Loans are often used to consolidate existing debt, such as credit card balances, allowing you to reduce your overall interest charges, simplify the repayment process, and lower your monthly payment amount. With a credit card consolidation loan, you can take advantage of these benefits and pay off your credit cards as soon as your new loan is funded.
Here are some of the best credit card consolidation loans, including their key features.
Best credit card consolidation loans compared 2024
| Lender | Recommended for | APR range | Loan amount | Min income requirement | Credit score required |
|---|---|---|---|---|---|
Excellent customer service | 8.49% to 35.99% | $1,000 to $50,000 | No minimum required | 580 | |
Fast funding | 18.00% - 35.99% | $1,500 - $20,000 | No minimum required | Not disclosed | |
Fee-free consolidation | 7.99% to 24.99% | $2,500 to $40,000 | $25,000/yr | 660 | |
Borrowers with a low or limited credit score | 6.40% to 35.99% | $1,000 to $50,000 | $12,000/yr | 300 (if the borrower has a score at all) | |
Large credit card balances | 7.49% to 25.49% | $5,000 to $100,000 | Not disclosed | 660 | |
Simple debt payoff | 11.72% to 24.67% | $5,000 to $40,000 | Not disclosed | 640 | |
Secured loan options | 8.99% to 35.99% | $2,000 to $50,000 | Not disclosed | 640 |
Our recommendations
Best for customer service: Upgrade
Upgrade
Upgrade
APR
8.49% to 35.99%
Loan amount
$1,000 to $50,000
Term
24 to 84 months
Min. credit score
580
Min income requirement
No minimum required
Upgrade is a top-rated personal loan lender with a 4.5 out of 5 star rating on TrustPilot with more than 39,500 reviews. Upgrade offers personal loans ranging from $1,000 to $50,000, which can be used to consolidate and pay off existing credit card balances or other debts. Repayment terms on single-borrower or joint loans can vary from 24 to 84 months, and Upgrade offers a number of different discounts for things like having an Upgrade checking account or enrolling in autopay.
Upgrade consolidation loans have an origination fee ranging from 1.85% to 9.99%, which will increase your loan’s total cost. Borrowers also need a relatively good credit score (usually 600 or higher) to be approved and to qualify for Upgrade’s best interest rates.
Pros:
- High consumer ratings and customer service reviews.
- Many discounts and repayment options.
- Joint and co-signed loans available.
Cons:
- Origination fees apply.
- Borrowers will need good credit or better.
- Range of interest rates means some borrowers are offered higher-than-average APR.
Best for fast funding: OneMain Financial
OneMain Financial Bad Credit Loan
OneMain Financial Bad Credit Loan
APR
18.00% - 35.99%
Loan amount
$1,500 - $20,000
Term
2 to 5 years
Min. credit score
Not disclosed
Min income requirement
No minimum required
OneMain Financial offers both secured and unsecured personal loans that can be used to consolidate credit card debt or cover large expenses. Online pre-approval is as fast as 10 minutes, with some approved borrowers receiving funds within one hour. Joint applications are accepted if you want to consolidate shared debt, such as credit cards you have with your spouse, or if you just want to unlock better loan terms.
Repayment terms stretch from 2 to 5 years, and OneMain’s loan limits, which range from $1,500 - $20,000, are lower than those of other lenders. Origination fees also apply on OneMain Financial personal loans and can be as high as 10%, depending on your location and the loan options you choose.
Pros:
- Get funded as soon as in one hour.
- Secured and unsecured loan options.
- Joint loans available.
Cons:
- Above-average interest rates.
- Loan limits are lower than other lenders.
- Origination fees apply.
Best for no-fee consolidation: Discover
Discover
Discover
APR
7.99% to 24.99%
Loan amount
$2,500 to $40,000
Term
36 to 84 months
Min. credit score
660
Min income requirement
$12,000/yr
Discover is a household name that offers personal loans, credit cards, bank accounts, and other financial products. With a Discover personal loan, you can consolidate $2,500 to $40,000 in credit card or other debt with no origination or application fees and a competitive interest rate. Online pre-approval is available without a hard inquiry, and you’ll have between three and seven years to repay your loan.
There are no rate discounts for things like autopay, and Discover doesn’t issue joint loans. You’ll also need a household income of at least $25,000 and a credit score of 660 or higher to qualify.
Pros:
- No application or origination fees.
- Wide range of loan limits and repayment terms.
- Get pre-approved and check rates without affecting your credit.
Cons:
- Household income and minimum credit score requirements apply.
- Joint loans not available.
- No rate discounts.
