Secured or Unsecured?

**ua_guy** · 04-22-2014, 10:28 AM

Honestly I'd check into credit card financing for a 5,000 line of credit. Some cards are as low as 6.9% and some of the better cards come with 0% interest financing options or reduced rate incentives.

**snafu** · 04-22-2014, 10:38 AM

Have you looked at a 0% CC? 2k @ 15 months = $ 133.33 per month for example

**Petunia 100** · 04-22-2014, 01:35 PM

Originally posted by klarose View Post

I'm getting a $5,000 LOC for some small home improvements.

I have two options.

Unsecured for 10% or secured with my car title for 6.5%

We won't max the line of credit, probably only use about $2,000 at a time.

It seems like a no-brainer to go with the cheaper interest. BUT. I'm a little hesitant to put a lien on my car. And there is a $95 dollar fee to do so. Is it even worth it? Will I make back $95 a year in saved interest on only a $2,000 max amount?

If you owed 2k for the entire year, you would save $70 in interest. Since you will be making payments along the way, you won't owe 2k for the entire year, and will save less. Is the fee to add the lienholder to the title? If so, you may have to pay it again once you take them off.

I'd just look for a 0% credit card offer, too. No fees, no interest, you're all set.

**klarose** · 04-23-2014, 06:39 AM

Our credit is too young for us to be accepted for any 0% credit cards.

We tried to get a 2% HELOC but were denied. Our credit scores are good, but we only have one loan that we have been paying for over two years... We payed all our other loans off within a couple months. So unfortunately we are getting punished for paying off our debts.

I think we are going to go ahead and get the secured loan. I'd rather pay the $95 upfront and have slightly cheaper monthly payments.

Secured or Unsecured?