What is a Debt Consolidation Loan?
Debt Consolidation Loan is a loan that combines multiple debts into one monthly payment, often with a lower interest rate, making repayment simpler and more manageable.
The benefits of a Debt Consolidation Loan
A debt consolidation loan can simplify your finances by combining multiple debts into a single monthly payment. It often comes with a lower interest rate, which can save you money over time. By reducing the number of payments, it lowers the risk of missed or late payments, helping improve your credit score. Additionally, it can reduce financial stress and make budgeting easier, giving you a clearer path to becoming debt-free.
Why for credit card consolidation loans?
Fast and easy application process
View your debt consolidation loan rate in minutes. Literally.
Pay lenders directly
Choose Direct Pay and we’ll pay your lender up front so you don’t have to. Plus, you’ll receive a 0.25% rate discount.2
Flexible loan options
Choose payment terms that fit your needs. And your wallet.
24/7 member support and financial guidance
Our team is here when you need us. Give us a call for a no-cost consultation.
How to get a debt consolidation loan online:
View your rate.
Get prequalified with no fees required and no obligation.
Select your loan and apply.
Choose the bill consolidation loan that works for you and complete your application.
Receive your funds.
Sign your document and funds are wired to your account—as soon as the same day.
Which consolidation option is right for you?
Personal loans for debt consolidation
- With a debt consolidation loan, you could save money on higher-rate interest with a lower-rate loan
- Personal loans could be used to consolidate bills and credit card debt
- Choose a repayment term that works for you, from 36- to 84-month terms
- Pay off your consolidated debt with one set regular monthly payment
Balance transfers for credit card debt
- Balance transfers let you use the available credit on a credit card to pay off other debts
- The consolidated debt amount is added to your credit card balance
- When you complete a balance transfer, you could save money with a low promotional APR for a set period
- You’ll also still take advantage of one payment instead of many
FAQ
Why would I consolidate credit card debt?
Credit card consolidation can save you money on interest if you’re able to qualify for a lower interest rate. This could help you get out of debt faster, as more of your money will go toward paying off your debt instead of toward interest payments.
What do you need to qualify for a debt consolidation loan?
Applying for a debt consolidation loan requires a firm understanding of your credit, the amount of debt you are carrying, and remaining payments.
Which types of debt can I consolidate?
Three types of debt are commonly consolidated: credit card debt, medical debt, and high-interest personal loan debt. You may reduce the overall cost of repayment by securing better terms and interest. You’ll also have a single payment to keep track of instead of several.
Does credit card consolidation hurt your credit score?
To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.
Is it hard to get a debt consolidation loan?
Obtaining a debt consolidation loan is easier than you might think. There are no fees to get prequalified, and the process can be completed online. Once you’ve chosen a loan, the application is straightforward. Sign the documents, and the funds could be in your account the very same day.
What is a Debt Consolidation Loan?
A debt consolidation loan is a type of personal loan that allows you to combine multiple debts into one loan with a single monthly payment. This can help simplify your finances and make it easier to manage your debt. Debt consolidation loans can be used to consolidate various types of debt, including credit card debt, personal loans, and other high-interest debt.
What is Debt Settlement?
Debt settlement involves negotiating with creditors to reduce the total amount of debt owed. It is important to be cautious of potential scams and avoid companies that charge upfront fees. Debt settlement companies should be transparent about their fees and responsibilities. Unlike debt consolidation, which combines multiple debts into a single loan, debt settlement can negatively impact your credit score and carries significant risks. Individuals can also attempt to negotiate their own debts without a company. Understanding these differences can help you make an informed decision about your debt relief options.
What is the best type of loan to consolidate debt?
The best solution for consolidating your debt is a personal loan. It’s a versatile option that can help you pay off multiple debts with a lower interest rate than credit cards or other types of loans. This not only saves you money but also simplifies your debt management, making it easier to keep track of your finances. Here are some of the benefits of using a personal loan to consolidate debt: • You can secure a lower interest rate than what credit cards or other debts may be charging. • Simplify your finances with a single monthly payment. • You can pay off your debt more quickly. • You can improve your credit score. If you’re thinking about consolidating your debt, a personal loan is a solid choice. Compare rates from different lenders to snag the best deal for you.