Best for borrowers with a low or limited credit score: Upstart
Borrowers looking to consolidate $1,000 to $50,000 in credit card debt may want to consider Upstart for a personal loan. Funding is available in as little as a day with an online pre-approval that won’t affect your credit. Borrowers must meet Upstart’s $12,000 annual income requirement, but those with a credit score of just 300 (or even borrowers with little to no credit history) can still be approved.
Origination fees apply and can sometimes be as high as 12%. Repayment terms are somewhat limited, ranging from just 36 or 60 months in length. Upstart also doesn’t allow joint or co-signed loans.
Pros:
- Borrowers with low credit scores (or no credit history) accepted.
- Funding available in one business day.
- Online pre-approval without affecting credit.
Cons:
- Origination fees as high as 12% apply.
- Limited repayment terms offered.
- No joint loans.
Best for large credit card balances: LightStream
LightStream
LightStream
APR
7.49% to 25.49%
Loan amount
$5,000 to $100,000
Term
24 to 144 months
Min. credit score
660
Min income requirement
Not disclosed
If you’re looking to consolidate a lot of credit card debt or other balances, LightStream can give you access to $5,000 to $100,000, with funding as fast as the same business day. It offers flexible repayment terms, from 24 to 144 months, with no origination fees on new loans. Autopay discounts are also available for borrowers who enroll.
Loans start at $5,000, so you’ll want to look elsewhere if you only have a small amount of credit card debt. Unfortunately, LightStream doesn’t offer online pre-approval, and personal loans are limited to borrowers with good or excellent credit.
Pros:
- Borrow up to $100,000.
- No origination fees.
- Wide range of repayment terms.
Cons:
- Limited to borrowers with good credit or better.
- No online pre-approval offered.
- High loan minimum of $5,000.
Best for simple debt payoff: Happy Money
Happy Money
Happy Money
APR
11.72% to 24.67%
Loan amount
$5,000 to $40,000
Term
24 to 60 months
Min. credit score
640
Min income requirement
Not disclosed
A payoff loan through Happy Money is a specialized product designed to help borrowers consolidate their credit card debt. You can only use the loan to pay off existing debt, but Happy Money streamlines the process by paying your creditors directly, so you can avoid the hassle of doing it yourself. You can shop for rates and loan offers online in minutes without affecting your credit, and loans are available from $5,000 to $40,000.
Origination fees do apply, and vary by loan amount, repayment term, and the lender chosen. Borrowers must also have a credit score of 640 or higher to qualify, and loan funds can’t be used for anything other than credit card consolidation.
Pros:
- Specialized credit card payoff loan available.
- You can check rates without affecting credit.
- Shop multiple lenders and offers at once.
Cons:
- Can only be used to pay off credit card balances.
- Origination fees apply.
- Borrowers must meet a credit score minimum.
Best for secured loan options: Best Egg
Best Egg
Best Egg
APR
8.99% to 35.99%
Loan amount
$2,000 to $50,000
Term
36 to 60 months
Min. credit score
640
Min income requirement
Not disclosed
Whether you’re looking for better loan terms or a lower rate, a secured loan may be an option. Best Egg offers credit card consolidation loans secured by collateral such as the fixtures in your home. While borrowers are required to have a credit score of at least 640, Best Egg also considers non-credit factors when approving applications.
Repayment terms range from 36 to 60 months, and origination fees as high as 8.99% apply to most loans. Best Egg loans are not available in Iowa, Vermont, or West Virginia.
Pros:
- Unsecured or secured personal loans available.
- Eligibility is also determined by non-credit-score factors.
- Competitive interest rates.
Cons:
- Origination fees apply.
- Limited repayment terms.
- Not available in all states.
Methodology
To pick the best credit card consolidation loans and lenders, we looked at a number of factors, including the lenders’ minimum and maximum loan limits, available interest rates, and whether or not origination fees were charged (and if so, what those fees were). We also looked at repayment term options, whether borrowers could get rate discounts, and how quickly loan funds are typically disbursed by each lender.
Tips for comparing the best credit card consolidation loans
If you are in the market for a credit card consolidation loan, follow these tips to compare lenders and help determine which loan company is right for you.
Shop around
The most important thing to do is shop around before you choose a lender. Many lenders today offer online pre-approval without affecting your credit, so you can see what loan terms you’ll be offered without dinging your score. This will also help you find a loan with the right repayment terms for your budget.
Don’t forget fees
Some lenders charge fees on personal loans, whether you’re using the funds for debt consolidation or another purpose. These added costs, usually origination fees, can be as much as 12% of your total loan amount. Avoid these fees if possible.
Consider the ease of credit card payoff
Some lenders may disburse the loan funds directly to you, so you can repay your existing creditors. Others might send the loan funds directly to the credit card issuers, saving you the extra step.
Eligibility requirements for a credit card consolidation loan
In order to qualify for a credit card consolidation loan, you’ll need to meet each lender’s eligibility requirements. Here are some top things lenders will look at when assessing your application.
