{"id":36633,"date":"2022-11-28T04:44:00","date_gmt":"2022-11-28T12:44:00","guid":{"rendered":"https:\/\/financer.com\/?post_type=wiki&p=36633"},"modified":"2024-08-22T09:45:47","modified_gmt":"2024-08-22T16:45:47","slug":"credit-card-refinancing","status":"publish","type":"wiki","link":"https:\/\/financer.com\/credit-cards\/articles\/credit-card-refinancing\/","title":{"rendered":"What is Credit Card Refinancing and How Does it Work?"},"content":{"rendered":"\n
Credit card refinancing allows you to transfer debt from an old credit card to a new credit card with a better pricing structure and more favorable terms. <\/p>\n\n\n\n\n\n
Credit card refinancing is a way of reducing the interest rate<\/a> on your credit card debt by transferring the balance to a new credit card with a lower interest rate.<\/p>\n\n\n\n When you refinance, you borrow new money to pay off old money. <\/p>\n\n\n\n Credit card refinancing is a simple way to lower your interest payments. You can move balances from various cards to a single card or personal loan<\/a> with a more favorable pricing structure.<\/p>\n\n\n\n As with everything in the world of loans and credit, your credit score<\/a> plays a huge role in credit card refinancing. <\/p>\n\n\n\n Your credit score will determine the rate you get when you are looking to refinance your credit card debt.\u00a0<\/p>\n\n\n\n Since the goal of refinancing is to get lower rates and better terms, ensure the rate and terms you are given during refinancing are lower and better than what you are currently paying.<\/p>\n\n\n\n When you refinance a credit card, you replace one card – with a high interest rate with another card – with a lower interest rate.\u00a0<\/p>\n\n\n Moving your balances to a credit card with a <\/span>0% APR<\/span><\/a> can save you a lot.<\/span><\/p><\/div>\n\n\n If you used a personal loan to refinance your credit card, you will get fixed rates and a specific date to pay off your debt.\u00a0<\/p>\n\n\n\n If you are refinancing your old credit card with a new credit card, look for a card that charges a zero percent APR on balances you transfer for a set period of time. <\/p>\n\n\n\n If you don’t qualify for a zero APR card, consider moving your balances to one of your cards with the least interest.\u00a0<\/p>\n\n\n Ensure the new loan has a lower interest rate and better terms than the old loan.\u00a0<\/p><\/div>\n\n\n Although some lenders will extend loans to borrowers with bad credit<\/a> scores, you will need to have good to excellent credit if you want to get the best rates for a personal loan.<\/p>\n\n\n Try not to incur additional charges on your new card or you could be piling up even more debt.\u00a0\u00a0<\/span><\/p><\/div>\n\n\n Credit card refinancing is a way of moving your credit card balances to a new card with a favorable pricing structure while debt consolidation<\/a> is the act of combining several loans into a single loan. <\/p>\n\n\n\n The table below highlights the differences between card refinancing and debt consolidation.\u00a0<\/p>\n\n\n\nHow Credit Card Refinancing Works\u00a0<\/strong><\/h2>\n\n\n\n
Credit Card Refinancing versus Debt Consolidation\u00a0<\/strong><\/h2>\n\n\n\n