Pay Off Credit Cards

Pay off high interest
credit card debt.

Consolidating your credit card debt with a low interest personal loan can help you pay off debt faster.
Today's Rates

Top Picks To Pay Off Credit Card Debt

January 2022

APR ?APR, or Annual Percentage Rate, is the price you pay to borrow money. Variable APR means that your interest can fluctuate over time, which can increase or decrease your monthly payment. Fixed APR means that your interest will always stay the same. Even if interest rates change, your interest rate or monthly payment will not. APR includes a 0.25% discount when you enroll in autopay.
5.74% - 20.28%

View Details

on SoFi's website

Overview

Minimum Credit Score:
680
Minimum Loan Amount:
$5,000 ($10,000 in CA)
Maximum Loan Amount:
$100,000
Loan Terms:
2 – 7 years
Minimum Income:
None

Details

Origination Fees:
No
Late Fees:
No
Prepayment Penalty:
No
Soft Credit Check:
Yes
5.99% - 29.99%

View Details

on Best Egg's website

Overview

Minimum Credit Score:
600
Minimum Loan Amount:
$2,000
Maximum Loan Amount:
$50,000
Loan Terms:
3, 5 years
Minimum Income:
$35,000

Details

Origination Fees:
0.99% – 5.99%
Late Fees:
$15 (3 day grace period)
Prepayment Penalty:
No
Soft Credit Check:
Yes
4.98% - 19.99%

View Details

on LightStream's website

Overview

Minimum Credit Score:
660
Minimum Loan Amount:
$5,000
Maximum Loan Amount:
$100,000
Loan Terms:
2 - 7 years
Minimum Income:
N/A

Details

Origination Fees:
No
Late Fees:
No
Prepayment Penalty:
No
Soft Credit Check:
No
7.00% - 24.75%

View Details

on Laurel Road's website

Overview

Minimum Credit Score:
660
Minimum Loan Amount:
$1,000
Maximum Loan Amount:
$45,000
Loan Terms:
3, 4, 5 years
Minimum Income:
No

Details

Origination Fees:
No
Late Fees:
No
Prepayment Penalty:
No
Soft Credit Check:
Yes
6.94% - 35.97%

View Details

on Upgrade's website

Overview

Minimum Credit Score:
620
Minimum Loan Amount:
$1,000
Maximum Loan Amount:
$35,000
Loan Terms:
3, 5 years
Minimum Income:
None, but must have at least $1,000 per month of free cash flow

Details

Origination Fees:
1% – 6%
Late Fees:
$10 after 15-day grace period
Prepayment Penalty:
No
Soft Credit Check:
Yes

Why consolidate credit card debt?

Get My Rate

Debt consolidation

Pay off credit card debt faster.

Lower interest

Personal loans often have lower interest rates than credit cards.

Save money

Save money when you use a personal loan to pay off credit card debt.

Credit score

Credit card consolidation can help increase your credit score.
Pay Off Credit Cards

Calculate your savings

Step 1: Add Card Balances

Credit Card #1

Balance

Interest 

Payment 
Step 2:  Consolidate Credit Cards

New Interest Rate (%)
8%

New Loan Term (years)
2 years
TOTAL SAVINGS
$21,124
View Details
Total Savings
Before Consolidation: $333
After Consolidation: $222
Savings: $222
Go Back
If you refinance $30,000 of student loans at a 3.25% interest rate with a 10-year repayment term, you can save $4,789 over the life of your loan.

Pay off high-interest credit card debt with a low-interest personal loan.

Get My Rate
Pay Off Credit Cards

Popular Questions

What is a personal loan?
A personal loan is typically a fixed-rate, unsecured loan typically from $1,000 - $100,000. Personal loans can be used for most of your financial needs – from debt consolidation and credit card refinancing to home improvement and weddings. When you borrow a personal loan, you get a lump-sum payment upfront, and then you pay off the personal loan in monthly installment payments. The typical repayment period for the best personal loans are one to five years, although some personal loan lenders may allow for shorter or longer time periods.
What is credit card consolidation?

Credit card consolidation is the process of using a low-interest personal loan to pay off high-interest credit card debt. Think of credit card consolidation as refinancing credit card debt to a lower interest rate. Credit card consolidation helps you lower your interest rate, lower your monthly payment, increase your credit score, and pay off debt faster.

Why consolidate credit card debt?

There are several reasons to consolidate credit card debt:

  • Get a lower interest rate
  • Get a lower monthly payment
  • Save money
  • Make one monthly payment
  • Increase your credit score
  • Pay off debt faster
What is the difference between a secured personal loan and an unsecured personal loan?

When you consolidate credit card debt, you can use an unsecured personal loan. An unsecured personal loan means you don’t have to pledge any collateral to borrower money. In contrast, a secured loan means that you as the borrower have to pledge collateral to borrow money. Most personal loans are unsecured loans. If a personal loan lender offers you a secured personal loan, then the lender likely wants to minimize their risk in case you do not pay back your personal loan.

So, if you ask where to get a personal loan, you are better off borrowing an unsecured personal loan because you don’t have to pledge any collateral. Most personal loan companies, including online personal loan companies, deal with unsecured personal loans.

What is the difference between a fixed APR and a variable APR?

Most credit card consolidation loans have a fixed APR, or annual percentage yield. APRis the cost that you will pay to borrow a personal loan. APR is the annual interest cost plus any fees charged by the personal loan company, such as origination fees. There are two main types of APRs: fixed APRs and variable APRs. Here is the difference:

  • Fixed APR: With a fixed APR, your monthly interest rate won’t change during repayment of your personal loan. You will have the same monthly payment every month.
  • Variable APR: With a variable APR, your monthly interest rate and monthly payment may increase or decrease based on prevailing interest rates. Variable APR personal loans typically offer an initially lower APR than fixed APR personal loans.
Should I get a personal loan?