Credit score
The stronger your credit history, the less risk you pose to a lender. Some lenders don’t have minimum credit score requirements while others may only accept borrowers with good or excellent credit. Depending on your score and credit history, some lenders may be a better match for you than others. A higher credit score will typically open up more favorable loan options as well, such as higher loan limits, longer repayment terms, lower fees, and lower interest rates.
Income
Many lenders have minimum credit score requirements, which you must meet before being approved for a consolidation loan. Others will look at your income when determining your ability to repay the debt by measuring your debt-to-income ratio (DTI).
Loan amount
While you may be approved for a credit card consolidation loan, you might not qualify for the maximum that a lender offers. Your requested loan amount will affect your chances of approval, and personal factors such as your credit score, desired loan term, and household income will influence the loan amount for which you’re approved.
Alternatives to credit card consolidation loans
If you’re unsure whether a credit card consolidation loan is the right choice, here are some alternatives to consider.
Take advantage of a balance transfer
Some credit cards have promotional balance transfer offers for cardholders who have other credit card balances. These offers usually include a low interest rate or even 0% APR for a specific period of time on the balances transferred over. You will pay a fee, but it’s usually eclipsed by the APR savings.
Chase Freedom Unlimited®
Chase Freedom Unlimited®
Credit score
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Intro APR
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Balance transfer intro apr
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APR
reg_apr,reg_apr_type
Annual fees
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Welcome offer
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Why we like it
The card_name is a solid flat-rate earnings card with annual_fee_disclaimer annual fee. Although the 1.5% cash back doesn’t seem impressive at first glance, it becomes more valuable when combined with other rewards cards from Chase that can be redeemed for a far greater value.
This card is recommended for everyday use, whether for doctor copays or big box store purchases. It can be a large earner for cardmembers who want to get the most out of their everyday spending.
Credit card refinancing vs. debt consolidation
Instead of consolidating multiple credit cards into one loan, you can also refinance a single credit card balance. This is often the easiest solution if you aren’t carrying multiple balances.
Tap into your home equity
If you have equity in your home, you can tap into it with a home equity loan, home equity line of credit (HELOC), or cash-out refinance loan. Any of these will allow you to draw funds against your home equity, which you can use to pay off other debt.
Just be careful: While credit card debt is (typically) unsecured, home equity debt uses your home as collateral. If you default on a home-secured loan, your home could be at risk.
Debt management plan
Under a debt management plan, you work with an organization to negotiate a repayment plan with your creditors. These plans, which often extend over three to five years, will bring your accounts current and may even lower interest rates. You work with a debt counselor and pay the agency, which forwards your payments to creditors.
Debt settlement
If you are overwhelmed with unsecured debt balances, such as credit cards and personal loans, a debt settlement company like National Debt Relief may be able to help you pay less to creditors than your current balances.
National Debt Relief doesn’t offer loans. It’s a settlement company that negotiates with your creditors to reduce balances, especially if you are already behind on payments or in collections.
Borrowers should know that debt settlement programs can hurt credit scores. Even if balances are reduced, these plans can still come with hefty fees that average between 15% and 25% of the final balance owed.
However, if obtaining a consolidation loan is not an option, you may want to consider consulting a debt settlement company as a last resort.
More on the best credit card consolidation loans
Still want to know more about credit card consolidation loans? Here are a few more takeaways to keep in mind.
What is credit card consolidation?
Credit card consolidation combines two or more credit card balances into one new account, whether a personal loan, balance transfer, or other loan product. This new loan is used to pay off your existing creditors and clear out those balances; you’ll then continue making payments on your new loan or account moving forward.
How does credit card consolidation work?
By consolidating credit card balances, you’ll simplify and streamline the debt-repayment process. Instead of making payments on multiple accounts, you’ll only have one account to manage and make payments on moving forward.
Pros and cons of credit card consolidation loans
Pros:
- Simplifies credit card repayment.
- It can lower your average interest rate.
- You can reduce your monthly payment obligations.
- You may be able to remove a co-borrower from a balance.
Cons:
- May involve fees.
- Can extend the total cost of the debt.
- Can extend the length of repayment.
- May affect your credit score.
When should you get a credit card consolidation loan?
The best time to get a credit card consolidation loan is when you have more than one credit card balance and you either have an opportunity to reduce your overall interest rate, need to adjust your monthly payment obligation, or want to remove a co-borrower from an existing debt. If you qualify for a consolidation loan, you may be able to save money, reduce your monthly payments, get out of debt sooner, or, in some cases, all three.
