Credit card consolidation loans
Consolidate your credit card debt
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 monthly payment. It could help you save money over the life of the loan with a competitive rate, putting you on a path to paying off debt.
A credit card consolidation loan could also diversify your credit mix and help improve your credit, as you reduce your total debt by making on-time monthly payments.
Why pay off credit cards with a personal loan?
Lock in a fixed rate
Pay down your debt
Improve your credit score
Personal loans vs. Credit cards
Personal loans
- Installment loans can help you pay down debt and take control of your budget
- Single, fixed rate monthly payment is easy to manage
- Fixed monthly payment and payoff date saves you money over time
- Lower average APRs compared to credit cards2
Credit cards
- Revolving credit accounts can lead to overspending
- Managing multiple credit cards with variable due dates, limits, and terms is time consuming and stressful
- Low minimum monthly payments and revolving compound interest can trap you in a cycle of debt
- Higher average APRs are an expensive way to pay for large purchases
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. The interest rate on your loan won't change once you lock in your rate, allowing you to focus on paying down what you owe with one monthly payment.
Reducing debt and maintaining low credit balances may contribute to an improvement in a credit score, but results are not guaranteed. Individual results vary based on multiple factors, including but not limited to payment history and credit utilization.
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 interest rate. A lower interest rate will help you reduce your total debt expense and pay the debt off faster as long as you don't accumulate additional debt.
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.
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 a 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.
Dive deeper on debt consolidation
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