A credit card consolidation loan can simplify debt repayment, save you money, and even improve your credit score. Happy Money offers the best credit card consolidation loans, based on a comparison of more than 800 data points across 31 lenders. Its signature product, The Payoff Loan, is designed specifically for paying off credit cards and other kinds of debt.
Why trust Credible

The Credible editorial team is independent and unbiased — lending partners do not influence our editorial content. From rates and fees to customer experience, our expert editorial staff analyzed 899 personal loan data points across 31 lenders to simplify comparing personal loans. Using data-driven methodologies, we scored criteria that are important to you. This approach allows us to objectively rank personal loans so you can find the best loan for your situation. To learn more, read our methodology below.
Best credit card consolidation loans
A personal loan for credit card consolidation provides a lump sum to pay off one or more credit cards, leaving you with a single, lower monthly payment and/or a lower APR.
Advertiser DisclosureOverview
Lightstream is one of three Credible partner lenders to offer loan amounts up to $100,000, which makes it ideal for financing large expenses like home improvements or weddings. Funds are available as soon as the same day you apply, and you'll have up to 20 years to repay certain types of loans, including home improvement loans, RV loans, and boat loans. There are no origination fees, and rates are low — Lightstream's lowest APR beats SoFi's advertised lowest APR by 1 percentage point. But you'll need good credit to qualify.
Unlike most lenders, Lightstream does not let you prequalify on its site. Nor does it provide a contact phone number next to its customer service hours on its website.
pros
- Same-day funding available
- High maximum loan amount
- No origination fee
cons
- Good credit required
- No prequalification process
- Not available in Vermont
Repayment terms
2 - 20 years, depending on loan purpose
Eligibility
Available in all states except RI and VT
Time to get funds
As soon as the same business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full reviewOverview
It’s worth considering a personal loan through Splash if you have good credit (ideally, a FICO score above 700). The platform offers loans from a wide range of lenders, and next-day funding is available. Plus, Splash has a live chat feature so you can get real-time answers without having to wait on hold or for an email. Loans are available up to $100,000 if you apply via Splash’s website.
Rates are competitive, but borrowers with excellent credit may find lower APRs elsewhere. If you need a repayment term longer than five years, you’ll need to look elsewhere as well.
pros
- Excellent customer reviews on Trustpilot
- Funding as soon as the next business day
- Large loan amounts available
cons
- Possible origination fee up to 7.49% (through Credible)
- Other lenders may have lower starting APRs
- No cosigner option
Loan amount
$5,000 - $100,000 (up to $35,000 on Credible)
Eligibility
Available in all states except VT. OH and NM net disbursed amount must be greater than $5,000. MA must be greater than $6,000
Loan uses
Debt consolidation, credit card refinancing, home improvement, major purchases
Read full reviewOverview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
pros
- Fair credit borrowers eligible
- Autopay and direct pay discounts
- Can fund in as little as 1 business day
- Mobile app
- Secured loans available
cons
- High maximum origination fee
- Cosigners not accepted on home improvement loans
- Low J.D. Power ranking
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Read full reviewOverview
Happy Money has been in operation since 2009 (formerly known as Payoff). It's an option for fair-credit borrowers (plus those with better credit), and notably has a relatively low top-end APR. In other words, you could qualify for a lower rate with Happy Money with fair credit, relative to other lenders that offer fair-credit loans. The company does charge an origination fee on some loans, up to 5%, but that's not as high as some other lenders' origination fees.
You should be prepared to wait a few days to get your money, as funding can take three to five days once approved. And loans aren't available in Massachusetts or Nevada. Happy Money has an A+ rating with the BBB and is ideal for debt consolidation and credit card consolidation loans.
pros
- Mobile app
- Live chat
- Low maximum APR
cons
- Limited loan terms available
- No discounts
- Origination fees
- Not available in IA, MA or NV
Eligibility
Available in all states except IA, MA and NV
Time to get funds
As soon as 2 - 5 business days after verification
Loan uses
Debt consolidation and credit card consolidation only
Read full reviewOverview
SoFi personal loans feature high loan amounts, competitive interest rates, same-day funding, and long loan terms, plus discounts for autopay and direct pay. Plus, SoFi offers live chat, a prequalification process that doesn't require your Social Security number, and free financial advice for customers. Unlike many other online lenders, SoFi is an FDIC-insured bank.
