Consolidate your debt

With a personal loan through Upgrade, you can borrow $1,000 to $50,000. Funds are sent directly to the account that you choose within a day of clearing necessary verifications.

You can make additional payments on your loan at any time without any prepayment fees.

Check out this blog article for more tips on how to make the most of your loan.

A personal loan through Upgrade is a good option for high-interest debt consolidation because it offers:

• A fixed-interest rate that won’t change
• A clear payoff date to add to your timeline
• Fast funding† so you can take action right away

This helps you avoid the unpredictability of credit card rates and may save you money over time.

Debt consolidation allows you to combine multiple credit card debts and/or personal loan payments into one monthly payment. You’ll make a single monthly payment instead of one for each credit card and loan. You’ll also have a date when you’ll be debt free - for example, if you get a loan with a 36 month term, you’ll know that your debts will be paid off in 36 months. Lastly, personal loans through Upgrade offer fixed interest rates. This means your interest rate will never go up, you can easily predict how much you’ll pay each month, and you may save on interest over time!

Upgrade’s Debt Payoff option helps you consolidate debt by using your personal loan to pay off credit cards or existing personal loans directly. The option may appear when checking your rate with Upgrade.

If approved, you can choose which debts to pay and how much of your loan should go toward each. Upgrade then sends the funds to your creditors, making the debt consolidation process simple and automated.

A balance transfer happens when you move debt from one account to another. This can help you lower your interest rate, but it has a few downsides. For one, you’ll typically be charged a balance transfer fee between 3-5% of the amount transferred. You may also have a low balance transfer card limit, which will keep you from transferring your full balance. Additionally, you won’t be able to transfer a balance from the same issuer. And since you’re transferring one credit card balance to another, you may still deal with variable interest rates that can cost you more money over time.

On the other hand, a personal loan gives you a fixed interest rate and a set date when you’ll have paid off your debt.

Consolidating debt with a personal loan increases your available credit. If the amount of credit you're using stays consistent and your available credit increases, your credit utilization ratio will be lower. This can help increase your credit score.

Additionally, if you make payments on your new personal loan on time, you’ll improve your payment history. Payment history is the biggest factor behind your credit score.

Learn more about how debt consolidation can impact your credit score.