Best Credit Card Consolidation Loans in August 2023

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How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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Best credit card consolidation loans

Written by Alex Cook | Edited by Jessica Sain-Baird | Reviewed July 31, 2023

How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
LenderAPR rangeMinimum credit scoreLoan amountsLoan termsOrigination fee
Discover logo7.99% - 24.99%660$2,500 to $40,00036 to 84 monthsNone
11.52% - 24.81%640$5,000 to $40,00024 to 60 months0.00% - 5.00%
8.99% - 23.25%Not specified$5,000 to $45,00036 to 60 monthsNone
8.99% - 25.49% (with autopay)Not specified$5,000 to $100,00024 to 144 monthsNone
6.99% - 35.99%640$2,000 to $50,00024 to 60 months1.00% - 5.00%
SoFi logo8.99% - 25.81% (with autopay)680$5,000 to $100,00024 to 84 monthsNo origination fee required
4.60% - 35.99%300$1,000 to $50,00036 and 60 months0.00% - 12.00%

Annual percentage rate (APR) is a measure of your cost of borrowing and includes the interest rate plus other fees. Available APRs may differ based on your location. Read more about how we chose our lenders.

Trustpilot

Minimum credit score: 660
APR: 7.99% to 24.99%
Loan length: 36 to 84 months
Loan amount: $2,500 to $40,000
Origination fee: None

Discover is a credit card issuer that offers other banking and loan products, including personal loans that can consolidate credit card debt. Borrowers with lower credit scores may not be approved, but the lender offers competitive rates and the ability to prequalify for conditional loan terms while shopping for a rate. The lower loan size and income requirements may appeal to borrowers looking to refinance smaller credit card debts.

Read our full Discover personal loan review.

 

Minimum credit score: 640
APR: 11.52% to 24.81%
Loan length: 24 to 60 months
Loan amount: $5,000 to $40,000
Origination fee: 0.00% - 5.00%

Happy Money is an online loan marketplace featuring the “Payoff Loan,” specifically intended for refinancing credit cards. While Happy Money has a lower minimum APR than some competitors, certain borrowers will have to pay higher rates — plus potential origination fees. Happy Money requires a credit score of 640 or higher and zero current delinquencies before approving a personal loan. They also consider other factors like debt-to-income ratio and age of credit history in the application process.

Read our full Happy Money personal loan review.

 

Minimum credit score: Not specified
APR: 8.99% to 23.25%
Loan length: 36 to 60 months
Loan amount: $5,000 to $45,000
Origination fee: None

Laurel Road is an online lender owned by KeyBank, a large financial services company. The lender offers smaller personal loans for several purposes, including debt consolidation. Laurel Road offers lower loan rates, and borrowers with good credit and financial profiles can prequalify while shopping for loans. Its requirements for loan approval may be stricter than many competitors, though borrowers with lower credit scores could potentially improve their odds with a cosigner.

Read our full Laurel Road personal loan review.

 

Minimum credit score: Not specified
APR: 8.99% to 25.49% (with autopay)
Loan length: 24 to 144 months
Loan amount: $5,000 to $100,000
Origination fee: None

LightStream is another online lender owned by a large bank, Truist. LightStream offers a lower maximum APR than many lenders, especially with the autopay discount, but that may mean that borrowers with poor credit may not be approved. LightStream also doesn’t offer prequalification, unlike most other lenders, so you won’t be able to see if you can get a loan without taking a hard credit check.

Read our full LightStream personal loan review.

 

Minimum credit score: 640
APR: 6.99% to 35.99%
Loan length: 24 to 60 months
Loan amount: $2,000 to $50,000
Origination fee: 1.00% - 5.00%

Prosper is a unique, venture capital-backed loan marketplace that facilitates peer-to-peer lending. Prosper’s minimum credit score is lower than many credit card consolidation lenders, but there are origination fees and borrowers with poor credit may pay a high APR. Prosper allows you to prequalify to see if you might be eligible for a loan, and you can apply with a cosigner to improve your chances if they have better credit.

Read our full Prosper personal loan review.

 

SoFi logo

Minimum credit score: 680
APR: 8.99% to 25.81% (with autopay)
Loan length: 24 to 84 months
Loan amount: $5,000 to $100,000
Origination fee: No origination fee required

SoFi offers one of the most competitive personal loan products for good credit borrowers: its APR range is one of the lowest, its loan terms are flexible and it offers large loans. The best available APR includes a 0.25% autopay discount and 0.25% direct deposit discount. There are no required origination fees, but there are employment requirements (SoFi also accepts job offer letters during the application process). SoFi consolidation loans may not be a realistic option for borrowers with credit scores after falling into credit card debt.

Read our full SoFi personal loan review.

 

Upstart logo

Minimum credit score: 300
APR: 4.60% to 35.99%
Loan length: 36 and 60 months
Loan amount: $1,000 to $50,000
Origination fee: 0.00% - 12.00%

Upstart loans advertise the lowest minimum credit score of any lender, but subprime borrowers aren’t necessarily guaranteed to be approved. If they are, they could face a higher APR and origination fees. But, Upstart’s minimum loan size is just $1,000, so borrowers with smaller short-term financing needs could find them to be a good fit. Borrowers may be able to prequalify and find a competitive APR, as Upstart’s minimum APR is also lower than many competitors.

Read our full Upstart personal loan review.

