Best credit card consolidation loans in June 2025

Credit card consolidation loan rates

A credit card consolidation loan could save you money on interest, but the key is getting a rate that’s lower than the interest rates on the cards you’re consolidating. Interest rates are dependent on several factors, including your credit score, income, and debt load. The effective federal funds rate can also impact available rates.

You may want to prequalify with several lenders before formally applying for a credit card consolidation loan. This will get you a better idea of what interest rate you could qualify for.

Prequalification isn’t an offer of credit, nor will it affect your credit score. When you officially apply for a loan, the lender may perform a hard credit inquiry. This can bring your score down temporarily — usually by less than 10 points.

Current personal loan interest rates by credit score

Below are average APRs for personal loans selected by borrowers who prequalified on the Credible marketplace in May 2025.

By the numbers

13.59% and 18.88%  — The average APRs on 3-year personal loans and 5-year personal loans, respectively, for Credible borrowers with 720 FICO scores and higher. Week ending June 16, 2025

How do credit card consolidation loans work?

Credit card consolidation loans are a type of personal loan, paid off in monthly installments. They’re sometimes called debt consolidation loans. You can use one to roll multiple credit cards into one loan with a single monthly payment, usually with a fixed interest rate.

Consolidating credit card debt can make it easier to keep up with payments since you no longer have to juggle multiple due dates. This could mean fewer missed payments and late fees. With on-time payments, you could also build your credit over time.

These loans generally have lower interest rates than credit cards, so you can save money on total interest charges. However, the lowest rates are typically reserved for borrowers with good credit or better.

• Loan amounts: Depending on the lender and your qualifications, you could get a loan from $1,000 to $50,000. Some lenders offer larger loans — up to $100,000 or more.
• Interest rates: Unlike most credit cards, the annual percentage rate (APR) on loans is usually fixed, meaning your monthly payment should stay the same. The average APR on a 2-year personal loan was 11.66%, according to the Federal Reserve. In comparison, the average credit card APR was 21.37%, but APRs can reach 36% — if not higher. Your APR depends on factors like your income, credit score, and debt.
• Repayment terms: Repayment terms typically range from two to seven years. Some lenders offer loans with longer terms. Note that a longer term may mean smaller monthly payments but higher overall interest charges (and more time in debt).
• Fees: Personal loan lenders sometimes charge additional fees, such as origination fees, late fees, check processing fees, and unsuccessful payment fees. Certain upfront fees, like the origination fee, are included in the APR. If the lender charges any fees, they must disclose them so borrowers can more accurately compare overall costs.
• Funding times: Credit card consolidation loans often come with quick funding times — sometimes the same day you apply. However, it might take several business days for the lender to review your information, approve your application, and disburse funds.
• Eligibility criteria: Each lender has its own requirements for credit scores, annual income, and credit history. For example, you might need to earn $25,000 a year to qualify. Or you might need $100,000. Some lenders allow co-applicants or cosigners, which can boost your approval odds and help you get better rates.

Learn More: What Are the Requirements for a Personal Loan?

How does credit card consolidation affect your credit score?

Your FICO credit score consists of five main components:

• Payment history (35%)
• Amounts owed, including credit utilization (30%)
• Credit history length (15%)
• Credit mix (10%)
• New credit (10%)

Credit card consolidation can affect your credit score in positive and negative ways. When you apply for a new loan, the lender will conduct a hard inquiry. This could bring your credit score down temporarily, by up to 10 points for up to one year. However, once you pay off your credit card debt, you could see a quick and significant boost in your credit score. This is because in paying off your cards, you decrease the amount of credit you're using — which contributes up to 30% to your score.

If you’re approved and agree to take out the loan, you’re adding to your credit mix as well. Credit mix is the different types of accounts you currently have, such as personal installment loans, retail accounts, mortgage loans, and credit cards. You don’t need to have one of each, but adding a new loan type could improve your credit score.

Last but certainly not least, making on-time loan payments can give your score a boost. Payment history accounts for 35% of your overall FICO score, more than any other single category. On the other hand, missed or late payments can hurt your credit.

Related: How Does a Personal Loan Affect Your Credit Score?

Where can I get a credit card consolidation loan?

Personal loans for debt consolidation or credit card refinancing are available from online lenders, banks, and credit unions, although they may not be available or accessible to every borrower. For instance, some banks, such as Wells Fargo, offer personal loans only to existing customers. And most lenders have minimum credit score and income requirements that you'll need to meet. 

Personal loan interest rates by lender type

Personal loans are commonly used to consolidate credit card debt because personal loan interest rates tend to be much lower. According to the Federal Reserve, there's a 9.71 percentage-point difference between average rates on credit cards and two-year personal loans. That difference could help you save hundreds or even thousands of dollars in interest. 

But where you get a credit card consolidation loan can also influence its rate. Overall, credit unions tend to have slightly lower rates than banks. Rates at credit unions generally top out around 18% APR, while banks often have high-end rates in the mid-20% APR range. Online lenders often have maximum APRs of 36%. This is important because if you can qualify for a personal loan from a bank or credit union with fair credit, you could get a lower rate relative to an online lender.

If, on the other hand, you have bad credit, an online lender may be your only option since some have less strict eligibility requirements. If you have excellent credit, you could find a great rate from any type of lender (though LightStream is currently leading with industry-low rates (6.49% APR to 25.29% APR).

Customer service

It's also important to keep customer service in mind. If you prefer a branch location with the option of face-to-face service, a bank or credit union is for you. If you want to manage your loan via app, an online lender is more likely to offer one or to offer a more streamlined version than a credit union or bank.

Compare customer service access and account management options across any lenders you're considering.

Average credit card refinancing rates

Here are average APRs on personal loans for credit card refinancing, by credit score, according to Credible data on closed loans from June 2024 through May 2025:

• Excellent credit (800-850 FICO): 10.67%
• Very good credit (740-799 FICO): 12.08%
• Good credit (670-739 FICO): 18.89%
• Fair credit (580-669 FICO): 28.67%
• Bad credit (below 580 FICO): 33.94%

Credit card refinancing is the second-most common use for personal loans on the Credible marketplace. More than 24% of people approved for a loan used it for credit card refinancing in May, with an average disbursed loan amount of $23,146.

A closer look at the best credit card consolidation loan lenders

Methodology

Credible’s rating criteria incorporates 899 data points across 31 partner and non-partner lenders, spanning interest rates, fees, loan terms, repayment options, customer service, eligibility, efficiency, options for poor credit and no credit, cosigner options, discounts, and more.

Read our full methodology

Where we get our data

Credible is a personal loans marketplace that partners directly with lenders to offer loans for a wide range of credit profiles and loan purposes. Because of these relationships, we have access to the most current interest rates that real borrowers are being approved for, along with average rates by credit score and loan purpose, approval rates overall and by lender, and more. The data we use is primary source data, updated weekly, and does not include any personally identifiable information about borrowers.