What are your options if your credit score is compromised by excessive debt? One thing you could do is take out a personal loan and consolidate it into a single monthly payment. Your financial situation could improve, because your new monthly payment may be lower than the sum of all the current ones. Plus, this could help you save time and avoid forgetting to make your payments, since you only need to make one payment to cover all your debts.
Remember that keeping a lot of debt and not paying it on time impacts your credit score. This score lets financial institutions see if you make your payments on time and whether you should apply for additional credit. A good credit history is always essential to obtain funding for anything you need, from a new credit card to a car or home.
Why Consolidate?
- To simplify your finances: You can consolidate multiple debt accounts into a single monthly payment. The interest rate for personal loans never changes, and you know exactly when you will pay it off.
- To save up: A personal loan1 could have a lower interest rate than your store credit cards.
- To take control: You decide which monthly term best suits you2. Besides, if you apply and qualify for a loan with Banco Popular, you will receive your money that very day3, and you may also enjoy the option of 0 payments for the first 90 days4.
We have included two examples of debt consolidation to give you an idea of how much you could be saving each month.
Example 1:
| Current debt |
Pending Term |
Balance |
Interest Rate |
Monthly Payment |
Monthly Savings:5
$587.12
-$ 348.81
$ 238.31
|
| Personal loan |
30 months |
$10,900.00 |
5.99% |
$439.00 |
| Credit card |
|
$8,500.00 |
16.99% |
$100.00 |
| Store credit card |
|
$500.00 |
24.99% |
$25.00 |
| TOTAL DEBT |
|
$19,900.00 |
|
$587.12 |
|
Debt consolidation
|
| Personal loan with BPPR |
72 months |
$19,900.00 |
7.99% |
$348.81
|
Example 2:
| Current debt |
Pending Term |
Balance |
Interest Rate |
Monthly Payment |
Monthly Savings:5
$564.00
-$ 248.45
$ 315.55
|
| Personal loan |
12 months |
$5,000.00 |
9.75% |
$439.00 |
| Credit card |
|
$5,000.00 |
15.50% |
$100.00 |
| Store credit card |
|
$5,000.00 |
24.99% |
$25.00 |
| TOTAL DEBT |
|
$10,800.00 |
|
$564.00 |
|
Debt consolidation
|
| Personal loan with BPPR |
60 months |
$10,800.00 |
13.49% |
$248.45
|
Improve your financial situation
You can improve your credit score by paying your consolidation loan on time. Once you have this type of loan, try not to incur in additional debt. That way, you won’t find yourself in the same situation again.
What will be my APR?
Your Annual Percentage Rate (APR) will be fixed for the entire term of the personal loan, and it will be determined by your credit history and certain parameters established by the bank.
What do I need to apply for a personal loan?
When applying for a personal loan, you will need your Social Security number and income information. If you are seeking to consolidate your debt, you should also have the balance of what you owe your creditors.
How can I apply for a personal loan?
You may call us at 787.294.2572 or visit one of our branches. We will help you make the best decision to improve your financial situation.
1Subject to credit approval and meeting the parameters set forth by Banco Popular.
2Terms from 12 to 84 months, depending on the loan amount. Other terms and conditions apply.
3Credit decision the same day for applications received in working days Monday to Friday, from 8:00 AM to 1:00 PM through TelePréstamo Popular or branches. Same-day disbursement subject to branch schedules and that the client meets all the requirements for approval. Other restrictions apply.
4You have the option to begin paying your loan 90 days after disbursement. Nevertheless, this does not constitute a waiver of accrued interests during that period. If the applicant is a covered borrower according to the definitions of Military Lending Act, the availability of this option is subject to the provisions of said law.
5Base rate of 8.49% APR, minimum rate 7.99% APR. The new APR will be determined based or your risk score and credit history. Offer of 7.99% APR includes the following discount: 0.50% when using direct payment or having or accepting any of the following Popular products: Credit Card, Reserve Line or Deposit Account (Multicuenta, Popular Plus, PMA, Maxi-Premium). Other discounts do not apply. Example: A loan of $20,000 at 7.99% APR for 72 months would pay $350.57 monthly.
