Best Credit Cards for Debt Consolidation: Our Top Picks

If you are struggling with multiple debts, such as credit cards, personal loans, or medical bills, you may benefit from debt consolidation. Debt consolidation is a process of combining all your debts into one single payment with a lower interest rate and a more manageable payment. This way, you can save money on interest, reduce your monthly payments, and simplify your debt repayment.

One of the ways to consolidate your debts is to use a credit card. A credit card can help you consolidate your debts by transferring your existing balances from other cards or loans to the new card, usually with a low or zero interest rate for a limited period of time. This way, you can pay off your debts faster and cheaper.

However, not all credit cards are suitable for debt consolidation. Some may charge high fees, interest rates, or penalties that can negate the benefits of debt consolidation. Therefore, it is important to find the best credit card for debt consolidation that suits your needs and budget.

In this article, we will explain what are the benefits and drawbacks of using a credit card for debt consolidation, how to choose the best credit card for debt consolidation, and what are our top picks for the best credit cards for debt consolidation.

What are the benefits of using a credit card for debt consolidation?

Using a credit card for debt consolidation can have several benefits, such as:

• Save money on interest: One of the main benefits of using a credit card for debt consolidation is that you can save money on interest. Many credit cards offer low or zero interest rates on balance transfers for a limited period of time, usually from 6 to 21 months. This means that you can pay off your debts without paying any or much interest during this period. This can help you save hundreds or thousands of dollars on interest, depending on your debt amount and interest rate.
• Simplify your payments: Another benefit of using a credit card for debt consolidation is that you can simplify your payments. Instead of paying multiple bills to different creditors every month, you only have to pay one bill to one creditor. This can make it easier to manage your finances and avoid missing or late payments.
• Improve your credit score: Using a credit card for debt consolidation can also help you improve your credit score. Your credit score is a numerical representation of your creditworthiness, or how likely you are to repay your debts on time. One of the factors that affect your credit score is your credit utilization ratio, which is the percentage of your available credit that you are using. By transferring your balances to a new card with a higher credit limit, you can lower your credit utilization ratio and boost your credit score. However, you should also avoid making new purchases on the new card or the old cards, as this can increase your credit utilization ratio and hurt your credit score.

What are the drawbacks of using a credit card for debt consolidation?

Using a credit card for debt consolidation can also have some drawbacks, such as:

• Risk of accumulating more debt: One of the main drawbacks of using a credit card for debt consolidation is that you may end up accumulating more debt. This can happen if you continue to use your old cards or the new card for new purchases, or if you fail to pay off the balance before the promotional period ends. If you do this, you will not only have to pay interest on the new purchases, but also on the transferred balance, which may revert to a higher interest rate after the promotional period ends. This can increase your debt amount and make it harder to pay off.
• Risk of paying higher interest rates: Another drawback of using a credit card for debt consolidation is that you may end up paying higher interest rates than before. This can happen if you transfer your balance to a card with a higher interest rate than your old cards, or if you fail to pay off the balance before the promotional period ends. If you do this, you will have to pay more interest on the remaining balance, which can increase your total cost of borrowing and negate the benefits of debt consolidation.
• Risk of damaging your credit score: Using a credit card for debt consolidation can also damage your credit score if you are not careful. This can happen if you apply for too many cards in a short period of time, as this can generate hard inquiries on your credit report, which can lower your credit score. This can also happen if you miss or make late payments on the new card or the old cards, as this can negatively affect your payment history, which is the most important factor in your credit score.

How to choose the best credit card for debt consolidation?

If you decide to use a credit card for debt consolidation, you need to choose the best credit card for debt consolidation that meets your needs and budget. To do this, you need to consider several factors, such as:

• APR: The APR, or annual percentage rate, is the total cost of borrowing money from a lender, expressed as a yearly percentage. The APR includes not only the interest rate, but also any fees, charges, or penalties that the lender may impose on the card. The APR gives you a more accurate picture of how much you will pay for the card over time. Therefore, when choosing a credit card for debt consolidation, you should look for a card that offers a low or zero APR on balance transfers for a long enough period of time to pay off your debts.
• Fees: The fees are the charges that the lender may impose on the card, such as annual fees, balance transfer fees, foreign transaction fees, or late fees. The fees add to the cost of using the card and reduce the benefits of debt consolidation. Therefore, when choosing a credit card for debt consolidation, you should look for a card that has low or no fees, especially on balance transfers.
• Terms: The terms are the conditions and rules that govern the use of the card, such as the credit limit, minimum payment, grace period, or rewards program. The terms affect how you can use the card and how much you can save or earn from it. Therefore, when choosing a credit card for debt consolidation, you should look for a card that has favorable terms that suit your needs and goals.

To choose the best credit card for debt consolidation, you also need to consider your personal situation, such as:

• Debt amount: The debt amount is the total amount of money that you owe to your creditors. The debt amount affects how much you can save on interest and how long it will take you to pay off your debts with a credit card. Therefore, when choosing a credit card for debt consolidation, you should look for a card that has a high enough credit limit to cover your debt amount, and a long enough balance transfer period to pay off your debts.
• Repayment ability: The repayment ability is your ability to pay off your debts with your income and expenses. The repayment ability affects how much you can afford to pay each month and how long it will take you to pay off your debts with a credit card. Therefore, when choosing a credit card for debt consolidation, you should look for a card that has a low enough monthly payment to fit your budget and cash flow.
• Credit score: Your credit score is a numerical representation of your creditworthiness, or how likely you are to repay your debts on time. Your credit score affects your eligibility and qualification for a credit card. Generally, the higher your credit score, the more likely you are to get approved for a credit card and qualify for a low or zero interest rate offer. Therefore, when choosing a credit card for debt consolidation, you should look for a card that matches your credit score and offers a competitive interest rate.

