Taking a loan is very easy as compared to paying it back. It can become a serious headache if you do not choose the right loan offer. But there are incidents in life when we need money and getting a loan is the only option. Then getting a loan with low-interest rate can lighten the load. One of the best ways of getting a loan with low rates is debt consolidation and balance transfer. Personal loans are somewhat less expensive if you have a perfect credit score. Check myinstantoffer review which is a perfect peer 2 peer lending club.

So, the questions are which offer is best and what is the difference? All the options have their pros and cons, but it all depends on your condition that which is suitable for you. So, we are going to tell you about the advantages and disadvantages, so you can make a good decision while choosing one.

Debt Consolidation

Debt consolidation is somewhat suitable when credit card promotional periods are not available. Sometimes, the promotion runs for just three months, So, what are you going to do when you have to pay your debt in more than three months. This type is a secured form of loan in which you consolidate your loan with personal loan. Most of these forms of loans come with a fixed rate.


When it comes to the fee, you may or may not need paying for an upfront fee. Well, it all depends on the lender whether it charges a processing fee or not. Compare to the other loans, there are no hidden charges. So, the best way is to shop around for different options and choose the best one that suits you.

Interest Rate

The interest rate is a very important thing to know before borrowing money from someone. Normally, the interest rates of home loans are less compared to unsecured personal loans. But they are still better than any credit card loan. You can get better interest rates with credit cards during a promotion. But the promotions do not run forever. Normally, the periods of these promotions are two to three months. That is why getting a debt consolidation loan is perfect for long-term loans.

If you have a loan that you need to pay for several years then getting a debt consolidation loan is your best shot. Another thing to keep in mind is that check whether the interest rates are variable or fixed. In some cases, the rates are fixed which is great. Because they give you an idea of how much you are going to pay each month. Fixed rates are normally higher than the variable rates so choose wisely.

Credit Score

If you have already searched for loans online, then you will be very familiar with this term. A credit score is very important when getting a loan from any bank. Compared to balance transfer, debt consolidation is better for your credit score. In the case of credit cards, you may pay high-interest rates, and failing to pay on time can seriously impact your credit score.

Balance Transfer

A credit card balance transfer is one of the options for paying debt payments. There are many promotions so keep an eye out when it comes and takes benefit from them. The credit card allows you to balance transfer. If you know that you can pay off the money then it is an attractive option.


It depends on the credit card provider whether you have to pay them a fee or not. Normally, the fee is around 3 percent of the money you transfer.

Interest Rate

In the case of a credit card, the interest rate is also depending on the credit score. If you have a good score then the company will provide you the best offers. Review all the offers before taking one. Sometimes, the providers offer 0% APR but these kinds of offers are for a few months.


Transferring a balance using a credit card normally does not affect your credit score. But it still can cause problems like when you apply for a new card. When you apply the lender takes a look at your history and it can affect your credit score. If you have multiple accounts then it can also decrease your credit score.

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