Credit Card Refinance Rates Today | Top Credit Card Refinance Loans
Millions of Americans are struggling with credit card debt—a fact which is hardly surprising given that credit card interest rates continue to steadily increase.
In fact, according to a recent report from WalletHub, the average credit card debt per household has increased to more than $8,000.
When maxed-out cards begin piling up, it can be challenging to stay on top of interest rates and minimum payment amounts.
If you’re feeling overwhelmed by the amount of debt in your back pocket, credit card refinancing is a great way to get debt organized, manageable, and under control.
Perhaps the most important component of credit card refinancing comes from finding the best credit card refinance rates. In fact, with lower rates, paying down debt can even become more affordable over the long run.
What is Credit Card Refinancing?
Credit card refinancing is the process of combining old debts and rolling them into one new debt.
Not only does this make payments much more convenient, but ideally, the new debt will come with better interest rates, making it easier to pay the balance down.
Most consumers use one of these three credit card refinancing methods:
- Balance transfer credit cards
- Home equity loans
- Credit card refinance loans
Balance transfer cards are a good way to secure promotional APR rates and save on interest—but if you have a large amount of debt, balance transfer cards may not be effective, since you’ll be limited to only transferring the balance of your new credit line.
Home equity loans allow borrowers to use their home as collateral for the loan. While they may seem like an easy way to refinance credit cards, these types of loans are very risky, since your home may be seized if the loan is not paid.
Credit card refinance loans—or debt consolidation loans—tend to be the best choice for credit card refinancing. Payment amounts and the loan duration are both fixed, making it easy to create a manageable financial plan.
Not only is it easy to consolidate a wide range of debt into one payment, but depending on the loan terms and your credit score, these loans often provide the best credit card refinance rates.
Where to Find Credit Card Refinance Loans
There are plenty of different lenders to choose from for credit card refinancing, which means there are many resources to find the best credit card refinance rates for you.
Refinance rates can vary greatly from one lender to the next, depending on personal factors like credit score, income, and loan amount.
Online lenders are growing in popularity, and many consumers find that they have the best terms and lowest rates. Lenders can choose from online-only banks, lending companies, or even peer-to-peer platforms to get low credit card refinance rates.
It’s also hard to argue against the sheer convenience offered by an online lender.
Not only are loan applications easier to fill out, but they also tend to have the quickest response rates, meaning that you could potentially get an answer within hours.
Keep in mind that the best credit card refinance rates will go to borrowers with the best credit scores. If your credit is in decent shape, choosing an online lender is a great way to go.
If you are a member of a credit union—or are eligible to become one—a credit union can be a great resource for credit card refinance rates.
Because credit unions tend to have lower operating costs, their loan products often have competitive rates and flexible terms for repayment, which certainly makes debt management much easier over the long-term.
If you have an existing relationship with a local bank, you may want to examine their options for credit card refinance products. Having a positive lending relationship with a brick-and-mortar bank is a go-to option for borrowers who prefer in-person meetings to discuss credit refinance rates and terms.
Keep in mind, however, that banks tend to have stricter requirements for credit scores, which may make credit card refinance products difficult for borrowers with less than ideal credit.
AdvisoryHQ (AHQ) Disclaimer: Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info. Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.
AdvisoryHQ (AHQ) Disclaimer:
Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.
Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.