A Complete Guide to Credit Card Refinancing | Credit Direct Blog

Achieving financial freedom starts with purging your credit card debt. This can be a long road for many Americans, as credit card balances continue to inch up, reaching $420.22 billion in late 2018. This is an increase of five percent over last year. Something has to be done. It can seem insurmountable, so why not get any help you can and refinance?

Credit Direct makes it easy. We offer personal loans that allow you to pay just one monthly payment, at a fixed APR and a set term. With a credit card refinancing loan, your monthly payment never changes. Plus, you will always know what your balance is and how long it will take you to pay it off. 


What is Credit Card Refinancing?

This is when credit card debt is consolidated into one easy payment. This will help you save interest on monthly payments and make it easier to pay each month because you just have one payment to worry about. The numbers don’t lie. If you’re continually making the minimum monthly payments on your high-interest credit cards, it may take years, not to mention thousands of dollars in interest before you can pay off your balance. There’s a simpler way to manage your finances.


How Does it Work?

If you choose to refinance using a personal loan, you should first take a look at your current debts to learn how much money you will need to borrow.

Then, calculate your current interest payments to see how much you would save by consolidating your credit card debt with a personal loan. If the numbers make sense, you can apply online and get the process started. Tell us how much you need (up to $40,000), and provide us with some personal and financial information, and we’ll have a response to you within 24 hours.

That’s much quicker than a traditional bank!


Tips for Refinancing Credit Card Debt

  1. Before applying for a credit card refinancing loan, obtain your free annual credit report from each of the three major reporting agencies – Trans Union, Equifax and Experian. Check them all for accuracy and take steps to get things corrected if you spot errors.
  2. Take inventory of your current debt and get all amounts down on paper.
  3. Determine your ability to pay. Budgeting is a vital part of ensuring any credit card debt refinance will work over the long haul. Take at least six months of bills to budget all of your income as well as spending. Where can you make cuts to pay off the highest amount every month? How long it will take you to pay off your existing debt with no interest? How long will it take you with a given range of interest rates, such as six, 10 and 12 percent interest over three, five and 10 years? What would your monthly payments be? This will help you know which interest rate would be acceptable to you.
  4. Look for an appropriate lender. Shop around, as there are several lenders out there offering loans to refinance credit card debt. Read customer reviews, ask others, and do your research to see which company would be best for your needs.
  5. Compare rates, and make sure the numbers make sense for refinancing in this manner.
  6. Once you find the offer that’s best for you, apply, await the decision, and start enjoying financial freedom.

Be sure to consider all factors, as your interest rate is not the only component of securing a good loan. Make sure you don’t have to pay excessive fees and penalties for late payments or paying off debt early. Working with a lender you trust is important, as this offers you a certain degree of comfort and understanding that will save you frustration and stress in the future.


Personal Loans for Credit Card Debt

Determining if a personal loan is the right option for paying down your credit card debt takes time, reflection and research. There may be other options that would work out better in your favor, such as using a balance transfer credit card for smaller amounts. However, if you don’t have good credit or don’t think you can pay off your debt within the introductory zero-interest period, a personal loan may be a better choice.

A personal loan will give you more time to pay than a 0% APR credit card. But before you apply, it’s important to know the basics of personal loans.

There are two types of types of personal loans: secured (you put up collateral, such as a car) and unsecured (no collateral). For the purposes of consolidating credit card debt, an unsecured loan is typically used. 

The term on credit card refinancing loans range from a few months to five years. Some lenders give you no more than $10,000 while others give you more, like Credit Direct which gives you up to $40,000. The interest rate you receive will depend on your credit score and length of the loan.

Once you’ve decided to go ahead and apply for a personal loan, your main goal will be to lock in the best possible personal loan rate, obtain flexible terms, and know that you’ll be able to trust your lender as much as they trust you.


Contact Credit Direct

The process of credit card refinancing in Alabama is easy. Just visit our site, select your loan amount, view your loan options, accept and sign, and receive your money. Apply now and see just how easy it is to refinance your credit card debt with personal loans!


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