Frequently Asked Questions about Credit Card Consolidation Loans

Here are the most commonly asked questions about credit card consolidation loans.

What is a credit card consolidation loan?

A credit card consolidation loan is a service that bundles all of your credit card debt into one, lower interest loan. Often, this reduces both your interest rates and your monthly payments. With a credit card consolidation loan, you will make one payment to one creditor (the consolidation service) monthly. The consolidation company then divvies up your payment among your creditors, so your bills always get paid on time.

How do I apply for a credit card consolidation loan?

Just click "apply now" anywhere on our site to fill out our simple online application for a credit card consolidation loan. The application can be completed in a matter of minutes. In return, we will provide you with a free quote on a credit card consolidation loan. Our quote is completely obligation-free.

Is a credit card consolidation loan right for me?

Anyone who is struggling with credit card debt or would just like to make managing unsecured debt a little more convenient is a good candidate for a consolidation loan. Usually, you must have at least $5,000 in unsecured debt to qualify. Many of our applicants would like to reduce their monthly payments, lower their interest rates, get out of debt faster, and/or reduce the hassle of paying dozens of creditors each month. Check out the next page for unsecured debt facts

Will a credit card consolidation loan hurt my credit?

No, a credit card consolidation loan will not have a negative effect on your credit. For most people, the loan actually helps improve their credit because it lowers your debt-to-income ratio and ensures that your payments are always made on time. With the lower monthly payments a credit card consolidation loan can offer, it's also much easier to pay your bills responsibly, which will do wonders for your credit.

How much will a credit card consolidation loan cost?

A credit card consolidation loan usually involves a commission and a monthly administrative fee. The commission is usually based on the amount of your first payment to the consolidation service. For example, if your payments were reduced from $400 to $150 per month, the amount of your first payment would be $300 because it includes the one-time commission fee. After the first month, your payment would remain at $150 plus the monthly administrative fee. This fee usually ranges from $10-$40 and can be charged on a percentage or flat-rate basis.

How soon can I get out of debt with a credit card consolidation loan?

With a credit card consolidation loan, most of our customers get out of debt in 4-8 years. This time will vary, of course, by the amount of debt you have and the negotiated rates of your creditors.