661,"type":46,"marks":2662}," Recent bank account statements that show your transaction history ",[2663],{"type":53,"attrs":2664},{"color":55},{"type":141,"content":2666},[2667],{"type":42,"content":2668},[2669,2675],{"text":2670,"type":46,"marks":2671},"Proof of residence: ",[2672,2673],{"type":79},{"type":53,"attrs":2674},{"color":55},{"text":2676,"type":46,"marks":2677},"Utility bills or a lease agreement to verify your current address",[2678],{"type":53,"attrs":2679},{"color":55},{"type":141,"content":2681},[2682],{"type":42,"content":2683},[2684,2690],{"text":2685,"type":46,"marks":2686},"Collateral documents: ",[2687,2688],{"type":79},{"type":53,"attrs":2689},{"color":55},{"text":2691,"type":46,"marks":2692},"Secured loans may require proof of the collateral being offered, such as property deeds, vehicle titles, or other ownership documents. ",[2693],{"type":53,"attrs":2694},{"color":55},{"type":141,"content":2696},[2697],{"type":42,"content":2698},[2699,2705,2710],{"text":2700,"type":46,"marks":2701},"Debt information: ",[2702,2703],{"type":79},{"type":53,"attrs":2704},{"color":55},{"text":2706,"type":46,"marks":2707},"A list of your current debts, outstanding loans, and credit card balances that will allow lenders to assess your ",[2708],{"type":53,"attrs":2709},{"color":55},{"text":216,"type":46,"marks":2711},[2712,2714,2716],{"type":93,"attrs":2713},{"href":220,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":2715},{"color":55},{"type":165},{"type":71,"attrs":2718,"content":2719},{"level":123},[2720],{"text":2721,"type":46,"marks":2722},"Apply for the loan",[2723],{"type":53,"attrs":2724},{"color":55},{"type":42,"content":2726},[2727],{"text":2728,"type":46,"marks":2729},"When you’re ready to submit a formal application, contact your lender to begin the process. You'll be asked to provide information about your personal finances and employment details. Most online personal loan lenders offer fast online applications and will allow you to submit any documentation electronically. Many larger financial institutions, like banks, also allow you to go into a branch to submit a physical application. ",[2730],{"type":53,"attrs":2731},{"color":55},{"type":42,"content":2733},[2734],{"text":2735,"type":46,"marks":2736},"In some cases, online lenders may approve a loan within one or two business days, while traditional lenders may have a longer processing window, often spanning a few weeks. Once you have your approval letter, be sure to carefully review the details of the loan agreement — including the loan term, annual percentage rate (APR), and any fees — before signing on the dotted line. ",[2737],{"type":53,"attrs":2738},{"color":55},{"type":71,"attrs":2740,"content":2741},{"level":73},[2742],{"text":755,"type":46,"marks":2743},[2744],{"type":53,"attrs":2745},{"color":55},{"type":42,"content":2747},[2748,2753,2760,2765,2771,2779],{"text":2749,"type":46,"marks":2750},"Online loan marketplaces can help you compare various types of loans from different lenders and ultimately make a thoughtful, informed choice. If you’re looking for a personal loan, consider starting your search with Navient Marketplace",[2751],{"type":53,"attrs":2752},{"color":55},{"text":673,"type":46,"marks":2754},[2755,2757,2758],{"type":49,"attrs":2756},{"class":677},{"type":677},{"type":53,"attrs":2759},{"color":18},{"text":2761,"type":46,"marks":2762},". To help you find the best personal loan rates, Navient collaborates with Fiona, a leading personal loan search tool. Explore your options and find personalized loan rates by",[2763],{"type":53,"attrs":2764},{"color":55},{"text":657,"type":46,"marks":2766},[2767,2769],{"type":93,"attrs":2768},{"href":770,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":2770},{"color":55},{"text":2772,"type":46,"marks":2773},"visiting our marketplace",[2774,2776,2778],{"type":93,"attrs":2775},{"href":770,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":2777},{"color":55},{"type":165},{"text":2780,"type":46,"marks":2781}," today.",[2782],{"type":53,"attrs":2783},{"color":55},{"type":42,"content":2785},[2786],{"text":789,"type":46,"marks":2787},[2788,2790],{"type":49,"attrs":2789},{"class":51},{"type":53,"attrs":2791},{"color":55},{"type":42,"content":2793},[2794,2800],{"text":673,"type":46,"marks":2795},[2796,2798],{"type":49,"attrs":2797},{"class":677},{"type":53,"attrs":2799},{"color":55},{"text":804,"type":46,"marks":2801},[2802,2804],{"type":49,"attrs":2803},{"class":51},{"type":53,"attrs":2805},{"color":55},{"type":42,"content":2807},[2808],{"text":1868,"type":46,"marks":2809},[2810,2812],{"type":49,"attrs":2811},{"class":51},{"type":53,"attrs":2813},{"color":55},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798168\"}-->","https://www.marketplace.navient.com/blog/how-to-get-a-personal-loan-with-bad-credit/","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"39f3568e-f888-4c3e-816f-3647f7efec59\", \"id\": \"651798168\"}-->","how-to-get-a-personal-loan-with-bad-credit","navient_marketplace/blog/how-to-get-a-personal-loan-with-bad-credit",[],"d70dcfd9-b2f4-4004-bcfe-35f8e2ba6360","2023-09-26T16:22:05.482Z","blog/how-to-get-a-personal-loan-with-bad-credit",[],{"name":2825,"created_at":2826,"published_at":2827,"updated_at":2828,"id":2829,"uuid":2830,"content":2831,"slug":3586,"full_slug":3587,"sort_by_date":96,"position":826,"tag_list":3588,"is_startpage":29,"parent_id":828,"meta_data":96,"group_id":3589,"first_published_at":3590,"release_id":96,"lang":831,"path":3591,"alternates":3592,"default_full_slug":96,"translated_slugs":96},"Can you get a HELOC on an Investment Property?","2025-04-07T18:30:16.392Z","2025-12-26T13:45:00.231Z","2025-12-26T13:45:00.300Z",651798156,"31fdca4f-48a2-44e2-b4fe-c5ee28b1c1a1",{"seo":2832,"_uid":20,"hero":2835,"author":31,"category":32,"featured":29,"imageAlt":18,"component":33,"blogContents":2842,"canonicalTag":3584,"publishedDate":822,"_editable":3585},{"_uid":15,"title":2833,"plugin":17,"og_image":18,"og_title":18,"description":2834,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"Can you get a HELOC on an Investment Property? | Navient Marketplace","It’s always smart to have a budget, especially when you’re tight It is possible to get a HELOC on investment property. However, qualifying for it can be more challenging than for a primary residence. Here’s what you need to know.on money. Read our guide to take your budgeting skills to the next level.",[2836],{"id":18,"_uid":23,"image":2837,"intro":2838,"classes":18,"_editable":2839,"blogTitle":2840,"component":27,"imageLink":2841,"blendImage":29,"backgroundColor":30},"//a.storyblok.com/f/110029/4000x2664/2da5f975d2/can-you-get-a-heloc-on-an-investment-property.png","It is possible to get a HELOC on investment property. However, qualifying for it can be more challenging than for a primary residence. Here’s what you need to know.","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798156\"}-->","Can You Get a HELOC on an Investment Property?","/images/can-you-get-a-heloc-on-an-investment-property.webp",[2843],{"_uid":36,"color":37,"richText":2844,"_editable":3583,"component":820},{"type":39,"content":2845},[2846,2855,2862,2870,2877,3052,3060,3067,3075,3145,3153,3200,3208,3215,3223,3242,3249,3296,3303,3311,3318,3325,3363,3370,3378,3398,3418,3509,3516,3523,3544,3563,3569,3576],{"type":42,"content":2847},[2848],{"text":45,"type":46,"marks":2849},[2850,2852],{"type":49,"attrs":2851},{"class":51},{"type":53,"attrs":2853},{"color":2854},"#000000",{"type":42,"content":2856},[2857],{"text":2858,"type":46,"marks":2859},"A home equity line of credit (HELOC) is a popular way to leverage real estate assets to access cash. A HELOC is a revolving line of credit based on the equity you have in your property. You can use that credit to finance further investments, cover renovation costs, or even manage emergency expenses. However, while a HELOC can be a great funding resource in many situations, not all property owners qualify. So how do you know if you’re eligible? And can you get a HELOC on an investment property? Here’s what you need to know. ",[2860],{"type":53,"attrs":2861},{"color":2854},{"type":71,"attrs":2863,"content":2864},{"level":73},[2865],{"text":2866,"type":46,"marks":2867},"So, can you get a HELOC on investment property?",[2868],{"type":53,"attrs":2869},{"color":2854},{"type":42,"content":2871},[2872],{"text":2873,"type":46,"marks":2874},"The good news is that it is possible to get a HELOC on investment property. The bad news is that, while some banks and credit unions do offer HELOCs to real estate investors, not all do. Further, qualifying for a HELOC for an investment property can be more challenging than qualifying for a primary residence. This is due to several factors:",[2875],{"type":53,"attrs":2876},{"color":2854},{"type":138,"content":2878},[2879,2908,2923,2938,2953,2981,3022,3037],{"type":141,"content":2880},[2881],{"type":42,"content":2882},[2883,2889,2894,2903],{"text":2884,"type":46,"marks":2885},"Eligibility criteria: ",[2886,2887],{"type":79},{"type":53,"attrs":2888},{"color":2854},{"text":2890,"type":46,"marks":2891},"HELOCs for investment properties tend to have stringent eligibility criteria. They often require borrowers to have ",[2892],{"type":53,"attrs":2893},{"color":2854},{"text":2895,"type":46,"marks":2896},"high credit scores",[2897,2900,2902],{"type":93,"attrs":2898},{"href":2899,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/what-is-a-credit-score-en-315/",{"type":53,"attrs":2901},{"color":2854},{"type":165},{"text":2904,"type":46,"marks":2905}," and good financial stability. In contrast, obtaining a HELOC for a primary residence is typically easier.",[2906],{"type":53,"attrs":2907},{"color":2854},{"type":141,"content":2909},[2910],{"type":42,"content":2911},[2912,2918],{"text":2913,"type":46,"marks":2914},"Equity: ",[2915,2916],{"type":79},{"type":53,"attrs":2917},{"color":2854},{"text":2919,"type":46,"marks":2920},"Lenders only offer HELOCs to borrowers who have enough equity in their investment properties — typically at least 20%. For a primary residence, on the other hand, you may only need 15% to qualify for a HELOC.",[2921],{"type":53,"attrs":2922},{"color":2854},{"type":141,"content":2924},[2925],{"type":42,"content":2926},[2927,2933],{"text":2928,"type":46,"marks":2929},"Interest rates:",[2930,2931],{"type":79},{"type":53,"attrs":2932},{"color":2854},{"text":2934,"type":46,"marks":2935}," Interest rates for investment property HELOCs are typically higher than those for primary residence HELOCs. This reflects the perceived risk that many lenders associate with investment properties.",[2936],{"type":53,"attrs":2937},{"color":2854},{"type":141,"content":2939},[2940],{"type":42,"content":2941},[2942,2948],{"text":2943,"type":46,"marks":2944},"Cash reserves: ",[2945,2946],{"type":79},{"type":53,"attrs":2947},{"color":2854},{"text":2949,"type":46,"marks":2950},"Many lenders also have stricter requirements for cash reserves when it comes to investment property HELOCs. They often expect borrowers to have an emergency fund equivalent to at least six months of property-related expenses. If you have rental property, you may also need to provide evidence of long-term tenants.",[2951],{"type":53,"attrs":2952},{"color":2854},{"type":141,"content":2954},[2955],{"type":42,"content":2956},[2957,2963,2968,2976],{"text":2958,"type":46,"marks":2959},"Debt-to-income (DTI) ratio: ",[2960,2961],{"type":79},{"type":53,"attrs":2962},{"color":2854},{"text":2964,"type":46,"marks":2965},"Your ",[2966],{"type":53,"attrs":2967},{"color":2854},{"text":216,"type":46,"marks":2969},[2970,2973,2975],{"type":93,"attrs":2971},{"href":2972,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/what-is-a-debt-to-income-ratio-en-1791/",{"type":53,"attrs":2974},{"color":2854},{"type":165},{"text":2977,"type":46,"marks":2978}," will need to be between 40% and 50% to qualify for most investment property HELOCs. This ratio is often lower for primary residences.",[2979],{"type":53,"attrs":2980},{"color":2854},{"type":141,"content":2982},[2983],{"type":42,"content":2984},[2985,2991,2995,3003,3008,3017],{"text":2986,"type":46,"marks":2987},"Loan-to-value ratio:",[2988,2989],{"type":79},{"type":53,"attrs":2990},{"color":2854},{"text":657,"type":46,"marks":2992},[2993],{"type":53,"attrs":2994},{"color":2854},{"text":2996,"type":46,"marks":2997},"The loan-to-value ratio",[2998,3000,3002],{"type":93,"attrs":2999},{"href":176,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":3001},{"color":2854},{"type":165},{"text":3004,"type":46,"marks":3005},", or LTV ratio, is a financial metric used to assess the risk associated with a mortgage or loan. It represents the ratio of the loan amount to the appraised value of the property. With an investment property, you’ll need a ",[3006],{"type":53,"attrs":3007},{"color":2854},{"text":3009,"type":46,"marks":3010},"maximum LTV of 80%",[3011,3014,3016],{"type":93,"attrs":3012},{"href":3013,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://time.com/personal-finance/article/heloc-on-investment-property/",{"type":53,"attrs":3015},{"color":2854},{"type":165},{"text":3018,"type":46,"marks":3019},". For primary residences, the maximum LTV is typically closer to 90%.",[3020],{"type":53,"attrs":3021},{"color":2854},{"type":141,"content":3023},[3024],{"type":42,"content":3025},[3026,3032],{"text":3027,"type":46,"marks":3028},"Risk assessment and appraisals: ",[3029,3030],{"type":79},{"type":53,"attrs":3031},{"color":2854},{"text":3033,"type":46,"marks":3034},"When reviewing investment properties, lenders often conduct more thorough risk assessments and property appraisals. This can result in a longer application processing time than you might experience for a primary residence HELOC.",[3035],{"type":53,"attrs":3036},{"color":2854},{"type":141,"content":3038},[3039],{"type":42,"content":3040},[3041,3047],{"text":3042,"type":46,"marks":3043},"Credit score: ",[3044,3045],{"type":79},{"type":53,"attrs":3046},{"color":2854},{"text":3048,"type":46,"marks":3049},"When you apply for an investment property HELOC, your lender may require a credit score of 720 or higher. In contrast, for a primary home HELOC, a credit score of 620 or above is typically acceptable.",[3050],{"type":53,"attrs":3051},{"color":2854},{"type":71,"attrs":3053,"content":3054},{"level":73},[3055],{"text":3056,"type":46,"marks":3057},"The pros and cons of getting a HELOC on an investment property",[3058],{"type":53,"attrs":3059},{"color":2854},{"type":42,"content":3061},[3062],{"text":3063,"type":46,"marks":3064},"Using a HELOC on an investment property also comes with specific risks, such as variable interest rates and the potential for over-leveraging your equity. Here are a few things to think about before you apply for a HELOC.",[3065],{"type":53,"attrs":3066},{"color":2854},{"type":71,"attrs":3068,"content":3069},{"level":123},[3070],{"text":3071,"type":46,"marks":3072},"Pros",[3073],{"type":53,"attrs":3074},{"color":2854},{"type":138,"content":3076},[3077,3086,3095,3118,3127,3136],{"type":141,"content":3078},[3079],{"type":42,"content":3080},[3081],{"text":3082,"type":46,"marks":3083},"The interest rates on HELOCs are often lower compared to other forms of financing, such as home equity loans and other types of second mortgages. ",[3084],{"type":53,"attrs":3085},{"color":2854},{"type":141,"content":3087},[3088],{"type":42,"content":3089},[3090],{"text":3091,"type":46,"marks":3092},"It may be better to take out a HELOC on an investment property than on a primary residence since you won’t risk losing your home if you default on an investment property HELOC.",[3093],{"type":53,"attrs":3094},{"color":2854},{"type":141,"content":3096},[3097],{"type":42,"content":3098},[3099,3104,3113],{"text":3100,"type":46,"marks":3101},"During the ",[3102],{"type":53,"attrs":3103},{"color":2854},{"text":3105,"type":46,"marks":3106},"HELOC draw period",[3107,3110,3112],{"type":93,"attrs":3108},{"href":3109,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/my-lender-offered-me-a-home-equity-line-of-credit-heloc-what-is-a-heloc-en-107/",{"type":53,"attrs":3111},{"color":2854},{"type":165},{"text":3114,"type":46,"marks":3115},", you may be able to make interest-only payments rather than the larger minimum payments required for home equity loans. This may result in more manageable monthly bills.",[3116],{"type":53,"attrs":3117},{"color":2854},{"type":141,"content":3119},[3120],{"type":42,"content":3121},[3122],{"text":3123,"type":46,"marks":3124},"The interest you pay on your HELOC may be tax-deductible if the funds are used for qualified investment