Millions of people in the United States are buried in credit card debt. In such financial situation, one struggles to pay the monthly required minimum and this leads to a ton of stress and anxiety.
One way out of this situation is through personal loans that you can use for credit card debt consolidation. This means you will apply for a new loan so you can pay your credit card issuers. In turn, instead of paying multiple credit card companies, you will only pay your personal loan lender.
When you consolidate your credit card debt, your aim is to get a loan that will have a reasonable interest rate and affordable monthly payment. When you take this path, you basically create a new opportunity for you to prove to creditors that you can be a responsible consumer and pay them on time. When you do this, you can improve your credit score while at the same time start eliminating your credit card debts.
So where to apply for personal loans for credit card debt consolidation? Here are some of the best providers of personal loans that you can use to pay off your credit cards. The below rates assume that you need a $10,000 loan:
If you have a good income and with little credit history, this lender is good for you. At the moment, the APR of its personal loan may range from 5.5% to 13% with a monthly payment will be around $320.
Best Egg is another fast-funding lender that can often clear funds for you within a day. This is perfect for those with FICO scores of around 640. APR is pegged at 7 to 14.5% and monthly payment at around $325.
UpStart will give you an APR of around 13.1% for a $10K loan. Your monthly payment will be around $337. This will be the picture if you have a FICO score of 620.
When you borrow $10K from this lender and if your credit score is pegged at 600, you can expect an estimated APR of almost 14% and a monthly payment of $340.
Discover Personal Loans
Discover helps people who need personal loans across 50 states and does not ask for any origination fees. A $10K loan for someone with a 660 FICO will have an estimated APR of 13.99% and monthly payment around $342. Discover accepts payments via phone, mail, or personal check.
When you are granted personal loans by Payoff, you can only use the funds to settle your credit card debt. APR is high at 17% for someone who has a 660 FICO score. The monthly payment will be around $357.
Lending Point is perfect if you have a poor credit score. For a someone with a FICO score of 600, a $10K loan will have a very high APR of almost 23% while monthly is manageable at $385.
Avant is another lender that helps people with poor credit. A FICO of 580 will result to an APR between 23 and 25% and the monthly payment of around $393.
Where to apply for personal loans for credit card debt consolidation? Our team created this list so you can make an informed decision.