Top-Choices for Consolidation Loans Credit Card in 2021

[Consolidate Your Debt]

Are you drowning in several high-interest credit card debts? Though it may look bleak now, our list of the best credit card consolidation loans can help you find a way out. On our quest to aid you with paying off your debt, we’ve featured:

Our methodology
Reviews
Buyer’s guide
Pros and cons
FAQ

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7 Best Debt Consolidation Loans — Reviews 2021

1. SoFi

SoFi offers one of the best loans to pay off credit cards. Unemployment protection and AutoPay discount ensure peace of mind, and you can find out whether you pre-qualify in only two minutes. Full Review

  • No fees or penalties
  • Long repayment period
  • Pre-qualification
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SoFi offers one of the best loans to pay off credit cards. Unemployment protection and AutoPay discount ensure peace of mind, and you can find out whether you pre-qualify in only two minutes. Full Review

Application Process

★★★★★ 5/5

Eligibility Requirements

★★★★☆ 4/5

Credibility & Reputation

★★★☆☆ 3/5

Fees & Repayment Terms

★★★★★ 5/5

2. Upstart

Upstart is a great solution for those with bad credit, who make at least $12,000 annually. Not only can you pre-qualify, you can also get funded in a single business day. Full Review

  • Pre-qualification available
  • Funding in one business day
  • Minimum credit score of 600
VISIT SITE

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Upstart is a great solution for those with bad credit, who make at least $12,000 annually. Not only can you pre-qualify, you can also get funded in a single business day. Full Review

Application Process

★★★★★ 5/5

Eligibility Requirements

★★★☆☆ 3/5

Credibility & Reputation

★★★★★ 5/5

Fees & Repayment Terms

★★★★★ 5/5

3. Payoff

With only one possible fee, very low minimum APR, and reasonable requirements, Payoff is a great choice for credit card consolidation loans. The company will even work with you on payments in case you lose your job. Full Review

  • Monthly FICO score updates
  • Low minimum APR
  • Help in case of losing one’s job
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With only one possible fee, very low minimum APR, and reasonable requirements, Payoff is a great choice for credit card consolidation loans. The company will even work with you on payments in case you lose your job. Full Review

Application Process

★★★★☆ 4/5

Eligibility Requirements

★★★☆☆ 3/5

Credibility & Reputation

★★★★★ 5/5

Fees & Repayment Terms

★★★★★ 5/5

4. OneLoanPlace

No matter what your credit score is, chances are you’ll find a fitting lender on OneLoanPlace. You can request up to $150,000, while helpful agents and advanced technology help you find the creditor who best fits your needs. Full Review

  • Helpful agents
  • High loan amounts
  • Lenders available from all 50 states
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No matter what your credit score is, chances are you’ll find a fitting lender on OneLoanPlace. You can request up to $150,000, while helpful agents and advanced technology help you find the creditor who best fits your needs. Full Review

Application Process

★★★★☆ 4/5

Eligibility Requirements

★★★☆☆ 3/5

Credibility & Reputation

★★★★☆ 4/5

Fees & Repayment Terms

★★★★★ 5/5

5. Avant

If your credit score is 580, take advantage of Avant’s credit card consolidation loan. You can perform a soft credit check first and then enjoy the possibility of next-day funding. Full Review

  • The bank is an FDIC member
  • Low minimum credit score required
  • Funding in one business day
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If your credit score is 580, take advantage of Avant’s credit card consolidation loan. You can perform a soft credit check first and then enjoy the possibility of next-day funding. Full Review

Application Process

★★★★☆ 4/5

Eligibility Requirements

★★★★★ 5/5

Credibility & Reputation

★★★★★ 5/5

Fees & Repayment Terms

★★★★★ 5/5

6. OneMain Financial

OneMain Financial helps you determine what kind of loan you need and offers you benefits like free access to your credit score, joint loans, and same-day funding. Full Review

  • Joint and secured loans
  • No minimum credit score required
  • Same-day funding
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OneMain Financial helps you determine what kind of loan you need and offers you benefits like free access to your credit score, joint loans, and same-day funding. Full Review

Application Process

★★★★☆ 4/5

Eligibility Requirements

★★★★★ 5/5

Credibility & Reputation

★★★☆☆ 3/5

Fees & Repayment Terms

★★★★★ 5/5

7. Best Egg

High earners looking for reasonable rates and a company ready to help when they’re struggling definitely need to check out Best Egg. They can pre-qualify and get funded in a single day. Full Review

  • Issued by a member of FDIC
  • Funding in one business day
  • Low minimum APR
VISIT SITE

