Jerry Brown is a personal finance writer, owner of the Peerless Money Mentor blog, and a contributor to Credible. He has written for major publications such as Forbes Advisor, Business Insider, and Rocket Mortgage.
Jared Hughes is a personal loan editor for Credible and Fox Money, and has been producing digital content for more than six years.
Updated April 19, 2024
Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”
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Credit card consolidation allows you to combine all of your credit card debts into one monthly payment. The main advantage of consolidating credit card debt is that it can save you money, especially if you qualify for a much lower annual percentage rate (APR).
However, before you consolidate your credit card debt, it’s a good idea to learn how it works, ways to combine your balances, and the pros and cons.
For example: Let’s say you have $18,000 of credit card debt spread across multiple cards. If you qualified for a 48-month personal loan at 10.00% and used the funds to consolidate your credit card debt, your estimated monthly payment would be $457, and the total interest paid over the life of the loan would be $3,913. As a result, you would pay less in total interest versus not consolidating and continuing to pay your credit card balance over the same four-year period.
How does credit card consolidation work?
Consolidating your credit card debt means taking out a new loan to pay off your current credit card debts.
Keeping track of repayment dates on your credit cards can be challenging. However, If you take out a personal loan to consolidate, you’ll only have one monthly payment. In addition, you may save hundreds or thousands of dollars if you qualify for a lower APR.
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 12 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.
Loan amount
$5,000 to $100,000
Repayment terms
2 - 12 years, depending on loan purpose
Fees
None
Discounts
Autopay
Eligibility
Available in all states except RI and VT
Min. income
Does not disclose
Customer service
Email
Soft credit check
No
Time to get funds
As soon as the next business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also is one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Loan amount
$1,000 to $50,000
Fees
Origination fee
Discounts
None
Eligibility
Available nationwide
Min. income
$12,000
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Discover Personal Loans offers low APRs, repayment terms up to seven years, no origination fees, nationwide availability, and doesn't require your Social Security number to prequalify on its site. You'll need to have an annual income of at least $40,000, and a FICO score 660 or higher, to be eligible. If your credit score is fair or poor, you'll need to go elsewhere, as Discover doesn't allow cosigners.
Funds are available as soon as the next business day after loan approval.
Loan amount
$2,500 - $40,000
Repayment terms
3 - 7 years
Fees
Late fee
Discounts
None
Eligibility
Available in all 50 states
Min. income
$40,000
Customer service
Phone
Soft credit check
Yes
Time to get funds
Funds can be sent as soon as the next business day after acceptance
Loan uses
Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding
PenFed is a credit union that offers personal loans to applicants with good credit. Though you'll need to become a member to receive a loan, membership is open to everyone. PenFed shines with no origination fees, small available loan amounts, and low interest rates. If you don't have a FICO score above 700, you may not qualify on your own, but can apply with a cosigner with good credit — which is not something most lenders offer.
PenFed doesn't have a minimum income amount, and offers live chat and an entirely online loan application process.
Loan amount
$600 to $50,000
Fees
Unsuccessful payment fee, late fee
Discounts
None
Eligibility
Does not disclose
Min. income
No flat restriction
Customer service
Phone, email, live chat
Soft credit check
Yes
Time to get funds
Typically 1 to 2 business days after verification
Loan uses
Debt consolidation, home improvement, credit card refinancing
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.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Repayment terms
2 to 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Email
Soft credit check
Yes
Time to get funds
1 business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 8%.
SoFi stands out for offering no-fee personal loans with competitive rates, high loan amounts, long loan terms, discounts for autopay and direct pay, and funding as soon as the same day. Plus, SoFi prioritizes convenience for existing and potential customers with features like live chat and an easy prequalification process that doesn't require your Social Security number.
The main catch is that you need to qualify for a loan with SoFi, which can be hard to do if you don't have good credit. You also won't be able to apply with a cosigner, since SoFi doesn't accept cosigners; nor does it offer secured personal loans.
Loan Amount
$5,000 to $100,000
Repayment terms
2 - 7 years
Fees
Option to pay an origination fee (up to 6%) in exchange for a lower rate
Discounts
Autopay, direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Phone, email, live chat
Soft credit check
Yes
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 8.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Loan amount
$2,000 to $50,000
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Discounts
None
Eligibility
Available in all states except DC, IA, VT, and WV
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
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.
Loan amount
$2,000 to $35,000**
Fees
Origination fee, late fee, dishonored payment fee
Discounts
None
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, and WV
Min. income
$1,200 monthly
Customer service
Phone, email
Soft credit check
Yes
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
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.
Loan amount
$5,000 - $100,000 (up to $35,000 on Credible)
Fees
Origination fee
Discounts
None
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
Min. income
$25,000
Customer service
Live chat
Soft credit check
Yes
Time to get funds
Same day available, typically 1-3 days
Loan uses
Debt consolidation, home improvement, medical expenses, major purchases
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.
Loan amount
$1,000 - $50,000
Repayment terms
3, 5, or 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
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
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.
Loan amount
$5,000 to $40,000
Fees
Origination fee
Discounts
None
Eligibility
Available in all states except MA, MS, NV, and OH
Min. income
None
Customer service
Phone, email, chat
Soft credit check
Yes
Time to get funds
As soon as 2 - 5 business days after verification
Loan uses
Debt consolidation and credit card consolidation only
BHG Money 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. However, if you have a cosigner that meets these requirements, BHG will consider your application.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 2% and 4%, depending on your financial profile. Loan funds are available within three to 14 days of loan approval. Note that you can't prequalify with BHG.
