What is a Credit Card Consolidation Loan?
When using a credit card consolidation loan, you borrow money using a personal loan to pay off your credit cards.
There are advantages to moving revolving debt like credit cards to just one low rate fixed payment onto a personal loan.
One of the key advantages is that it simplifies your finances. It also forces you to pay off the debt. With credit cards, you tend to continue to spend and never get the balances paid off.
With a personal loan you have a fixed payment with a set amount of payments. Once your last payment if complete, the debt is gone.
This is why moving all of your credit cards to just one fixed payment personal loans can have such advantages.
Best Credit Card Consolidation Loans
When looking to take multiple credit cards and move them to just one fixed rate personal loans there are a couple great options.
Using a lending network like Credible or PersonalLoans.com can save you time and money. They both let you use just one easy form and then get multiple rates from their lenders.
This allows you to get the best rate and terms on a personal loan.
Another interesting option is using a peer-to-peer lender. This is where individual investors lend money to borrowers over a lending platform. The biggest peer-to-peer lender is Lending Club.
We have included the best credit card consolidation loan for each of these categories below.
Is Consolidating Credit Cards Bad for Your Credit?
There are a couple things to consider when doing a credit card consolidation loan.
The first thing is the high interest you may be paying on one, two or even more credit cards. By consolidating into a lower rate personal loan you will save money.
The second key reason is simplifying your payments into just one fixed rate payment. When you are juggling multiple credit card payments and balances it can be easy to miss a payment.
This can devastate your credit score and can have an impact for years. By getting a credit card consolidation loan, you just have to keep track of one payment and make sure you always pay it on time.
Another cool thing is that on most credit card consolidation loans, there is no prepayment penalty. So if you get a side hustle, you can pay the loan off quicker.
This will help you achieve the goal of being debt free.
Contact any of the above lenders to get your credit card consolidation loan today.