Some even let you pre-qualify with a soft credit check, which won’t hurt your credit score.
If you can qualify for a low interest rate, a low or nonexistent origination fee, and a manageable monthly payment, the math could be in your favor.
Although there could be benefits to taking out a personal loan to pay off credit cards, it also carries inherent risks.
Research your options and weigh these cons against the pros before taking out a credit card consolidation loan.
Similar to when you are being sold any product or service, be sure to read the fine print understand what you are buying, and consult a licensed professional if you have any concerns.
Student Loan Hero is not a lender or investment advisor.
Please do your homework and let us know if you have any questions or concerns. This helps pay for our amazing staff of writers (many of which are paying back student loans of their own! So, if you’re neck-deep in credit card debt, find out how using a personal loan to pay off credit cards could be a good option for you.
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Keep in mind that there’s no guarantee your interest rate will be lower on a personal loan. Moving debt from multiple credit cards to one credit card consolidation loan can simplify your debt payoff.
For example, you won’t have to worry about various payment dates and amounts.
Not all personal loan companies offer low interest rates.
For example, Avant offers interest rates ranging from APR.