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Loans To Repay Credit Card Debts
Apply For Credit Refinancing With Pheabs

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Loans to help pay off credit card debt are typically available in the form of personal loans, 0% balance transfer cards and credit consolidation loans - helping you to transfer all your debts into one single affordable loan, at a lower interest rate.

If you have accumulated more than $5,000 or $10,000 worth of credit card debt, it can be more affordable to ‘consolidate’ these into one loan. If the APR and rates are cheaper than what you are currently paying, you could save hundreds or thousands of dollars through credit refinancing over a period of 2 to 5 years. Get a free and instant decision when you apply with Pheabs today!

Representative Example:
Borrow $10,000 over 5 years (60 months), repay $265 per month, total repayable $15,900, based on 20% APR for fair credit.
For customers paying $1,000 of debt per month, the savings made would be $735 per month over 5 years.

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What is The Best Loan To Pay Off Credit Cards?

If you are looking for a loan to cover credit card debt, you might be considering the following:

Debt Consolidation Loans – This is a type of loan which takes all your unsecured debt, such as credit cards, and puts it all into one single loan that you can repay each month, usually over 2 to 5 years, although some allow you to pay for up to 12 years.

Once you have been approved by the lender, they can pay off your credit cards on your behalf, or you can receive the money upfront and use it to pay off specific debts that you wish to prioritize.

As long as the APR and rates are a lower interest than what you are currently paying in fees, charges and penalties, it can make sense to consolidate all your credit cards this way.

Personal Loans – A debt consolidation is essentially a type of personal loan, because it is for you (not your business) and can be used for personal reasons and expenses. This loan is unsecured (there is no collateral) and once you receive the money upfront, you can use it to pay off all your credit card debts and any other existing debts such as student loans, home equity loans and online payday loans.

Key Features

Loan Amounts $5,000 to $100,000
Equal Monthly Payments Yes
Loan Duration 2 to 7 years (some can extend to 12%)
APR 8% to 36% – depending on your credit
Bad Credit Accepted? Yes, most have minimum credit score requirement of 560
Same Day Approval Yes – with next day funding
Secured or Unsecured Both

Refinancing Credit Card Debt - How Does It Work?

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Step 1 - Do Your Calculations

Make a list of all the credit card debt that you have, including the rates you are paying and any fees and penalties too. Consider how much you need to borrow to cover all your debts if you were to use a single loan.

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Step 2 - Apply Online

You can check your eligibility for a loan with Pheabs. Complete your details in less than 3 minutes and you can receive an instant decision on the screen. We have options for people with very bad credit and poor credit history. It is important to consider the APR and rates offered to make sure that it is cheaper to use a debt consolidation loan.

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Step 3 - Get Funded

Once you have passed the relevant checks, your loan can be approved and funded in 24 to 48 hours. The lender can pay off your credit cards directly or you can receive the money upfront to cover specific debts at your own choice.

What Type of Credit Cards Can I Refinance?

  • Credit card debts
  • Store cards
  • Retail cards
  • Catalog credit cards
  • Gas cards
  • Capital One Bank cards
  • Chase Bank cards
  • Discover cards
  • American Express cards
  • Student credit cards
  • Travel reward cards

How Much Will a Loan To Pay Off Credit Card Debts Cost Me?

Borrow $10,000 over 5 years (60 months), repay $265 per month, total repayable $15,900, based on 20% APR for fair credit. 

For customers paying $1,000 of debt per month, the savings made would be $735 per month over 5 years.

How Can I Get a Low Interest Loan To Pay Off My Credit Cards?

With APRs starting from 8%, there are low interest rates available to help you refinance and pay off your credit card debts. The best rates are usually available for people with good credit scores, such as higher than 740 or 800 and have a stable income, employment and are homeowners.

If you have fair or bad credit, this may lead to be charged higher rates, but in some cases, you can use collateral such as your home or property which can help you get access to low rates. However, it is important to note that your property could be at risk of foreclosure if you do not keep up repayments.

Can I Refinance Credit Card Debt Even With Bad Credit Scores?

Yes, loans to cover credit card debts is typically made for people with bad credit in mind. You will typically need a minimum credit score of around 560 to be eligible.

The lenders, companies and credit unions that we work with understand that not everyone has a perfect credit score and the nature of the product is meant to help people become debt free and get back on their feet. See also, loans for people with very bad credit.

Whilst the best rates may be assigned for people with good credit scores, you can certainly be eligible if you have a regular income and stable employment, either full-time, part-time or self-employed.

Whilst the product is an unsecured personal loan by nature, there are extended options to use collateral or security if you have extremely bad or poor credit. So if you own a home, property or car, this can be used as collateral to consolidate your credit cards, but just note that this could be at risk of repossession or foreclosure if you cannot make payments on time.

What is The Eligibility Criteria For a Personal Loan To Pay Off Credit Cards?

  • US or Canadian citizen or resident
  • Minimum debt amount $5,000 or $10,000
  • Over 21 years of age
  • Must have a social security number
  • Have a live checking account
  • Employed, self-employed, part-time or retired with an income
  • Able to make payments on time
  • Bad credit OK – minimum credit score is 560
  • No recent bankruptcy 
  • No intention to keep rolling debt and adding more on top

Try Our Credit Refinancing Calculator

Choose how much you wish to borrow to help pay off your credit card debts using our calculator provided. Once you have selected the perfect amount, you can enter your details in less than 3 minutes via the Pheabs website. We will cross-check your details and requirements with our panel of lenders and credit unions across the US and Canada and give you with an instant decision and quote today – and based on further checks you can receive your loan within 24 to 48 hours.