Loan amount
$20,000 - $200,000
Repayment terms
3 - 10 years
Fees
Origination fees, late fees
Discounts
None
Eligibility
Available in all states except Maryland and Illinois
Min. income
$100,000
Customer service
Email, phone
Soft credit check
Not on lender's site
Time to get funds
In as few as 5 days
Loan uses
Debt consolidation, baby (adoption), engagement ring financing, moving (relocation), business, home improvement, special occasion, cosmetic procedures, major purchase, taxes, credit card refinancing, medical expenses, vacation, wedding, other
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
Loan amount
$1,500 to $20,000
Fees
Origination fee, unsuccessful payment fee, late fee
Discounts
None
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
You can consolidate your credit card debt using various financial products. Comparing the pros and cons of multiple options can help you determine the best one for you.
1. Balance transfer credit card
If you have good to excellent credit, you may qualify for a balance transfer credit card. These cards come with low- or no-interest promotional periods that can last up to 18 months or longer. You can save a lot of money if you pay your credit card debt during this time period, but there are some cons to keep in mind.
“When doing a balance transfer, be mindful of balance transfer fees,” said Carla Blair-Gamblian, credit expert at Veterans United Home Loans. “Also, try to pay off the balance in full before the promotional period expires. Otherwise, you’ll have to pay the card’s standard APR on any remaining balance, which is generally high.”
Pros
Cons
Low- or no-interest promotional period
Good credit is usually needed to qualify
New card may come with better benefits
Generally comes with a balance transfer fee
Can potentially pay off credit card debt faster
Higher APR begins once the promotional period expires
2. Credit card consolidation loan
You can use this type of personal loan to pay off your outstanding credit card balances. Afterward, you’ll only be responsible for one monthly payment at a fixed interest rate.
But a downside is that some lenders charge origination fees, which can increase the total borrowing cost of the loan.
Comparing rates, fees, and repayment terms across multiple lenders can help you find the consolidation loan that best suits your needs.
Pros
Cons
Lower average APR than some other financial products like credit cards
May not qualify for a lower APR with bad credit
Generally doesn’t require collateral
Some lenders charge an origination fee
Fixed APR, so payments remain the same through the life of the loan
Defaulting on the loan could hurt your credit score
3. Home equity line of credit (HELOC)
This is a revolving credit option that allows you to borrow against the equity in your home on an as-needed basis. Since the lender requires you to pledge the equity in your home as collateral, it usually comes with a lower APR than credit card debt. HELOCs usually come with variable APRs — the interest rate fluctuates based on economic conditions.
The main downside of a HELOC is that if you default, the lender can foreclose on your home. So, before you decide to consolidate credit card debt with this option, make sure you can comfortably afford to repay what you borrow.
Pros
Cons
Typically lower APR since loan is secured by your home
Lender can take your home if you default
Draw funds as needed
Variable APR, so interest rate could increase
You may not require good credit to qualify
Reduces the equity in your home
4. Debt management plan
If you need assistance creating a plan to eliminate your debt, consider contacting a government-approved credit counseling agency. These agencies help you create a plan to pay off your debt in three to five years in exchange for a monthly fee.
A major pro is that a credit counseling agency might be able to negotiate a lower rate and monthly payments with your credit card issuers. And unlike debt settlement, a debt management plan doesn’t harm your credit.
However, a potential downside is that an agency may require you to agree not to open new credit accounts while in the plan.
Pros
Cons
A credit counseling agency may negotiate a lower rate and monthly payments
Plan fees can be expensive
May help you improve your credit score
Usually takes three to five years to pay off credit cards
Good credit isn’t needed
You may not be allowed to obtain new credit during the plan
Other strategies to pay down credit card debt
Credit card consolidation can potentially save you money and help you better manage payments, but it’s not the right move for everyone. Consider using these other strategies.
Create a budget. A budget can help you free up cash to put toward paying down credit card debt. To create a simple budget, write down your expenses and monthly income. Afterward, look through your list to see if you can trim any unnecessary expenses.
Analyze your spending habits. Review your credit card statements and bank account to identify areas where you may be overspending each month.
Ask creditors for lower monthly payments. If you can't afford to pay your credit card bills, contact your creditors to ask them to temporarily reduce your monthly payments.
How does credit card consolidation affect your credit score?
When you apply for a loan or credit card, a lender usually performs a hard credit pull to review your credit history, which may temporarily ding your credit a few points. If you make on-time payments, your credit score will likely recover. But if you default on the new loan, it can cause your credit score to suffer a significant blow.
What are the advantages of credit card consolidation?
A major potential benefit of consolidating credit card debt is that it streamlines your monthly payments into a single payment. Keeping track of one monthly payment can be easier than juggling several. Plus, if you qualify for a lower rate, it can help you save thousands of dollars in interest and get out of debt quicker.
Will credit card consolidation eliminate my debt?
No, consolidation doesn't erase your credit card debt — it only transfers it to a new loan or credit card. “It’s crucial to understand why you got into debt in the first place,” said Blair-Gamblian, from Veterans United. “If you consolidate your debt, but don’t change your spending habits, there’s a risk you’ll run up card balances again.”
How long does credit card consolidation take?
The answer depends on how long it takes you to get approved for a debt consolidation product. For example, if you decide to use a debt consolidation loan, you can consolidate your credit card debt as soon as you receive the funds — personal loans are typically funded within a few business days.
Jerry Brown is a personal finance writer, owner of the Peerless Money Mentor blog, and a contributor to Credible. He has written for major publications such as Forbes Advisor, Business Insider, and Rocket Mortgage.