Best Loans for Credit Card Refinancing in June 2024

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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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Written by Carol Pope | Edited by Jessica Sain-Baird and Stephanie Cervone | Updated May 29, 2024

Credit card refinancing lenders at a glance

Discover: Best for excellent service

APR range7.99% - 24.99%
Loan terms36 to 84 months
Loan amounts$2,500 - $40,000
Origination feeNone
Minimum credit score720
ProsCons

  Hardship programs available if you fall behind

  High customer service scores from LendingTree users

  Competitive rates

  $39 fee for late payments

  No live chat

  Must have good credit
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Happy Money: Best for fair-credit borrowers

APR range11.72% - 17.99%
Loan terms24 to 60 months
Loan amounts$5,000 - $40,000
Origination fee1.50% - 5.50%
Minimum credit score640
ProsCons

  Low maximum APR

  No late payment fees

  Transparent eligibility guidelines

  Can't have bad credit

  Can take up to a week to find out if your loan was approved

  Rates not as competitive if you have excellent credit
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Laurel Road: Best for midsized loans

APR range8.99% - 24.25% (with autopay)
Loan terms36 to 60 months
Loan amounts$5,000 - $45,000
Origination feeNone
Minimum credit scoreNot specified
ProsCons

  Can change payment due date

  No origination fee

  Available in all 50 states, plus Washington, D.C., and Puerto Rico

  Unknown minimum credit score requirements

  Only three loan terms (36, 48 or 60 months)

  Customer service is only available five days a week
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LightStream: Best for large loans

APR range8.89% - 24.29% (with autopay)
Loan terms24 to 84 months
Loan amounts$5,000 - $100,000
Origination feeNone
Minimum credit scoreNot specified
ProsCons

  Can borrow up to $100,000

  No fees

  Long loan terms

  Must have good to excellent credit

  Can't check rates without hurting credit

  Will not not send your loan to your credit cards for you

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Prosper: Best for peer-to-peer loans

APR range8.99% - 35.99%
Loan terms24 to 60 months
Loan amounts$2,000 - $50,000
Origination fee1.00% - 9.99%
Minimum credit score560
ProsCons

  May accept poor credit

  Can take out a loan with another person

  Competitive rates for excellent credit

  Mandatory fees

  May need to wait five days to find out if you’re approved

  Will not send your loan funds to your creditors
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SoFi: Best for interest rate discounts

APR range8.99% - 29.99% (with discounts)

Pricing Disclosure

Fixed rates from 8.99% APR to 29.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors. Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-7%, which will be deducted from any loan proceeds you receive. Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi. Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.
Loan terms24 to 84 months
Loan amounts$5,000 - $100,000
Origination fee0.00% - 7.00% (optional)
Minimum credit score680
ProsCons

  Offers large loan amounts

  Customer service available via live chat

  APR discount if you allow SoFi to pay your creditors directly

  May need to pay an optional fee for lowest rates

  Only lends if you have good credit

  No small loans
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Upstart: Best for bad-credit borrowers

APR range7.80% - 35.99%
Loan terms36 and 60 months
Loan amounts$1,000 - $50,000
Origination fee0.00% - 12.00%
Minimum credit score300
ProsCons

  Don’t need good credit (or in some cases, any credit)

  Ultra-competitive rates for excellent credit APR

  Could get your loan in one business day

  Might have a hefty origination fee

  Only two term lengths

  Does not pay your creditors
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What is credit card refinancing?

Think of credit card refinancing as trading in many smaller credit card debts for one larger debt. This is also called consolidation, and and it can help some borrowers pay less interest.

There are two main ways to go about credit card refinancing. One is to transfer your existing credit card debt to a balance transfer card with 0% APR.

The other is by taking out a credit card consolidation loan. That’s the strategy we’re focusing on here.

A credit card consolidation loan is a type of personal loan that you use to pay off your existing credit cards.

Compared to credit cards, credit card consolidation loans typically come with lower interest rates. At least, as long as you have excellent credit.

In the fourth quarter of 2023, LendingTree users with 720+ credit scores saw an average APR of 16.01% on personal loans. Credit cards, on the other hand, currently sit at an average interest rate of 24.66%.

Credit card refinancing can also make budgeting easier. Instead of juggling multiple credit card bills, you’ll only have one loan bill to pay.

Plus, unlike credit cards, the bill for your consolidation loan will be the same each month, thanks to fixed interest rates.

On this page

Pros and cons of credit card refinancing

ProsCons

  Lower APRs. If you have good credit, personal loans generally come with better rates than cards.

  Streamlines your budget. After you consolidate, you’ll only have one monthly bill to pay.

  Predictable billing. Credit card consolidation loans have fixed rates, so your payment will be the same each month.

  Is another form of debt. Credit card consolidation restructures your debt but doesn’t eliminate it.

  Takes willpower. You may be tempted to spend the loan on other things.

  Doesn’t break bad habits. If you don’t examine what got you into debt, you could find yourself in trouble again.

  Could cost more overall. Long loan terms mean possibly more interest. Some consolidation loans also come origination fees.
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When does a credit card consolidation loan make sense?

Taking out a credit card consolidation loan can be a solid way to save money on interest. Still, this approach isn’t best for everyone. Whether it’s a good idea depends on your personal financial situation.

