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Why Get a Credit Card Consolidation Loan?
Credit card consolidation loans are one of the most common uses for personal loans. With a credit card consolidation loan, you can combine all your card balances into one monthly payment that will repay the loan in a set period of time.
With credit cards, it’s hard to get ahead or even catch up while paying the monthly minimum payment. Credit card consolidation loans offer a chance to lower your interest rate, which makes your monthly payment go a lot further toward reducing your balance and getting debt-free.
Credit card consolidation loans are quick and easy, so you can pay off your credit card debt fast and focus on one payment, one interest rate, and a clear path to overcoming credit card debt.
Credit Card Consolidation Loan Benefits
Get a Low Fixed Rate
Refinance credit cards into one low fixed interest rate and ditch those sky-high variable APRs.
One Monthly Payment
Combine all your monthly credit card payments into one fixed payment, making it easier to track and manage your debts.
Set Repayment Term
Choose the right repayment term length for you and know exactly when your debt will be paid off.
Improve Your Credit Score
Refinancing your revolving debt into an installment loan and making your monthly payments on time can help raise your credit score.
Credit Card Consolidation Calculator
Personal loans can be used to consolidate your credit card debt into a single loan with a new rate and term. See how much you can save by entering your loan information below.
Step 3: See How Much You Can Save
| Current Debt | Personal Loan | Savings | |
|---|---|---|---|
| Monthly Payment | $600 | $483 | $117 |
| Lifetime Interest | $5,400 | $2,399 | $3,001 |
| Time to Payoff Debt | 2 yrs 10 mos | 3 yrs | 2 mos |
Want to compare personalized prequalified rate offers from top personal loan companies? We’ve partnered with Credible to help get your finances back on track with free rate comparisons — with no impact on your credit score.
How To Get a Credit Card Consolidation Loan That Works for You
1. Determine Your Loan Amount
Compile the balances of the credit cards you’d like to refinance. It’s recommended to check your credit cards’ current interest rates as well to see how much you can save.
2. Find the Best Rate and Term for You
Compare multiple top-rated personal loan lenders with Purefy to find your best offer.
3. Select Your Loan and Apply
Submit your application with the lender online in minutes.
4. Receive Your Funds
In as little as one business day receive the money you need to pay off your current credit cards.
Credit Card Consolidation - FAQs
A credit card consolidation loan is a personal loan that lets you borrow money from a bank, credit union, or other financial institution and pay it back on a monthly basis over a period of time known as the repayment term. The interest rate on your personal loan will be based on your credit profile and other factors like your debt-to-income ratio.
Repayment terms vary from lender to lender, but most lenders offer terms ranging from two to six years. If you take out a personal loan, funds are generally sent to you very quickly — it could be as soon as the same day, or within a couple business days.
Credit card consolidation loans are used to pay off your current credit cards and replace them with a new loan that has one monthly payment with a fixed interest rate and a clearly defined loan term. Purefy’s personal loan comparison tool is a great place to get started by seeing your available rates and to prequalify for a loan with no impact on your credit score. From there you can select a lender, complete an application, submit any additional information needed for approval, and receive the funds to pay off your outstanding credit card balances.
If you have high-interest credit cards and a high balance, credit card consolidation could be right for you. Credit card consolidation also provides clear-cut pay off terms and can help you to better plan to get out of debt. If you have multiple debts to manage, refinancing into one monthly payment can also be helpful. The best way to know if it’s right for you is to see what rates you prequalify for, and to see if it’s an improvement on your current interest rate and monthly payment.
They are different terms for the same loan product – credit card consolidation loans are a type of personal loan. Personal loans can be used for other expenses as well such as other debt consolidation, home improvement, and emergencies. Please visit Purefy’s Personal Loan Page for more information.
Balance transfers are another way to consolidate credit card debt. With a balance transfer, you move your credit card debt from one card to another. Although some credit cards offer 0% interest for balance transfers, this is often for a limited amount of time, after which the normal variable rate credit card APR will commence. Balance transfers can be a good option if you can pay the debt off quickly, such as within 12 or 18 months.
Savings will be different for each person, but if you’d like to get a better idea of how much you can save, you can use our Debt Consolidation Calculator. If you can significantly lower your interest rate, you may find that you can lower your monthly payment and pay the debt off sooner at the same time.
It varies from lender to lender, but online personal loan companies typically take less than five business days to fund a loan, with most falling in the one to three business day range. Some lenders even offer same-day funding once your loan is approved and signed.
Credit card consolidation does not close out your current credit card accounts. We would strongly caution you to make a plan to avoid building up additional credit card debt once you’ve paid off your balances. This could lead to having a high credit card payment again on top of your new loan payment. We recommend that you either cease to use your credit cards at all, or only charge what you can afford to pay off each month in full. It may be helpful to understand why you got into credit debt in the first place, to better avoid it again.
You can consolidate any credit card that you’d like to refinance, such as store credit cards, gas reward cards, travel reward cards, student credit cards, and bank credit cards. You can even use the consolidation loan to pay off additional, non-credit card debt.
The quickest, easiest way to find out what rates you qualify for is to use a comparison tool such as the one offered by Purefy. Comparison sites allow you to check your rates for several lenders at once, making it easier to see and compare your options, so you can see which loan can save you the most money and make the most sense for you.
Yes, even if you have bad credit, you may be able to take out a credit card consolidation loan. While some lenders have stricter rules about credit, debt to income ratio, and other factors, loans are often possible for those with poor credit. The downside is these loans may have a higher interest rate compared to those offered to someone who has good credit. If you’re able to, make steps to improving your credit before applying, such as making on time payments for your bills and loans.
In practice, the terms are basically interchangeable. Both credit card refinancing and debt consolidation refer to taking out a new loan (or credit card) that replaces your old credit card debt. With both, the goal is to lower your interest rate to help pay off debt faster.
Since Purefy’s tool uses a “soft” credit pull to see what rates you qualify for, it does not affect your credit score. Applying for a new loan may initially affect your credit score since it is a “hard” credit inquiry and an additional account on your credit report. Fortunately, those negative impacts are typically short lived, since regular on-time payments and low credit utilization (not racking up high balances for your credit cards) can help to build your credit.
There isn’t a specific credit score that will qualify you for a personal loan as the criteria will vary by lender. Typically, a higher score will yield better rates. Although there are lenders who will lend to those with poor credit, many lenders are looking for at least a good credit score, which is in the range of 670 to 739.
The easiest way to find the best lender for you is to use Purefy’s rate comparison tool, which will help you find the best interest rate. This way you can easily see interest rates, monthly payments, and repayment terms in one easily sortable chart, and pick the loan that works for you.
Yes. With a credit card consolidation loan, your credit card debt will be refinanced into a personal loan.
If you have good credit, you will likely qualify for a credit card consolidation loan, but there are other factors, which will vary depending on the lender. Some common factors lenders pay attention to are income and debt-to-income ratio (how much you owe each month vs. how much you earn).
The loan amounts for credit card consolidation loans can vary, commonly in a range of $600 to $100,000.
There are some risks associated with a credit card consolidation loan. You may not be able to find a loan that is lower than all your current interest rates. Freeing up your credit card by refinancing the balances also does open the door to rack up credit card debt again if you are not careful with your spending. Depending on the lender, there may also be fees with the application and funding process.