There are several reasons to get a personal loan. The most common reason to get a personal loan is to pay off high-interest credit card debt and get a lower rate, which is known as credit card consolidation or credit card refinancing. If you can get a personal loan with a lower interest rate than the interest rate on your credit card, then credit card consolidation may be a smart financial option for you. If you have good credit, interest rates typically are lower with personal loans than with credit cards. Unlike a mortgage, personal loans are unsecured debt, which means they don’t require any collateral. Other popular reasons to get a personal loan include funding home renovations or making a major purchase when you don’t currently have money available. Before borrowing a personal loan, compare rates, lenders and loan terms, and make sure you can afford your monthly payments.

Do I qualify for a personal loan?

Personal loans and personal loan rates are dependent on several factors, including your credit history, credit score, income, expenses and debt-to-income ratio. Each lender has its own underwriting criteria to determine who gets approved and what the rate will be. If you have a history of financial history, good to excellent credit score, and steady monthly income, you could get a lower interest rate than a borrower who has bad credit or no credit history. Lenders want to lend a personal loan to borrowers who will repay their personal loan in-full and on-time. Your interest rate will be based on your creditworthiness and your default risk. The lower the risk, the lower the interest rate that you can get. Lenders generally work with three main credit agencies: Equifax, Experian and TransUnion. Your credit score is comprised of five components: credit history, payment history, types of credit, new accounts and amount owed.

What documents do you need to consolidate credit card debt with a personal loan?

When you apply for a personal loan to pay off credit card debt, personal loan companies will require several documents. While the requirements vary by lender, most personal loan companies enable you to submit the documentation online. This is very convenient for borrowers who want to know where to get a personal loan without the hassle of meeting with a loan officer at a bank, for example.

Here is some of the information you will likely need to apply for personal loans:

  • Driver’s license, Social Security Card or passport
  • Social Security Number
  • Proof of income such as a pay stub
  • Proof of address (e.g., utility bill or copy of your lease agreement)
  • Gross income
  • Other debt
  • Monthly expenses

Some personal loan companies may ask for more information, but typically these are the minimum requirements.

How much can I borrow to pay off credit card debt?

While it varies by lender, you could borrow up to $100,000 for a personal loan to pay off credit card debt. Each personal loan company has its own underwriting criteria, and the amount you can borrow may be impacted by your income, other debt, debt-to-income ratio, credit history and credit score, among other factors.

What is the process to apply for a personal loan?

Applying for a personal loan to pay off credit card debt is a simple process. Once you have determined that a personal loan is right for you, here is how to apply for a personal loan in 4 easy steps:

  1. Compare personal loan rates: You don't have to look far to know where to get a personal loan. You can use our free comparison tools to find our top picks for personal loans. Compare personal loan companies, rates and loan terms quickly. With most online personal loan companies, you can learn your new personal loan rate in just a few minutes for free. This is called a soft credit check, and there is no impact to your credit score.
  2. Gather key documents: Personal loan companies will require several documents as part of the personal loan application process.You will have to provide pay stubs for proof of income, your driver’s license number and Social Security number, among other documents.
  3. Apply online: You can apply for personal loans online with one or more of our top-rated partners. An application takes approximately 10-15 minutes to complete. When you apply for a personal loan, a lender will pull your credit, which is called a hard credit check. This can impact your credit score by a few points, but your credit score will improve over time as you make on-time payments on your personal loan.
  4. Get your decision: Most personal loan companies will provide you with a decision in minutes. The good news is that many personal loans are funded within a few days, which is ideal for quick personal loans.
How do you get approved for a personal loan?

To get approved for a personal loan, there are several steps that you can take. Personal loan companies want to lend to responsible borrowers with good to strong credit. Personal loan companies may also look at other criteria such as your income and your other debt. Personal loan companies want to ensure that you can pay back your personal loan in full and on time. Borrowers with higher income and stronger credit may qualify for the best personal loan rates. However, if you don’t have good credit, you can apply with a qualified, creditworthy cosigner who can assume equal financial responsibility for the personal loan. A cosigner can help you get approved for a personal loan and get a lower interest rate. who has good credit and stable income can sign for the personal loan with you and assume equal financial responsibility.

How long does it take to get a personal loan?

While funding time can vary by lender, many personal loan companies can fund your account as soon as the next business day. Other lenders may take up to a week to fund your account based on your application and the specific personal loan company.

Can a personal loan help your credit score?

Using a personal loan to pay off credit card debt can increase your credit score. Credit bureaus, the companies responsible for your credit score, analyze various criteria to determine your credit score. One metric is the types of debt that you have. If you only have credit card debt, having a personal loan can help diversify the types of debt that you have.

For example, credit cards are revolving credit, which means you can repay your debt balance one month and borrow again the next month. Unlike credit cards, personal loans are installment debt, which means that you pay off the same amount each month. Therefore, having a personal loan can help diversify your credit, which can help raise your credit score.Of course, borrowing a personal loan simply to raise your credit score is not necessarily a wise decision. However, if you have to choose between credit card debt and a personal loan, the best personal loans may offer better personal loan interest rates than credit card debt interest rates. With a personal loan, you will also get a fixed interest rate, whereas a credit card typically offers a variable interest rate. A fixed interest rate can provide for predictability and certainty each month when you repay your personal loan.

Let's mentor your money

Get the latest personal finance advice delivered directly to your inbox.
chevron-down