Best Loans for Credit Card Refinancing in November 2024

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Written by
Carol Pope
Updated November 01, 2024
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Credit card refinancing lenders at a glance

Upstart: Best for bad-credit borrowers

7.80% - 35.99%

36 or 60 months

$1,000 - $50,000

0.00% - 12.00%

300

Pros
  • 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
Cons
  • Might have a hefty origination fee
  • Only two term lengths
  • Does not pay your creditors

What to know

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It can be hard to get a loan if you have bad or no credit.

Upstart, a personal loan marketplace, considers more than just your credit score. It also takes your education and employment status into account. And it only requires a minimum credit score of 300. Further, you’re not automatically ineligible if you don’t have credit.

Just because you qualify with bad credit doesn’t mean your loan will come cheap. Upstart’s maximum APR is 35.99%, and it may charge an origination fee between 0.00% and 12.00%.

Read our full Upstart personal loan review.

How to qualify

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Aside from a 300 credit score, you must also meet the below guidelines to qualify for an Upstart loan:

  • No adverse changes in your credit history from the time Upstart approves you and sends your loan
  • Maximum DTI ratio of 50% (45% in Connecticut, Maryland, New York and Vermont)
  • No bankruptcies in the last year
  • No current delinquencies
  • Fewer than six inquiries on your credit report in the last six months (not including student loans, car loans or mortgages)
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LightStream: Best for large loans

7.99% - 24.29% (with autopay)

24 to 84 months

Loan Term Disclosure

Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $25,000 loan at 7.49% APR with a term of 3 years would result in 36 monthly payments of $777.54. © 2024 Truist Financial Corporation. Truist, LightStream and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.

$5,000 - $100,000

None

Not specified

Pros
  • Can borrow up to $100,000
  • No fees
  • Long loan terms
Cons
  • 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

What to know

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LightStream is owned by Truist, and its loans could be great if you have a lot of credit card debt to refinance. It has a maximum loan amount of $100,000 and an extended 84-month term. It also doesn’t charge an origination fee (which could be substantial on large loans).

Note that LightStream won’t send your loan directly to your creditors. And unlike most other lenders, you can’t prequalify for a LightStream loan.

Read our full LightStream personal loan review.

How to qualify

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LightStream doesn’t specify its minimum credit score requirements. It does make clear that it only lends to borrowers with good to excellent credit. The lender also advises that many of its approved applicants have:

  • At least five years of credit history
  • Retirement and investment accounts, as well as liquid assets in a checking or savings account
  • An acceptable DTI ratio
  • No delinquencies on your payment history
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Discover: Best for excellent service

7.99% - 24.99%

36 to 84 months

$2,500 - $40,000

None

720

Pros
  • Hardship programs available if you fall behind
  • High customer service scores from LendingTree users
  • Competitive rates
Cons
  • $39 fee for late payments
  • No live chat
  • Must have good credit

What to know

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If you’re having trouble keeping up with your loan, you may have options with Discover. This lender may allow you to delay your payments, temporarily reduce them or extend your loan term.

Still, it’s important to let Discover know that you can’t make your payment as soon as possible. It charges an expensive $39 late payment fee.

Read our full Discover personal loan review.

How to qualify

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You must have a credit score of at least 720 to get credit card refinancing from Discover. Additionally, Discover requires you to:

  • Have a valid Social Security number
  • Be 18 years old or older
  • Bring in at least $40,000 annually (individually or as a household)
  • Have a physical address, email address and internet access
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Laurel Road: Best for midsized loans

8.99% - 24.25% (with autopay)

36 to 60 months

$5,000 - $45,000

None

Not specified

Pros
  • Can change payment due date
  • No origination fee
  • Available in all 50 states, plus Washington, D.C., and Puerto Rico
Cons
  • Unknown minimum credit score requirements
  • Only three loan terms (36, 48 or 60 months)
  • Customer service is only available five days a week

What to know

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Laurel Road might be a good choice if you have $5,000 to $45,000 in credit card debt to refinance. Although customer service is not available on weekends, it has live chat. Tech-savvy borrowers might also enjoy the online lender’s highly rated mobile app.