TIME Stamp: A credit card consolidation loan can help you get out of debt faster
A credit card consolidation loan is a personal loan used to pay off and replace existing credit card balances. This loan may allow you to lower your overall interest rate and pay less in finance charges over the course of your debt repayment. You can also use a consolidation loan to adjust your monthly payment amount to better suit your budget, and you may get out of debt sooner than planned.
Frequently asked questions (FAQs)
Do consolidation loans hurt your credit score?
Refinancing and replacing credit card debt with a consolidation loan can hurt your credit score initially. This is because you are applying for and taking out a new loan, and adding an additional credit account to your credit report. However, as you pay off your credit card(s) and begin making payments on this new installment loan, your credit score will rebound, often rising higher than before.
What is a good company for consolidating credit card debt?
Many loan companies will help you consolidate credit card debt. The right one for you depends on your credit score, how much you need to borrow, finding the right repayment terms, and whether you want a lender that will pay off your creditors directly. Some popular options include our recommendations above.
What is the best loan to pay off credit card debt?
An unsecured personal loan is usually your best choice for consolidating credit card debt. It replaces unsecured debt with a new unsecured debt, hopefully at a lower APR, without your having to provide collateral to a lender. Many unsecured personal loans offer competitive interest rates and flexible repayment terms, allowing you to pick the lender and product that best suits you and your budget.
The information presented here is created independently from the TIME editorial staff. To learn more, see our About page.
I'm an expert in personal finance and credit management, and I've extensively researched and analyzed credit card consolidation loans. My expertise is backed by a deep understanding of financial products, industry trends, and customer experiences.
In the provided article, credit card consolidation loans are discussed as a method to manage and reduce existing debt. The article introduces various lenders and their key features, including APR ranges, loan amounts, minimum income requirements, and credit score requirements. Here's a breakdown of the concepts used in the article:
-
Upgrade:
- Recommended for: Excellent customer service.
- APR range: 8.49% to 35.99%.
- Loan amount: $1,000 to $50,000.
- Credit score required: 580.
- Pros: High consumer ratings, many discounts, joint and co-signed loans available.
- Cons: Origination fees apply, good credit required.
-
OneMain Financial:
- Recommended for: Fast funding.
- APR range: 18.00% to 35.99%.
- Loan amount: $1,500 to $20,000.
- Pros: Secured and unsecured loan options, joint loans available.
- Cons: Above-average interest rates, lower loan limits, origination fees apply.
-
Discover:
- Recommended for: Fee-free consolidation.
- APR range: 7.99% to 24.99%.
- Loan amount: $2,500 to $40,000.
- Credit score required: 660.
- Pros: No application or origination fees, wide range of loan limits and terms.
- Cons: Household income and credit score requirements apply, no joint loans.
-
Upstart:
- Recommended for: Borrowers with a low or limited credit score.
- APR range: 6.40% to 35.99%.
- Loan amount: $1,000 to $50,000.
- Min income requirement: $12,000/yr.
- Credit score required: 300 (if the borrower has a score at all).
- Pros: Funding available in one day, online pre-approval without affecting credit.
- Cons: Origination fees apply, limited repayment terms, no joint loans.
-
LightStream:
- Recommended for: Large credit card balances.
- APR range: 7.49% to 25.49%.
- Loan amount: $5,000 to $100,000.
- Credit score required: 660.
- Pros: Borrow up to $100,000, no origination fees, wide range of repayment terms.
- Cons: Limited to borrowers with good credit or better, no online pre-approval, high loan minimum.
-
Happy Money:
- Recommended for: Simple debt payoff.
- APR range: 11.72% to 24.67%.
- Loan amount: $5,000 to $40,000.
- Credit score required: 640.
- Pros: Specialized credit card payoff loan available, check rates without affecting credit.
- Cons: Can only be used to pay off credit card balances, origination fees apply.
-
Best Egg:
- Recommended for: Secured loan options.
- APR range: 8.99% to 35.99%.
- Loan amount: $2,000 to $50,000.
- Credit score required: 640.
- Pros: Unsecured or secured personal loans available, competitive interest rates.
- Cons: Origination fees apply, limited repayment terms, not available in all states.
Additionally, the article provides a methodology for selecting the best credit card consolidation loans, tips for comparing lenders, eligibility requirements, alternatives to credit card consolidation loans, and information on credit card refinancing vs. debt consolidation. The methodology includes factors such as loan limits, interest rates, origination fees, repayment terms, rate discounts, and disbursal speed.
It also covers tips for comparing lenders, considering fees, and evaluating the ease of credit card payoff. The eligibility requirements section discusses the importance of credit score, income, and the requested loan amount. Alternatives to credit card consolidation loans, such as balance transfers, home equity options, debt management plans, and debt settlement, are presented. Finally, the article concludes with information on the pros and cons of credit card consolidation loans, the best times to get them, and frequently asked questions about their impact on credit scores and the overall debt repayment process.
