What is a Credit Card Consolidation Loan?

A credit card consolidation loan can be a smarter, easier approach to paying off multiple credit card balances and the high-interest rates that come with them.

If you’re tired of paying multiple monthly minimums and you need to free up more cash for daily expenses, a credit card consolidation loan can give you the power to manage your credit card debt and then simply make one convenient monthly payment you can afford. 

This type of loan typically comes with a lower1, fixed interest rate, which means your monthly payment won’t change.  There are also no annual credit card fees, which may mean lower monthly payments and more cash flow. 

Not to mention, you don’t have to juggle a million bill deadlines; you can rest easy knowing you have a single monthly payment to manage.

How Does a Credit Card Consolidation Loan Work?

A credit card consolidation loan is a new loan that you can use to pay off all of your credit card bills immediately. 

Instead of paying different credit card minimums each month to multiple companies, all while watching your debt pile up thanks to high-interest rates and fees, you can settle your outstanding balances and then make one easy credit card consolidation loan payment.

While credit card consolidation loans won’t eliminate the money you owe, they can make it less stressful and more convenient to manage your debt. Plus, their typically lower rates mean you’ll pay less interest, especially if you have a high-interest rate on your card.

Benefits of a Credit Card Consolidation Loan

Lower monthly paymentsLower monthly paymentsBetter interest rates mean you’ll pay less each month and have more cash for your daily budget
Zero annual feesZero annual feesNo hidden costs, no application or origination fees, and no early prepayment penalties
One single easy paymentOne single easy paymentStop worrying about managing multiple credit card bills and rather manage one simple payment

How Much Can I Save with a Credit Card Consolidation Loan1?

Say you have a total of $16,000 in debt across three credit cards ($8000, $4000, and $4000 respectively), the first with an APR of 22.01%, the second with an APR of 21.2%, and the third with an APR of 20.05%

 Here’s roughly how much you could save by opting to consolidate your credit card debt with a loan from Eloan. 

Eloan Debt Consolidation Loan
Loan Amount: $16,000
Interest Rate: 11.49%2
Time to Pay Off: 4 years
Total Monthly Payment: $417

 

Combined Bill and Credit Card Debt
Owed Amount: $16,000
Interest Rate: 20% - 22%
Time to Pay Off: 4 years
Total Monthly Payment: $498

Reduce your monthly payments by $80 and save a total of $3,881 on interest over the 4-year period.*

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Checking your rates will not affect your credit score.

 

* Interest rate and monthly savings estimates based on an applicant with very good credit and are calculated over a 4-year period. 
2 Base interest rate starting from  7.99% APR to 19.49% APR. The APR is determined based on your credit score and history. Available terms from 24 to 60 months, depending on the loan amount.
Example: An unsecured personal loan of $16,000 with an 11.49% APR for 48 months would pay $417 monthly. Other terms and conditions available.

Compare the Best Credit Card Consolidation Loans

Eloan has been giving Americans a quicker, easier way to pay off their credit card debt. 

Over 95% of our customers' reviews rate us Excellent or Great in the business, thanks to our fast funding and simple online loan application. You can pre-qualify in seconds, and if your application is approved, we’ll give you the money you need as early as the next business day5

We don’t charge annual fees. We won’t hit you with hidden costs. And we won’t penalize you for paying off your loan early. 

We will help you get a handle on a stressful cycle of debt and get rid of the high-interest rates and monthly minimum payments that come with multiple credit card bills. 

 
 EloanMarcusLending ClubDiscover
Flexible Loan Payment Schedule3        
1-Hour Credit Decision4
       
Next business Day Funding5
       
No Origination Fees        
Pioneer in Online Lending (Since 1998)        

*Information as of May 2019.

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Checking your rates will not affect your credit score.

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FAQs

A Credit card consolidation loan may boost your credit score over time. That’s because a credit score, which is calculated based on a number of factors, is largely dependent on a number of factors, including how much of your available credit line you’re using. This is called credit utilization, and if you have a lot of debt on multiple credit cards, chances are your credit utilization is poor. By taking out a single credit card consolidation loan and paying down your outstanding balances, you can improve your credit utilization and raise your credit score over time.

Do note that your credit score may initially dip a few points, temporarily when you apply for a credit card consolidation loan. There is a necessary credit check when you submit a loan application.  Also, if you close a credit card account, it reduces the total amount of credit you have available.  The latter can have a negative effect because less available credit and high balances means that the amount of credit you’ve utilized will be higher, which lenders see as a drawback.
Consolidating your credit can be a good idea if you’re struggling to pay more than the monthly minimum on multiple credit card bills and the anxiety attached to keeping track of two, three, and even four credit card payment deadlines is stressing you out. What’s more, a credit card consolidation loan can help lower your monthly payment thanks to lower interest rates, which can free up more cash for the expenses and activities that are important to you.
You can apply and pre-qualify for an Eloan credit card consolidation loan in minutes! To apply, you’ll need the following information:
  • Full Name
  • Address information
  • Social security number
  • Your income information
  • Your employment status

Please note that to protect your identity, we may request additional information as part of the verification process.
No, you do not need to close your credit card accounts. You can continue using your credit cards as needed alongside a credit card consolidation loan. However, if you keep making purchases with your credit cards, you may find yourself with another balance to pay in addition to the credit card consolidation loan payment. So, if you want to successfully pay down your debt, take a look at your spending and try to make a budget that you can stick to every month.

Start saving on your credit card interest payments today!

Pre-qualify in seconds and pay off your high-interest credit card bills with a single credit card consolidation loan as early as the next business day5!

Check Your Rates

Checking your rates will not affect your credit score.

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