Refinance credit card debt with a personal loan

Credit card refinancing, sometimes called credit card consolidation or debt consolidation, lets you combine multiple credit card payments into one fixed monthly payment with a personal loan. Instead of juggling multiple due dates and variable rates, you'll have one predictable payment and a clear date when your credit card debt will be paid off. 

Since personal loans through Upgrade have fixed interest rates, your rate will never go up and you may save on interest over time. Learn more about paying off your credit cards.

The Debt Payoff feature may appear when you check your rate with Upgrade. It allows you to use all or part of your loan to pay off existing debt. If you're approved for a personal loan and select this option, you'll tell Upgrade which credit card debts or personal loans you'd like to pay and how much of your new loan you'd like to put towards each. Upgrade will then coordinate sending the funds directly to your previous creditors.

A personal loan gives you a fixed interest rate and a set payoff date — a balance transfer moves debt to another credit card, which typically comes with a transfer fee, a credit limit that may not cover your full balance, and variable rates that can still go up. You also can't transfer a balance between cards from the same issuer.

For most people carrying significant credit card debt, a personal loan offers more predictability and a clear path to paying off your debt. Learn more about revolving debt (credit cards) vs. installment debt (personal loans).

Refinancing credit card debt with a personal loan increases your available credit. If the amount of credit you're using stays consistent and your available credit increases, your credit utilization ratio will be lower — which can help increase your credit score.

Additionally, making on-time payments on your new personal loan can improve your payment history, which is the biggest factor behind your credit score. Checking your rate with Upgrade won't impact your credit score.

Upgrade considers more than just your credit score when reviewing your application — including your income, employment, and overall financial profile. While there's no single minimum score required, a higher credit score generally improves your chances of approval and may help you qualify for a better rate. You can check your rate in minutes without any impact to your credit score.

The amount you save depends on your current credit card interest rates compared to the personal loan rate you qualify for. If your personal loan rate is lower than your credit card APR, you could save money on interest over the life of the loan.

Use a personal loan calculator to estimate your monthly payment and see what consolidating your credit card debt could look like for your situation.