Consolidating credit card debt impact credit score
These cards offer 0% APR promotions for a period, allowing you to pay down your debt with no interest at all.
Most cards, however, charge a balance transfer fee, which is usually between 3 percent and 5 percent.
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.
If you qualified for a three-year personal loan with 12.00% APR, your monthly payment would be 3, and you’d pay 3 in total interest over the life of the loan.
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.
Not all personal loan companies offer low interest rates.
For example, Avant offers interest rates ranging from APR.