purposes. ",[3125],{"type":53,"attrs":3126},{"color":2854},{"type":141,"content":3128},[3129],{"type":42,"content":3130},[3131],{"text":3132,"type":46,"marks":3133},"You can use HELOC funds for property upgrades or renovations, potentially increasing the property’s value and your future rental income. ",[3134],{"type":53,"attrs":3135},{"color":2854},{"type":141,"content":3137},[3138],{"type":42,"content":3139},[3140],{"text":3141,"type":46,"marks":3142},"A HELOC can be a great way for new property owners to manage cash flow if your initial rental income doesn’t cover all your required expenses.",[3143],{"type":53,"attrs":3144},{"color":2854},{"type":71,"attrs":3146,"content":3147},{"level":123},[3148],{"text":3149,"type":46,"marks":3150},"Cons",[3151],{"type":53,"attrs":3152},{"color":2854},{"type":138,"content":3154},[3155,3164,3173,3182,3191],{"type":141,"content":3156},[3157],{"type":42,"content":3158},[3159],{"text":3160,"type":46,"marks":3161},"Not all lenders offer HELOCs on investment properties, and the limited availability can make it challenging to find suitable options. ",[3162],{"type":53,"attrs":3163},{"color":2854},{"type":141,"content":3165},[3166],{"type":42,"content":3167},[3168],{"text":3169,"type":46,"marks":3170},"You might pay higher interest rates than you would for a HELOC on a primary residence. ",[3171],{"type":53,"attrs":3172},{"color":2854},{"type":141,"content":3174},[3175],{"type":42,"content":3176},[3177],{"text":3178,"type":46,"marks":3179},"Most HELOCs come with annual fees as well as early cancellation or termination fees. ",[3180],{"type":53,"attrs":3181},{"color":2854},{"type":141,"content":3183},[3184],{"type":42,"content":3185},[3186],{"text":3187,"type":46,"marks":3188},"Tenant turnover, unexpected property maintenance expenses, and market dynamics could affect your ability to repay your HELOC, which could lead to increased financial stress. ",[3189],{"type":53,"attrs":3190},{"color":2854},{"type":141,"content":3192},[3193],{"type":42,"content":3194},[3195],{"text":3196,"type":46,"marks":3197},"Lenders may impose stricter eligibility criteria for investment property HELOCs. They may require you to have significant equity in the property, a high credit score, and a low loan-to-value ratio. That can make it more difficult to qualify.",[3198],{"type":53,"attrs":3199},{"color":2854},{"type":71,"attrs":3201,"content":3202},{"level":73},[3203],{"text":3204,"type":46,"marks":3205},"Alternatives to a HELOC on an investment property ",[3206],{"type":53,"attrs":3207},{"color":2854},{"type":42,"content":3209},[3210],{"text":3211,"type":46,"marks":3212},"If you decide not to pursue a HELOC for your investment property, consider these alternative loan options. ",[3213],{"type":53,"attrs":3214},{"color":2854},{"type":71,"attrs":3216,"content":3217},{"level":123},[3218],{"text":3219,"type":46,"marks":3220},"HELOC on your primary home",[3221],{"type":53,"attrs":3222},{"color":2854},{"type":42,"content":3224},[3225,3230,3237],{"text":3226,"type":46,"marks":3227},"Homebuyers in need of fast cash may want to consider a ",[3228],{"type":53,"attrs":3229},{"color":2854},{"text":3231,"type":46,"marks":3232},"primary home HELOC",[3233,3235],{"type":93,"attrs":3234},{"href":95,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":3236},{"color":2854},{"text":3238,"type":46,"marks":3239}," instead of an investment property HELOC. Because lenders often view primary residences as less risky collateral than investment properties, HELOCs on primary residences usually come with lower interest rates. This can result in lower borrowing costs.",[3240],{"type":53,"attrs":3241},{"color":2854},{"type":42,"content":3243},[3244],{"text":3245,"type":46,"marks":3246},"Additional benefits include:",[3247],{"type":53,"attrs":3248},{"color":2854},{"type":138,"content":3250},[3251,3266,3281],{"type":141,"content":3252},[3253],{"type":42,"content":3254},[3255,3261],{"text":3256,"type":46,"marks":3257},"Higher equity position: ",[3258,3259],{"type":79},{"type":53,"attrs":3260},{"color":2854},{"text":3262,"type":46,"marks":3263},"Most borrowers have higher equity in their primary residences than on their investment properties. Maybe you made a substantial down payment, have years of mortgage payments under your belt, or have worked to increase your home’s value. This can result in a higher equity position and therefore a higher HELOC credit limit.",[3264],{"type":53,"attrs":3265},{"color":2854},{"type":141,"content":3267},[3268],{"type":42,"content":3269},[3270,3276],{"text":3271,"type":46,"marks":3272},"Easier qualification:",[3273,3274],{"type":79},{"type":53,"attrs":3275},{"color":2854},{"text":3277,"type":46,"marks":3278}," Lenders often demand fewer personal finance qualification requirements for primary residence HELOCs, which makes them easier to obtain.",[3279],{"type":53,"attrs":3280},{"color":2854},{"type":141,"content":3282},[3283],{"type":42,"content":3284},[3285,3291],{"text":3286,"type":46,"marks":3287},"Additional services: ",[3288,3289],{"type":79},{"type":53,"attrs":3290},{"color":2854},{"text":3292,"type":46,"marks":3293},"Some lenders may offer additional benefits or services to homeowners with primary residence HELOCs, such as financial planning assistance or existing-relationship discounts. ",[3294],{"type":53,"attrs":3295},{"color":2854},{"type":42,"content":3297},[3298],{"text":3299,"type":46,"marks":3300},"Remember that, while a primary residence HELOC offers some advantages, it also involves using your primary home as collateral. Similar to a primary home loan, you’ll risk foreclosure on your home if you fail to make your payments. So, before you sign up for a HELOC, carefully consider your ability to meet your repayment obligations. ",[3301],{"type":53,"attrs":3302},{"color":2854},{"type":71,"attrs":3304,"content":3305},{"level":123},[3306],{"text":3307,"type":46,"marks":3308},"Cash-out refinance ",[3309],{"type":53,"attrs":3310},{"color":2854},{"type":42,"content":3312},[3313],{"text":3314,"type":46,"marks":3315},"A cash-out refinance is a type of mortgage refinancing where you borrow more than what you currently owe on your mortgage and receive the difference in cash. Essentially, it allows you to tap into the equity you have built in your property and use it for other expenses or investments. The new mortgage loan replaces the old one and has a higher balance, reflecting the amount of cash you receive.",[3316],{"type":53,"attrs":3317},{"color":2854},{"type":42,"content":3319},[3320],{"text":3321,"type":46,"marks":3322},"Here's how it works in general:",[3323],{"type":53,"attrs":3324},{"color":2854},{"type":138,"content":3326},[3327,3336,3345,3354],{"type":141,"content":3328},[3329],{"type":42,"content":3330},[3331],{"text":3332,"type":46,"marks":3333},"You apply for a cash-out refinance with a lender of your choice.",[3334],{"type":53,"attrs":3335},{"color":2854},{"type":141,"content":3337},[3338],{"type":42,"content":3339},[3340],{"text":3341,"type":46,"marks":3342},"The lender evaluates your eligibility based on factors such as credit score, loan-to-value ratio, income, and debt-to-income ratio.",[3343],{"type":53,"attrs":3344},{"color":2854},{"type":141,"content":3346},[3347],{"type":42,"content":3348},[3349],{"text":3350,"type":46,"marks":3351},"If approved, you receive the cash difference between the new amount borrowed and your old mortgage balance.",[3352],{"type":53,"attrs":3353},{"color":2854},{"type":141,"content":3355},[3356],{"type":42,"content":3357},[3358],{"text":3359,"type":46,"marks":3360},"You can use the cash for various purposes such as home improvements, debt consolidation, education, or investments.",[3361],{"type":53,"attrs":3362},{"color":2854},{"type":42,"content":3364},[3365],{"text":3366,"type":46,"marks":3367},"It's important to note that a cash-out refinance typically comes with closing costs, which can range from 2% to 5% of the total loan amount. Additionally, it can lead to higher monthly loan payments and a longer repayment period than your original mortgage.",[3368],{"type":53,"attrs":3369},{"color":2854},{"type":71,"attrs":3371,"content":3372},{"level":123},[3373],{"text":3374,"type":46,"marks":3375},"Personal loan ",[3376],{"type":53,"attrs":3377},{"color":2854},{"type":42,"content":3379},[3380,3385,3393],{"text":3381,"type":46,"marks":3382},"An unsecured ",[3383],{"type":53,"attrs":3384},{"color":2854},{"text":3386,"type":46,"marks":3387},"personal loan",[3388,3390,3392],{"type":93,"attrs":3389},{"href":1699,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":3391},{"color":2854},{"type":165},{"text":3394,"type":46,"marks":3395}," is a type of loan that doesn't require any collateral. Secured loans (including HELOCs) are backed by assets like a house or car, which can be repossessed by the lender if the borrower defaults. Unsecured personal loans, on the other hand, are approved based on the borrower's creditworthiness and ability to repay the loan.",[3396],{"type":53,"attrs":3397},{"color":2854},{"type":42,"content":3399},[3400,3405,3414],{"text":3401,"type":46,"marks":3402},"Here are some ",[3403],{"type":53,"attrs":3404},{"color":2854},{"text":3406,"type":46,"marks":3407},"key points about unsecured personal loans",[3408,3411,3413],{"type":93,"attrs":3409},{"href":3410,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://marketplace.navient.com/blog/pros-and-cons-of-personal-loans/",{"type":53,"attrs":3412},{"color":2854},{"type":165},{"text":652,"type":46,"marks":3415},[3416],{"type":53,"attrs":3417},{"color":2854},{"type":138,"content":3419},[3420,3435,3450,3465,3494],{"type":141,"content":3421},[3422],{"type":42,"content":3423},[3424,3430],{"text":3425,"type":46,"marks":3426},"No collateral",[3427,3428],{"type":79},{"type":53,"attrs":3429},{"color":2854},{"text":3431,"type":46,"marks":3432},": Unsecured personal loans are not tied to any specific asset. This means that borrowers don't need to pledge their property or possessions as collateral.",[3433],{"type":53,"attrs":3434},{"color":2854},{"type":141,"content":3436},[3437],{"type":42,"content":3438},[3439,3445],{"text":3440,"type":46,"marks":3441},"Based on creditworthiness",[3442,3443],{"type":79},{"type":53,"attrs":3444},{"color":2854},{"text":3446,"type":46,"marks":3447},": Lenders evaluate the borrower's credit history, income, employment stability, and other factors to determine their creditworthiness and the terms of the loan, such as interest rate and loan amount.",[3448],{"type":53,"attrs":3449},{"color":2854},{"type":141,"content":3451},[3452],{"type":42,"content":3453},[3454,3460],{"text":3455,"type":46,"marks":3456},"Higher rates: ",[3457,3458],{"type":79},{"type":53,"attrs":3459},{"color":2854},{"text":3461,"type":46,"marks":3462},"Since unsecured personal loans are riskier for lenders than secured loans, they generally come with higher interest rates to compensate for the lack of collateral.",[3463],{"type":53,"attrs":3464},{"color":2854},{"type":141,"content":3466},[3467],{"type":42,"content":3468},[3469,3475,3480,3489],{"text":3470,"type":46,"marks":3471},"Flexible use of funds",[3472,3473],{"type":79},{"type":53,"attrs":3474},{"color":2854},{"text":3476,"type":46,"marks":3477},": Borrowers can typically use the funds from an unsecured personal loan for any purpose, including ",[3478],{"type":53,"attrs":3479},{"color":2854},{"text":3481,"type":46,"marks":3482},"consolidating debt",[3483,3486,3488],{"type":93,"attrs":3484},{"href":3485,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://marketplace.navient.com/blog/personal-loan-to-pay-off-credit-card/",{"type":53,"attrs":3487},{"color":2854},{"type":165},{"text":3490,"type":46,"marks":3491},", financing home improvements, or covering medical expenses.",[3492],{"type":53,"attrs":3493},{"color":2854},{"type":141,"content":3495},[3496],{"type":42,"content":3497},[3498,3504],{"text":3499,"type":46,"marks":3500},"Lower loan amounts",[3501,3502],{"type":79},{"type":53,"attrs":3503},{"color":2854},{"text":3505,"type":46,"marks":3506},": Compared to secured loans, unsecured personal loans usually come with lower loan amounts, as lenders may be more cautious about granting larger sums without collateral.",[3507],{"type":53,"attrs":3508},{"color":2854},{"type":42,"content":3510},[3511],{"text":3512,"type":46,"marks":3513},"Keep in mind that, because you have no collateral securing the loan, defaulting on an unsecured personal loan could result in legal action, damage to your credit score, and collection efforts by the lender.",[3514],{"type":53,"attrs":3515},{"color":2854},{"type":71,"attrs":3517,"content":3518},{"level":73},[3519],{"text":1818,"type":46,"marks":3520},[3521],{"type":53,"attrs":3522},{"color":2854},{"type":42,"content":3524},[3525,3530,3539],{"text":3526,"type":46,"marks":3527},"A HELOC is a great real estate investing tool and a good way to tap into your property’s equity to get a large cash injection. This can be useful for managing business cash flow or for meeting surprise expenses. However, HELOCs aren’t the best choice for every property owner. If you’re looking for alternative funding options, ",[3528],{"type":53,"attrs":3529},{"color":2854},{"text":3531,"type":46,"marks":3532},"consider a personal loan",[3533,3536,3538],{"type":93,"attrs":3534},{"href":3535,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://marketplace.navient.com/blog/should-i-get-a-personal-loan/",{"type":53,"attrs":3537},{"color":2854},{"type":165},{"text":3540,"type":46,"marks":3541},". Personal loans can provide swift access to large lump sums of cash. They also tend to offer lower interest rates than credit cards or open lines of credit. ",[3542],{"type":53,"attrs":3543},{"color":2854},{"type":42,"content":3545},[3546,3551,3559],{"text":3547,"type":46,"marks":3548},"A personal loan marketplace can give you a better idea of your options and help ensure that you’re getting the best rates. To further streamline the process, Navient Marketplace collaborates with MoneyLion, a leading personal loan search tool. Explore your options and find personalized loan rates by visiting",[3549],{"type":53,"attrs":3550},{"color":2854},{"text":3552,"type":46,"marks":3553}," our marketplace",[3554,3556,3558],{"type":93,"attrs":3555},{"href":770,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":3557},{"color":2854},{"type":165},{"text":2780,"type":46,"marks":3560},[3561],{"type":53,"attrs":3562},{"color":2854},{"type":42,"content":3564},[3565],{"text":789,"type":46,"marks":3566},[3567],{"type":49,"attrs":3568},{"class":51},{"type":42,"content":3570},[3571],{"text":3572,"type":46,"marks":3573},"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. ",[3574],{"type":49,"attrs":3575},{"class":51},{"type":42,"content":3577},[3578],{"text":3579,"type":46,"marks":3580},"Loan proceeds may not be used for postsecondary educational expenses, including refinancing federal or private student loans.",[3581],{"type":49,"attrs":3582},{"class":51},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798156\"}-->","https://www.marketplace.navient.com/blog/can-you-get-a-heloc-on-an-investment-property/","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"39f3568e-f888-4c3e-816f-3647f7efec59\", \"id\": \"651798156\"}-->","can-you-get-a-heloc-on-an-investment-property","navient_marketplace/blog/can-you-get-a-heloc-on-an-investment-property",[],"b4d32726-e8b3-4d34-a661-867737ea0c28","2023-09-26T16:18:38.954Z","/blog/can-you-get-a-heloc-on-an-investment-property/",[],{"name":3594,"created_at":3595,"published_at":3596,"updated_at":3597,"id":3598,"uuid":3599,"content":3600,"slug":4523,"full_slug":4524,"sort_by_date":96,"position":826,"tag_list":4525,"is_startpage":29,"parent_id":828,"meta_data":96,"group_id":4526,"first_published_at":3590,"release_id":96,"lang":831,"path":4527,"alternates":4528,"default_full_slug":96,"translated_slugs":96},"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":3601,"_uid":20,"hero":3604,"author":31,"category":32,"featured":29,"imageAlt":18,"component":33,"blogContents":3609,"canonicalTag":4521,"publishedDate":822,"_editable":4522},{"_uid":15,"title":3602,"plugin":17,"og_image":18,"og_title":18,"description":3603,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"Consolidating Debt With a Personal Loan | Navient Marketplace","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.",[3605],{"id":18,"_uid":23,"image":3606,"intro":3603,"classes":18,"_editable":3607,"blogTitle":3594,"component":27,"imageLink":3608,"blendImage":29,"backgroundColor":30},"//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\"}-->","/images/consolidating-debt-with-personal-loan.png",[3610],{"_uid":36,"color":37,"richText":3611,"_editable":4520,"component":820},{"type":39,"content":3612},[3613,3621,3640,3647,3655,3684,3692,3699,3707,3728,3735,3743,3750,3757,3765,3785,3794,3856,3864,3938,3946,3953,3961,3968,3975,3996,4004,4011,4049,4070,4078,4085,4160,4176,4184,4205,4223,4230,4238,4245,4264,4272,4292,4300,4307,4314,4322,4329,4455,4463,4470,4495,4503,4512],{"type":42,"content":3614},[3615],{"text":45,"type":46,"marks":3616},[3617,3619],{"type":49,"attrs":3618},{"class":51},{"type":53,"attrs":3620},{"color":2854},{"type":42,"content":3622},[3623,3628,3635],{"text":3624,"type":46,"marks":3625},"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 ",[3626],{"type":53,"attrs":3627},{"color":2854},{"text":3386,"type":46,"marks":3629},[3630,3632,3634],{"type":93,"attrs":3631},{"href":1699,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":3633},{"color":2854},{"type":165},{"text":3636,"type":46,"marks":3637},". This financial strategy can give you the chance to simplify your debts and put you back in control. ",[3638],{"type":53,"attrs":3639},{"color":2854},{"type":42,"content":3641},[3642],{"text":3643,"type":46,"marks":3644},"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.  ",[3645],{"type":53,"attrs":3646},{"color":2854},{"type":71,"attrs":3648,"content":3649},{"level":73},[3650],{"text":3651,"type":46,"marks":3652},"Key takeaways",[3653],{"type":53,"attrs":3654},{"color":2854},{"type":138,"content":3656},[3657,3666,3675],{"type":141,"content":3658},[3659],{"type":42,"content":3660},[3661],{"text":3662,"type":46,"marks":3663},"A debt consolidation loan is a type of personal loan, designed to consolidate and repay existing debts.",[3664],{"type":53,"attrs":3665},{"color":2854},{"type":141,"content":3667},[3668],{"type":42,"content":3669},[3670],{"text":3671,"type":46,"marks":3672},"Debt consolidation simplifies your financial life by combining multiple debts into a single, consistent monthly payment to a single lender. ",[3673],{"type":53,"attrs":3674},{"color":2854},{"type":141,"content":3676},[3677],{"type":42,"content":3678},[3679],{"text":3680,"type":46,"marks":3681},"After you consolidate, it’s critical to maintain responsible financial habits while you repay your new personal loan. ",[3682],{"type":53,"attrs":3683},{"color":2854},{"type":71,"attrs":3685,"content":3686},{"level":73},[3687],{"text":3688,"type":46,"marks":3689},"Personal loan vs debt consolidation loan: What’s the difference? ",[3690],{"type":53,"attrs":3691},{"color":2854},{"type":42,"content":3693},[3694],{"text":3695,"type":46,"marks":3696},"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:",[3697],{"type":53,"attrs":3698},{"color":2854},{"type":71,"attrs":3700,"content":3701},{"level":123},[3702],{"text":3703,"type":46,"marks":3704},"What is a personal loan? ",[3705],{"type":53,"attrs":3706},{"color":2854},{"type":42,"content":3708},[3709,3714,3723],{"text":3710,"type":46,"marks":3711},"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 ",[3712],{"type":53,"attrs":3713},{"color":2854},{"text":3715,"type":46,"marks":3716},"unsecured loan",[3717,3720,3722],{"type":93,"attrs":3718},{"href":3719,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://marketplace.navient.com/blog/secured-vs-unsecured-loans/",{"type":53,"attrs":3721},{"color":2854},{"type":165},{"text":3724,"type":46,"marks":3725},", meaning it doesn't require collateral. ",[3726],{"type":53,"attrs":3727},{"color":2854},{"type":42,"content":3729},[3730],{"text":3731,"type":46,"marks":3732},"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.",[3733],{"type":53,"attrs":3734},{"color":2854},{"type":71,"attrs":3736,"content":3737},{"level":123},[3738],{"text":3739,"type":46,"marks":3740},"What is a debt consolidation loan? ",[3741],{"type":53,"attrs":3742},{"color":2854},{"type":42,"content":3744},[3745],{"text":3746,"type":46,"marks":3747},"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.",[3748],{"type":53,"attrs":3749},{"color":2854},{"type":42,"content":3751},[3752],{"text":3753,"type":46,"marks":3754},"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.",[3755],{"type":53,"attrs":3756},{"color":2854},{"type":71,"attrs":3758,"content":3759},{"level":123},[3760],{"text":3761,"type":46,"marks":3762},"The pros and cons of consolidating debt with a personal loan",[3763],{"type":53,"attrs":3764},{"color":2854},{"type":42,"content":3766},[3767,3772,3780],{"text":3768,"type":46,"marks":3769},"Debt consolidation can be helpful, but it’s not for everyone. Carefully consider these pros and cons to decide whether consolidating debt ",[3770],{"type":53,"attrs":3771},{"color":2854},{"text":3773,"type":46,"marks":3774},"with a personal loan",[3775,3777,3779],{"type":93,"attrs":3776},{"href":3410,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":3778},{"color":2854},{"type":165},{"text":3781,"type":46,"marks":3782}," is the right choice for you. ",[3783],{"type":53,"attrs":3784},{"color":2854},{"type":71,"attrs":3786,"content":3788},{"level":3787},4,[3789],{"text":3790,"type":46,"marks":3791},"Pros of debt consolidation with a personal loan ",[3792],{"type":53,"attrs":3793},{"color":2854},{"type":138,"content":3795},[3796,3811,3826,3841],{"type":141,"content":3797},[3798],{"type":42,"content":3799},[3800,3806],{"text":3801,"type":46,"marks":3802},"Simplified repayment:",[3803,3804],{"type":79},{"type":53,"attrs":3805},{"color":2854},{"text":3807,"type":46,"marks":3808}," 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.",[3809],{"type":53,"attrs":3810},{"color":2854},{"type":141,"content":3812},[3813],{"type":42,"content":3814},[3815,3821],{"text":3816,"type":46,"marks":3817},"Potentially lower interest rates:",[3818,3819],{"type":79},{"type":53,"attrs":3820},{"color":2854},{"text":3822,"type":46,"marks":3823}," 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. ",[3824],{"type":53,"attrs":3825},{"color":2854},{"type":141,"content":3827},[3828],{"type":42,"content":3829},[3830,3836],{"text":3831,"type":46,"marks":3832},"Fixed monthly payments:",[3833,3834],{"type":79},{"type":53,"attrs":3835},{"color":2854},{"text":3837,"type":46,"marks":3838}," 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.",[3839],{"type":53,"attrs":3840},{"color":2854},{"type":141,"content":3842},[3843],{"type":42,"content":3844},[3845,3851],{"text":3846,"type":46,"marks":3847},"Manageable monthly bills:",[3848,3849],{"type":79},{"type":53,"attrs":3850},{"color":2854},{"text":3852,"type":46,"marks":3853}," 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. ",[3854],{"type":53,"attrs":3855},{"color":2854},{"type":71,"attrs":3857,"content":3858},{"level":3787},[3859],{"text":3860,"type":46,"marks":3861},"Cons of debt consolidation with a personal loan",[3862],{"type":53,"attrs":3863},{"color":2854},{"type":138,"content":3865},[3866,3893,3908,3923],{"type":141,"content":3867},[3868],{"type":42,"content":3869},[3870,3876,3881,3888],{"text":3871,"type":46,"marks":3872},"Risk of accumulating new debt:",[3873,3874],{"type":79},{"type":53,"attrs":3875},{"color":2854},{"text":3877,"type":46,"marks":3878}," 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, ",[3879],{"type":53,"attrs":3880},{"color":2854},{"text":3882,"type":46,"marks":3883},"you’re still only replacing that debt with a different type of debt.",[3884,3886],{"type":3885},"italic",{"type":53,"attrs":3887},{"color":2854},{"text":3889,"type":46,"marks":3890}," It is essential to exercise discipline and avoid falling back into old spending habits.",[3891],{"type":53,"attrs":3892},{"color":2854},{"type":141,"content":3894},[3895],{"type":42,"content":3896},[3897,3903],{"text":3898,"type":46,"marks":3899},"Potential origination or prepayment fees",[3900,3901],{"type":79},{"type":53,"attrs":3902},{"color":2854},{"text":3904,"type":46,"marks":3905},": 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.",[3906],{"type":53,"attrs":3907},{"color":2854},{"type":141,"content":3909},[3910],{"type":42,"content":3911},[3912,3918],{"text":3913,"type":46,"marks":3914},"Impact on credit score",[3915,3916],{"type":79},{"type":53,"attrs":3917},{"color":2854},{"text":3919,"type":46,"marks":3920},": 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. ",[3921],{"type":53,"attrs":3922},{"color":2854},{"type":141,"content":3924},[3925],{"type":42,"content":3926},[3927,3933],{"text":3928,"type":46,"marks":3929},"Harder to qualify for",[3930,3931],{"type":79},{"type":53,"attrs":3932},{"color":2854},{"text":3934,"type":46,"marks":3935},": 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.",[3936],{"type":53,"attrs":3937},{"color":2854},{"type":71,"attrs":3939,"content":3940},{"level":73},[3941],{"text":3942,"type":46,"marks":3943},"How to get a debt consolidation loan",[3944],{"type":53,"attrs":3945},{"color":2854},{"type":42,"content":3947},[3948],{"text":3949,"type":46,"marks":3950},"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.",[3951],{"type":53,"attrs":3952},{"color":2854},{"type":71,"attrs":3954,"content":3955},{"level":123},[3956],{"text":3957,"type":46,"marks":3958},"Step 1: Assess your debt",[3959],{"type":53,"attrs":3960},{"color":2854},{"type":42,"content":3962},[3963],{"text":3964,"type":46,"marks":3965},"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. ",[3966],{"type":53,"attrs":3967},{"color":2854},{"type":42,"content":3969},[3970],{"text":3971,"type":46,"marks":3972},"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. ",[3973],{"type":53,"attrs":3974},{"color":2854},{"type":42,"content":3976},[3977,3982,3991],{"text":3978,"type":46,"marks":3979},"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 ",[3980],{"type":53,"attrs":3981},{"color":2854},{"text":3983,"type":46,"marks":3984},"use a loan calculator",[3985,3988,3990],{"type":93,"attrs":3986},{"href":3987,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.aarp.org/money/credit-loans-debt/debt_consolidation_calculator.html",{"type":53,"attrs":3989},{"color":2854},{"type":165},{"text":3992,"type":46,"marks":3993}," to estimate your monthly payments. Make sure you have the budget to comfortably make these payments.",[3994],{"type":53,"attrs":3995},{"color":2854},{"type":71,"attrs":3997,"content":3998},{"level":123},[3999],{"text":4000,"type":46,"marks":4001},"Step 2: Pull your credit report",[4002],{"type":53,"attrs":4003},{"color":2854},{"type":42,"content":4005},[4006],{"text":4007,"type":46,"marks":4008},"Lenders offer various loan products based on creditworthiness. Generally, the better your credit, the more options you’ll have. ",[4009],{"type":53,"attrs":4010},{"color":2854},{"type":138,"content":4012},[4013,4022,4031,4040],{"type":141,"content":4014},[4015],{"type":42,"content":4016},[4017],{"text":4018,"type":46,"marks":4019},"An excellent credit score (typically 720 or higher) will qualify you for the lowest rates. ",[4020],{"type":53,"attrs":4021},{"color":2854},{"type":141,"content":4023},[4024],{"type":42,"content":4025},[4026],{"text":4027,"type":46,"marks":4028},"A good credit score (670-719) still allows you to access competitive loan rates. ",[4029],{"type":53,"attrs":4030},{"color":2854},{"type":141,"content":4032},[4033],{"type":42,"content":4034},[4035],{"text":4036,"type":46,"marks":4037},"A fair credit score (580-669) may limit your options for unsecured loans. Instead, you might want to consider a secured loan. ",[4038],{"type":53,"attrs":4039},{"color":2854},{"type":141,"content":4041},[4042],{"type":42,"content":4043},[4044],{"text":4045,"type":46,"marks":4046},"If you have poor credit (below 580), explore secured loans, cosigner arrangements, or credit-building loans may be necessary.",[4047],{"type":53,"attrs":4048},{"color":2854},{"type":42,"content":4050},[4051,4056,4065],{"text":4052,"type":46,"marks":4053},"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 ",[4054],{"type":53,"attrs":4055},{"color":2854},{"text":4057,"type":46,"marks":4058},"obtain your credit report",[4059,4062,4064],{"type":93,"attrs":4060},{"href":4061,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.usa.gov/credit-reports",{"type":53,"attrs":4063},{"color":2854},{"type":165},{"text":4066,"type":46,"marks":4067}," and check for errors. If you find inaccuracies, file a dispute to correct these before applying for a new loan. ",[4068],{"type":53,"attrs":4069},{"color":2854},{"type":71,"attrs":4071,"content":4072},{"level":123},[4073],{"text":4074,"type":46,"marks":4075},"Step 3: Compare lenders",[4076],{"type":53,"attrs":4077},{"color":2854},{"type":42,"content":4079},[4080],{"text":4081,"type":46,"marks":4082},"It’s important to compare lenders to secure the best personal loan rates and terms. Here are the factors to consider when evaluating lenders:",[4083],{"type":53,"attrs":4084},{"color":2854},{"type":138,"content":4086},[4087,4115,4130,4145],{"type":141,"content":4088},[4089],{"type":42,"content":4090},[4091,4096,4101,4110],{"text":2928,"type":46,"marks":4092},[4093,4094],{"type":79},{"type":53,"attrs":4095},{"color":2854},{"text":4097,"type":46,"marks":4098}," Compare ",[4099],{"type":53,"attrs":4100},{"color":2854},{"text":4102,"type":46,"marks":4103},"annual percentage rates (APRs)",[4104,4107,4109],{"type":93,"attrs":4105},{"href":4106,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/what-is-a-credit-card-interest-rate-what-does-apr-mean-en-44/",{"type":53,"attrs":4108},{"color":2854},{"type":165},{"text":4111,"type":46,"marks":4112}," to understand how much your loan will cost with each lender. ",[4113],{"type":53,"attrs":4114},{"color":2854},{"type":141,"content":4116},[4117],{"type":42,"content":4118},[4119,4125],{"text":4120,"type":46,"marks":4121},"Fees: ",[4122,4123],{"type":79},{"type":53,"attrs":4124},{"color":2854},{"text":4126,"type":46,"marks":4127},"Be aware of origination fees, prepayment penalties, or other charges that could affect your loan’s affordability.",[4128],{"type":53,"attrs":4129},{"color":2854},{"type":141,"content":4131},[4132],{"type":42,"content":4133},[4134,4140],{"text":4135,"type":46,"marks":4136},"Loan terms:",[4137,4138],{"type":79},{"type":53,"attrs":4139},{"color":2854},{"text":4141,"type":46,"marks":4142}," Longer terms result in lower monthly payment amounts but higher interest costs over the life of the loan. ",[4143],{"type":53,"attrs":4144},{"color":2854},{"type":141,"content":4146},[4147],{"type":42,"content":4148},[4149,4155],{"text":4150,"type":46,"marks":4151},"Customer reviews: ",[4152,4153],{"type":79},{"type":53,"attrs":4154},{"color":2854},{"text":4156,"type":46,"marks":4157},"Research a lender’s reputation by reading online reviews and looking for customer service ratings. ",[4158],{"type":53,"attrs":4159},{"color":2854},{"type":42,"content":4161},[4162,4171],{"text":4163,"type":46,"marks":4164},"Personal loan marketplaces",[4165,4168,4170],{"type":93,"attrs":4166},{"href":4167,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://marketplace.navient.com/blog/what-is-a-personal-loan-marketplace/",{"type":53,"attrs":4169},{"color":2854},{"type":165},{"text":4172,"type":46,"marks":4173}," 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.",[4174],{"type":53,"attrs":4175},{"color":2854},{"type":71,"attrs":4177,"content":4178},{"level":123},[4179],{"text":4180,"type":46,"marks":4181},"Step 4: Get prequalified",[4182],{"type":53,"attrs":4183},{"color":2854},{"type":42,"content":4185},[4186,4191,4200],{"text":4187,"type":46,"marks":4188},"Prequalification is a useful tool when you’re shopping for personal loans. It allows you to compare offers from different lenders without a ",[4189],{"type":53,"attrs":4190},{"color":2854},{"text":4192,"type":46,"marks":4193},"hard credit check",[4194,4197,4199],{"type":93,"attrs":4195},{"href":4196,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://navirefi.com/blog/soft-inquiry-vs-hard-inquiry/",{"type":53,"attrs":4198},{"color":2854},{"type":165},{"text":4201,"type":46,"marks":4202},". (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.",[4203],{"type":53,"attrs":4204},{"color":2854},{"type":42,"content":4206},[4207,4212,4219],{"text":4208,"type":46,"marks":4209},"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 ",[4210],{"type":53,"attrs":4211},{"color":2854},{"text":216,"type":46,"marks":4213},[4214,4216,4218],{"type":93,"attrs":4215},{"href":2972,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":4217},{"color":2854},{"type":165},{"text":730,"type":46,"marks":4220},[4221],{"type":53,"attrs":4222},{"color":2854},{"type":42,"content":4224},[4225],{"text":4226,"type":46,"marks":4227},"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. ",[4228],{"type":53,"attrs":4229},{"color":2854},{"type":71,"attrs":4231,"content":4232},{"level":123},[4233],{"text":4234,"type":46,"marks":4235},"Step 5: Apply for the loan",[4236],{"type":53,"attrs":4237},{"color":2854},{"type":42,"content":4239},[4240],{"text":4241,"type":46,"marks":4242},"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.",[4243],{"type":53,"attrs":4244},{"color":2854},{"type":42,"content":4246},[4247,4252,4259],{"text":4248,"type":46,"marks":4249},"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 ",[4250],{"type":53,"attrs":4251},{"color":2854},{"text":2490,"type":46,"marks":4253},[4254,4256,4258],{"type":93,"attrs":4255},{"href":1833,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":4257},{"color":2854},{"type":165},{"text":4260,"type":46,"marks":4261},", that allows you to compare multiple lenders and complete applications from a single platform.",[4262],{"type":53,"attrs":4263},{"color":2854},{"type":71,"attrs":4265,"content":4266},{"level":123},[4267],{"text":4268,"type":46,"marks":4269},"Step 6: Pay off existing debts",[4270],{"type":53,"attrs":4271},{"color":2854},{"type":42,"content":4273},[4274,4279,4287],{"text":4275,"type":46,"marks":4276},"Once your loan is approved and the funds are disbursed, put the money to work by ",[4277],{"type":53,"attrs":4278},{"color":2854},{"text":4280,"type":46,"marks":4281},"paying off your existing debts",[4282,4284,4286],{"type":93,"attrs":4283},{"href":3485,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":4285},{"color":2854},{"type":165},{"text":4288,"type":46,"marks":4289},". 