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Originally Posted by Kristie  i used to have a nice 10% rate with them but they went and jacked it up to 25% (for what reason, i don't know)...needless to say, gotta find a way out of that! 
I'd be careful with BofA, they're so large now (conglomerate) that anything goes. |
I had some credit cards and lines of credit in the past that were very low rates, around 6% to 9% and then one day a letter comes in the mail that they are jacking me to like 16%. So I just cancel them. I call to ask why since I never once had a late payment on anything ever and since I never seen my FICO below 780 on the lowest reporting company and usually one of the 3 companies FICO me over 800 (strange, but different lines of credit show up with different companies). They had no answer. Sometimes I think they just hope you don't notice. Silly for them though. Those creditors lost my business since when you do have a good credit score and solid history, your options are endless.
Right now, good credit (760-ish or better) should get you these options below if you search around. I suggest securing these three options plus one more so you can always be sure you have the best rates with the ability to move your debt around as things change in your life or in the economy. Of course, no debt is best!!!
1) BOA
Personal Line of Credit at 9% fixed rate or another bank offering a similar deal. You should be able to get $20k to $25k from them. Just remember, there is a transaction fee for each check you write, so take that into account when figuring your effective interest rate and the time you plan to take to pay off the debt. It's not a great program, but it's not awful.
Note: SLM gives a more favorable rate as they should be around 7% to 8% with a longer term right now (if you are rock solid, SLM should give you $30k without a co-signer at about 8% right now, a little lower with co-signer who is also rock solid). If you can get SLM and the rate is 10% or less, I would still use SLM as option #1 since you can defer while in school and such, yielding a higher pay back but definite cash flow options since you must keep in mind your own cash flow situation while in school.
2) Credit Cards with a
variable rate of around 6% right now as most have a clause stating the standard rate will never be below this amount no matter what the prime rate they use adjusts to. This rate is NOT an intro offer!!! Intro offers are great, but look at the long term picture. So I would not put a high value on intro rate gimmicks. Remember this though. This is a Variable Rate card. The rate is low now, but someday this rate WILL go up. Once it does that's when you may want to roll it over to somewhere with a fixed rate. So have that plan already in place so you can make that happen when needed. Oh, and your good credit and payment history should allow you about a $20,000 to $30,000 limit from day one which every year you should call and have adjusted upward since you can do this and they will usually always adjust you a couple thousand up every year (that's how you eventually get limits around $30,000+ on a credit card; just takes time). Try Blue from American Express, National City Bank, etc.
Or simply go to www.bankrate.com and check out what that site says. It's a very good resource for your own financial planning!
3) Credit Card with a
fixed rate around 8% to 9% with a credit limit around $20,000 to $30,000 to start if you can prove your income is stable and your credit history is 10 years strong with a FICO around 780 or better (760 to 780 may only get you around $10k to $15k limit to start). Try Capital One if they are still taking people on this deal for their Platinum Card. I like Capital One since they will also send you Access Checks for a 3% to 4%
Fixed Rate for the life of the balance (there will also be a 2% transaction fee). This is a great deal compared to other deals. And the rate will not change unless you miss a payment (do not ever miss payment!).
Great credit is key to having options. With great credit, you walk into a car dealership on Sunday and drive home in a new BMW that day since they know without a doubt they'll get you financed come Monday when the banks open. You also get approved for a mortgage in under 10 minutes and do not have to prove much to the mortgage company since your history speaks for itself. And the above 3 options, easy to secure in a days worth of research and phone calls. Not to mention, it becomes easy to finance flight programs with this level of credit history.
So work toward good credit, and make your life easier. But also remember, it is you who can also ruin your good credit. So treat it like a loaded gun. It's there for safety and security. But if you abuse it, it'll cause you great harm.
And one last thing. If you have limited credit or do not have good credit today, it'll be a 6-10 year mission to get it where it needs to be. So patience is key. Heck, that's why it took me until my 30's to pursue flight training! If I was 19 with my current credit history I would have done it then. But, at 19, it would be impossible to have my credit history to where I was able to take care of everything in a responsible way for flight training. So if you really have a passion to be a pilot. Never forget about your dream. If you work hard and stay focused, by 29 to 34 years old you'll be in a great position to achieve your dreams since en you'll have the FICO score and credit history the lenders want to see if you do not have a rock solid co-signer or rich relative who is giving you money. So enjoy life, work toward your goals, and have fun. You can do anything and you can make your dreams come true. It just may not happen as quickly as you would like...
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