To qualify for an unsecured loan you may need to have good credit, but unlike other lenders, SoFi doesn't specify a credit score minimum. Minimum loan amounts start at $5,000.
pros
- Large loan amounts available
- Autopay and direct pay discounts
- Same day funding
- Long loan terms available
cons
- Not transparent about minimum credit score requirements
- 5,000 minimum loan amount
Fees
Option to pay an origination fee in exchange for a lower rate
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
Read full reviewOverview
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
pros
- Borrowers with bad credit considered
- Funds as soon as the next business day
- 2-year loan terms available
cons
- No discounts offered
- Origination fee
- Not available in HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Read full reviewOverview
BHG Financial stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 3% and 4%, depending on your financial profile. Loan funds are available within five to 14 days of loan approval.
pros
- Eligible applicants can borrow up to $200,000
- Considers borrowers with fair credit
- Long repayment terms
cons
- Not available in IL, ND, and MT
- No discounts
- Minimum annual income requirement of $100,000
- Funding takes at least five days
Fees
Origination fees, late fees, other fees may apply
Eligibility
Available in all states except Illinois, North Dakota, and Montana
Loan uses
Debt consolidation, credit card refinancing
Read full reviewOverview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
pros
- Borrowers with bad credit considered
- $25,000 annual income requirement
- Autopay and direct pay discounts available
- Can fund in one business day
cons
- High APRs
- Potentially high origination fees
- Not available in Iowa
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Read full reviewOverview
Lightstream is one of three Credible partner lenders to offer loan amounts up to $100,000, which makes it ideal for financing large expenses like home improvements or weddings. Funds are available as soon as the same day you apply, and you'll have up to 20 years to repay certain types of loans, including home improvement loans, RV loans, and boat loans. There are no origination fees, and rates are low — Lightstream's lowest APR beats SoFi's advertised lowest APR by 1 percentage point. But you'll need good credit to qualify.
Unlike most lenders, Lightstream does not let you prequalify on its site. Nor does it provide a contact phone number next to its customer service hours on its website.
pros
- Same-day funding available
- High maximum loan amount
- No origination fee
cons
- Good credit required
- No prequalification process
- Not available in Vermont
Repayment terms
2 - 20 years, depending on loan purpose
Eligibility
Available in all states except RI and VT
Time to get funds
As soon as the same business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full reviewOverview
It’s worth considering a personal loan through Splash if you have good credit (ideally, a FICO score above 700). The platform offers loans from a wide range of lenders, and next-day funding is available. Plus, Splash has a live chat feature so you can get real-time answers without having to wait on hold or for an email. Loans are available up to $100,000 if you apply via Splash’s website.
Rates are competitive, but borrowers with excellent credit may find lower APRs elsewhere. If you need a repayment term longer than five years, you’ll need to look elsewhere as well.
pros
- Excellent customer reviews on Trustpilot
- Funding as soon as the next business day
- Large loan amounts available
cons
- Possible origination fee up to 7.49% (through Credible)
- Other lenders may have lower starting APRs
- No cosigner option
Loan amount
$5,000 - $100,000 (up to $35,000 on Credible)
Eligibility
Available in all states except VT. OH and NM net disbursed amount must be greater than $5,000. MA must be greater than $6,000
Loan uses
Debt consolidation, credit card refinancing, home improvement, major purchases
Read full reviewOverview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
pros
- Fair credit borrowers eligible
- Autopay and direct pay discounts
- Can fund in as little as 1 business day
- Mobile app
- Secured loans available
cons
- High maximum origination fee
- Cosigners not accepted on home improvement loans
- Low J.D. Power ranking
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Read full reviewOverview
Happy Money has been in operation since 2009 (formerly known as Payoff). It's an option for fair-credit borrowers (plus those with better credit), and notably has a relatively low top-end APR. In other words, you could qualify for a lower rate with Happy Money with fair credit, relative to other lenders that offer fair-credit loans. The company does charge an origination fee on some loans, up to 5%, but that's not as high as some other lenders' origination fees.
You should be prepared to wait a few days to get your money, as funding can take three to five days once approved. And loans aren't available in Massachusetts or Nevada. Happy Money has an A+ rating with the BBB and is ideal for debt consolidation and credit card consolidation loans.
pros
- Mobile app
- Live chat
- Low maximum APR
cons
- Limited loan terms available
- No discounts
- Origination fees
- Not available in IA, MA or NV
Eligibility
Available in all states except IA, MA and NV
Time to get funds
As soon as 2 - 5 business days after verification
Loan uses
Debt consolidation and credit card consolidation only
Read full reviewOverview
SoFi personal loans feature high loan amounts, competitive interest rates, same-day funding, and long loan terms, plus discounts for autopay and direct pay. Plus, SoFi offers live chat, a prequalification process that doesn't require your Social Security number, and free financial advice for customers. Unlike many other online lenders, SoFi is an FDIC-insured bank.