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. ",[4290],{"type":53,"attrs":4291},{"color":2854},{"type":71,"attrs":4293,"content":4294},{"level":123},[4295],{"text":4296,"type":46,"marks":4297},"Step 7: Create a repayment plan",[4298],{"type":53,"attrs":4299},{"color":2854},{"type":42,"content":4301},[4302],{"text":4303,"type":46,"marks":4304},"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. ",[4305],{"type":53,"attrs":4306},{"color":2854},{"type":42,"content":4308},[4309],{"text":4310,"type":46,"marks":4311},"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. ",[4312],{"type":53,"attrs":4313},{"color":2854},{"type":71,"attrs":4315,"content":4316},{"level":73},[4317],{"text":4318,"type":46,"marks":4319},"Alternatives to consolidating debt with a personal loan ",[4320],{"type":53,"attrs":4321},{"color":2854},{"type":42,"content":4323},[4324],{"text":4325,"type":46,"marks":4326},"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: ",[4327],{"type":53,"attrs":4328},{"color":2854},{"type":497,"attrs":4330,"content":4331},{"order":499},[4332,4347,4362,4387,4406,4430],{"type":141,"content":4333},[4334],{"type":42,"content":4335},[4336,4342],{"text":4337,"type":46,"marks":4338},"Balance transfer credit cards:",[4339,4340],{"type":79},{"type":53,"attrs":4341},{"color":2854},{"text":4343,"type":46,"marks":4344}," 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. ",[4345],{"type":53,"attrs":4346},{"color":2854},{"type":141,"content":4348},[4349],{"type":42,"content":4350},[4351,4357],{"text":4352,"type":46,"marks":4353},"Home equity loans and home equity lines of credit (HELOCs)",[4354,4355],{"type":79},{"type":53,"attrs":4356},{"color":2854},{"text":4358,"type":46,"marks":4359},": 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. ",[4360],{"type":53,"attrs":4361},{"color":2854},{"type":141,"content":4363},[4364],{"type":42,"content":4365},[4366,4376,4382],{"text":4367,"type":46,"marks":4368},"Debt management plans",[4369,4372,4373,4375],{"type":93,"attrs":4370},{"href":4371,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.debt.org/management-plans/",{"type":79},{"type":53,"attrs":4374},{"color":2854},{"type":165},{"text":4377,"type":46,"marks":4378}," (DMPs)",[4379,4380],{"type":79},{"type":53,"attrs":4381},{"color":2854},{"text":4383,"type":46,"marks":4384},": 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. ",[4385],{"type":53,"attrs":4386},{"color":2854},{"type":141,"content":4388},[4389],{"type":42,"content":4390},[4391,4401],{"text":4392,"type":46,"marks":4393},"Debt settlement:",[4394,4397,4398,4400],{"type":93,"attrs":4395},{"href":4396,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.debt.org/settlement/",{"type":79},{"type":53,"attrs":4399},{"color":2854},{"type":165},{"text":4402,"type":46,"marks":4403}," 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.",[4404],{"type":53,"attrs":4405},{"color":2854},{"type":141,"content":4407},[4408],{"type":42,"content":4409},[4410,4420,4425],{"text":4411,"type":46,"marks":4412},"401(k) Loans",[4413,4416,4417,4419],{"type":93,"attrs":4414},{"href":4415,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.irs.gov/retirement-plans/considering-a-loan-from-your-401k-plan",{"type":79},{"type":53,"attrs":4418},{"color":2854},{"type":165},{"text":652,"type":46,"marks":4421},[4422,4423],{"type":79},{"type":53,"attrs":4424},{"color":2854},{"text":4426,"type":46,"marks":4427}," 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. ",[4428],{"type":53,"attrs":4429},{"color":2854},{"type":141,"content":4431},[4432],{"type":42,"content":4433},[4434,4444,4450],{"text":4435,"type":46,"marks":4436},"Peer-to-peer lending",[4437,4440,4441,4443],{"type":93,"attrs":4438},{"href":4439,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.debt.org/credit/solutions/peer-lending/",{"type":79},{"type":53,"attrs":4442},{"color":2854},{"type":165},{"text":4445,"type":46,"marks":4446},": ",[4447,4448],{"type":79},{"type":53,"attrs":4449},{"color":2854},{"text":4451,"type":46,"marks":4452},"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.",[4453],{"type":53,"attrs":4454},{"color":2854},{"type":71,"attrs":4456,"content":4457},{"level":73},[4458],{"text":4459,"type":46,"marks":4460},"Shop debt consolidation loans on Navient Marketplace ",[4461],{"type":53,"attrs":4462},{"color":2854},{"type":42,"content":4464},[4465],{"text":4466,"type":46,"marks":4467},"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. ",[4468],{"type":53,"attrs":4469},{"color":2854},{"type":42,"content":4471},[4472,4477,4483,4491],{"text":4473,"type":46,"marks":4474},"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",[4475],{"type":53,"attrs":4476},{"color":2854},{"text":657,"type":46,"marks":4478},[4479,4481],{"type":93,"attrs":4480},{"href":770,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":4482},{"color":2854},{"text":4484,"type":46,"marks":4485},"get personalized results from debt consolidation lenders in minutes",[4486,4488,4490],{"type":93,"attrs":4487},{"href":770,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":4489},{"color":2854},{"type":165},{"text":1222,"type":46,"marks":4492},[4493],{"type":53,"attrs":4494},{"color":2854},{"type":42,"content":4496},[4497],{"text":789,"type":46,"marks":4498},[4499,4501],{"type":49,"attrs":4500},{"class":51},{"type":53,"attrs":4502},{"color":2854},{"type":42,"content":4504},[4505],{"text":4506,"type":46,"marks":4507},"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. ",[4508,4510],{"type":49,"attrs":4509},{"class":51},{"type":53,"attrs":4511},{"color":2854},{"type":42,"content":4513},[4514],{"text":3579,"type":46,"marks":4515},[4516,4518],{"type":49,"attrs":4517},{"class":51},{"type":53,"attrs":4519},{"color":2854},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798155\"}-->","https://www.marketplace.navient.com/blog/consolidating-debt-with-personal-loan/","\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",[],"0563e536-901b-4d20-b00e-08df03779c14","blog/consolidating-debt-with-personal-loan",[],{"name":4530,"created_at":4531,"published_at":4532,"updated_at":4533,"id":4534,"uuid":4535,"content":4536,"slug":5340,"full_slug":5341,"sort_by_date":96,"position":826,"tag_list":5342,"is_startpage":29,"parent_id":828,"meta_data":96,"group_id":5343,"first_published_at":3590,"release_id":96,"lang":831,"path":5344,"alternates":5345,"default_full_slug":96,"translated_slugs":96},"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":4537,"_uid":20,"hero":4540,"author":31,"category":32,"featured":29,"imageAlt":18,"component":33,"blogContents":4545,"canonicalTag":5338,"publishedDate":822,"_editable":5339},{"_uid":15,"title":4538,"plugin":17,"og_image":18,"og_title":18,"description":4539,"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.",[4541],{"id":18,"_uid":23,"image":4542,"intro":4539,"classes":18,"_editable":4543,"blogTitle":4530,"component":27,"imageLink":4544,"blendImage":29,"backgroundColor":30},"//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",[4546],{"_uid":36,"color":37,"richText":4547,"_editable":5337,"component":820},{"type":39,"content":4548},[4549,4557,4577,4584,4622,4630,4649,4657,4677,4685,4692,4700,4707,4715,4722,4730,4737,4745,4752,4760,4767,4775,4782,4790,4797,4805,4812,4820,4827,4835,4842,4939,4947,4979,5000,5008,5015,5022,5030,5051,5112,5120,5127,5134,5142,5162,5169,5184,5192,5208,5227,5234,5241,5248,5255,5262,5270,5307,5315,5329],{"type":42,"content":4550},[4551],{"text":45,"type":46,"marks":4552},[4553,4555],{"type":49,"attrs":4554},{"class":51},{"type":53,"attrs":4556},{"color":2854},{"type":42,"content":4558},[4559,4564,4572],{"text":4560,"type":46,"marks":4561},"A personal loan can be a useful tool for consolidating debt, making a significant purchase, or funding home renovations. But if you’ve ",[4562],{"type":53,"attrs":4563},{"color":2854},{"text":4565,"type":46,"marks":4566},"shopped around for one",[4567,4569,4571],{"type":93,"attrs":4568},{"href":1699,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":4570},{"color":2854},{"type":165},{"text":4573,"type":46,"marks":4574},", 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?",[4575],{"type":53,"attrs":4576},{"color":2854},{"type":71,"attrs":4578,"content":4579},{"level":73},[4580],{"text":3651,"type":46,"marks":4581},[4582],{"type":53,"attrs":4583},{"color":2854},{"type":138,"content":4585},[4586,4595,4604,4613],{"type":141,"content":4587},[4588],{"type":42,"content":4589},[4590],{"text":4591,"type":46,"marks":4592},"Personal loans are typically unsecured, which means there’s no collateral to back the loan.",[4593],{"type":53,"attrs":4594},{"color":2854},{"type":141,"content":4596},[4597],{"type":42,"content":4598},[4599],{"text":4600,"type":46,"marks":4601},"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. ",[4602],{"type":53,"attrs":4603},{"color":2854},{"type":141,"content":4605},[4606],{"type":42,"content":4607},[4608],{"text":4609,"type":46,"marks":4610},"Longer loan terms may come with higher interest rates, which allow lenders to mitigate the risk of future interest rate fluctuations.                                                                                 ",[4611],{"type":53,"attrs":4612},{"color":2854},{"type":141,"content":4614},[4615],{"type":42,"content":4616},[4617],{"text":4618,"type":46,"marks":4619},"When the interest rates set by central banks rise, personal loan rates tend to follow suit. ",[4620],{"type":53,"attrs":4621},{"color":2854},{"type":71,"attrs":4623,"content":4624},{"level":73},[4625],{"text":4626,"type":46,"marks":4627},"Six reasons personal loan rates can be high ",[4628],{"type":53,"attrs":4629},{"color":2854},{"type":42,"content":4631},[4632,4637,4644],{"text":4633,"type":46,"marks":4634},"Considering a ",[4635],{"type":53,"attrs":4636},{"color":2854},{"text":3386,"type":46,"marks":4638},[4639,4641,4643],{"type":93,"attrs":4640},{"href":661,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":4642},{"color":2854},{"type":165},{"text":4645,"type":46,"marks":4646},"? You might be surprised to find that their rates are higher than you expected. Here are six reasons why that can happen. ",[4647],{"type":53,"attrs":4648},{"color":2854},{"type":71,"attrs":4650,"content":4651},{"level":123},[4652],{"text":4653,"type":46,"marks":4654},"No collateral ",[4655],{"type":53,"attrs":4656},{"color":2854},{"type":42,"content":4658},[4659,4664,4672],{"text":4660,"type":46,"marks":4661},"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 ",[4662],{"type":53,"attrs":4663},{"color":2854},{"text":4665,"type":46,"marks":4666},"secured loans",[4667,4669,4671],{"type":93,"attrs":4668},{"href":3719,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":4670},{"color":2854},{"type":165},{"text":4673,"type":46,"marks":4674},", 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.",[4675],{"type":53,"attrs":4676},{"color":2854},{"type":71,"attrs":4678,"content":4679},{"level":123},[4680],{"text":4681,"type":46,"marks":4682},"Credit score",[4683],{"type":53,"attrs":4684},{"color":2854},{"type":42,"content":4686},[4687],{"text":4688,"type":46,"marks":4689},"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.",[4690],{"type":53,"attrs":4691},{"color":2854},{"type":71,"attrs":4693,"content":4694},{"level":123},[4695],{"text":4696,"type":46,"marks":4697},"Loan amount and term",[4698],{"type":53,"attrs":4699},{"color":2854},{"type":42,"content":4701},[4702],{"text":4703,"type":46,"marks":4704},"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.",[4705],{"type":53,"attrs":4706},{"color":2854},{"type":71,"attrs":4708,"content":4709},{"level":123},[4710],{"text":4711,"type":46,"marks":4712},"Economic factors",[4713],{"type":53,"attrs":4714},{"color":2854},{"type":42,"content":4716},[4717],{"text":4718,"type":46,"marks":4719},"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.",[4720],{"type":53,"attrs":4721},{"color":2854},{"type":71,"attrs":4723,"content":4724},{"level":123},[4725],{"text":4726,"type":46,"marks":4727},"Lender-specific factors",[4728],{"type":53,"attrs":4729},{"color":2854},{"type":42,"content":4731},[4732],{"text":4733,"type":46,"marks":4734},"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.",[4735],{"type":53,"attrs":4736},{"color":2854},{"type":71,"attrs":4738,"content":4739},{"level":73},[4740],{"text":4741,"type":46,"marks":4742},"When borrowing a personal loan makes sense ",[4743],{"type":53,"attrs":4744},{"color":2854},{"type":42,"content":4746},[4747],{"text":4748,"type":46,"marks":4749},"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:",[4750],{"type":53,"attrs":4751},{"color":2854},{"type":71,"attrs":4753,"content":4754},{"level":123},[4755],{"text":4756,"type":46,"marks":4757},"Debt consolidation",[4758],{"type":53,"attrs":4759},{"color":2854},{"type":42,"content":4761},[4762],{"text":4763,"type":46,"marks":4764},"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.",[4765],{"type":53,"attrs":4766},{"color":2854},{"type":71,"attrs":4768,"content":4769},{"level":123},[4770],{"text":4771,"type":46,"marks":4772},"Large purchases",[4773],{"type":53,"attrs":4774},{"color":2854},{"type":42,"content":4776},[4777],{"text":4778,"type":46,"marks":4779},"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. ",[4780],{"type":53,"attrs":4781},{"color":2854},{"type":71,"attrs":4783,"content":4784},{"level":123},[4785],{"text":4786,"type":46,"marks":4787},"Emergency expenses",[4788],{"type":53,"attrs":4789},{"color":2854},{"type":42,"content":4791},[4792],{"text":4793,"type":46,"marks":4794},"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.",[4795],{"type":53,"attrs":4796},{"color":2854},{"type":71,"attrs":4798,"content":4799},{"level":123},[4800],{"text":4801,"type":46,"marks":4802},"Home improvements ",[4803],{"type":53,"attrs":4804},{"color":2854},{"type":42,"content":4806},[4807],{"text":4808,"type":46,"marks":4809},"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. ",[4810],{"type":53,"attrs":4811},{"color":2854},{"type":71,"attrs":4813,"content":4814},{"level":73},[4815],{"text":4816,"type":46,"marks":4817},"What you can do to secure a lower rate on a personal loan ",[4818],{"type":53,"attrs":4819},{"color":2854},{"type":42,"content":4821},[4822],{"text":4823,"type":46,"marks":4824},"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. ",[4825],{"type":53,"attrs":4826},{"color":2854},{"type":71,"attrs":4828,"content":4829},{"level":123},[4830],{"text":4831,"type":46,"marks":4832},"1. Improve your credit score",[4833],{"type":53,"attrs":4834},{"color":2854},{"type":42,"content":4836},[4837],{"text":4838,"type":46,"marks":4839},"A good credit score is key in securing a lower interest rate on a personal loan. You can improve your creditworthiness with these strategies:",[4840],{"type":53,"attrs":4841},{"color":2854},{"type":138,"content":4843},[4844,4866,4889,4898,4907,4916],{"type":141,"content":4845},[4846],{"type":42,"content":4847},[4848,4853,4861],{"text":4849,"type":46,"marks":4850},"Regularly ",[4851],{"type":53,"attrs":4852},{"color":2854},{"text":4854,"type":46,"marks":4855},"review your credit reports",[4856,4858,4860],{"type":93,"attrs":4857},{"href":4061,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":4859},{"color":2854},{"type":165},{"text":4862,"type":46,"marks":4863}," to