Best Credit Card Consolidation Loans 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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Best Debt Consolidation Loans — Reviews

1. SoFi

No fees or penalties

Long repayment period

Pre-qualification

Best No-Fee Loans

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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.

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Application Process

Eligibility Requirements

Credibility & Reputation

Fees & Repayment Terms

2. LightStream

No fees or penalties

Long repayment period

Same day funding

Best Autopay Options

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LightStream is a great choice for everyone with a decent credit history. Quick applying, approval, and funding all allow you to start consolidating your credit card debt right away.

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Application Process

Eligibility Requirements

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3. OneLoanPlace

Helpful agents

High loan amounts

Lenders available from all 50 states

Best Choice Of Lenders

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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.

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Application Process

Eligibility Requirements

Credibility & Reputation

Fees & Repayment Terms

4. Upstart

Pre-qualification available

Funding in one business day

Minimum credit score of 600

Best For Those With A Low Annual Income

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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.

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Application Process

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5. Avant

The bank is an FDIC member

Low minimum credit score required

Funding in one business day

Best For Bad Credit Borrowers

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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.

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Application Process

Eligibility Requirements

Credibility & Reputation

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6. OneMain Financial

Joint and secured loans

No minimum credit score required

Same-day funding

Best For 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.

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Application Process

Eligibility Requirements

Credibility & Reputation

Fees & Repayment Terms

7. Payoff

Monthly FICO score updates

Low minimum APR

Help in case of losing one’s job

Best For Those With Insecure Employment

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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.

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Application Process

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Fees & Repayment Terms

8. Best Egg

Issued by a member of FDIC

Funding in one business day

Low minimum APR

Best For High Earners

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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.

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Application Process

Eligibility Requirements

Credibility & Reputation

Fees & Repayment Terms

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 best 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.

At a Glance

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

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

At a Glance

  • Same day funding
  • No fees or penalties
  • Long repayment period
  • Looking at 10 years old credit history
  • No prequalification

According to customers, LightStream has very friendly representatives who can get you funded the same day. And if you opt for AutoPay, your APR is automatically 0.50% lower. However, you need to select it prior to funding if you want to take advantage of this discount.

LightStream offers one of the few no-fee loans out there, and there are no penalties, either. For this unsecured debt consolidation loan, you need a credit score of at least 660 and an income big enough to cover the monthly payments. One thing you should be aware of is – LightStream will take a look at everything in your credit report, regardless of the current state of your credit score. For example, if you’ve had a personal bankruptcy or even charge-offs ten years ago, LightStream will probably know.

The APR is quite decent, especially with AutoPay – between 5.95% and 17.99%. Depending on the amount you take out, which can be $5,000 – $100,000, your repayment period will be somewhere between 2 and 7 years. If approved for these loans for credit card debt, you can get funded the same day. With easy application, quick approval, and funding, it’s a great choice for those with good credit history.

APR Range 5.95% – 17.99% (AutoPay included)
Loan Amount $5,000 – $100,000
Minimum Credit Score 660
Repayment Terms 2 to 7 years
Funding Speed Same day

At a Glance

  • 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 the best credit card consolidation loans, 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

At a Glance

  • Minimum credit score of 600
  • Pre-qualification available
  • Funding in one business day
  • High maximum APR
  • Origination and late payment fees

When it comes to the best 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 600.

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 accepted, it’s natural that the APR goes from a decent 7.98% to a quite high 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 7.98% – 35.99%
Loan Amount $1,000 – $50,000
Minimum Credit Score 600
Repayment Terms 3-5 years
Funding Speed One business day

At a Glance

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

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 best 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

At a Glance

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

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 credit card consolidation loans. 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

At a Glance

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

This BBB-accredited company lets you easily pre-qualify for credit card consolidation loans 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 best credit card consolidation loans 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 are 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

At a Glance

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

If you’re looking for the best 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 A Credit Card Consolidation Loan - Guide

When choosing a credit card consolidation loan, 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 best personal loans 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 best 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 debt consolidation companies would never claim that you’ll definitely get approved. No matter how good your credit score and annual income, 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 Credit Card Consolidation Loans

Although credit card 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 best 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 best 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 credit card consolidation loans 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 best 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 with 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 Credit Card Consolidation Loan?

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 credit card consolidation loans 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.

Best Credit Cards Consolidation Loans At A Glance

Sofi – Best no-fee loans

LightStream – Best AutoPay options

OneLoanPlace – Best choice of lenders

Upstart – Best for those with a low annual income

Avant – Best for bad credit borrowers

One Main Financial – Best for same day funding

Payoff – Best for those with insecure employment

Best Egg – Best for high earners

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!

FAQs

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 credit card consolidation loans a good idea?

If you have a number of high-interest credit card loans, they likely are. Credit card consolidation loans 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.