what is credit card refinancing

Credit card refinancing is the process of replacing high-interest credit card payments with a single, lower-interest payment. It can be done through a credit card refinancing loan or a balance transfer credit card. Credit card refinancing and debt consolidation are very similar, and they both achieve the same outcome: a single, manageable payment instead of a monthly juggling act as you try to make payments on time. However, there are a few differences between credit card refinancing and debt consolidation. Credit card refinancing focuses solely on revolving credit card debt and allows you to lower your interest rates using a loan with favorable terms. On the other hand, debt consolidation can slash your APR, while also providing the convenience of a single, easy-to-manage monthly payment. Credit card refinancing typically utilizes a balance transfer credit card that has a 0% or low-interest rate for a short time, while debt consolidation utilizes a personal loan, which allows for higher balances to be paid off over a longer payback period. If you have a balance on a credit card that’s costing you a lot in interest, you might consider transferring the balance to a card with a lower or even 0% introductory APR, which often lasts for 12-18 months.