To qualify for an unsecured loan you may need to have good credit, but unlike other lenders, SoFi doesn't specify a credit score minimum. Minimum loan amounts start at $5,000.
pros
- Large loan amounts available
- Autopay and direct pay discounts
- Same day funding
- Long loan terms available
cons
- Not transparent about minimum credit score requirements
- 5,000 minimum loan amount
Fees
Option to pay an origination fee in exchange for a lower rate
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
Read full reviewOverview
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
pros
- Borrowers with bad credit considered
- Funds as soon as the next business day
- 2-year loan terms available
cons
- No discounts offered
- Origination fee
- Not available in HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Read full reviewOverview
BHG Financial stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 3% and 4%, depending on your financial profile. Loan funds are available within five to 14 days of loan approval.
pros
- Eligible applicants can borrow up to $200,000
- Considers borrowers with fair credit
- Long repayment terms
cons
- Not available in IL, ND, and MT
- No discounts
- Minimum annual income requirement of $100,000
- Funding takes at least five days
Fees
Origination fees, late fees, other fees may apply
Eligibility
Available in all states except Illinois, North Dakota, and Montana
Loan uses
Debt consolidation, credit card refinancing
Read full reviewOverview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
pros
- Borrowers with bad credit considered
- $25,000 annual income requirement
- Autopay and direct pay discounts available
- Can fund in one business day
cons
- High APRs
- Potentially high origination fees
- Not available in Iowa
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Read full reviewMethodology
To find the best credit card consolidation loans, Credible evaluated 31 lenders. As the first of several criteria, we narrowed the list to lenders offering personal loans to consolidate credit card debts. We then prioritized those offering low rates, few or no fees, discounts for direct payments to creditors, and loans for bad credit and fair credit.
Our team of personal loan experts gathered information from our partners, plus lender websites and customer service departments. We assigned star ratings based on the following weighted categories:
- Rates and fees: 18%
- Loan terms: 18%
- Customer experience: 17%
- Eligibility: 14%
- Customer satisfaction: 10%
- Efficiency: 10%
- Options for poor credit and no credit: 9%
- Discounts: 4%
To ensure accuracy, each data point was verified by a third party. Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.
Tips on comparing credit card consolidation loans
Credit card consolidation loans vary by lender. To find the right one for you, prequalify with several lenders, then compare quotes based on the following factors:
- Annual percentage rate (APR): A credit card consolidation loan's APR should be lower than the average rate of the cards you're consolidating to save money. The lower the rate, the more money you can save.
- Origination fees: In addition to interest, some lenders charge origination fees that are deducted from your loan proceeds upfront.For example, a 5% origination fee deducted upfront from a $10,000 loan would mean you'd receive $9,500. To pay off exactly $10,000 in credit card debt, you would need to borrow $10,526 if there's a 5% origination fee.
- Repayment terms: Credit card consolidation loan repayment terms often range from 2 to 7 years but vary by lender. Shorter terms can mean higher monthly payments, but you'll pay less interest over the course of the loan's term. You also might qualify for a lower APR on a shorter-term loan.
- Available loan amounts: The amount of debt you're consolidating will determine how much you need to borrow. Some lenders, like Best Egg, cap loans around $50,000. Others offer much higher loan amounts, such as LightStream (up to $100,000) and BHG (up to $200,000). The amount you can borrow depends on your credit score, credit history, and other financial qualifications.
- Eligibility requirements: To qualify for a loan, you need to meet certain requirements, such as credit score minimums or debt-to-income ratio (DTI) maximums. Some lenders only consider borrowers with good credit (a FICO score between 670 and 739) or excellent credit and higher (a FICO score of 740 or more). Others consider applicants with lower credit scores. Upstart, for example, requires a minimum credit score of 620, which is near the middle of the fair credit range.
Learn More: How To Compare Personal Loans

Tip
APR represents the annual cost of a loan factoring in both interest and upfront costs like origination fees. It offers a more complete picture of the loan’s cost than the interest rate alone.
Compare: APR vs. Interest Rate on a Personal Loan
What is a credit card consolidation loan?
A credit card consolidation loan is often an installment loan used to pay off credit card debt. Several loan types, including personal loans, home equity loans, and peer-to-peer loans, can be considered credit card consolidation loans when used in this way. You could also use another credit card to consolidate credit card debt via a balance transfer.
