Credit card consolidation loans
Free Yourself From Credit Card Debt
How much do you need?
What is a credit card consolidation loan?
A credit card consolidation loan lets you roll multiple high-interest credit card debts into a single loan with a fixed rate, term and one (possibly lower) monthly payment. It can help you save money over the life of the loan with a lower interest rate and put you on a path to paying off debt faster. Depending on your credit profile, a credit card consolidation loan could help improve your credit by diversifying your credit mix, showing that you can make on-time monthly payments, and reduce your total debt (as long as you don't run up new balances on the cards you've consolidated).1
Why Pay Off Credit Cards With a Personal Loan
Lock in a Fixed Rate
Pay Down Your Debt
Improve Your Credit Score
LendingClub Bank Personal Loans Comparison
Information is specific to LendingClub Bank and valid as of January, 6 2023. Information specific to other entities sourced from their public-facing websites as of January, 6 2023.
Members report saving money over the course of their loan with LendingClub when they use it to consolidate debt or pay down credit cards. Personal loans from LendingClub Bank have fixed rates and terms, so your monthly payment amount never changes, plus you'll know the exact date your loan will be paid in full.
When comparing your options, remember to factor in all costs such as balance transfer fees, annual fees, and early payoff penalties you may incur with credit cards or when borrowing from other sources.
Instead of credit limits, introductory rates, or revolving balances, credit card consolidation loans come with a fixed rate and an affordable monthly payment that you choose upfront. This means you get to start putting a dent into your debt right away. No additional interest will be added to your loan once you lock in your rate, so nearly all of your monthly payment goes to quickly reducing your balance and paying down what you owe.
Combining multiple credit card debt balances into one new loan is likely to raise your credit scores over the long term as long as you use the money to pay off your credit card debt. It is possible you could see a temporary decline in your credit scores at first, but your scores can quickly recover (and improve) if you continue to make payments on time and don't accumulate any more credit card debt.1
By rolling multiple revolving high-interest-rate credit card accounts into one loan with one monthly payment—credit card consolidation can be a good idea, especially if you qualify for a lower rate. A lower interest rate will help you reduce your total debt expense and pay the debt off faster.
Checking your rate with LendingClub Bank has no impact to your credit score because we use a soft credit pull. A hard credit pull that could impact your score will only occur if you continue with your loan and your money is sent.
The good news is that a personal loan could positively impact your credit down the road if you’re able to show a history of on-time payments and a reduction in overall debt (that means no new debt, such as higher credit card balances). 1
The speed of funding is dependent on approval. You can help keep things moving by checking your to-do list and ensuring you have submitted all the documents and information requested.
Once your personal financial information is verified and your loan funded, you can choose to have the money sent straight to your bank account and/or have us pay your creditors directly. The best part is you can apply and complete the entire process online from the comfort of your home using your phone, laptop, or tablet.
With a credit card consolidation loan from LendingClub Bank, you can choose to have payments automatically withdrawn from your bank account each month. We'll email you a reminder a few days in advance so you can make sure money is there. And if you prefer to mail us a check each month, that’s okay, too. You can also change your payment date, make additional payments, or pay off your loan right from your Account Summary.
What’s also great about having credit card consolidation loan with a single monthly payment and a fixed loan term, you'll know exactly how much you owe each month and can circle the day your loan will be paid off.