Best Credit Card Consolidation Loans in September 2025

By the numbers

13.89% and 19.39% — 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 September 14, 2025

Average 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.

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

• Excellent credit (800-850 FICO): 10.34%
• Very good credit (740-799 FICO): 11.71%
• Good credit (670-739 FICO): 18.18%
• Fair credit (580-669 FICO): 28.30%
• Bad credit (below 580 FICO): 31.80%

Credit card refinancing is the second-most common use for personal loans on the Credible marketplace. More than 23% of Credible personal loan borrowers used their loan for credit card refinancing in August 2025, with an average disbursed loan amount of $22,802.

Best credit card consolidation loan lenders of 2025

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 using a new loan or credit card to get a lower interest rate or a longer repayment term for one or more credit 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. Or, you could refinance credit card debt with a personal loan, securing a years-long repayment term to reduce monthly payments..

Debt consolidation serves the same purpose, but involves paying off multiple credit cards and/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.”

In many cases, you can consolidate and refinance credit card debt at the same time.
 

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 11.57%, according to the Federal Reserve. In comparison, the average credit card APR was 21.16%, 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 2 to 7 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?

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 9.59 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, ranging from 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.

Pros and cons of credit card consolidation loans

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 11.57% compared to an average rate of 21.16% for credit cards.
• Fixed interest rates: Most credit cards have variable interest rates, but credit card consolidation loans typically 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 significantly. This can result in quick score gains, especially if your credit utilization is high. In turn, repaying your credit card consolidation loan can improve or maintain a positive payment history, which also adds to your score. 

Cons 

• Best rates reserved for good 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.

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. 

Warning: You could incur late payment fees and severe credit damage if a debt settlement service advises you to stop making payments while it negotiates a settlement. A “settled” account will remain on your credit report for seven years from the original date of delinquency. 

Methodology

Credible's rating system incorporates 1,216 data points across 32 partner and non-partner lenders. We rate lenders based on these weighted categories:

• Rates and fees: 18.75%
• Eligibility and options for bad and no credit: 17.5%
• Availability: 12.5%
• Loan amounts and terms: 10%
• Customer satisfaction: 10%
• Customer service: 10%
• Efficiency and fund delivery: 10%
• Discounts: 7.5%
• Credible proprietary data: 3.75%

Credible's team of experts gathers information from lender websites and directly from our partners. We consider partner lenders' statistics over a 12-month period — including average rates, average funding times, and average credit scores for approved applicants. Each data point is verified by a senior editor to make sure it's accurate at the time of publication. 

Learn more about how Credible rates lenders by exploring our personal loans lender rating 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.