If you’re feeling overwhelmed by credit card debt, you’re not alone. In 2025, more Americans are turning to personal loans as a smart strategy to pay off high-interest credit card balances. With lower interest rates, fixed repayment terms, and fast approval processes, the best personal loans to pay off credit cards can help you regain control of your finances.
Why Use a Personal Loan to Pay Off Credit Card Debt?
Credit cards often come with high variable interest rates—sometimes over 20%. In contrast, personal loans usually offer fixed interest rates ranging from 6% to 12% for borrowers with good credit. This means you could potentially save hundreds or even thousands of dollars in interest over time.
Here are the key benefits:
- Lower interest rates compared to most credit cards
- Fixed monthly payments that simplify budgeting
- Defined repayment term so you know when you’ll be debt-free
- No collateral required (unsecured loan)
Top Personal Loan Lenders to Consider in 2025
Here are some of the top-rated lenders offering competitive personal loans for credit card debt repayment in 2025:
1. SoFi
- APR: 5.99% – 20.00%
- Loan Amounts: $5,000 – $100,000
- No fees and offers unemployment protection
- Ideal for borrowers with strong credit profiles
2. LightStream
- APR: 6.99% – 21.49%
- Loan Amounts: $5,000 – $100,000
- No fees and fast funding (as soon as the same day)
- Best for excellent credit and large loan amounts
3. Upstart
- APR: 7.80% – 35.99%
- Loan Amounts: $1,000 – $50,000
- AI-driven underwriting allows fair chances for those with limited credit
- Best for fair to good credit
4. Marcus by Goldman Sachs
- APR: 6.99% – 24.99%
- Loan Amounts: $3,500 – $40,000
- No fees and flexible payment options
- Strong reputation and reliable customer service
5. Discover Personal Loans
- APR: 7.99% – 24.99%
- Loan Amounts: $2,500 – $35,000
- Directly pays creditors if you’re consolidating credit card debt
- Great option for streamlining your debt repayment
How to Choose the Best Loan for Your Needs
When comparing personal loans to pay off credit cards, consider the following:
- Interest rate (APR): Lower is better, but balance with other terms
- Loan term: Shorter terms save money on interest, but increase monthly payments
- Fees: Watch for origination or prepayment penalties
- Customer reviews: Choose reputable lenders with transparent terms
Final Thoughts
Taking out a personal loan to pay off credit cards can be a powerful tool for debt consolidation and financial stability—especially when chosen wisely. Whether you’re looking for the lowest rates, flexible repayment options, or fast funding, the options in 2025 are better than ever.
Ready to eliminate your credit card debt? Start by comparing the best personal loan offers today and take one step closer to financial freedom.