ensure accuracy. Dispute any errors or inaccuracies and have them corrected promptly. ",[4864],{"type":53,"attrs":4865},{"color":2854},{"type":141,"content":4867},[4868],{"type":42,"content":4869},[4870,4875,4884],{"text":4871,"type":46,"marks":4872},"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 ",[4873],{"type":53,"attrs":4874},{"color":2854},{"text":4876,"type":46,"marks":4877},"credit utilization",[4878,4881,4883],{"type":93,"attrs":4879},{"href":4880,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.takechargeamerica.org/what-is-credit-utilization/",{"type":53,"attrs":4882},{"color":2854},{"type":165},{"text":4885,"type":46,"marks":4886}," has a positive impact on your credit score. ",[4887],{"type":53,"attrs":4888},{"color":2854},{"type":141,"content":4890},[4891],{"type":42,"content":4892},[4893],{"text":4894,"type":46,"marks":4895},"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. ",[4896],{"type":53,"attrs":4897},{"color":2854},{"type":141,"content":4899},[4900],{"type":42,"content":4901},[4902],{"text":4903,"type":46,"marks":4904},"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. ",[4905],{"type":53,"attrs":4906},{"color":2854},{"type":141,"content":4908},[4909],{"type":42,"content":4910},[4911],{"text":4912,"type":46,"marks":4913},"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. ",[4914],{"type":53,"attrs":4915},{"color":2854},{"type":141,"content":4917},[4918],{"type":42,"content":4919},[4920,4925,4934],{"text":4921,"type":46,"marks":4922},"Only open new credit accounts when necessary. Each time you apply for credit, it leads to a ",[4923],{"type":53,"attrs":4924},{"color":2854},{"text":4926,"type":46,"marks":4927},"hard inquiry",[4928,4931,4933],{"type":93,"attrs":4929},{"href":4930,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.badcredit.org/how-to/difference-between-hard-and-soft-credit-inquiries/",{"type":53,"attrs":4932},{"color":2854},{"type":165},{"text":4935,"type":46,"marks":4936}," on your credit report, temporarily lowering your credit score. Too many accounts can also lead to a temptation to overspend. ",[4937],{"type":53,"attrs":4938},{"color":2854},{"type":71,"attrs":4940,"content":4941},{"level":123},[4942],{"text":4943,"type":46,"marks":4944},"2. Use a lending marketplace",[4945],{"type":53,"attrs":4946},{"color":2854},{"type":42,"content":4948},[4949,4954,4961,4966,4974],{"text":4950,"type":46,"marks":4951},"Lending marketplaces, such as ",[4952],{"type":53,"attrs":4953},{"color":2854},{"text":2490,"type":46,"marks":4955},[4956,4958,4960],{"type":93,"attrs":4957},{"href":770,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":4959},{"color":2854},{"type":165},{"text":4962,"type":46,"marks":4963},", 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 ",[4964],{"type":53,"attrs":4965},{"color":2854},{"text":4967,"type":46,"marks":4968},"personal loan marketplaces",[4969,4971,4973],{"type":93,"attrs":4970},{"href":4167,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":4972},{"color":2854},{"type":165},{"text":4975,"type":46,"marks":4976}," facilitate competition among lenders, you’re more likely to secure a loan with a competitive interest rate. ",[4977],{"type":53,"attrs":4978},{"color":2854},{"type":42,"content":4980},[4981,4986,4995],{"text":4982,"type":46,"marks":4983},"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. ",[4984],{"type":53,"attrs":4985},{"color":2854},{"text":4987,"type":46,"marks":4988},"Prequalification",[4989,4992,4994],{"type":93,"attrs":4990},{"href":4991,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.experian.com/blogs/ask-experian/how-to-prequalify-for-loan/",{"type":53,"attrs":4993},{"color":2854},{"type":165},{"text":4996,"type":46,"marks":4997}," is usually fast, free, and won’t affect your credit score.",[4998],{"type":53,"attrs":4999},{"color":2854},{"type":71,"attrs":5001,"content":5002},{"level":123},[5003],{"text":5004,"type":46,"marks":5005},"3. Consider a cosigner",[5006],{"type":53,"attrs":5007},{"color":2854},{"type":42,"content":5009},[5010],{"text":5011,"type":46,"marks":5012},"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. ",[5013],{"type":53,"attrs":5014},{"color":2854},{"type":42,"content":5016},[5017],{"text":5018,"type":46,"marks":5019},"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. ",[5020],{"type":53,"attrs":5021},{"color":2854},{"type":71,"attrs":5023,"content":5024},{"level":123},[5025],{"text":5026,"type":46,"marks":5027},"4. Look for a lender with an alternative credit check",[5028],{"type":53,"attrs":5029},{"color":2854},{"type":42,"content":5031},[5032,5037,5046],{"text":5033,"type":46,"marks":5034},"When looking for lower interest rates, it’s worth exploring lenders that offer alternative eligibility checks. ",[5035],{"type":53,"attrs":5036},{"color":2854},{"text":5038,"type":46,"marks":5039},"Traditional lenders",[5040,5043,5045],{"type":93,"attrs":5041},{"href":5042,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://marketplace.navient.com/blog/is-it-better-to-get-a-loan-through-your-bank/",{"type":53,"attrs":5044},{"color":2854},{"type":165},{"text":5047,"type":46,"marks":5048},", 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:",[5049],{"type":53,"attrs":5050},{"color":2854},{"type":138,"content":5052},[5053,5062,5071,5080,5103],{"type":141,"content":5054},[5055],{"type":42,"content":5056},[5057],{"text":5058,"type":46,"marks":5059},"Your income stability and employment history.",[5060],{"type":53,"attrs":5061},{"color":2854},{"type":141,"content":5063},[5064],{"type":42,"content":5065},[5066],{"text":5067,"type":46,"marks":5068},"Bank statements, which can provide insights into your financial behavior.",[5069],{"type":53,"attrs":5070},{"color":2854},{"type":141,"content":5072},[5073],{"type":42,"content":5074},[5075],{"text":5076,"type":46,"marks":5077},"Payment history for non-credit accounts, such as rent, utilities, or subscriptions.",[5078],{"type":53,"attrs":5079},{"color":2854},{"type":141,"content":5081},[5082],{"type":42,"content":5083},[5084,5089,5098],{"text":5085,"type":46,"marks":5086},"Your assets, such as ",[5087],{"type":53,"attrs":5088},{"color":2854},{"text":5090,"type":46,"marks":5091},"savings accounts",[5092,5095,5097],{"type":93,"attrs":5093},{"href":5094,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://marketplace.navient.com/blog/best-high-yield-savings-account/",{"type":53,"attrs":5096},{"color":2854},{"type":165},{"text":5099,"type":46,"marks":5100}," or investments. ",[5101],{"type":53,"attrs":5102},{"color":2854},{"type":141,"content":5104},[5105],{"type":42,"content":5106},[5107],{"text":5108,"type":46,"marks":5109},"Your debt-to-income ratio, i.e., the percentage of your income that you put towards debt repayment each month.",[5110],{"type":53,"attrs":5111},{"color":2854},{"type":71,"attrs":5113,"content":5114},{"level":123},[5115],{"text":5116,"type":46,"marks":5117},"5. Wait for national rates to fall",[5118],{"type":53,"attrs":5119},{"color":2854},{"type":42,"content":5121},[5122],{"text":5123,"type":46,"marks":5124},"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. ",[5125],{"type":53,"attrs":5126},{"color":2854},{"type":42,"content":5128},[5129],{"text":5130,"type":46,"marks":5131},"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. ",[5132],{"type":53,"attrs":5133},{"color":2854},{"type":71,"attrs":5135,"content":5136},{"level":73},[5137],{"text":5138,"type":46,"marks":5139},"Alternatives to a personal loan ",[5140],{"type":53,"attrs":5141},{"color":2854},{"type":42,"content":5143},[5144,5149,5157],{"text":5145,"type":46,"marks":5146},"While personal loans are a ",[5147],{"type":53,"attrs":5148},{"color":2854},{"text":5150,"type":46,"marks":5151},"popular and versatile option",[5152,5154,5156],{"type":93,"attrs":5153},{"href":3410,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":5155},{"color":2854},{"type":165},{"text":5158,"type":46,"marks":5159}," for getting your hands on some extra cash, they’re not the only route available. Here are some alternatives to consider. ",[5160],{"type":53,"attrs":5161},{"color":2854},{"type":71,"attrs":5163,"content":5164},{"level":123},[5165],{"text":710,"type":46,"marks":5166},[5167],{"type":53,"attrs":5168},{"color":2854},{"type":42,"content":5170},[5171,5179],{"text":710,"type":46,"marks":5172},[5173,5176,5178],{"type":93,"attrs":5174},{"href":5175,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://marketplace.navient.com/blog/how-many-credit-cards-should-i-have/",{"type":53,"attrs":5177},{"color":2854},{"type":165},{"text":5180,"type":46,"marks":5181}," 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. ",[5182],{"type":53,"attrs":5183},{"color":2854},{"type":71,"attrs":5185,"content":5186},{"level":123},[5187],{"text":5188,"type":46,"marks":5189},"Home equity loan or home equity line of credit",[5190],{"type":53,"attrs":5191},{"color":2854},{"type":42,"content":5193},[5194,5203],{"text":5195,"type":46,"marks":5196},"Home equity loans",[5197,5200,5202],{"type":93,"attrs":5198},{"href":5199,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.consumerfinance.gov/ask-cfpb/what-is-a-home-equity-loan-en-106/",{"type":53,"attrs":5201},{"color":2854},{"type":165},{"text":5204,"type":46,"marks":5205},", 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. ",[5206],{"type":53,"attrs":5207},{"color":2854},{"type":42,"content":5209},[5210,5215,5222],{"text":5211,"type":46,"marks":5212},"You may also want to consider a ",[5213],{"type":53,"attrs":5214},{"color":2854},{"text":90,"type":46,"marks":5216},[5217,5219,5221],{"type":93,"attrs":5218},{"href":3109,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":5220},{"color":2854},{"type":165},{"text":5223,"type":46,"marks":5224},", 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. ",[5225],{"type":53,"attrs":5226},{"color":2854},{"type":42,"content":5228},[5229],{"text":5230,"type":46,"marks":5231},"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. ",[5232],{"type":53,"attrs":5233},{"color":2854},{"type":71,"attrs":5235,"content":5236},{"level":123},[5237],{"text":4435,"type":46,"marks":5238},[5239],{"type":53,"attrs":5240},{"color":2854},{"type":42,"content":5242},[5243],{"text":5244,"type":46,"marks":5245},"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. ",[5246],{"type":53,"attrs":5247},{"color":2854},{"type":71,"attrs":5249,"content":5250},{"level":123},[5251],{"text":741,"type":46,"marks":5252},[5253],{"type":53,"attrs":5254},{"color":2854},{"type":42,"content":5256},[5257],{"text":5258,"type":46,"marks":5259},"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. ",[5260],{"type":53,"attrs":5261},{"color":2854},{"type":71,"attrs":5263,"content":5264},{"level":73},[5265],{"text":5266,"type":46,"marks":5267},"Compare personal loan rates on Navient Marketplace",[5268],{"type":53,"attrs":5269},{"color":2854},{"type":42,"content":5271},[5272,5277,5284,5289,5295,5303],{"text":5273,"type":46,"marks":5274},"A personal loan marketplace",[5275],{"type":53,"attrs":5276},{"color":2854},{"text":673,"type":46,"marks":5278},[5279,5281,5282],{"type":49,"attrs":5280},{"class":677},{"type":677},{"type":53,"attrs":5283},{"color":2854},{"text":5285,"type":46,"marks":5286}," 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",[5287],{"type":53,"attrs":5288},{"color":2854},{"text":657,"type":46,"marks":5290},[5291,5293],{"type":93,"attrs":5292},{"href":770,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":5294},{"color":2854},{"text":5296,"type":46,"marks":5297},"visiting our marketplace today",[5298,5300,5302],{"type":93,"attrs":5299},{"href":770,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":5301},{"color":2854},{"type":165},{"text":1222,"type":46,"marks":5304},[5305],{"type":53,"attrs":5306},{"color":2854},{"type":42,"content":5308},[5309],{"text":789,"type":46,"marks":5310},[5311,5313],{"type":49,"attrs":5312},{"class":51},{"type":53,"attrs":5314},{"color":2854},{"type":42,"content":5316},[5317,5323],{"text":673,"type":46,"marks":5318},[5319,5321],{"type":49,"attrs":5320},{"class":677},{"type":53,"attrs":5322},{"color":2854},{"text":1859,"type":46,"marks":5324},[5325,5327],{"type":49,"attrs":5326},{"class":51},{"type":53,"attrs":5328},{"color":2854},{"type":42,"content":5330},[5331],{"text":3579,"type":46,"marks":5332},[5333,5335],{"type":49,"attrs":5334},{"class":51},{"type":53,"attrs":5336},{"color":2854},"\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":5347,"created_at":5348,"published_at":5349,"updated_at":5350,"id":5351,"uuid":5352,"content":5353,"slug":5877,"full_slug":5878,"sort_by_date":96,"position":826,"tag_list":5879,"is_startpage":29,"parent_id":828,"meta_data":96,"group_id":5880,"first_published_at":3590,"release_id":96,"lang":831,"path":5881,"alternates":5882,"default_full_slug":96,"translated_slugs":96},"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":5354,"_uid":20,"hero":5357,"author":31,"category":32,"featured":29,"imageAlt":18,"component":33,"blogContents":5362,"canonicalTag":5875,"publishedDate":822,"_editable":5876},{"_uid":15,"title":5355,"plugin":17,"og_image":18,"og_title":18,"description":5356,"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.",[5358],{"id":18,"_uid":23,"image":5359,"intro":5356,"classes":18,"_editable":5360,"blogTitle":5347,"component":27,"imageLink":5361,"blendImage":29,"backgroundColor":30},"//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",[5363],{"_uid":36,"color":37,"richText":5364,"_editable":5874,"component":820},{"type":39,"content":5365},[5366,5374,5381,5389,5396,5404,5425,5432,5461,5496,5504,5511,5587,5595,5615,5636,5657,5678,5686,5693,5714,5722,5738,5745,5752,5759,5767,5774,5781,5789,5796,5803,5810,5818,5825,5832,5839,5846,5866],{"type":42,"content":5367},[5368],{"text":45,"type":46,"marks":5369},[5370,5372],{"type":49,"attrs":5371},{"class":51},{"type":53,"attrs":5373},{"color":2854},{"type":42,"content":5375},[5376],{"text":5377,"type":46,"marks":5378},"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.",[5379],{"type":53,"attrs":5380},{"color":55},{"type":71,"attrs":5382,"content":5383},{"level":73},[5384],{"text":5385,"type":46,"marks":5386},"Starting a business vs buying a home: 8 factors to consider ",[5387],{"type":53,"attrs":5388},{"color":55},{"type":42,"content":5390},[5391],{"text":5392,"type":46,"marks":5393},"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.",[5394],{"type":53,"attrs":5395},{"color":55},{"type":71,"attrs":5397,"content":5398},{"level":123},[5399],{"text":5400,"type":46,"marks":5401},"1. The market ",[5402],{"type":53,"attrs":5403},{"color":1087},{"type":42,"content":5405},[5406,5411,5420],{"text":5407,"type":46,"marks":5408},"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 ",[5409],{"type":53,"attrs":5410},{"color":55},{"text":5412,"type":46,"marks":5413},"seller’s market",[5414,5417,5419],{"type":93,"attrs":5415},{"href":5416,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://myhome.freddiemac.com/blog/selling/what-sellers-market",{"type":53,"attrs":5418},{"color":933},{"type":165},{"text":5421,"type":46,"marks":5422}," may put you in a more challenging position.",[5423],{"type":53,"attrs":5424},{"color":55},{"type":42,"content":5426},[5427],{"text":5428,"type":46,"marks":5429},"If you’re leaning toward starting a business, consider the market demand for your product or service.",[5430],{"type":53,"attrs":5431},{"color":55},{"type":138,"content":5433},[5434,5443,5452],{"type":141,"content":5435},[5436],{"type":42,"content":5437},[5438],{"text":5439,"type":46,"marks":5440},"Is there a clear need for what your business offers, and is the market receptive to new entrants?",[5441],{"type":53,"attrs":5442},{"color":55},{"type":141,"content":5444},[5445],{"type":42,"content":5446},[5447],{"text":5448,"type":46,"marks":5449},"Is there a time-sensitive advantage to launching your business right now? ",[5450],{"type":53,"attrs":5451},{"color":55},{"type":141,"content":5453},[5454],{"type":42,"content":5455},[5456],{"text":5457,"type":46,"marks":5458},"Is there a trend or emerging niche that your business can capitalize on?",[5459],{"type":53,"attrs":5460},{"color":55},{"type":42,"content":5462},[5463,5468,5477,5482,5491],{"text":5464,"type":46,"marks":5465},"Stay informed about ",[5466],{"type":53,"attrs":5467},{"color":55},{"text":5469,"type":46,"marks":5470},"economic trends",[5471,5474,5476],{"type":93,"attrs":5472},{"href":5473,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.nar.realtor/research-and-statistics/housing-statistics",{"type":53,"attrs":5475},{"color":933},{"type":165},{"text":5478,"type":46,"marks":5479}," and market forecasts, too. In ",[5480],{"type":53,"attrs":5481},{"color":55},{"text":5483,"type":46,"marks":5484},"the housing market",[5485,5488,5490],{"type":93,"attrs":5486},{"href":5487,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://sgp.fas.org/crs/misc/IF11327.pdf",{"type":53,"attrs":5489},{"color":933},{"type":165},{"text":5492,"type":46,"marks":5493},", 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. ",[5494],{"type":53,"attrs":5495},{"color":55},{"type":71,"attrs":5497,"content":5498},{"level":123},[5499],{"text":5500,"type":46,"marks":5501},"2. Your financial situation",[5502],{"type":53,"attrs":5503},{"color":1087},{"type":42,"content":5505},[5506],{"text":5507,"type":46,"marks":5508},"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: ",[5509],{"type":53,"attrs":5510},{"color":55},{"type":138,"content":5512},[5513,5528,5543,5558],{"type":141,"content":5514},[5515],{"type":42,"content":5516},[5517,5523],{"text":5518,"type":46,"marks":5519},"Down payment and mortgage: ",[5520,5521],{"type":79},{"type":53,"attrs":5522},{"color":55},{"text":5524,"type":46,"marks":5525},"In many cases, down payment and mortgage expenses can be substantial, especially in a competitive real estate market.",[5526],{"type":53,"attrs":5527},{"color":55},{"type":141,"content":5529},[5530],{"type":42,"content":5531},[5532,5538],{"text":5533,"type":46,"marks":5534},"Startup costs:",[5535,5536],{"type":79},{"type":53,"attrs":5537},{"color":55},{"text":5539,"type":46,"marks":5540}," 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. ",[5541],{"type":53,"attrs":5542},{"color":55},{"type":141,"content":5544},[5545],{"type":42,"content":5546},[5547,5553],{"text":5548,"type":46,"marks":5549},"Short-term profitability: ",[5550,5551],{"type":79},{"type":53,"attrs":5552},{"color":55},{"text":5554,"type":46,"marks":5555},"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.",[5556],{"type":53,"attrs":5557},{"color":55},{"type":141,"content":5559},[5560],{"type":42,"content":5561},[5562,5568,5573,5582],{"text":5563,"type":46,"marks":5564},"Debt and financing: ",[5565,5566],{"type":79},{"type":53,"attrs":5567},{"color":55},{"text":5569,"type":46,"marks":5570},"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 ",[5571],{"type":53,"attrs":5572},{"color":55},{"text":5574,"type":46,"marks":5575},"pay off debt",[5576,5579,5581],{"type":93,"attrs":5577},{"href":5578,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://marketplace.navient.com/blog/how-to-pay-off-credit-card-debt-fast/",{"type":53,"attrs":5580},{"color":933},{"type":165},{"text":5583,"type":46,"marks":5584}," in either scenario. Which will be greater — a home loan or a business loan, and can you afford the payments?",[5585],{"type":53,"attrs":5586},{"color":55},{"type":71,"attrs":5588,"content":5589},{"level":123},[5590],{"text":5591,"type":46,"marks":5592},"3. Your financial goals",[5593],{"type":53,"attrs":5594},{"color":1087},{"type":42,"content":5596},[5597,5602,5611],{"text":5598,"type":46,"marks":5599},"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 ",[5600],{"type":53,"attrs":5601},{"color":55},{"text":5603,"type":46,"marks":5604},"Home Equity Line of Credit (HELOC) or a home equity loan",[5605,5608,5610],{"type":93,"attrs":5606},{"href":5607,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://marketplace.navient.com/blog/home-equity-loan-vs-line-of-credit/",{"type":53,"attrs":5609},{"color":933},{"type":165},{"text":730,"type":46,"marks":5612},[5613],{"type":53,"attrs":5614},{"color":55},{"type":42,"content":5616},[5617,5622,5631],{"text":5618,"type":46,"marks":5619},"Assess your long-term ",[5620],{"type":53,"attrs":5621},{"color":55},{"text":5623,"type":46,"marks":5624},"personal finance",[5625,5628,5630],{"type":93,"attrs":5626},{"href":5627,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://marketplace.navient.com/blog/what-is-personal-finance/",{"type":53,"attrs":5629},{"color":933},{"type":165},{"text":5632,"type":46,"marks":5633}," 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. ",[5634],{"type":53,"attrs":5635},{"color":55},{"type":42,"content":5637},[5638,5643,5652],{"text":5639,"type":46,"marks":5640},"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, ",[5641],{"type":53,"attrs":5642},{"color":55},{"text":5644,"type":46,"marks":5645},"the ROI from a business",[5646,5649,5651],{"type":93,"attrs":5647},{"href":5648,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.kriya.co/knowledge-centre/calculating-the-return-on-investment-for-your-business",{"type":53,"attrs":5650},{"color":933},{"type":165},{"text":5653,"type":46,"marks":5654}," has the potential to be significantly higher. ",[5655],{"type":53,"attrs":5656},{"color":55},{"type":42,"content":5658},[5659,5664,5673],{"text":5660,"type":46,"marks":5661},"Businesses, particularly successful ones, can generate substantial returns, but they also come with greater risks and uncertainties. According to Bureau of Labor Statistics data, ",[5662],{"type":53,"attrs":5663},{"color":55},{"text":5665,"type":46,"marks":5666},"20 percent of small businesses fail",[5667,5670,5672],{"type":93,"attrs":5668},{"href":5669,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.entrepreneur.com/starting-a-business/the-true-failure-rate-of-small-businesses/361350",{"type":53,"attrs":5671},{"color":933},{"type":165},{"text":5674,"type":46,"marks":5675}," within the first year, and by the end of the decade, only 30 percent of those businesses will remain. ",[5676],{"type":53,"attrs":5677},{"color":55},{"type":71,"attrs":5679,"content":5680},{"level":123},[5681],{"text":5682,"type":46,"marks":5683},"4. Your appetite for risk",[5684],{"type":53,"attrs":5685},{"color":1087},{"type":42,"content":5687},[5688],{"text":5689,"type":46,"marks":5690},"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. ",[5691],{"type":53,"attrs":5692},{"color":55},{"type":42,"content":5694},[5695,5700,5709],{"text":5696,"type":46,"marks":5697},"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 ",[5698],{"type":53,"attrs":5699},{"color":55},{"text":5701,"type":46,"marks":5702},"credit cards",[5703,5706,5708],{"type":93,"attrs":5704},{"href":5705,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://marketplace.navient.com/blog/how-to-choose-a-credit-card/",{"type":53,"attrs":5707},{"color":933},{"type":165},{"text":5710,"type":46,"marks":5711}," or loans to fund new startups. ",[5712],{"type":53,"attrs":5713},{"color":55},{"type":71,"attrs":5715,"content":5716},{"level":123},[5717],{"text":5718,"type":46,"marks":5719},"5. Your personal goals",[5720],{"type":53,"attrs":5721},{"color":1087},{"type":42,"content":5723},[5724,5733],{"text":5725,"type":46,"marks":5726},"Three-quarters of Americans",[5727,5730,5732],{"type":93,"attrs":5728},{"href":5729,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.nytimes.com/2022/06/02/realestate/homeownership-affordability-survey.html",{"type":53,"attrs":5731},{"color":933},{"type":165},{"text":5734,"type":46,"marks":5735}," 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. ",[5736],{"type":53,"attrs":5737},{"color":55},{"type":42,"content":5739},[5740],{"text":5741,"type":46,"marks":5742},"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. ",[5743],{"type":53,"attrs":5744},{"color":55},{"type":42,"content":5746},[5747],{"text":5748,"type":46,"marks":5749},"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. ",[5750],{"type":53,"attrs":5751},{"color":55},{"type":42,"content":5753},[5754],{"text":5755,"type":46,"marks":5756},"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. ",[5757],{"type":53,"attrs":5758},{"color":55},{"type":71,"attrs":5760,"content":5761},{"level":123},[5762],{"text":5763,"type":46,"marks":5764},"6. Time you’re willing to commit",[5765],{"type":53,"attrs":5766},{"color":1087},{"type":42,"content":5768},[5769],{"text":5770,"type":46,"marks":5771},"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. ",[5772],{"type":53,"attrs":5773},{"color":55},{"type":42,"content":5775},[5776],{"text":5777,"type":46,"marks":5778},"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. ",[5779],{"type":53,"attrs":5780},{"color":55},{"type":71,"attrs":5782,"content":5783},{"level":123},[5784],{"text":5785,"type":46,"marks":5786},"7. Your lifestyle",[5787],{"type":53,"attrs":5788},{"color":1087},{"type":42,"content":5790},[5791],{"text":5792,"type":46,"marks":5793},"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. ",[5794],{"type":53,"attrs":5795},{"color":55},{"type":42,"content":5797},[5798],{"text":5799,"type":46,"marks":5800},"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. ",[5801],{"type":53,"attrs":5802},{"color":55},{"type":42,"content":5804},[5805],{"text":5806,"type":46,"marks":5807},"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.",[5808],{"type":53,"attrs":5809},{"color":55},{"type":71,"attrs":5811,"content":5812},{"level":123},[5813],{"text":5814,"type":46,"marks":5815},"8. Your knowledge",[5816],{"type":53,"attrs":5817},{"color":1087},{"type":42,"content":5819},[5820],{"text":5821,"type":46,"marks":5822},"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. ",[5823],{"type":53,"attrs":5824},{"color":55},{"type":42,"content":5826},[5827],{"text":5828,"type":46,"marks":5829},"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. ",[5830],{"type":53,"attrs":5831},{"color":55},{"type":42,"content":5833},[5834],{"text":5835,"type":46,"marks":5836},"Before you make a decision, honestly assess your existing knowledge and your readiness to acquire new skills. ",[5837],{"type":53,"attrs":5838},{"color":55},{"type":71,"attrs":5840,"content":5841},{"level":73},[5842],{"text":1818,"type":46,"marks":5843},[5844],{"type":53,"attrs":5845},{"color":55},{"type":42,"content":5847},[5848,5853,5861],{"text":5849,"type":46,"marks":5850},"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 ",[5851],{"type":53,"attrs":5852},{"color":55},{"text":5854,"type":46,"marks":5855},"get personalized results from lenders",[5856,5858,5860],{"type":93,"attrs":5857},{"href":1833,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":5859},{"color":933},{"type":165},{"text":5862,"type":46,"marks":5863}," in minutes.",[5864],{"type":53,"attrs":5865},{"color":55},{"type":42,"content":5867},[5868],{"text":789,"type":46,"marks":5869},[5870,5872],{"type":49,"attrs":5871},{"class":51},{"type":53,"attrs":5873},{"color":55},"\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":5884,"created_at":5885,"published_at":5886,"updated_at":5887,"id":5888,"uuid":5889,"content":5890,"slug":6756,"full_slug":6757,"sort_by_date":96,"position":826,"tag_list":6758,"is_startpage":29,"parent_id":828,"meta_data":96,"group_id":6759,"first_published_at":3590,"release_id":96,"lang":831,"path":6760,"alternates":6761,"default_full_slug":96,"translated_slugs":96},"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":5891,"_uid":20,"hero":5894,"author":31,"category":32,"featured":29,"imageAlt":18,"component":33,"blogContents":5899,"canonicalTag":6754,"publishedDate":822,"_editable":6755},{"_uid":15,"title":5892,"plugin":17,"og_image":18,"og_title":18,"description":5893,"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.",[5895],{"id":18,"_uid":23,"image":5896,"intro":5893,"classes":18,"_editable":5897,"blogTitle":5884,"component":27,"imageLink":5898,"blendImage":29,"backgroundColor":30},"//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",[5900],{"_uid":36,"color":37,"richText":5901,"_editable":6753,"component":820},{"type":39,"content":5902},[5903,5911,5929,5937,5956,5963,5971,5978,5986,5993,6001,6008,6016,6023,6031,6038,6046,6053,6061,6068,6076,6124,6132,6181,6189,6196,6257,6265,6272,6289,6306,6336,6361,6369,6376,6393,6410,6427,6444,6461,6492,6500,6521,6528,6536,6543,6676,6683,6690,6722,6730,6745],{"type":42,"content":5904},[5905],{"text":45,"type":46,"marks":5906},[5907,5909],{"type":49,"attrs":5908},{"class":51},{"type":53,"attrs":5910},{"color":2854},{"type":42,"content":5912},[5913,5918,5924],{"text":5914,"type":46,"marks":5915},"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",[5916],{"type":53,"attrs":5917},{"color":2854},{"text":5919,"type":46,"marks":5920},"hould I take out a personal loan to start a business?",[5921,5922],{"type":3885},{"type":53,"attrs":5923},{"color":2854},{"text":5925,"type":46,"marks":5926}," 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. ",[5927],{"type":53,"attrs":5928},{"color":2854},{"type":71,"attrs":5930,"content":5931},{"level":73},[5932],{"text":5933,"type":46,"marks":5934},"Can I use a personal loan to start a business?",[5935],{"type":53,"attrs":5936},{"color":2854},{"type":42,"content":5938},[5939,5944,5951],{"text":5940,"type":46,"marks":5941},"The short answer is that, yes, some lenders allow small business owners to use ",[5942],{"type":53,"attrs":5943},{"color":2854},{"text":2404,"type":46,"marks":5945},[5946,5948,5950],{"type":93,"attrs":5947},{"href":1699,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":5949},{"color":2854},{"type":165},{"text":5952,"type":46,"marks":5953}," 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. ",[5954],{"type":53,"attrs":5955},{"color":2854},{"type":42,"content":5957},[5958],{"text":5959,"type":46,"marks":5960},"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. ",[5961],{"type":53,"attrs":5962},{"color":2854},{"type":71,"attrs":5964,"content":5965},{"level":73},[5966],{"text":5967,"type":46,"marks":5968},"Business loans vs. personal loans: what’s the difference? ",[5969],{"type":53,"attrs":5970},{"color":2854},{"type":42,"content":5972},[5973],{"text":5974,"type":46,"marks":5975},"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. ",[5976],{"type":53,"attrs":5977},{"color":2854},{"type":71,"attrs":5979,"content":5980},{"level":123},[5981],{"text":5982,"type":46,"marks":5983},"Purpose",[5984],{"type":53,"attrs":5985},{"color":2854},{"type":42,"content":5987},[5988],{"text":5989,"type":46,"marks":5990},"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.",[5991],{"type":53,"attrs":5992},{"color":2854},{"type":71,"attrs":5994,"content":5995},{"level":123},[5996],{"text":5997,"type":46,"marks":5998},"Qualification requirements",[5999],{"type":53,"attrs":6000},{"color":2854},{"type":42,"content":6002},[6003],{"text":6004,"type":46,"marks":6005},"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.",[6006],{"type":53,"attrs":6007},{"color":2854},{"type":71,"attrs":6009,"content":6010},{"level":123},[6011],{"text":6012,"type":46,"marks":6013},"Loan terms and amounts",[6014],{"type":53,"attrs":6015},{"color":2854},{"type":42,"content":6017},[6018],{"text":6019,"type":46,"marks":6020},"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.",[6021],{"type":53,"attrs":6022},{"color":2854},{"type":71,"attrs":6024,"content":6025},{"level":123},[6026],{"text":6027,"type":46,"marks":6028},"Interest rates and fees",[6029],{"type":53,"attrs":6030},{"color":2854},{"type":42,"content":6032},[6033],{"text":6034,"type":46,"marks":6035},"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.",[6036],{"type":53,"attrs":6037},{"color":2854},{"type":71,"attrs":6039,"content":6040},{"level":123},[6041],{"text":6042,"type":46,"marks":6043},"Liability",[6044],{"type":53,"attrs":6045},{"color":2854},{"type":42,"content":6047},[6048],{"text":6049,"type":46,"marks":6050},"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.",[6051],{"type":53,"attrs":6052},{"color":2854},{"type":71,"attrs":6054,"content":6055},{"level":73},[6056],{"text":6057,"type":46,"marks":6058},"Pros and cons of using a personal loan to start a business",[6059],{"type":53,"attrs":6060},{"color":2854},{"type":42,"content":6062},[6063],{"text":6064,"type":46,"marks":6065},"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:",[6066],{"type":53,"attrs":6067},{"color":2854},{"type":71,"attrs":6069,"content":6070},{"level":123},[6071],{"text":6072,"type":46,"marks":6073},"Pros of using a personal loan for starting a business:",[6074],{"type":53,"attrs":6075},{"color":2854},{"type":497,"attrs":6077,"content":6079},{"order":6078},{"order":499},[6080,6095,6109],{"type":141,"content":6081},[6082],{"type":42,"content":6083},[6084,6090],{"text":6085,"type":46,"marks":6086},"Accessibility",[6087,6088],{"type":79},{"type":53,"attrs":6089},{"color":2854},{"text":6091,"type":46,"marks":6092},": 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.",[6093],{"type":53,"attrs":6094},{"color":2854},{"type":141,"content":6096},[6097],{"type":42,"content":6098},[6099,6104],{"text":520,"type":46,"marks":6100},[6101,6102],{"type":79},{"type":53,"attrs":6103},{"color":2854},{"text":6105,"type":46,"marks":6106},": 