Many factors can help you get a better interest rate with a bank or credit union including your credit score, your net worth, whether or not you have a relationship with them and whether or not you can offer good security (collateral) for a loan.Good security for a debt consolidation loan will often be a newer model vehicle, boat, term deposit (non-RRSP) or another asset that can easily be sold or liquidated by the bank if you don't pay make your loan payments.
This usually provides you with three advantages: Banks and credit unions usually offer the best interest rates for debt consolidation loans.
For the past decade, banks have typically charged interest rates on debt consolidation loans of around 7% - 12%.
Finance companies tend to charge anywhere from 14% for secured loans to over 30% for unsecured loans.
Most issuers charge a balance transfer fee of around 3%, and some also charge an annual fee.
Before you choose a card, calculate whether the interest you save over time will wipe out the cost of the fee.