Say Goodbye to High Credit Card Rates with Prospera’s HELOC Debt Consolidation

Are you tired of high credit card rates? Debt consolidation with a Prospera Credit Union HELOC could be the solution you've been looking for. With rates on the rise, consolidating credit card and other high-interest debt with a HELOC could help you save thousands of dollars in interest charges over time. For real!

What is a HELOC?

A Home Equity Line of Credit, or HELOC, is a type of loan that allows homeowners to borrow money using their home's equity as collateral. Equity is the difference between the home's value and the amount owed on the mortgage. HELOCs typically have lower interest rates than other types of loans because the home serves as collateral. Check out the many ways to use a HELOC

How a Prospera HELOC Debt Consolidation Works

How does Prospera's HELOC debt consolidation work? It's simple. Our HELOC allows you to borrow money against the equity in your home. The funds can be used to pay off your high-interest credit card debt, leaving you with a lower interest rate and one manageable monthly payment. By consolidating your debt with us, you'll simplify your finances and make it easier to manage your debt!

Why Consolidating Credit Card Debt with Prospera's HELOC Can Be the Best Solution

Why consolidate your credit card debt with a Prospera HELOC? There are many reasons why it can be the best solution:

Up Up and Away! Rising Rates

With rates constantly rising, consolidating your credit card debt with our HELOC now is a smart move that could help you save money in the long run. At Prospera Credit Union, we offer a low APR rate of just 6.24%* for HELOCs, giving you the financial flexibility you need to manage your debt and achieve your goals.

One Payment to Rule Them All

Consolidating your credit card debt with a PCU HELOC means you'll only have to make one payment each month, instead of juggling multiple payments and due dates. This simplifies your finances and makes it easier to manage your debt.

Credit Score Bump

Consolidating your credit card debt can also improve your credit score. By paying off your balances, you'll reduce your credit utilization ratio, which is a major factor in calculating your credit score. This can lead to an improvement in your credit score over time, potentially making it easier for you to get approved for other loans or credit in the future. Plus, with our low APR rate and flexible repayment terms, you'll be able to pay off your debt faster and with less stress, ultimately improving your overall financial health.

Other Ways to Use a Home Equity Line of Credit (HELOC)

In addition to paying off student loans, there are many other ways you can use a HELOC:

Home Improvements

One of the most popular ways to utilize a HELOC is to fund home improvement projects, such as a kitchen remodel or a new roof. Enjoy the benefits of the increased value and appreciation of your home!

Student Debt

Paying off your student loans couldn't be easier. By accessing the equity in your home, you can pay off your student debt quickly with lower interest rates and flexible repayment terms. This could save you money in the long run and provide more financial freedom.

Emergency Fund

HELOCs can also be used as a flexible emergency fund, allowing borrowers to access funds quickly and easily in the event of an unexpected expense or emergency. Think of it as the financial security and peace of mind you need to weather any storm.

Education Expenses

Cover education expenses, such as tuition or books, for yourself or your family. This can be a smart way to finance an education at a lower interest rate than traditional student loans, potentially saving you thousands of dollars over the life of the loan.

Business Expenses

HELOCs can also be a smart financing solution for business expenses. Whether you're looking to expand your business, purchase equipment, or cover unexpected costs, a HELOC can provide the capital you need at a lower interest rate than traditional business loans. This can save you money and give you the financial flexibility to make your business thrive.

Applying for a HELOC

To apply for a HELOC, you'll need to meet certain requirements, including:

  1. Equity in your home | You'll need to have a certain amount of equity in your home to qualify for a HELOC. Typically, you'll need to have at least 20% equity, although this can vary by lender.
  2. Good credit | We'll also look at your credit score to determine if you qualify for a HELOC. A higher credit score can help you get a lower interest rate and better loan terms.
  3. Steady income | You'll need to demonstrate that you have a steady source of income to make your HELOC payments.
  4. Other financial obligations | We'll also consider your other financial obligations, such as your monthly mortgage payment and other debt payments, to determine if you can afford a HELOC.

Ready to say goodbye to high credit card rates and take control of your debt? Book an appointment with a Branch Partner to learn more about our HELOC options. Ready to apply? Hit the button below to start your journey to a prosperous financial future!

*APR is Annual Percentage Rate. 6.24% APR is available on owner-occupied primary residence up to 80% Loan-To-Value (LTV). APR will be fixed at the introductory rate during the 12-month introductory period. Offer is subject to normal credit qualifications. Rates are subject to change but cannot exceed 18%. Some restrictions may apply.  After the twelve month introductory period,  the rate is indexed to The Wall Street Journal Prime. APR is variable and is subject to change monthly but cannot exceed 18%. Interest rate requires an active checking with Prospera Credit Union with auto pay. The initial APR would be .5% higher with no checking. During the introductory and 10-year draw periods, the minimum monthly payment (a) $50 or (b) the accrued interest on the outstanding balance under the agreement as of the close of the billing cycle, whichever is greater followed by a 15-year repayment; outstanding balance will then amortize based on the variable rate to be repaid in monthly payments over 180 months. However, if you exceed the maximum principal loan balance allowed under your agreement, you will also be required to pay an amount sufficient to reduce your principal loan balance to the maximum principal loan balance allowed under the agreement. The APR is the advertised rate and can vary based on creditworthiness. Active Checking: checking account must be active with a minimum of 10 transactions per month. Automatic transfers to another Prospera account or loan are not considered in the transactions per month.