4 Cheapest Ways to Borrow Money

1. 4 CHEAPEST WAYS TO BORROW MONEY Personal Loan To obtain a personal loan though, borrowers need to have an above average to strong credit history in order to qualify under most lenders’ requirements. In addition, a personal loan may come with a higher interest rate than some other forms of secured borrowing. Home equity line of credit A HELOC is structured as a revolving credit wherein the equity in the house serves as the upper limit for borrowing. Once the HELOC is in place, borrowers can borrow funds from the lender up to the limit, repay funds, and then borrow again as needed. There is generally no fixed term on a HELOC and interest rates tend to be lower because the property acts as collateral for the loan, thereby reducing the lender’s risk. Balance transfer credit cards In Canada, there are balance transfer credit cards where borrowers can transfer their balances from one credit card to another, often at low interest rates (up to 0% APR) during a specified promotional period. This option is particularly useful for people with a reasonable to good credit score who hold high existing credit card balances. RRSP A fourth option that borrowers can potentially pursue is by making an early withdrawal from their RRSP. The advantage of this option is that the money can be withdrawn with zero interest as that is money that was contributed by the borrower themselves previously. www.magicalcredit.ca/what-are-cheapest-ways-borrow-money