How to use a personal loan to pay off credit cards

Credit card consolidation is the process of taking out a personal loan to pay off existing credit card debt, hopefully with more favorable terms. Depending on your credit score, income and level of existing debt, you could be able to refinance credit card debt at a lower rate than what you’re currently paying on your credit cards. In fact, a recent LendingTree study found that consolidating $10,000 worth of credit card debt into low-interest personal loan could save you up to $3,000.

Once you’ve gotten a credit card consolidation loan, you could either pay off your credit cards yourself, or your new creditor may do it directly. You’re not making the debt go away altogether, but this way, you pay off multiple credit cards and focus on a single loan instead. You’ll need to make regular payments on your credit card debt consolidation loan, but once you’ve paid it off, you’ll no longer hold that debt.

How to get a credit card debt consolidation loan

The process for getting a debt consolidation loan is similar to getting any other personal loan:

Determine your needs

Your first step will be reviewing the amount of credit card debt you owe and your credit rates (in other words, the interest rates and fees you’re currently paying). Once you have those numbers, you’ll know how much funding you need to refinance and what type of rates you’ll be looking for.

Research loans

Don’t necessarily choose a loan from the first lender you find. When making a big financial decision like taking out a consolidation loan, you’ll want to see what’s out there first — plenty of lenders work with people in a similar situation. Make sure that the math makes sense.

Prequalify

Be sure to shop around and prequalify with lenders. This tells you what lenders can offer you in terms of funding amount, monthly payment and interest rate. Prequalification involves a soft credit check, so you can safely find loan terms from several lenders without affecting your credit.

Apply for a loan

Once you’ve decided which lender you’d like to work with, you’ll have to apply for the loan, which will involve a hard credit check and a detailed review of your credit history and financial situation. You’ll likely have to include several documents confirming your identity and information.

Pay off your debt

Once you’ve been approved, your lender may help you pay off your credit card issuers — but some might not. You may have to pay the debts yourself once you receive the loan funds in your bank account. Then, you’ll begin to pay off the new consolidation loan on a monthly basis instead.

Pros and cons of using a personal loan to pay off credit cards

ProsCons

  Could save money by reducing overall amount of interest paid on the debt

  Sets a new payment schedule, which can reduce size of monthly payment

  Simplifies debt payments into a single monthly payment

  Could drive you deeper into debt if you can’t repay the new loan

  Might not reduce overall amount of interest payments on the debt

  May include origination fees on the new consolidation loan

Should I consolidate credit card debt?

Everyone’s financial situation is unique, and your decision whether to consolidate credit card debt ultimately will come down to whether the terms of your new loan would be better than the debt payments you’re already making.

  When it makes sense to consolidate credit card debt

  • If it lowers your monthly debt payment, so it becomes more manageable to pay on time
  • If you can find a better personal loan interest rate than what you’re paying on credit cards
  • If you’re having a difficult time deciding which debt payments to pay off first or how quickly

  When it doesn’t make sense to consolidate credit card debt

  • If you can’t find a personal loan with a lower APR than the rates you’re paying on your credit card debt
  • If you don’t want to take another hard credit check or you’ve opened several new accounts recently
  • If you don’t think you can make the new monthly payment consistently

How does credit card consolidation affect my credit score?

Taking out any new loan will cause your credit score to fall during the application process, but unless you’ve been opening new credit accounts (loans, credit cards, etc.) lately, the drop from that hard credit check shouldn’t be significant.

If you make regular debt payments on time, your credit score will gradually rise, but missing payments or becoming delinquent on the loan will hurt it. Debt consolidation loans can be a helpful part of the credit repair process, especially if you have been juggling several debt payments, but only if you can make your new payment each month.

Your credit score could also change, depending on how you handle your credit cards after consolidating the debt. For example, if you close your credit cards after paying them off, your total credit line would fall and your credit utilization ratio could be negatively impacted. On the other hand, taking out a personal loan could improve your credit mix slightly if you haven’t used that type of credit before.

Alternatives to credit card consolidation loans

If you’re considering how to consolidate credit card debt and don’t want a credit card consolidation loan, you have other options.

  Talk to your credit card issuer

Sometimes your credit card company may be willing to help work out a payment plan to let you repay your credit card bills, especially if you’ve fallen behind due to an extenuating circumstance, like a severe financial emergency or unexpected job loss. They want to make sure you’ll be able to pay the debt in full, so they might agree to smaller payments over a longer timeframe.

  Debt management plan via credit counseling

Credit counselors provide services to debtors, including contacting creditors to help negotiate, crafting debt management plans and providing budgeting advice. These accredited professionals often work for nonprofit companies that help people get out of debt and set them up for financial success. Their advice could be helpful if you’re in credit card debt.

  Debt snowball or debt avalanche method

There are many theories on the best way to pay off debt. Two common methods are the debt snowball or debt avalanche. With a snowball, you’ll focus on paying off the smallest debts first to build momentum and work your way toward bigger debts; with an avalanche, you’ll pay your highest interest debt first, regardless of size. Under either plan, you’ll also make minimum payments on all other debts.

  Balance transfer credit card with 0% APR offer

Some credit card issuers offer cards designed to help pay off credit card debt. With a balance transfer card, you can move all (or some) of your credit card debts to a new card. If it has a 0% APR introductory period, which often lasts over a year, you can make payments with interest paused. If you don’t successfully pay off the card by the end of that period, you could wind up deeper in debt.

How we chose our picks for best credit card consolidation loans

We reviewed more than 25 lenders to find the best credit card consolidation loan products available nationwide. We included different lenders that work with borrowers with varying credit profiles, and we also prioritized lenders based on the following factors:

  • Accessibility: Lenders are ranked higher if their personal loans are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
  • Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
  • Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.