Compared to some lenders, though, Laurel Road’s loan term options are lacking. Also, it does not specify its minimum credit score requirements.

Read our full Laurel Road personal loan review.

How to qualify

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Laurel Road’s eligibility requirements are unclear. It does state that borrowers must be U.S. citizens or eligible permanent residents. For more information, you’ll need to prequalify for a personal loan on its website.

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SoFi: Best for interest rate discounts

8.99% - 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.

24 to 84 months

$5,000 - $100,000

0.00% - 7.00% (optional)

680

Pros
  • Offers large loan amounts
  • Customer service available via live chat
  • APR discount if you allow SoFi to pay your creditors directly
Cons
  • May need to pay an optional fee for lowest rates
  • Only lends if you have good credit
  • No small loans

What to know

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You could get more than one interest rate discount by opting for credit card refinancing with SoFi. First, SoFi may give you 0.25% off of your APR if you sign up for automatic payments. You could get another 0.25% APR discount by setting up direct deposit with an eligible SoFi account.

However, this lender only makes sense if you have a large amount of credit card debt — $5,000 is the smallest loan it offers. SoFi may ask for an optional origination fee to unlock the lowest rates.

Read our full SoFi personal loan review.

How to qualify

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SoFi requires a minimum credit score of 680. You must demonstrate creditworthiness through your DTI ratio and payment history, among other factors. You also must be:

  • A U.S. citizen, eligible permanent resident or nonpermanent resident (including DACA recipients and asylum seekers)
  • The age of majority in your state
  • Employed, or you must bring in sufficient income from another source or have a job offer with a start date within 90 days
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Prosper: Best for peer-to-peer loans

8.99% - 35.99%

24 to 60 months

$2,000 - $50,000

1.00% - 9.99%

560

Pros
  • May accept poor credit
  • Can take out a loan with another person
  • Competitive rates for excellent credit
Cons
  • Mandatory fees
  • May need to wait five days to find out if you’re approved
  • Will not send your loan funds to your creditors

What to know

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As a peer-to-peer lender, individual investors fund Prosper’s loans. The biggest perk with this lending model is that it generally has looser eligibility standards.

Regardless of your credit score, you’ll pay an origination fee with Prosper. You’ll also be responsible for paying your creditors yourself.

Read our full Prosper personal loan review.

How to qualify

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Prosper accepts credit scores as low as 560. It also pulls your TransUnion report. Additionally, you need to:

  • Be at least 18 years old
  • Have a Social Security number
  • Have a U.S. bank account
  • Not live in Iowa or West Virginia
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Happy Money: Best for fair-credit borrowers

8.95% - 17.48%

24 to 60 months

$5,000 - $40,000

1.50% - 5.50%

640

Pros
  • Low maximum APR
  • No late payment fees
  • Transparent eligibility guidelines
Cons
  • 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

What to know

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Happy Money is a lending platform that specializes in credit card refinancing. Happy Money partners with credit unions, which may be why its maximum annual percentage rate (APR) is so low.

By federal law, APRs on credit union personal loans cannot exceed 18%. So, even if you just barely qualify for a Happy Money loan, you may still get a competitive rate.

If you have excellent credit, however, you might find a lower APR elsewhere. Happy Money also charges an origination fee. This is a fee Happy Money will take from your loan funds before sending you your loan.

Read our full Happy Money personal loan review.

How to qualify

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You must have a credit score of 640 or higher to qualify for Happy Money. You must also:

  • Be 18 years or older
  • Have a valid Social Security number and checking account
  • Have zero current delinquencies on your credit profile and an acceptable debt-to-income (DTI) ratio, credit mix and credit utilization ratio

Additionally, Happy Money does not offer loans for those in Iowa, Massachusetts or Nevada.

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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.