What are our top picks for the best credit cards for debt consolidation?

Based on our research and analysis, we have selected the following credit cards as our top picks for the best credit cards for debt consolidation. These cards offer low or zero interest rates on balance transfers, low or no fees, and favorable terms that can help you consolidate your debts and save money on interest. However, you should note that these cards are not guaranteed to be the best for everyone, and you should compare them with other options and consider your personal situation before applying for any of them.

• Citi Simplicity Card: The Citi Simplicity Card is our top pick for the best credit card for debt consolidation because it offers a long balance transfer period and no late fees. The card offers a 0% APR on balance transfers for 18 months, which is one of the longest periods available in the market. This means that you can pay off your debts without paying any interest for 18 months. The card also has no annual fee, no penalty APR, and no late fees, which can save you money and protect your credit score. The card has a balance transfer fee of 3% or $5, whichever is greater, which is reasonable compared to other cards. The card has a regular APR of 14.74% to 24.74%, which is variable and depends on your creditworthiness. The card has a credit limit of up to $25,000, which may not be enough to cover all your debts. The card has no rewards program, which may not be a deal-breaker if you are focused on debt consolidation.
• Discover it Balance Transfer: The Discover it Balance Transfer is our second pick for the best credit card for debt consolidation because it offers generous rewards and cashback match. The card offers a 0% APR on balance transfers for 18 months, which is one of the longest periods available in the market. This means that you can pay off your debts without paying any interest for 18 months. The card also has no annual fee, no foreign transaction fee, and no penalty APR, which can save you money and protect your credit score. The card has a balance transfer fee of 3% or $5, whichever is greater, which is reasonable compared to other cards. The card has a regular APR of 11.99% to 22.99%, which is variable and depends on your creditworthiness. The card has a credit limit of up to $25,000, which may not be enough to cover all your debts. The card has a rewards program that offers 5% cash back on rotating categories up to $1,500 per quarter, and 1% cash back on all other purchases. The card also matches all the cash back you earn in the first year, which can double your rewards. The card has a free credit score access and monitoring service, which can help you track your credit progress and alert you of any changes or issues.
• U.S. Bank Visa Platinum Card: The U.S. Bank Visa Platinum Card is our third pick for the best credit card for debt consolidation because it offers a low ongoing APR and cell phone protection. The card offers a 0% APR on balance transfers for 20 billing cycles, which is one of the longest periods available in the market. This means that you can pay off your debts without paying any interest for almost two years. The card also has no annual fee, which can save you money. The card has a balance transfer fee of 3% or $5, whichever is greater, which is reasonable compared to other cards. The card has a regular APR of 13.99% to 23.99%, which is variable and depends on your creditworthiness. The card has a credit limit of up to $25,000, which may not be enough to cover all your debts. The card has no rewards program, which may not be a deal-breaker if you are focused on debt consolidation. The card has a cell phone protection feature that covers up to $600 per claim and $1,200 per year for damage or theft of your cell phone, as long as you pay your monthly bill with the card.
• Amex EveryDay Credit Card: The Amex EveryDay Credit Card is our fourth pick for the best credit card for debt consolidation because it offers no balance transfer fee and bonus points. The card offers a 0% APR on balance transfers for 15 months, which is a decent period to pay off your debts without paying any interest. The card also has no annual fee, no foreign transaction fee, and no penalty APR, which can save you money and protect your credit score. The card has no balance transfer fee, which is rare and can save you hundreds of dollars compared to other cards. The card has a regular APR of 12.99% to 23.99%, which is variable and depends on your creditworthiness. The card has a credit limit of up to $25,000, which may not be enough to cover all your debts. The card has a rewards program that offers 2x points at US supermarkets up to $6,000 per year, and 1x points on all other purchases. The card also offers a 20% bonus on points if you make 20 or more purchases in a billing period. The card has a free credit score access and monitoring service, which can help you track your credit progress and alert you of any changes or issues.
• Chase Slate: The Chase Slate is our fifth pick for the best credit card for debt consolidation because it offers no balance transfer fee and free credit score access. The card offers a 0% APR on balance transfers for 15 months, which is a decent period to pay off your debts without paying any interest. The card also has no annual fee, which can save you money. The card has no balance transfer fee for the first 60 days of account opening, which is rare and can save you hundreds of dollars compared to other cards. The card has a regular APR of 14.99% to 23.74%, which is variable and depends on your creditworthiness. The card has a credit limit of up to $25,000, which may not be enough to cover all your debts. The card has no rewards program, which may not be a deal-breaker if you are focused on debt consolidation. The card has a free credit score access and monitoring service, which can help you track your credit progress and alert you of any changes or issues.

Conclusion

Using a credit card for debt consolidation can be a helpful strategy to manage your debts and save money on interest. However, finding the best credit card for debt consolidation can be challenging and requires careful research and comparison. You should also consider other factors besides the interest rate, such as the APR, fees, and terms of the card. You should also consider your debt amount, repayment ability, and credit score when choosing a card.

We have selected the Citi Simplicity Card, the Discover it Balance Transfer, the U.S. Bank Visa Platinum Card, the Amex EveryDay Credit Card, and the Chase Slate as our top picks for the best credit cards for debt consolidation. These cards offer low or zero interest rates on balance transfers, low or no fees, and favorable terms that can help you consolidate your debts and save money on interest. However, you should note that these cards are not guaranteed to be the best for everyone, and you should compare them with other options and consider your personal situation before applying for any of them.

We hope that this article has provided you with some useful information and guidance on how to find the best credit cards for debt consolidation. If you have any questions or comments, please feel free to contact us. We are always happy to hear from you and help you with your financial needs. Thank you for reading!