5 tips for smart borrowing

If you’re smart with how you use credit, it can help put big goals within reach. Follow these tips to borrow money with confidence. 

Stick with lenders you trust

Getting exciting loan offers from companies you’ve never heard of? Before taking on debt with any lender, you’ll want to do some research. You should expect reputable, trustworthy lenders to be transparent and upfront with you when it comes to the types of loans they offer and the terms that come with them. And if you already have a relationship with the lender—like your current bank or credit union—that relationship may make it easier to tap into them for quick advice about the loans they offer and what to expect with the approval process. 

Consider consolidating

Multiple debts can be really challenging to manage—so think about a consolidation loan. Depending on your situation, pulling all your debts together into one new loan could make things easier. It could lower your monthly payments, get you a better interest rate, or both! Crunch the numbers yourself—and check with an expert if needed—to get a clear picture of how consolidating would affect your budget, repayment plan, and credit score. 

Take advantage of promotional offers

Don’t forget that credit cards that offer an introductory offer—like 0% intro APR for the first 12 months—can be used to consolidate outstanding balances or help you pay for big purchases. Keep in mind: These cards charge a higher interest rate after the introductory period expires—so try to pay off your full balance before the rate goes up. And always pay at least your minimum payment each month, regardless. 

Homeowner? Flex your equity

Even if you don’t have much credit history, if you’re a homeowner, you can use the equity you have in your home to take out a loan or line of credit (aka, a HELOC). This can be another way to get the funds you need at an attractive interest rate. Quick tip: To figure out your home equity, subtract what you still owe from the original loan amount or appraised value of your home. 

Watch out for ...

Payday loans, title loans, tax refund anticipation loans, and other risky types of loans—lenders offering these may not have your best interests in mind. These types of loans typically have very high (and costly) APRs. 

This content does not constitute legal, tax, accounting, financial, or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial, or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.

Debt versus savings calculator

This calculator is made available by one or more third party service providers. It is not intended to be an advertisement for a product or service at any of the terms used herein. It is not intended to offer any tax, legal, financial or investment advice. All examples are hypothetical and are for illustrative purposes. Truist Financial Corporation ("Truist") and its affiliates do not provide legal or tax advice. Truist cannot guarantee that the information provided is accurate, complete, or timely. Federal and state laws and regulations are complex and are subject to change. Changes in such laws and regulations may have a material impact on pre- and/or after-tax investment results. Truist makes no warranties with regard to this calculator or the results obtained by its use. Truist disclaims any liability arising out of your use of, or any tax position taken in reliance on, this calculator. Always consult an attorney or tax professional regarding your specific legal or tax situation.

Get rewarded as you spend.

You have to eat. You have to get gas. So if you can get cash back for those necessities, why wouldn’t you? Earn unlimited cash back on what you’re already spending with the Truist Enjoy Cash CardDisclosure 1, which means more money to fuel whatever drives you. 

Earn unlimited cash back rewards on every eligible purchase

And choose between two great reward earning options when you apply.Disclosure 2

And even more bonus cash

When you deposit cash back rewards in a Truist account, you get a Loyalty Cash Bonus based on your Truist deposit relationship.