When a credit card consolidation loan makes sense

  • If the loan has a lower APR than your credit cards
  • If you’re having a hard time keeping track of multiple credit card payments
  • If you’ll have a lower monthly payment after consolidating

When a credit card consolidation loan doesn’t make sense

  • If the loan has a higher APR than your credit cards
  • If you only have a small amount of debt across a couple of cards
  • If you won’t be able to afford your monthly payment after consolidating
  • If you aren’t ready to slow down using your credit cards

How to refinance credit card debt

To get a loan to refinance credit card debt, here are your next steps:

Evaluate your credit card debt and current APRs

Once you consolidate, you can’t undo it. It’s essential to make sure that consolidating will leave you in a better position than where you started.

First, grab your credit card statements. Then, tally up your total current debt. This figure represents the loan amount you should apply for.

Also, take note of your credit card APRs. Add them together and divide that number by the amount of cards you have. That will give you an average of how much interest you’re paying for your credit cards. You’ll need this to compare against your consolidation loan offers.

Check your credit score

Before pursuing a personal loan for debt consolidation, you should check your credit score with LendingTree Spring. If your score is below 680, a loan might have a higher APR than what you have on your cards.

Prequalify for multiple lenders

Personal loan requirements vary across lenders. A quick way to check your eligibility is to prequalify.

Prequalification only requires a soft credit pull, so it doesn’t affect your credit score. This process can give you an idea of how likely it is that a lender will approve you if you decide to apply.

Prequalifying for a handful of lenders may be wise. Otherwise, how will you know if you’re getting the most competitive rate?

When you’re comparing lenders, pay attention to APRs and origination fees. Also, look for lenders that offer a consolidation discount (such as SoFi).

Apply for your loan

Applying for a loan is like prequalification but more in depth.

The lender may ask for documents such as bank statements and a government-issued ID. Also, it will probably run a hard inquiry to review your credit report.

Some lenders can provide an approval decision within minutes. With others, it can take several days or even a week. If it approves you, you’ll sign a promissory note, or your loan’s contract.

Pay your creditors and enter repayment

Some lenders will pay your credit cards for you, but not all. If yours doesn’t, it’s imperative that you use your loan for its intended purpose — paying off your credit card debt.

About 30 to 45 days after the lender disburses your funds, you’ll begin paying off your loan.

Will credit card refinancing hurt my credit score?

When you apply for credit card refinancing, you’ll have to take a hard credit hit. This will drop your score by a few points. If you’re applying to more than one lender, get your rate shopping done within 14 days. That way, only one inquiry will count against you.

Your score may drop again once the loan process is complete. If you’ve taken out a loan or opened a new card recently, this drop could be significant. However, by making timely payments, you’ll likely improve your credit score.

A debt consolidation loan could boost your credit by diversifying your credit mix. Credit mix is one of the five factors used to calculate your credit score.

This metric measures how many types of accounts you have open. Having a healthy variety of up-to-date loans and cards can show that you’re a responsible borrower.

Alternatives to credit card consolidation loans

Everyone’s financial situation is different, and maybe a credit card consolidation loan isn’t right for you. If so, the alternatives below could be better fit:

Work out a payment plan

Some credit card companies (Discover, for instance) have assistance programs designed to help during financial hardship. Whether you’re in danger of missing a payment or already behind, call your credit card company to see if they can help.

Retool your budget

There are budget strategies that can help you pay off your debt faster.

If you use the debt snowball method, you’ll pay off your smallest debts first. Knocking out your lower-balance cards might empower you to continue eliminating your debt.

The debt avalanche, on the other hand, will focus your attention on your debt with the highest APRs. By paying off your highest-interest debt first, you could save on interest over time.

Balance transfer card with 0% APR

Like consolidating, you won’t get rid of your debt with a balance transfer credit card. Instead, you’ll shift your existing debt to a different card (hopefully one with introductory 0% APR). Credit card issuers designed these cards specifically to help borrowers manage debt.

This strategy can be effective but risky. If you still owe after the introductory period, interest could apply to the full amount transferred. Additionally, some issuers charge a balance transfer fee. This is usually a percentage of the transferred amount.

Consider a debt management plan

If you’re far underwater, you may want to look into a debt management plan. While you’re under the plan, a credit counselor will negotiate with your creditors and hopefully secure lower APRs.

You could get your cards paid off in three to five years with a debt management plan. However, while you’re paying off your debt, you won’t be able to use the cards that are under your plan.

How we chose the best loans for credit card refinancing

We reviewed more than 28 lenders to determine the overall best seven credit card refinancing loans. To make our list, lenders must offer credit card refinancing loans with competitive APRs. From there, we prioritize lenders based on the following factors:

  • Accessibility: Lenders are ranked higher if their personal loans are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
  • Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
  • Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.

Frequently asked questions

You could qualify for a debt consolidation loan for bad credit with a score as low as 300 (see Upstart). But just because you qualify with a lower score doesn’t mean it’s a wise move.
 
To refinance your credit cards with a credit card consolidation loan, you’ll probably want at least good credit (680 or higher). It also depends on the APR you’re paying across your cards. Calculate the average credit card APR, prequalify for a few loans and see which option works out in your favor.

By trading in high-interest credit card debt for lower-interest personal loan debt, credit card refinancing can save you money. But there are a few pitfalls to avoid.
 
A long loan term could result in more overall interest, even if the APR on your loan is lower than your cards. The longer period of time it takes you to pay off your debt, the more interest you may pay.
 
Also, if you continue to charge your cards, refinancing is only a band-aid. Along with refinancing, review your budget and your financial habits so you don’t find yourself in a cycle of debt.

Personal loans are versatile and you can use them for almost anything, including consolidating debt. However, you may want to target personal loan lenders that offer extra perks on credit card refinancing. For instance, you could get an APR discount from SoFi if you allow it to pay your credit cards directly.