6.99 % Personal vs. 10% HELOC

[boefixepa]

Okay, here's the deal. I really need some advice to help me make a choice.

Last night in the mail I received an offer from Capital One. Now I have a great credit score and I have personally never had any problems with Capital One, I'm a good girl, I pay all my bills. The offer was for a personal loan from 10K-30K at 6.99%, or if I didn't quailify for it 8.99% or 9.99%. Now I was half way to ignoring it when I read it again...6.99%! Mt HELOC is adjustable and it's at 10%....I pay considerably more than the min on that. So I look at the 30 K on a 60 month payment and it's just under 600 a month. I pay more than that on my HELOC..about 750 most months....so I've been pondering all night if it would not make more since to get his loan pay off my HELOC and then pay all my money to this loan. I read the fine print...no early pre-payment, no automatic withdrawl required, a FIXED rate....does this make more sense? Is this a better deal in the long run? The numbers say it is.....

I also like the fact that it is not tied to my house. Not that I'm planning to sell, but if I did I wouldn't have to mess with the HELOC. I'll have to keep the HELCO open for a little more than a year to avoid a penalty, but it will just be sitting there paid off.

Am I right or just imagining things?

[34saving]

Also see if there are any fees to set it up and figure out if/how it's tied to your credit card. I also guarentee you that if you're ever late on a payment the rate will skyrocket (of course you could always make the payment with your heloc if you had to.) Read the fine print over and over. If it all works go for it.

[boefixepa]

No fees....
Best I can tell it's not tied to my CC but I will ask.
The rate is fixed and can not change, but I'm not worried about making the payments, or making them on time.

[sweeps]

Is your HELOC tax-deductible? That might be a consideration. But even then 7% non-deductible will usually beat 10% deductible. Seems like a good deal, particularly since the HELOC could adjust higher.

[JoyJoy]

A fixed rate on a HELOC rather than a variable one would catch my attention for sure, especially with the variable HELOC rates being raised 17 times (I believe this number is correct) already. Capital One, from my personal experience with them, has kept their word with any business dealings I have undertaken with them. I've been with them since 1990 and I have never ever had a problem. I have never taken out a personal loan with them though I get offers all the time.

On the Cardratings.com site there are people who have done just what you're asking about with Capital One, so you might want to pose the question there to see how they faired. Just my take on the situation and good luck to you!