We’re in a somewhat unusual time in the United States right now, both financially and economically speaking. While the price of gas and other goods climbs, interest rates are at record lows, meaning that consumers like yourself have plenty of options when it comes to managing your money.
Now may be the time for a larger purchase or consolidating debt since interest rates are so low
Here are a few tips to take advantage of the current low interest rates:
First things first- before you get all crazy applying for loans or new credit cards, make sure you know your credit score. A score of 680 will get you the best of the low interest rates. If your score is lower, reduce your debt, fix errors on your credit report and pay your bills on time to give it a boost!
Consolidate your debt- instead of dealing with multiple interest rates; consolidate your debt into one low-interest loan. Why deal with multiple payments at higher interest rates? Banks have also been relaxing their lending standards, so it may be the right time to apply for a home equity line of credit to make home improvements or consolidate debt.
Be selective- if you’re looking for a new credit card, don’t just accept the first offer you get in the mail. Shop around and do research to find which cards have the lowest interest rates with the best benefits.
Go big- low interest rates make it easy to finance large purchases like TVs, cars and homes. If your credit score is good (and you should know by following our first tip!) you should be able to get great financing terms.
Save, save, save- just because interest rates are low now doesn’t mean they’ll stay that way. We all know how volatile the economy can be, so keep pumping money into your savings account. A Certificate of Deposit that earns higher interest is a great way to lock some money away and let it grow for the future.
Whatever you decide to do with your finances, make sure you think it through and have backup plans. Snap decisions are often wrong ones. If you need assistance, the staff at Security State Bank is more than happy to help. We hope to see you in one of our branches soon!