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High earners looking for reasonable rates and a company ready to help when they’re struggling definitely need to check out Best Egg. They can pre-qualify and get funded in a single day. Full Review

Application Process

★★★★★ 5/5

Eligibility Requirements

★★★★★ 5/5

Credibility & Reputation

★★★★★ 5/5

Fees & Repayment Terms

★★★★★ 5/5

Our Methodology

Not every credit card consolidation loan offers the same possibilities when it comes to high credit card balances. Building this list required careful consideration of several important factors such as APRs, fees, and loan terms. Here’s everything we based our choices on:

  • Requirements

If you are on the lookout for the top debt consolidation loans you usually don’t have a perfect credit score. Therefore, we made sure that all the lending institutions that made it on our list have reasonable requirements when it comes to credit scores, debt-to-income ratio, and so on.

  • Application Process

Once you realize that getting a credit card consolidation loan is your best option, knowing whether you qualify right away is crucial. We’ve featured several lending institutions that provide a soft credit check, and ensured that all lenders have a short and quick application process.

  • Lender Type

To provide you with the best way to consolidate your credit card debt, our list consists both of direct lenders and lending marketplaces.

  • APRs, Fees, and Penalties

The main differences between loans come in the form of annual percentage rates (APRs) and fees such as prepayment or origination fees. We looked for lenders offering the best fixed-rate APRs and the fewest fees.

  • Loan Terms

The longest repayment times on our list reach an astounding seven years, so you don’t have to worry about having enough time to repay your loan.

  • Lender Reputation

Low-interest consolidation loans with long repayment terms aren’t worth much without positive feedback from people who have actually used the service. For this reason, we looked at each lender’s reputation.

Detailed Reviews

SoFi
SoFi
SoFi

Best No-Fee Loans

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  • Unemployment protection
  • No fees or penalties
  • Long repayment period
  • Pre-qualification
  • Very high credit score needed for the lowest APR
  • Funding speed not disclosed
  • No direct payments to creditors

SoFi has no fees or penalties, but it does have unemployment protection. In just two minutes, you can see if you pre-qualify for a loan, and your credit score won’t be affected.

In order to qualify for this loan, you’ll need a credit score of 680 or more. The good news is that although it is one of the top debt consolidation loans, it doesn’t require anything else. It’s likely your annual income and debt-to-income ratio will be looked at, but as long as they’re enough to cover your expenses, you should be fine. However, one thing you shouldn’t expect is direct payments to creditors.

Once you’re approved, you can take anywhere between $5,000 and $100,000, and you’ll be expected to repay it in the span of 3 to 7 years. The AutoPay option will lower your APR to 0.25%, so your credit card consolidation loan rates will be quite decent at 5.99%-18.28%. One thing customers have noticed is that getting the lowest APR is difficult even with a good credit score. That being said, if you lose your job and it’s not your fault, your payments can be paused in three-month increments. Just be aware that the interests will accrue.

APR Range 5.99% – 18.28% (AutoPay included)
Loan Amount $5,000 – $100,000
Minimum Credit Score 680
Repayment Terms 3 to 7 years
Funding Speed Unknown
Upstart
Upstart
Upstart

Best Non-Traditional Underwriting Model

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  • Minimum credit score of 580
  • Pre-qualification available
  • Funding in one business day
  • Origination and late payment fees
  • Higher acceptance rate due to a unique underwriting model featuring AI

When it comes to the perfect debt consolidation loans for bad credit, Upstart has made quite a name for itself. Though it has certain credit, DTI, and annual income requirements, they are quite low and allow plenty of applicants to get approved. It also offers pre-qualification, next-day funding (one business day), and even accepts applicants with a credit score of only 580.

If your annual income is at least $12,000, and your debt-to-income ratio isn’t greater than 45%, you can be approved for this loan. Since such low credit scores are acceptable, it’s natural that the APR goes from a decent 6.95% to a typical 35.99%. You can get a loan as small as $1,000, as big as $50,000, or anything in between. When it comes to repayment terms, Upstart lets you repay the loan in 3 or 5 years.

Though there’s no prepayment penalty, Upstart does require these fees for its services:

  • Origination fee – 0%-8%
  • Late payment fee – $15 or 5% of the payment amount (whichever is greater), though there is a 10-day grace period

Should your loan be accepted before 5 p.m. (unless it’s a weekend or a holiday), you’ll get funding in just one business day.