The Benefits of Loans To Pay Off Credit Cards

  • Save money – if you have a lot of credit card debt, it can be a lot to manage, especially if you are staying to get late fees and it is starting to add up. The chance to get a single loan with a lower interest rate to help pay off your credit card debts can help you save hundreds or thousands every month and over the years too.
  • Access lower rates – you can still qualify for a lower APR even if you have very bad credit. Credit cards can become costly if you paying interest and late fees too – but the opportunity to get an APR from 8% to 36% can be significant, especially when title loans and payday loans charge 200% to 400% APR.
  • Become debt free – whether it is through credit card refinancing or a credit card consolidation loan, the idea is that you can eventually become debt free and it has no impact to your credit score. If you have been plagued by debts for years, this is a viable way to wipe your debt clean in a healthy way in just a few months or years.
  • One single payment each month – rather than having to pay off multiple credit card providers each month and figure out who is who, this method gives you one lender or company to focus on and repay each month, with a single monthly payment to stay on top of.
  • The lender can pay off the debts for you – once you have been funded by the company, they can pay off all your outstanding credit card debts directly for you or you can choose to receive the loan and pay them off as you wish.
  • Will not hurt your credit score – this type of consolidation loan is seen as another type of finance, not like debt relief or bankruptcy and just having one does not negatively impact your credit score.

The Cons

  • A lower rate is not guaranteed – although the idea of receiving a lower interest rate and saving hundreds per month is very appealing – this is not always the case. You should very carefully compare the rate you are offered with the rates you are currently paying to see if it is worth doing.
  • You should be cautious once funded – you might be tempted to keep spending and taking out new credit cards once approved, but this could lead to a dangerous spiral of debt and should be approached with caution.
  • Your credit score will be affected if you do not make payments – like any other typical loan, you will need to make payments each month and failing to meet payments on time will cause your credit score damage and impact your chances of future loans, cards and financial products.

Why Use Pheabs For Loans To Pay Off Credit Cards?

Pheabs has a number of specialist lenders to help pay off credit cards in the US and Canada. From lenders, companies, banks and credit unions, we can help you find the right product and best rates for your needs. We appreciate that keeping a good credit score is not always easy and we are pleased to offer a number of affordable products for people with bad credit.

Our entire application process is online and can be completed in less than 3 minutes. Simply enter all your details and you will receive an instant decision on the screen which you can choose to proceed with at your own pace. Once all the checks have been finalized, you can get a same day loan and funds can be transferred to your checking account within 24 to 48 hours.

There are no fees for applying and to check your eligibility, and completing an application will not harm your credit score in any way.

Loans To Pay Off Credit Cards

What To Consider When Choosing The Best Debt Consolidation Loan Company?

Will I be paying less than I am currently paying – To make a debt consolidation loan truly effective, you need to check that the new rates you are getting are cheaper than what you are currently paying on your current credit cards (including if they are in arrears). If so, this will be the right product for you.

Consider the loan duration – Whilst repaying your loan over 5 or 7 years might sound appealing to spread your repayments, this could mean paying more interest overall since it builds up over time.

Will it help you pay off your debts – If you have a number of outstanding debts, refinancing credit cards should be effective to help you pay them off all in one go. But if you have lots of other payments and obligations, you may need to speak to a professional and create a serious budget and plan to help alleviate your debt issues.

Can you curb your personal spending? – Whilst loans to pay off credit card debts can be very helpful to get all the creditors off your back, you need to look at your personal spending habits – since taking on new debt straight away will not be financially healthy.

FAQs

Will I Definitely Save Money Using a Personal Loan To Pay Off Credit Cards?

No, you need to ensure that the rate you are being charged is lower than what you are currently paying – and also consider the total loan amount over how many years you are taking it out for. 

The longer you take out a loan for, the more expensive it will be since most interest is accrued.

 

How Many Credit Cards Can I Pay Off At Once?

Using a credit consolidation loan, you could pay off anywhere from 2 to 20 credit cards at once (if not more depending on the lender). The one single personal loan is designed to help pay everything off and remove any outstanding credit card debts. 

 

Do I Have To Pay Off All My Credit Cards This Way?

If you would like to only pay off some of your credit card debts and leave some others open, you also have the choice to do this. 

 

How Quickly Can I Be Approved For a Loan To Pay Off Credit Cards?

You can be approved within 24 hours or the same day and once approved, whether it is for $5,000, $10,000 or more, you can receive the money within 24 to 48 hours.

 

Is This Type of Consolidation Loan Secured or Unsecured?

Both. This is typically a personal loan which is unsecured, so the eligibility is based on your income, affordability, employment and credit score.

If you have very bad credit, you may have the option to use collateral in your home or car, making it secured. Be aware that this could be at risk of foreclosure if you are unable to maintain payments on time. 

 

Can The Lender Pay Off My Credit Cards For Me?

Yes, your lender can pay off your credit card companies directly or you can choose to draw down the money yourself and pay off your outgoings and debts as you wish.

 

How Do The Repayments Work?

You will have one single lender or company to pay back and it will be in equal monthly installments, with the option to repay early if you ever want to do so.