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.",[6107],{"type":53,"attrs":6108},{"color":2854},{"type":141,"content":6110},[6111],{"type":42,"content":6112},[6113,6119],{"text":6114,"type":46,"marks":6115},"Speed",[6116,6117],{"type":79},{"type":53,"attrs":6118},{"color":2854},{"text":6120,"type":46,"marks":6121},": 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. ",[6122],{"type":53,"attrs":6123},{"color":2854},{"type":71,"attrs":6125,"content":6126},{"level":123},[6127],{"text":6128,"type":46,"marks":6129},"Cons of using a personal loan for starting a business:",[6130],{"type":53,"attrs":6131},{"color":2854},{"type":497,"attrs":6133,"content":6135},{"order":6134},{"order":499},[6136,6151,6166],{"type":141,"content":6137},[6138],{"type":42,"content":6139},[6140,6146],{"text":6141,"type":46,"marks":6142},"Personal liability: ",[6143,6144],{"type":79},{"type":53,"attrs":6145},{"color":2854},{"text":6147,"type":46,"marks":6148},"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.",[6149],{"type":53,"attrs":6150},{"color":2854},{"type":141,"content":6152},[6153],{"type":42,"content":6154},[6155,6161],{"text":6156,"type":46,"marks":6157},"Higher interest rates:",[6158,6159],{"type":79},{"type":53,"attrs":6160},{"color":2854},{"text":6162,"type":46,"marks":6163}," 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.",[6164],{"type":53,"attrs":6165},{"color":2854},{"type":141,"content":6167},[6168],{"type":42,"content":6169},[6170,6176],{"text":6171,"type":46,"marks":6172},"Limited loan amounts:",[6173,6174],{"type":79},{"type":53,"attrs":6175},{"color":2854},{"text":6177,"type":46,"marks":6178}," 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. ",[6179],{"type":53,"attrs":6180},{"color":2854},{"type":71,"attrs":6182,"content":6183},{"level":73},[6184],{"text":6185,"type":46,"marks":6186},"When does it make sense to borrow a personal loan instead of a business loan?",[6187],{"type":53,"attrs":6188},{"color":2854},{"type":42,"content":6190},[6191],{"text":6192,"type":46,"marks":6193},"Taking out a personal loan instead of a business loan can make sense in these situations:",[6194],{"type":53,"attrs":6195},{"color":2854},{"type":138,"content":6197},[6198,6213,6242],{"type":141,"content":6199},[6200],{"type":42,"content":6201},[6202,6208],{"text":6203,"type":46,"marks":6204},"You have limited business history:",[6205,6206],{"type":79},{"type":53,"attrs":6207},{"color":2854},{"text":6209,"type":46,"marks":6210}," 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.",[6211],{"type":53,"attrs":6212},{"color":2854},{"type":141,"content":6214},[6215],{"type":42,"content":6216},[6217,6223,6228,6237],{"text":6218,"type":46,"marks":6219},"You have strong personal credit: ",[6220,6221],{"type":79},{"type":53,"attrs":6222},{"color":2854},{"text":6224,"type":46,"marks":6225},"If you have an excellent personal credit score, but your business has relatively ",[6226],{"type":53,"attrs":6227},{"color":2854},{"text":6229,"type":46,"marks":6230},"bad credit",[6231,6234,6236],{"type":93,"attrs":6232},{"href":6233,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.sba.gov/business-guide/plan-your-business/establish-business-credit",{"type":53,"attrs":6235},{"color":2854},{"type":165},{"text":6238,"type":46,"marks":6239},", lenders may be more willing to extend a personal loan than a business loan. ",[6240],{"type":53,"attrs":6241},{"color":2854},{"type":141,"content":6243},[6244],{"type":42,"content":6245},[6246,6252],{"text":6247,"type":46,"marks":6248},"You need to move fast:",[6249,6250],{"type":79},{"type":53,"attrs":6251},{"color":2854},{"text":6253,"type":46,"marks":6254}," 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. ",[6255],{"type":53,"attrs":6256},{"color":2854},{"type":71,"attrs":6258,"content":6259},{"level":73},[6260],{"text":6261,"type":46,"marks":6262},"What do you need to qualify for a personal loan?",[6263],{"type":53,"attrs":6264},{"color":2854},{"type":42,"content":6266},[6267],{"text":6268,"type":46,"marks":6269},"Specific eligibility requirements can vary among lenders. That said, you’ll likely need to have these things to secure a personal loan: ",[6270],{"type":53,"attrs":6271},{"color":2854},{"type":138,"content":6273},[6274],{"type":141,"content":6275},[6276],{"type":42,"content":6277},[6278,6284],{"text":6279,"type":46,"marks":6280},"Good credit history:",[6281,6282],{"type":79},{"type":53,"attrs":6283},{"color":2854},{"text":6285,"type":46,"marks":6286}," 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. ",[6287],{"type":53,"attrs":6288},{"color":2854},{"type":138,"content":6290},[6291],{"type":141,"content":6292},[6293],{"type":42,"content":6294},[6295,6301],{"text":6296,"type":46,"marks":6297},"Stable income: ",[6298,6299],{"type":79},{"type":53,"attrs":6300},{"color":2854},{"text":6302,"type":46,"marks":6303},"Lenders typically look for a consistent and stable source of income. This assures them you have the financial capacity to repay the loan. ",[6304],{"type":53,"attrs":6305},{"color":2854},{"type":138,"content":6307},[6308],{"type":141,"content":6309},[6310],{"type":42,"content":6311},[6312,6318,6323,6331],{"text":6313,"type":46,"marks":6314},"Low debt-to-income ratio: ",[6315,6316],{"type":79},{"type":53,"attrs":6317},{"color":2854},{"text":6319,"type":46,"marks":6320},"The ",[6321],{"type":53,"attrs":6322},{"color":2854},{"text":6324,"type":46,"marks":6325},"debt-to-income (DTI) ratio",[6326,6328,6330],{"type":93,"attrs":6327},{"href":2972,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":6329},{"color":2854},{"type":165},{"text":6332,"type":46,"marks":6333}," 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. ",[6334],{"type":53,"attrs":6335},{"color":2854},{"type":138,"content":6337},[6338],{"type":141,"content":6339},[6340],{"type":42,"content":6341},[6342,6348,6356],{"text":6343,"type":46,"marks":6344},"Collateral: ",[6345,6346],{"type":79},{"type":53,"attrs":6347},{"color":2854},{"text":6349,"type":46,"marks":6350},"Secured loans",[6351,6353,6355],{"type":93,"attrs":6352},{"href":3719,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":6354},{"color":2854},{"type":165},{"text":6357,"type":46,"marks":6358}," 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. ",[6359],{"type":53,"attrs":6360},{"color":2854},{"type":71,"attrs":6362,"content":6363},{"level":73},[6364],{"text":6365,"type":46,"marks":6366},"What do you need to qualify for a business loan?",[6367],{"type":53,"attrs":6368},{"color":2854},{"type":42,"content":6370},[6371],{"text":6372,"type":46,"marks":6373},"If you meet the following eligibility criteria, you’ll likely qualify for a business loan: ",[6374],{"type":53,"attrs":6375},{"color":2854},{"type":138,"content":6377},[6378],{"type":141,"content":6379},[6380],{"type":42,"content":6381},[6382,6388],{"text":6383,"type":46,"marks":6384},"Business plan: ",[6385,6386],{"type":79},{"type":53,"attrs":6387},{"color":2854},{"text":6389,"type":46,"marks":6390},"Lenders often require a detailed business plan outlining your business model, target market, financial projections, and operational plans. ",[6391],{"type":53,"attrs":6392},{"color":2854},{"type":138,"content":6394},[6395],{"type":141,"content":6396},[6397],{"type":42,"content":6398},[6399,6405],{"text":6400,"type":46,"marks":6401},"Good credit history: ",[6402,6403],{"type":79},{"type":53,"attrs":6404},{"color":2854},{"text":6406,"type":46,"marks":6407},"As with personal loans, a good credit history is crucial. Both the business and the business owner’s credit may be evaluated. ",[6408],{"type":53,"attrs":6409},{"color":2854},{"type":138,"content":6411},[6412],{"type":141,"content":6413},[6414],{"type":42,"content":6415},[6416,6422],{"text":6417,"type":46,"marks":6418},"Financial statements:",[6419,6420],{"type":79},{"type":53,"attrs":6421},{"color":2854},{"text":6423,"type":46,"marks":6424}," You may need to submit your business’s financial statements — including income statements, balance sheets, and cash flow statements — to establish its financial health. ",[6425],{"type":53,"attrs":6426},{"color":2854},{"type":138,"content":6428},[6429],{"type":141,"content":6430},[6431],{"type":42,"content":6432},[6433,6439],{"text":6434,"type":46,"marks":6435},"Collateral:",[6436,6437],{"type":79},{"type":53,"attrs":6438},{"color":2854},{"text":6440,"type":46,"marks":6441}," Secured business loans may require collateral — such as business assets, real estate, or personal assets — to back the loan. ",[6442],{"type":53,"attrs":6443},{"color":2854},{"type":138,"content":6445},[6446],{"type":141,"content":6447},[6448],{"type":42,"content":6449},[6450,6456],{"text":6451,"type":46,"marks":6452},"Stability: ",[6453,6454],{"type":79},{"type":53,"attrs":6455},{"color":2854},{"text":6457,"type":46,"marks":6458},"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.",[6459],{"type":53,"attrs":6460},{"color":2854},{"type":138,"content":6462},[6463],{"type":141,"content":6464},[6465],{"type":42,"content":6466},[6467,6473,6478,6487],{"text":6468,"type":46,"marks":6469},"Personal guarantees: ",[6470,6471],{"type":79},{"type":53,"attrs":6472},{"color":2854},{"text":6474,"type":46,"marks":6475},"Entrepreneurs may need to ",[6476],{"type":53,"attrs":6477},{"color":2854},{"text":6479,"type":46,"marks":6480},"provide personal guarantees",[6481,6484,6486],{"type":93,"attrs":6482},{"href":6483,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.business.org/finance/loans/what-is-a-personal-guarantee/",{"type":53,"attrs":6485},{"color":2854},{"type":165},{"text":6488,"type":46,"marks":6489},", especially for small businesses or startups, making them personally responsible for the loan. ",[6490],{"type":53,"attrs":6491},{"color":2854},{"type":71,"attrs":6493,"content":6494},{"level":73},[6495],{"text":6496,"type":46,"marks":6497},"Are personal loans for business tax-deductible?",[6498],{"type":53,"attrs":6499},{"color":2854},{"type":42,"content":6501},[6502,6507,6516],{"text":6503,"type":46,"marks":6504},"If you take out a loan for business-related costs, the monthly payments are not tax deductible, but ",[6505],{"type":53,"attrs":6506},{"color":2854},{"text":6508,"type":46,"marks":6509},"the loan interest is",[6510,6513,6515],{"type":93,"attrs":6511},{"href":6512,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.sba.gov/blog/5-tax-rules-deducting-interest-payments",{"type":53,"attrs":6514},{"color":2854},{"type":165},{"text":6517,"type":46,"marks":6518},". This applies not only to large businesses but also to freelancers or consultants with side gigs. ",[6519],{"type":53,"attrs":6520},{"color":2854},{"type":42,"content":6522},[6523],{"text":6524,"type":46,"marks":6525},"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. ",[6526],{"type":53,"attrs":6527},{"color":2854},{"type":71,"attrs":6529,"content":6530},{"level":73},[6531],{"text":6532,"type":46,"marks":6533},"Alternative funding sources for starting a business",[6534],{"type":53,"attrs":6535},{"color":2854},{"type":42,"content":6537},[6538],{"text":6539,"type":46,"marks":6540},"To avoid relying solely on loans, consider these funding options for your business: ",[6541],{"type":53,"attrs":6542},{"color":2854},{"type":138,"content":6544},[6545,6560,6601,6616,6631,6646,6661],{"type":141,"content":6546},[6547],{"type":42,"content":6548},[6549,6555],{"text":6550,"type":46,"marks":6551},"Bootstrapping: ",[6552,6553],{"type":79},{"type":53,"attrs":6554},{"color":2854},{"text":6556,"type":46,"marks":6557},"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.",[6558],{"type":53,"attrs":6559},{"color":2854},{"type":141,"content":6561},[6562],{"type":42,"content":6563},[6564,6570,6575,6582,6587,6596],{"text":6565,"type":46,"marks":6566},"Business credit cards or lines of credit:",[6567,6568],{"type":79},{"type":53,"attrs":6569},{"color":2854},{"text":6571,"type":46,"marks":6572}," Like other ",[6573],{"type":53,"attrs":6574},{"color":2854},{"text":5701,"type":46,"marks":6576},[6577,6579,6581],{"type":93,"attrs":6578},{"href":5705,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":6580},{"color":2854},{"type":165},{"text":6583,"type":46,"marks":6584},", 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 ",[6585],{"type":53,"attrs":6586},{"color":2854},{"text":6588,"type":46,"marks":6589},"line of credit",[6590,6593,6595],{"type":93,"attrs":6591},{"href":6592,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.debt.org/credit/lines/",{"type":53,"attrs":6594},{"color":2854},{"type":165},{"text":6597,"type":46,"marks":6598}," gives you access to a set amount of capital that you can draw upon when needed.",[6599],{"type":53,"attrs":6600},{"color":2854},{"type":141,"content":6602},[6603],{"type":42,"content":6604},[6605,6611],{"text":6606,"type":46,"marks":6607},"Angel investors: ",[6608,6609],{"type":79},{"type":53,"attrs":6610},{"color":2854},{"text":6612,"type":46,"marks":6613},"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. ",[6614],{"type":53,"attrs":6615},{"color":2854},{"type":141,"content":6617},[6618],{"type":42,"content":6619},[6620,6626],{"text":6621,"type":46,"marks":6622},"Venture capital: ",[6623,6624],{"type":79},{"type":53,"attrs":6625},{"color":2854},{"text":6627,"type":46,"marks":6628},"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. ",[6629],{"type":53,"attrs":6630},{"color":2854},{"type":141,"content":6632},[6633],{"type":42,"content":6634},[6635,6641],{"text":6636,"type":46,"marks":6637},"Crowdfunding: ",[6638,6639],{"type":79},{"type":53,"attrs":6640},{"color":2854},{"text":6642,"type":46,"marks":6643},"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.",[6644],{"type":53,"attrs":6645},{"color":2854},{"type":141,"content":6647},[6648],{"type":42,"content":6649},[6650,6656],{"text":6651,"type":46,"marks":6652},"Grants: ",[6653,6654],{"type":79},{"type":53,"attrs":6655},{"color":2854},{"text":6657,"type":46,"marks":6658},"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. ",[6659],{"type":53,"attrs":6660},{"color":2854},{"type":141,"content":6662},[6663],{"type":42,"content":6664},[6665,6671],{"text":6666,"type":46,"marks":6667},"Small business competitions:",[6668,6669],{"type":79},{"type":53,"attrs":6670},{"color":2854},{"text":6672,"type":46,"marks":6673}," Many organizations and universities organize competitions where startups pitch their ideas. Winners often gain access to cash prizes or business support services. ",[6674],{"type":53,"attrs":6675},{"color":2854},{"type":71,"attrs":6677,"content":6678},{"level":73},[6679],{"text":1818,"type":46,"marks":6680},[6681],{"type":53,"attrs":6682},{"color":2854},{"type":42,"content":6684},[6685],{"text":6686,"type":46,"marks":6687},"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. ",[6688],{"type":53,"attrs":6689},{"color":2854},{"type":42,"content":6691},[6692,6697,6704,6709,6717],{"text":6693,"type":46,"marks":6694},"With Navient Marketplace",[6695],{"type":53,"attrs":6696},{"color":2854},{"text":673,"type":46,"marks":6698},[6699,6701,6702],{"type":49,"attrs":6700},{"class":677},{"type":677},{"type":53,"attrs":6703},{"color":2854},{"text":6705,"type":46,"marks":6706},", 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. ",[6707],{"type":53,"attrs":6708},{"color":2854},{"text":6710,"type":46,"marks":6711},"Create a profile today",[6712,6714,6716],{"type":93,"attrs":6713},{"href":1833,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":6715},{"color":2854},{"type":165},{"text":6718,"type":46,"marks":6719}," to discover how we can help you with your business needs. ",[6720],{"type":53,"attrs":6721},{"color":2854},{"type":42,"content":6723},[6724],{"text":789,"type":46,"marks":6725},[6726,6728],{"type":49,"attrs":6727},{"class":51},{"type":53,"attrs":6729},{"color":2854},{"type":42,"content":6731},[6732,6738],{"text":673,"type":46,"marks":6733},[6734,6736],{"type":49,"attrs":6735},{"class":677},{"type":53,"attrs":6737},{"color":2854},{"text":6739,"type":46,"marks":6740}," 