APR Range 6.95% – 35.99%
Loan Amount $1,000 – $50,000
Minimum Credit Score 580
Repayment Terms 3-5 years
Funding Speed One business day
Payoff
Payoff
Payoff

Best for Those With Insecure Employment

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  • Help in case of losing one’s job
  • Monthly FICO score updates
  • Low minimum APR
  • No co-signing or secured loans
  • No direct payments to the creditor

This BBB-accredited company lets you easily pre-qualify for consolidation loans credit cards with a relatively low APR.

If your credit score is 640 or more and you have at least 3 years of credit history, you may be eligible for this loan. However, you also need an income of at least $40,000. Although that’s high as far as the greatest consolidation loans credit card go, it’s still lower than the US median. Another thing required is a debt-to-income ratio of less than 50%.

APR starts at only 5.99%, with the highest being 24.99%. The loans can be repaid in 2 to 5 years. If you’re eligible, you can receive a loan between $5,000 and $40,000 in 2 to 5 days.

The only other fee you may be paying on top of that is the origination fee of 0%-5%.

A huge benefit of going with Payoff is that, in case you lose your job, the company will work with you on payments. With these loans for credit card debt, you also receive monthly updates of your FICO score. Just be aware that direct payments to the creditor aren’t an option, and neither is co-signing or secured loans.

APR Range 5.99% – 24.99%
Loan Amount $5,000 – $40,000
Minimum Credit Score 640
Repayment Terms 2 to 5 years
Funding Speed 2 to 5 business days
OneLoanPlace
OneLoanPlace
OneLoanPlace

Best Choice of Lenders

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  • Lenders available from all 50 states
  • Helpful agents
  • High loan amounts
  • APR and funding speed depend on the lender
  • No guarantees you’ll find a creditor

With lenders from all 50 states, this marketplace gives you a greater chance of getting a personal loan to pay off credit card debt. Though the minimum credit score expected is 660, even if yours is lower, chances are you’ll be approved by at least one lender. Regardless, OneLoanPlace can’t guarantee you’ll definitely find a lender.

Whichever lender approves you, you’ll likely get an unsecured debt loan requiring no collateral. The marketplace itself requires no fees from applicants, while APRs and repayment terms depend on the lender. Although that can be a good thing, be sure to carefully review the lender’s fees and terms before accepting the loan. You can request a loan of up to $150,000, with repayment terms that go from 6 months to 5 years.

To help you get approved for these types of credit cards, OneLoanPlace provides you with free information. Simply request to speak to one of its Loan Representatives, and they’ll help you find what you need. Not only is the staff highly trained, professional, and according to customers, very helpful, OneLoanPlace also has advanced technology working for you. The technology it integrates makes sure you get matched with the kind of lender who can best help you.

APR Range Depends on the lender
Loan Amount $5,000 – $150,000
Minimum Credit Score 660
Repayment Terms 6 months to 5 years
Funding Speed Depends on the lender
Avant
Avant
Avant

Best for Bad Credit Borrowers

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  • Funding in one business day
  • The bank is an FDIC member
  • Low minimum credit score required
  • Several fees
  • High maximum APR

We can’t speak of the best debt consolidation loans for bad credit and not mention this BBB-accredited company. It’s enough to have a credit score of only 580 to qualify for this loan. With Avant, even those with bad credit can enjoy the perks of prequalification and next business day funding.

Another requirement Avant has is that your gross annual income is at least $20,000. However, that’s still far lower than the US median. If you tick all the boxes, you can request anything between $2,000 and $35,000. These loans are issued by (according to many) the most trusted bank for debt consolidation, WebBank, a member of FDIC. Should you be approved, you’ll have to repay it in 2 to 5 years.

If you’re thinking of taking a credit card consolidation loan from Avant, expect your APR to be somewhat high. The lowest one possible is 9.95%, with the highest being 35.99%.

There are a couple of fees as well:

  • Origination fee – 0.95%-4.75%
  • Late fee – $25, with a 10-day grace period
  • Unsuccessful payment fee – $15 (usually, though it varies across states)

Credit card consolidation loan reviews and customer reviews alike praise Avant for its quick and easy loan approval process and friendly representatives offering additional information and advice. You can also change your AutoPay payment date if you find one that works better for you. One downside is that co-signing is not an option.

APR Range 9.95%-35.99%
Loan Amount $2,000-$35,000
Minimum Credit Score 580
Repayment Terms 2-5 years
Funding Speed Next business day
OneMain Financial
OneMain Financial
OneMain Financial

Best for Same Day Funding

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  • Same-day funding
  • Joint and secured loans
  • No minimum credit score required
  • High average annual income requirement
  • High APR

How does getting a loan the same day, with no minimum credit score and no minimum annual income requirements sound? With this BBB-accredited lender, that’s exactly what you’re getting. It’s among the credit card consolidation companies that offer secured and joint loan options.

