Credit card refinancing is the process of transferring existing credit card balances to a new card with lower rates or more favorable repayment terms. Credit card refinancing loans can also be used to consolidate all your existing balances into one simple monthly payment, ideally at a
lower rate.

In short, credit card refinancing can help borrowers save money on interest while continuing to pay off credit card debt.

It depends on the financial product you choose to refinance with. With a balance transfer credit card, once you’re approved, you can transfer existing balances to the new card with better terms. If you qualify for a lower rate, you could save money on interest.

With a Best Egg Credit Card Refinancing Loan, you can pay off your lenders with the funds, or we can pay off your existing credit card balances directly. Instead of making multiple credit card payments each month, you’ll only have to make a single, fixed loan payment.

Click here to read more about how balance transfer credit cards stack up against personal loans.

Although credit card refinancing is a type of debt consolidation and they share some similarities, they have important differences. Credit card refinancing specifically focuses on credit card balances, while debt consolidation can involve various types of debt. Learn more about the
differences here.

Refinancing credit card debt can help you save money on interest and consolidate your debt so it’s easier to manage. Better yet, as you pay off your credit card debt, your credit utilization ratio will improve. This, along with making on-time payments, could positively impact your credit
score.

Learn why refinancing credit cards with a personal loan could be a smart money move here.

The biggest risk of refinancing credit card debt is that your potential savings don’t outweigh the costs involved. It’s essential to compare offers and carefully review the terms of any financial product you’re applying for to make sure refinancing is worthwhile.

To refinance credit card debt, you’ll have to apply for a loan or credit card for that purpose. This can temporarily lower your credit score due to the new credit inquiry. With that said, as you continue to pay down your debt, your credit score should improve over time.

While credit cards may come with balance transfer or annual fees, the only fee you’ll pay with a Best Egg Credit Card Refinancing Loan is the one-time origination fee that’s included in the principal loan amount. There’s also a $15 returned payment fee if your payment doesn’t process
(usually due to returned checks or insufficient funds in the bank account).

Applying for a Best Egg Credit Card Refinancing Loan only takes a few minutes, and you’ll find out if you’re approved for an offer instantly. If you’re approved, money should be in your account within 1-3 business days*.