A personal loan to pay off debts?

[samcar]

I have about $4,000 in credit card debt that I am trying to pay off. I have thought about getting a. Are their any pitfalls that I should be aware of? Also, in looking up information about personal loans(for example), I have come across "unsecured personal loans" and was wondering exactly what does a loan like that entail?

Thanks for any help that is given. I appreciate it.

Sam

[NightStar]

Stay away from personal finance companies!!!! They are evil, they charge high interest rates like department store cards.

Instead go to a local bank or credit union to get an installment loan. There are lower rates, you can get secured or unsecured. Sometimes they even give you secured but report unsecured. Or if they do report secured, then after a period of time you can get the account converted to unsecured.

Personal Finance loans look negative on the credit report, and if you later improve your credit score and apply for better offers, the prime rate cards or lenders might hold it against you having had a personal finance loan in your past. So just stay clear of them cards, if you are trying to build credit it is far better to go with a department store card.

It takes time, if you do get an installment loan, pay on it for at least 6 months to build history before you try for more cards. Keep the cards spaced out so you slowly improve your credit and build history.

[samcar]

Thanks NightStar! I had no idea that a personal finance loan would look bad on my credit report...