I racked up a lot of credit card debt quickly after a major medical operation, and the interest is so high that even putting large amounts of my paycheck towards it monthly hasn't made a dent in the balance.
I have a good credit score, and my own bank (that holds the credit card) pre-approved me for a 10% APR personal loan enough to pay off the credit card balance to zero. I'd rather use my own bank, as its simple to manage the accounts all in one place.
The terms of service however state this:
"Credit cards issued by bankname or its affiliates, are not eligible for debt consolidation, and bankname will not issue payoff checks for these accounts."
Does that mean the loan cannot be used to pay off debt by the same bank? What stops loan borrowers from simply transferring the cash deposited into the checking account to pay the balance on the credit card account?