A credit card consolidation loan can replace existing monthly credit card accounts and payments with a single account and a single payment. When your loan has a lower interest rate than the debts you're consolidating, you can save money on interest and potentially pay off your debt faster.
Learn More: What Is Credit Card Consolidation?

Tip
If you use a loan to pay off a single credit card, it’s called credit card refinancing. It’s essentially the same process as consolidating credit card debt.
Learn More: What Is Credit Card Refinancing?
How does credit card consolidation work?
Credit card consolidation via an installment loan (like a personal loan) simplifies your debt into a single monthly payment, typically with a fixed interest rate and repayment term.
After qualifying for a credit card consolidation loan, your lender funds the loan in a single lump sum — either by depositing it into your bank account or making direct payments to your creditors.
After paying off your credit card debt with the new loan, you're responsible for repaying it. Making on-time payments can help build your credit over time, while missing payments can hurt it.
Related: How Does Debt Consolidation Work?
Consolidate for a credit score boost
One major perk of consolidating credit card debt with a personal loan is the potential for an almost-instant boost to your credit score. Credit utilization — how much of your available credit you're using — contributes up to 30% to your FICO score.
When you pay off credit card debt, you can reduce your credit utilization to zero (as long as you keep your cards open and don't carry a balance). Since most companies report monthly to the credit bureaus, you could see significant score improvements within one month.

Good to know
Some lenders, including SoFi and Universal Credit, offer a discount if you choose the direct-pay option that sends loan funds directly to your creditors.
Average credit card consolidation loan interest rates
The interest rate you qualify for depends on your credit score, among other factors. A higher credit score helps you qualify for a lower rate, while a lower score can lead to a higher rate.
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Tip
Average rates for debt consolidation loans, including credit card consolidation, tend to be lower than rates on loans used for other purposes.
Pros and cons of credit card consolidation loans
Credit card consolidation loans can simplify debt repayment and save you money, but they could have disadvantages, too.

Pros
- Lower interest rates
- Fixed interest rates
- Simple interest
- Single monthly payment
- Lower monthly payments
- Shorter payoff period
- Potential credit boost

Cons
- Best rates reserved for great credit
- Potential fees
- Temporary fix
Pros
- Lower interest rates: Credit card consolidation loans typically have lower APRs than credit cards. According to the Federal Reserve, the average rate on two-year personal loans is 12.33% compared to an average rate of 21.76% for credit cards.
- Fixed interest rates: Most credit cards have variable interest rates, but credit card consolidation loans often have fixed rates. Fixed interest rates mean consistent monthly payments.
- Simple interest: Credit cards often charge compound interest daily on your balance — this means that interest is added to your balance on which subsequent interest is charged. Most installment loans charge simple interest and amortize payments. Unlike credit cards, you won't pay interest on unpaid interest.
- Single monthly payment: Consolidating multiple credit cards into a single monthly payment reduces administrative hassle.
- Lower monthly payments: Getting a lower rate on your new loan may be the best way to reduce monthly payments. Opting for a long repayment period is another way (even if you can't get a lower rate). And since credit cards often charge compound interest, balances can add up quickly and result in larger monthly payments compared to a personal loan for the same amount.
- Shorter payoff period: With a lower interest rate on a credit card consolidation loan, you might be able to pay off your debt faster.
- Potential credit boost: Paying off credit card debt could reduce your credit utilization to 0%. This can result in quick score gains, especially if your credit utilization is high. In turn, repaying your debt consolidation loan can improve or maintain a positive payment history, which also adds to your score.
Cons
- Best rates reserved for great credit: Without good or excellent credit, it may be challenging to qualify for an interest rate that saves you money.
- Potential fees: There may be costs involved with taking out a loan, such as an origination fee, which you should weigh against the potential savings of debt consolidation.
- Temporary fix: Consolidating debt can make repayment easier, but it doesn't solve any underlying spending problems you may have or prevent you from racking up more debt in the future.
Credit card refinancing vs. debt consolidation
Credit card refinancing and debt consolidation are both strategies to help borrowers save money and potentially pay off debt faster. These terms are often used interchangeably.
Credit card refinancing refers to getting a lower interest rate or repayment term for one or more cards. For example, you could refinance a credit card by transferring your balance to a 0% APR balance-transfer card, lowering or eliminating interest during the card's promotional period. If you can pay off the balance before the interest rate increases, you may be able to save a significant amount of money. You can also refinance debt with a loan.
Debt consolidation can serve the same purpose, but involves paying off multiple credit cards or existing loans.