Given all that, it’s not surprising that OneMain Financial offers a maximum of $20,000 in consolidation loans credit cards. Depending on how much you borrow, you’ll have between 2 and 5 years to pay it off. And though there are no minimum requirements, on average, those who get approved have credit scores of 626 and an annual income of $49,000.

If you’re interested in these loans, be prepared for a high APR of 18.00%-35.99%. Certain fees are also to be expected given the number of benefits. Each fee comes either as a flat rate, or a percentage, and the exact debt consolidation loan rates depend on the state:

  • Origination fee
    • Flat – $25 – $400
    • Percentage – 1%-10%
  • Late fee
    • Flat – $5 – $30
    • Percentage – 1.5%-15%

Other than joint or secured loans, benefits include a debt consolidation calculator so you can see if you pre-qualify. You get free credit score access, and what customers really love are supportive one-on-one conversations to determine whether this type of loan is the best choice for you. Another benefit that few other best debt consolidation loans offer is same-day funding.

APR Range 18.00%–35.99%
Loan Amount $1,500–$20,000
Minimum Credit Score None
Repayment Terms 2 to 5 years
Funding Speed Same day
Best Egg
Best Egg
Best Egg

Best for High Earners

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  • Low minimum APR
  • Issued by a member of FDIC
  • Funding in one business day
  • Several fees
  • Not suitable for those with low income

If you’re looking for the ideal bank for a consolidation loan, Best Egg loans may be the answer. The loans you get from this company will come from Cross River Bank, which is a New Jersey State Chartered Commercial Bank, member of FDIC. Best Egg has the lowest maximum APR you’ll find, but you need to meet certain criteria in order to qualify.

In order to be approved for a loan of $2,000-$35,000, Best Egg requires you to have a credit score of at least 640, as well as three years and three accounts of credit history. Also, for this personal loan for credit card debt, your DTI should be less than 40% or less than 65% with a mortgage. The minimum annual income needed to qualify is $50,000. Besides an APR rate of 5.99%–29.99%, there are two fairly low fees you can expect:

  • Origination fee – 0.99%–6.99%
  • Late fee – $15

If you pre-qualify via a soft credit check, expect to be funded in a single business day. AutoPay is also an option, and you can even change your payment date. Finally, customers love this low-interest debt consolidation loan due to its quick and easy application process. Customers also appreciate this lender’s payment relief options in case you or your business are struggling.

APR Range 5.99%–29.99%
Loan Amount $2,000–$35,000
Minimum Credit Score 640
Repayment Terms 3 to 5 years
Funding Speed 1 business day

How to Choose the Best Credit Card Consolidation Loans – Guide

When choosing a consolidation loan credit card, you need to be careful about several things, but if you follow the tips we’ve prepared for you, making the right choice will be much easier. Here’s what you need to pay attention to:

  • Requirements.

Aiming at a lender who requires a credit score or an annual income higher than the ones you have won’t help you get the top-rated personal loans suitable for credit card consolidation. Instead, you’ll be wasting your time and affecting your credit score negatively every time the lender performs a hard check. It’s much better to be realistic about your eligibility for a certain loan, and give up those that aren’t likely to happen.

  • Loan Amount.

Choose a lender who offers the amount you need to cover your consolidated consumer debt but make sure you don’t borrow more money than you need.

  • APRs and Fees.

Depending on what kind of benefits they offer and how rigorous the requirements are, the ideal debt consolidation loans come with differing APRs and various fees. Make sure you choose a loan with rates you can pay off, and aim for fixed-rate loans.

  • Repayment Terms.

Give yourself enough time to repay the loan. While it may look appealing to get a longer repayment option, you’ll end up paying more money that way. Find terms that are both achievable and will help you save as much money as possible.

  • Avoid Scams.

When it comes to borrowing large sums of money, scams aren’t unusual. Know that reputable companies that provide debt consolidation loans would never claim that you’ll definitely get approved. No matter how good your credit score and annual income are, no one can tell you that, as many factors play a role in the lenders’ choice. Therefore, stay clear of lending institutions claiming something like that.

Pros and Cons of Consolidation Loans Credit Card

Although credit cards for consolidation loans are a good solution for many who struggle with credit card debt, they’re not the perfect way out for everyone. While it has plenty of pros, even the perfect debt consolidation loan has some cons as well. By listing them, we hope to help you evaluate whether this is the right choice.

Pros:

  • Paying off one debt.

When you have several debts lined up, keeping track of all payments and interest charges can be difficult. Consolidation loans replace them all with a single monthly payment.

  • Lower interest rate.