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.",[6741,6743],{"type":49,"attrs":6742},{"class":51},{"type":53,"attrs":6744},{"color":2854},{"type":42,"content":6746},[6747],{"text":3579,"type":46,"marks":6748},[6749,6751],{"type":49,"attrs":6750},{"class":51},{"type":53,"attrs":6752},{"color":2854},"\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":6763,"created_at":6764,"published_at":6765,"updated_at":6766,"id":6767,"uuid":6768,"content":6769,"slug":7347,"full_slug":7348,"sort_by_date":96,"position":826,"tag_list":7349,"is_startpage":29,"parent_id":828,"meta_data":96,"group_id":7350,"first_published_at":7351,"release_id":96,"lang":831,"path":7352,"alternates":7353,"default_full_slug":96,"translated_slugs":96},"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":6770,"_uid":20,"hero":6773,"author":31,"category":32,"featured":29,"imageAlt":18,"component":33,"blogContents":6778,"canonicalTag":7344,"publishedDate":7345,"_editable":7346},{"_uid":15,"title":6771,"plugin":17,"og_image":18,"og_title":18,"description":6772,"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.",[6774],{"id":18,"_uid":23,"image":6775,"intro":6772,"classes":18,"_editable":6776,"blogTitle":6763,"component":27,"imageLink":6777,"blendImage":29,"backgroundColor":30},"//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",[6779],{"_uid":36,"color":37,"richText":6780,"_editable":7343,"component":820},{"type":39,"content":6781},[6782,6790,6797,6804,6812,6832,6840,6861,6869,6876,6883,6890,6898,6905,6925,6933,6940,6948,6969,6976,6997,7005,7021,7028,7036,7043,7050,7058,7065,7073,7080,7088,7095,7103,7110,7117,7125,7152,7159,7167,7174,7182,7189,7196,7223,7231,7238,7246,7253,7260,7267,7275,7282,7313,7321,7335],{"type":42,"content":6783},[6784],{"text":45,"type":46,"marks":6785},[6786,6788],{"type":49,"attrs":6787},{"class":51},{"type":53,"attrs":6789},{"color":2854},{"type":42,"content":6791},[6792],{"text":6793,"type":46,"marks":6794},"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. ",[6795],{"type":53,"attrs":6796},{"color":2854},{"type":42,"content":6798},[6799],{"text":6800,"type":46,"marks":6801},"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. ",[6802],{"type":53,"attrs":6803},{"color":2854},{"type":71,"attrs":6805,"content":6806},{"level":73},[6807],{"text":6808,"type":46,"marks":6809},"15 ways to save money on a wedding",[6810],{"type":53,"attrs":6811},{"color":2854},{"type":42,"content":6813},[6814,6819,6827],{"text":6815,"type":46,"marks":6816},"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 ",[6817],{"type":53,"attrs":6818},{"color":2854},{"text":6820,"type":46,"marks":6821},"paying off credit card debt",[6822,6824,6826],{"type":93,"attrs":6823},{"href":5578,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":6825},{"color":2854},{"type":165},{"text":6828,"type":46,"marks":6829},", buying a home, or contributing to retirement. Here are some ways to save on your big day.",[6830],{"type":53,"attrs":6831},{"color":2854},{"type":71,"attrs":6833,"content":6834},{"level":123},[6835],{"text":6836,"type":46,"marks":6837},"1. Get married close to home ",[6838],{"type":53,"attrs":6839},{"color":2854},{"type":42,"content":6841},[6842,6847,6856],{"text":6843,"type":46,"marks":6844},"According to wedding resource The Knot, the ",[6845],{"type":53,"attrs":6846},{"color":2854},{"text":6848,"type":46,"marks":6849},"average cost of a wedding in 2022",[6850,6853,6855],{"type":93,"attrs":6851},{"href":6852,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.theknot.com/content/wedding-data-insights/real-weddings-study",{"type":53,"attrs":6854},{"color":2854},{"type":165},{"text":6857,"type":46,"marks":6858}," 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. ",[6859],{"type":53,"attrs":6860},{"color":2854},{"type":71,"attrs":6862,"content":6863},{"level":123},[6864],{"text":6865,"type":46,"marks":6866},"2. Choose an off-peak wedding season or day of the week",[6867],{"type":53,"attrs":6868},{"color":2854},{"type":42,"content":6870},[6871],{"text":6872,"type":46,"marks":6873},"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. ",[6874],{"type":53,"attrs":6875},{"color":2854},{"type":42,"content":6877},[6878],{"text":6879,"type":46,"marks":6880},"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. ",[6881],{"type":53,"attrs":6882},{"color":2854},{"type":42,"content":6884},[6885],{"text":6886,"type":46,"marks":6887},"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. ",[6888],{"type":53,"attrs":6889},{"color":2854},{"type":71,"attrs":6891,"content":6892},{"level":123},[6893],{"text":6894,"type":46,"marks":6895},"3. Borrow or rent instead of buying",[6896],{"type":53,"attrs":6897},{"color":2854},{"type":42,"content":6899},[6900],{"text":6901,"type":46,"marks":6902},"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. ",[6903],{"type":53,"attrs":6904},{"color":2854},{"type":42,"content":6906},[6907,6912,6921],{"text":6908,"type":46,"marks":6909},"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, ",[6910],{"type":53,"attrs":6911},{"color":2854},{"text":6913,"type":46,"marks":6914},"consider borrowing instead",[6915,6918,6920],{"type":93,"attrs":6916},{"href":6917,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.wisebread.com/5-big-ticket-wedding-items-you-should-borrow-instead-of-buy",{"type":53,"attrs":6919},{"color":2854},{"type":165},{"text":730,"type":46,"marks":6922},[6923],{"type":53,"attrs":6924},{"color":2854},{"type":71,"attrs":6926,"content":6927},{"level":123},[6928],{"text":6929,"type":46,"marks":6930},"4. Choose a non-traditional cake",[6931],{"type":53,"attrs":6932},{"color":2854},{"type":42,"content":6934},[6935],{"text":6936,"type":46,"marks":6937},"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. ",[6938],{"type":53,"attrs":6939},{"color":2854},{"type":71,"attrs":6941,"content":6942},{"level":123},[6943],{"text":6944,"type":46,"marks":6945},"5. Negotiate prices",[6946],{"type":53,"attrs":6947},{"color":2854},{"type":42,"content":6949},[6950,6955,6964],{"text":6951,"type":46,"marks":6952},"When it comes to managing wedding expenses, don’t shy away from ",[6953],{"type":53,"attrs":6954},{"color":2854},{"text":6956,"type":46,"marks":6957},"negotiating prices",[6958,6961,6963],{"type":93,"attrs":6959},{"href":6960,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.brides.com/planners-share-how-negotiate-with-venue-5295732",{"type":53,"attrs":6962},{"color":2854},{"type":165},{"text":6965,"type":46,"marks":6966}," 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. ",[6967],{"type":53,"attrs":6968},{"color":2854},{"type":42,"content":6970},[6971],{"text":6972,"type":46,"marks":6973},"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.",[6974],{"type":53,"attrs":6975},{"color":2854},{"type":42,"content":6977},[6978,6983,6992],{"text":6979,"type":46,"marks":6980},"Also remember: the ",[6981],{"type":53,"attrs":6982},{"color":2854},{"text":6984,"type":46,"marks":6985},"earlier you book your venue",[6986,6989,6991],{"type":93,"attrs":6987},{"href":6988,"uuid":96,"anchor":96,"target":97,"linktype":98},"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":53,"attrs":6990},{"color":2854},{"type":165},{"text":6993,"type":46,"marks":6994},", caterer, and photographer, the cheaper their services are likely to be. Typically, early bookings start around 12 to 18 months before the wedding date. ",[6995],{"type":53,"attrs":6996},{"color":2854},{"type":71,"attrs":6998,"content":6999},{"level":123},[7000],{"text":7001,"type":46,"marks":7002},"6. Create a wedding website",[7003],{"type":53,"attrs":7004},{"color":2854},{"type":42,"content":7006},[7007,7016],{"text":7008,"type":46,"marks":7009},"Crafting a wedding website",[7010,7013,7015],{"type":93,"attrs":7011},{"href":7012,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.hitched.co.uk/wedding-planning/organising-and-planning/how-to-create-a-wedding-website/",{"type":53,"attrs":7014},{"color":2854},{"type":165},{"text":7017,"type":46,"marks":7018}," 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. ",[7019],{"type":53,"attrs":7020},{"color":2854},{"type":42,"content":7022},[7023],{"text":7024,"type":46,"marks":7025},"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. ",[7026],{"type":53,"attrs":7027},{"color":2854},{"type":71,"attrs":7029,"content":7030},{"level":123},[7031],{"text":7032,"type":46,"marks":7033},"7. Repurpose elements of your wedding",[7034],{"type":53,"attrs":7035},{"color":2854},{"type":42,"content":7037},[7038],{"text":7039,"type":46,"marks":7040},"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. ",[7041],{"type":53,"attrs":7042},{"color":2854},{"type":42,"content":7044},[7045],{"text":7046,"type":46,"marks":7047},"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.",[7048],{"type":53,"attrs":7049},{"color":2854},{"type":71,"attrs":7051,"content":7052},{"level":123},[7053],{"text":7054,"type":46,"marks":7055},"8. Subscribe to email lists early and wait for discounts",[7056],{"type":53,"attrs":7057},{"color":2854},{"type":42,"content":7059},[7060],{"text":7061,"type":46,"marks":7062},"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. ",[7063],{"type":53,"attrs":7064},{"color":2854},{"type":71,"attrs":7066,"content":7067},{"level":123},[7068],{"text":7069,"type":46,"marks":7070},"9. Host your wedding and reception in the same venue",[7071],{"type":53,"attrs":7072},{"color":2854},{"type":42,"content":7074},[7075],{"text":7076,"type":46,"marks":7077},"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. ",[7078],{"type":53,"attrs":7079},{"color":2854},{"type":71,"attrs":7081,"content":7082},{"level":123},[7083],{"text":7084,"type":46,"marks":7085},"10. Opt for buffet or food stations",[7086],{"type":53,"attrs":7087},{"color":2854},{"type":42,"content":7089},[7090],{"text":7091,"type":46,"marks":7092},"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. ",[7093],{"type":53,"attrs":7094},{"color":2854},{"type":71,"attrs":7096,"content":7097},{"level":123},[7098],{"text":7099,"type":46,"marks":7100},"11. Bring your own alcohol ",[7101],{"type":53,"attrs":7102},{"color":2854},{"type":42,"content":7104},[7105],{"text":7106,"type":46,"marks":7107},"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. ",[7108],{"type":53,"attrs":7109},{"color":2854},{"type":42,"content":7111},[7112],{"text":7113,"type":46,"marks":7114},"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. ",[7115],{"type":53,"attrs":7116},{"color":2854},{"type":71,"attrs":7118,"content":7119},{"level":123},[7120],{"text":7121,"type":46,"marks":7122},"12. Opt for a less traditional venue",[7123],{"type":53,"attrs":7124},{"color":2854},{"type":42,"content":7126},[7127,7132,7139,7147],{"text":7128,"type":46,"marks":7129},"Rather than booking a popular wedding venue, consider alternative options like a public park, beach, backyard, or barn.",[7130],{"type":53,"attrs":7131},{"color":2854},{"text":657,"type":46,"marks":7133},[7134,7137],{"type":93,"attrs":7135},{"href":7136,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.reddit.com/r/weddingplanning/comments/5pu2ea/comment/dctyov2/",{"type":53,"attrs":7138},{"color":2854},{"text":7140,"type":46,"marks":7141},"One Reddit user",[7142,7144,7146],{"type":93,"attrs":7143},{"href":7136,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":7145},{"color":2854},{"type":165},{"text":7148,"type":46,"marks":7149}," 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. ",[7150],{"type":53,"attrs":7151},{"color":2854},{"type":42,"content":7153},[7154],{"text":7155,"type":46,"marks":7156},"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. ",[7157],{"type":53,"attrs":7158},{"color":2854},{"type":71,"attrs":7160,"content":7161},{"level":123},[7162],{"text":7163,"type":46,"marks":7164},"12. Prioritize essential vendors",[7165],{"type":53,"attrs":7166},{"color":2854},{"type":42,"content":7168},[7169],{"text":7170,"type":46,"marks":7171},"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. ",[7172],{"type":53,"attrs":7173},{"color":2854},{"type":71,"attrs":7175,"content":7176},{"level":123},[7177],{"text":7178,"type":46,"marks":7179},"13. Dial down the decor",[7180],{"type":53,"attrs":7181},{"color":2854},{"type":42,"content":7183},[7184],{"text":7185,"type":46,"marks":7186},"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. ",[7187],{"type":53,"attrs":7188},{"color":2854},{"type":42,"content":7190},[7191],{"text":7192,"type":46,"marks":7193},"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. ",[7194],{"type":53,"attrs":7195},{"color":2854},{"type":42,"content":7197},[7198,7203,7210,7218],{"text":7199,"type":46,"marks":7200},"Or,",[7201],{"type":53,"attrs":7202},{"color":2854},{"text":657,"type":46,"marks":7204},[7205,7208],{"type":93,"attrs":7206},{"href":7207,"uuid":96,"anchor":96,"target":97,"linktype":98},"https://www.reddit.com/r/weddingplanning/comments/5pu2ea/comment/dcu3bdf/",{"type":53,"attrs":7209},{"color":2854},{"text":7211,"type":46,"marks":7212},"as one couple did",[7213,7215,7217],{"type":93,"attrs":7214},{"href":7207,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":7216},{"color":2854},{"type":165},{"text":7219,"type":46,"marks":7220},", 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.",[7221],{"type":53,"attrs":7222},{"color":2854},{"type":71,"attrs":7224,"content":7225},{"level":123},[7226],{"text":7227,"type":46,"marks":7228},"14. Make the wedding intimate",[7229],{"type":53,"attrs":7230},{"color":2854},{"type":42,"content":7232},[7233],{"text":7234,"type":46,"marks":7235},"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.",[7236],{"type":53,"attrs":7237},{"color":2854},{"type":71,"attrs":7239,"content":7240},{"level":123},[7241],{"text":7242,"type":46,"marks":7243},"15. Skip the extras",[7244],{"type":53,"attrs":7245},{"color":2854},{"type":42,"content":7247},[7248],{"text":7249,"type":46,"marks":7250},"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. ",[7251],{"type":53,"attrs":7252},{"color":2854},{"type":42,"content":7254},[7255],{"text":7256,"type":46,"marks":7257},"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? ",[7258],{"type":53,"attrs":7259},{"color":2854},{"type":42,"content":7261},[7262],{"text":7263,"type":46,"marks":7264},"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. ",[7265],{"type":53,"attrs":7266},{"color":2854},{"type":71,"attrs":7268,"content":7269},{"level":73},[7270],{"text":7271,"type":46,"marks":7272},"Shop wedding loans on Navient Marketplace ",[7273],{"type":53,"attrs":7274},{"color":2854},{"type":42,"content":7276},[7277],{"text":7278,"type":46,"marks":7279},"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. ",[7280],{"type":53,"attrs":7281},{"color":2854},{"type":42,"content":7283},[7284,7289,7296,7301,7308],{"text":7285,"type":46,"marks":7286},"If you need a little more financial support to make that happen, consider exploring wedding loans on ",[7287],{"type":53,"attrs":7288},{"color":2854},{"text":2490,"type":46,"marks":7290},[7291,7293,7295],{"type":93,"attrs":7292},{"href":1833,"uuid":96,"anchor":96,"target":97,"linktype":98},{"type":53,"attrs":7294},{"color":2854},{"type":165},{"text":7297,"type":46,"marks":7298},". A personal loan",[7299],{"type":53,"attrs":7300},{"color":2854},{"text":673,"type":46,"marks":7302},[7303,7305,7306],{"type":49,"attrs":7304},{"class":677},{"type":677},{"type":53,"attrs":7307},{"color":2854},{"text":7309,"type":46,"marks":7310}," with flexible terms and a low interest rate could help you enhance your celebrations without compromising your vision—or your financial goals. ",[7311],{"type":53,"attrs":7312},{"color":2854},{"type":42,"content":7314},[7315],{"text":789,"type":46,"marks":7316},[7317,7319],{"type":49,"attrs":7318},{"class":51},{"type":53,"attrs":7320},{"color":2854},{"type":42,"content":7322},[7323,7329],{"text":673,"type":46,"marks":7324},[7325,7327],{"type":49,"attrs":7326},{"class":677},{"type":53,"attrs":7328},{"color":2854},{"text":6739,"type":46,"marks":7330},[7331,7333],{"type":49,"attrs":7332},{"class":51},{"type":53,"attrs":7334},{"color":2854},{"type":42,"content":7336},[7337],{"text":3579,"type":46,"marks":7338},[7339,7341],{"type":49,"attrs":7340},{"class":51},{"type":53,"attrs":7342},{"color":2854},"\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/","January 25, 2024","\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","2024-01-25T08:57:00.000Z","/how-to-save-money-on-a-wedding",[],1775068324,[],[],{"cache-control":7358,"connection":7359,"content-encoding":7360,"content-type":7361,"date":7362,"etag":7363,"per-page":7364,"referrer-policy":7365,"sb-be-version":7366,"server":7367,"total":7368,"transfer-encoding":7369,"vary":7370,"via":7371,"x-amz-cf-id":7372,"x-amz-cf-pop":7373,"x-cache":7374,"x-content-type-options":7375,"x-frame-options":7376,"x-permitted-cross-domain-policies":7377,"x-ratelimit":7378,"x-ratelimit-policy":7379,"x-request-id":7380,"x-runtime":7381,"x-xss-protection":7382},"max-age=0, private, must-revalidate","keep-alive","gzip","application/json; charset=utf-8","Wed, 01 Apr 2026 18:53:57 GMT","W/\"b6e0ac570090bfedea3cffd2792ade8f\"","9","strict-origin-when-cross-origin","5.706.0","nginx/1.29.1","22","chunked","Origin,Accept-Encoding","1.1 230a4cabf962361d7a66119623a370ee.cloudfront.net (CloudFront)","_vfHbRwwr0ANVIuIKFcnCAR-6C3nqdKX2x_JjXcEqE7E8wKG79TtLA==","SFO53-P10","RefreshHit from cloudfront","nosniff","SAMEORIGIN","none","\"space-concurrent-requests\";r=29","\"space-concurrent-requests\";q=30","09bf3871-d7db-4bf6-9ae5-5c824d8e8cbd","0.096849","0",9,22,1775069636236]