Rachel Surman • Apr 17, 2018
We know that high-interest credit card debt can be a huge burden. We also know how important securing a low-interest rate on a loan for your next big purchase can be.
This is why we’ve lowered our interest rates by as much as 20% for customers with good credit! A low-interest Borrowell loan can help get one step closer to your financial goal, whatever it may be.
So, how could this help you? Here are a few things that might be easier for you to do with a low-interest personal loan.
Debt consolidation is when you take a new, larger loan to pay off a number of smaller debts, loans, or bills that you’re making payments on. This brings the numerous debts together to create a combined loan and only one (easy) monthly payment.
Debt consolidation makes sense if the Annual Percentage Rate (APR) of the new loan is less than the interest rate of the other debts you could pay off. With Borrowell’s newly lowered interest rates, you could now save up to 20% on interest.¹
For example, let’s say your initial interest rate was 10% on a Borrowell personal loan. With our reduced rates, your new rate could be 8%! This means if you had $10,000 in credit card debt with a 19.99% APR, our new interest rate could save you $5,328.16² in interest. Log in to your Borrowell account and navigate to the loans tab to find out what you could qualify for (checking your rate won’t affect your credit score).
The latest numbers from Equifax state that Canadians, in total, carry about $90 billion in credit card debt. Most credit cards have APRs that typically range from 19.9% to 29.9%, so if you fall behind on payments, you may find it hard to catch up.
A Borrowell customer will typically save a few thousand dollars on interest compared to borrowing from a credit card.² Another differentiator is the time frame. If you qualify for a Borrowell personal loan, you can choose a loan term of either 3 or 5 years. This means you can set your very own debt-free date! Use our loan calculator to choose a loan term and find out how much you could save.
There are a number of different times in life where you may need to make a big purchase, such as:
But what if you don’t have the capital when you need it? For many Canadians, a personal loan is a good option because it allows you to access credit or achieve a financial goal.
For example, let’s say you’re making home improvements. You put the cost of materials on your credit card but weren’t able to pay it off in full. Borrowing against your credit card in this scenario is not a good option because of the typically high-interest rates you’ll be charged. This could mean you might get stuck making the minimum monthly payments and could ultimately be in debt for much longer.
If you have too many debts to keep track off, are in over your head with credit cards, or if you need to make a big purchase, a low-interest loan from Borrowell could be a great option for you. With our now-lowered interest rates (by as much as 20%), your financial goals could be closer than you think!
¹Please note that final approval of your application for a Borrowell loan is conditional on completion of the steps set out in your application (including identity, income, and bank account verification) as well any further underwriting review deemed necessary. Additional documents may be required. Borrowell retains the right to adjust any loan options presented to you or to decline your application at any time prior to final approval.
²Credit card calculations assume a 3-year loan term and that you are comparing a credit card balance of $10,000. Credit card calculation assumes you are making a fixed monthly payment on credit cards at an APR of 19.9%. Making the minimum monthly payment could mean it will take longer to pay off your credit card(s).
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Borrowell® is a registered trademark of Borrowell Inc. All Rights Reserved. The Equifax credit score is based on Equifax’s proprietary model and may not be the same score used by third parties to determine your credit profile. The score provided to you for educational use is the Equifax Risk Score.
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