Matt Schwartz, Co-Founder at VA Loan Network, suggests considering how many credit cards you're dealing with: "Refinancing works well when you're dealing with a single large debt and can secure a lower interest rate, saving money over time. Consolidation, on the other hand, is great for managing multiple debts, combining them into one payment, and possibly lowering the overall interest rate. It really comes down to whether you're looking for simplicity or savings."
In many cases, you can consolidate and refinance credit card debt at the same time.
How to qualify for a credit card consolidation loan
- Check your credit: Checking your credit gives you an idea of how likely you are to qualify for a debt consolidation loan. If your credit isn't great, take steps to improve it before applying for a consolidation loan. You can get free weekly copies of your credit report at AnnualCreditReport.com.
- Add up your debt: If you don't already know how much credit card debt you have, check your current balances. This number will help determine the size of the loan you need.
- Consult your budget: Assess your budget to figure out how much you can pay toward debt each month. Then compare prequalified loan rates and terms to find a monthly payment you can afford.
- Compare lenders: Compare lenders based on eligibility requirements, APRs, fees, terms, and loan amounts. Pay special attention to origination fees as they'll reduce the loan amount available to send to creditors. Prequalifying with several lenders can provide rate estimates for comparison, but aren't loan offers or guarantees.
- Apply for a loan: After choosing a lender, complete the application and provide any necessary documentation. This typically includes identification and proof of income, employment, and address.
- Sign the loan agreement: After reviewing the loan agreement, sign it and await funding. Some lenders, like Discover, can make direct payments to your creditors, while others may deposit the funds into your bank account.
Related: What Are the Requirements for a Personal Loan?
Alternatives to consolidating credit card debt
Sometimes, debt consolidation isn't the best financial move. Depending on your situation, it may not save you money or be worth the effort.
Other times, consolidation simply isn't practical for the size or extent of your debt. If any of these scenarios applies to you, consider the following alternatives:
- Debt avalanche: With the debt avalanche method, you pay off your accounts according to interest rate, from highest to lowest. This prioritization removes your most expensive debts first, saving you money and speeding debt payoff.
- Debt management plan: A debt management plan is a type of debt relief that involves working with a credit counselor. Instead of making monthly payments to a debt consolidation loan lender, you pay a credit counseling organization each month. This organization then pays your creditors and may negotiate lower interest rates to make debt payoff more manageable.
- Debt settlement: Debt settlement involves clearing your debt by negotiating a lower payment than what you actually owe — or paying a debt settlement service to do so. Debt settlement could make sense under extreme circumstances, especially if your credit is already severely damaged. However, using a debt settlement service involves fees, could hurt your credit further, and success isn't guaranteed.
Related: Debt Settlement Pros and Cons

Warning
You could incur late payment fees if a debt settlement service advises you to stop making payments while they negotiate a settlement, and a “settled” account on your credit report could lower your score for several years.
FAQ
Is credit card consolidation a good idea?
Open
If you have multiple high-interest-rate credit cards and can qualify for a lower-interest loan, consolidating your cards may be a good strategy.
Doing so can simplify money management by turning several monthly payments into one. Paying off card balances with a lower-interest loan can help you save money and may help you pay off your debt in less time.
Can I get a credit card consolidation loan with bad credit?
Open
It's harder to get a credit card consolidation loan with bad credit, but it may not be impossible. Some lenders consider borrowers with fair or even poor credit.
For example, Upstart's minimum credit score is 620, while Avant's is 550. Additionally, you may be able to apply for a loan with a cosigner, who shares responsibility for repayment. If your cosigner has good credit, you're more likely to qualify for a loan.
Read more: Best Debt Consolidation Loans for Bad CreditHow long does it take to consolidate credit card debt?
Open
Debt consolidation can be a quick process that takes no more than a couple of days. Other lenders may take several business days to approve and fund your loan. After receiving the money, the time it takes to pay off your debt depends on your loan's term and your ability to keep up with payments.
How does credit card consolidation affect your credit?
Open
Where can I get a debt consolidation loan?
Open
Can you consolidate debt with a balance transfer?
Open
You can use a balance transfer credit card with a 0% APR offer to pay off debt on other credit cards while avoiding interest charges during the introductory period. The introductory zero-interest period could last 20 months or longer, depending on the card. You’ll need to finish paying off the transferred balances on the new card before the 0% interest offer ends, however, since the card’s regular APR will apply afterward.
Also, be aware that some credit cards charge a balance transfer fee, typically 3% to 5% of the amount being transferred.
Meet the expert:
Emily Batdorf
Emily Batdorf is a personal finance expert specializing in banking, lending, credit cards, and budgeting. Her work has been featured by the New York Post and MSN.