Not only are you getting a single payment instead of several, but these payments often come with better terms than the ones you’ve had before.

  • Paying off sooner.

The great loan consolidation rates also mean you’ll be able to pay off the debt sooner. Additionally, plenty of lenders don’t have prepayment terms to stop you from paying off the debt as soon as you can.

  • Boost your credit score.

If you keep making on-time payments, you’ll be boosting your credit score in the process.

Cons:

  • It’s another debt.

While these credit cards can be a great solution, they’re not a magical one. Be aware that it’s still a loan you’ll need to be paying off for a couple of years. Therefore, if you’re not great at financial management, even the top-rated credit card debt consolidation may not be right for you.

  • Higher rates.

While an interest rate on a consolidation loan can be lower than the previous one you’ve had to pay off, it’s not always the case. If your credit score isn’t that good or other factors don’t add up, it can even be higher.

  • Additional costs.

Unlike credit card debt, some consolidation loans have upfront fees such as origination, administration, or prepayment fees.

If after reading these you believe loan consolidation isn’t the right solution for you, there are several alternatives to try out, such as a balance transfer credit card, debt settlement, or a credit counseling program.

How to Apply for a Consolidation Loan Credit Card?

While you can technically apply for any credit card consolidation loan you see, it’s not a good idea. Doing that in a rush and without proper research can result in getting rates you’ll be unable to pay off. To make sure you find the best loan consolidation program for your credit card issues, try the following:

  • Research.

The first thing you should research in depth is how these credit cards work. Check out the alternatives and determine which option makes the most sense in your situation. Once you decide to go with a consolidation loan, research various lenders, see what they offer, and choose the one which seems best.

  • Pre-qualify.

If you’ve found a lender that allows a soft credit check, don’t miss out on that opportunity. By seeing whether or not you pre-qualify, you can give up on certain lenders before they perform a hard check, negatively affecting your credit score and rejecting you anyway.

  • Choose Loan Terms.

Once you find the best loans for credit card consolidation, you’ll likely find each comes with various loan terms. Choose the ones you find best and proceed.

  • Provide Basic Information.

Before your loan is finalized, the lender will require some more information from you. Once you provide info such as identity verification and proof of annual income, the lending institution should fund you.

How Do Credit Card Consolidation Loans Work?

If you have high credit card balances, you likely have a high credit utilization ratio as well. None of these are good for your credit score, but there’s a solution. Instead of paying off multiple credit card debts, a lender can consolidate them and offer you refinancing – taking another loan to pay off your existing ones. Doing that helps you streamline payment processes, get better debt consolidation loan rates, and improve your credit score.

Who Can Get a Debt Consolidation Loan?

Anyone who has multiple credit card debts is eligible for consolidation via a personal loan. However, not every lender will approve every application, as their requirements differ. In general, the better your credit score, the more lending institutions will fund you, and with a lower APR. But no matter whether you’re looking for debt consolidation loans for fair credit or a bad one, you’ll likely have some choices. That’s especially true if you have a certain annual income and debt-to-income ratio. While for some lenders the annual income required is as low as $12,000, others require it to be at least $50,000. When it comes to the debt-to-income ratio, if yours is less than 50%, you’re likely to find a lender. Finally, many lenders require you to have at least 3 years of credit history so they have enough data to base their decision on.
While these are some common rules that come up when we compare debt consolidation loans, they’re not set in stone. Not meeting some of these criteria may make it more difficult for you to find a lender, and you may need to spend more time researching and applying. However, chances are you’ll still be able to find one.

Trusted Consolidation Loans Credit Cards at a Glance

Key Takeouts

If you have high-interest credit card debts you simply cannot pay off on your own, a well-chosen credit card consolidation loan could be the answer. You’d be paying off only one debt instead of several which can benefit you in many ways. Not only does it make monthly payments easier, but more often than not, it also results in lower rates than the ones you’ve had. Finally, by making on-time payments, you’ll eventually boost your credit score. It’s a win-win scenario all around!

FAQ

Do consolidation loans hurt your credit score?

While a hard check that’s necessary for loan approval does hurt your credit score, the loan itself doesn’t. In fact, if you keep paying on time, you’ll actually be improving your credit score as you go.

Are consolidation loans credit cards a good idea?

If you have a number of high-interest credit card loans, they likely are. These credit cards turn multiple debts into a single one, often with better rates and additional benefits.

Who offers the best debt consolidation loans?

There’s no simple answer. Finding the best credit card consolidation loans for yourself depends on how big of a loan you need, what your credit score is, the size of your annual income, what kind of rates are acceptable to you, etc.