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Credit card consolidation loans

How We Get Paid

We want this to be a “win-win” situation. So we only want to get paid if we bring you value in the form of finding a personal finance option that works for you. Not by selling your data. Credible receives compensation by the lender if you finish the loan process and a loan is disbursed. The amount of our compensation does not impact how and where lenders appear on our site, and Credible charges you no fees of any sort. Some lenders may take traffic sources into account when offering credit terms.

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Advertiser Disclosure
The rates that appear are from companies which Credible receives compensation. This compensation does not impact how or where products appear within the table. The rates and information shown do not include all financial service providers or all of the displayed lender's available services and product offerings.
LenderRates from (APR)Loan termLoan amount
Avant
9.95% - 35.99%2 - 5 yearsUp to $35,000Show detailsCheck Rate

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Axos
7.29% - 17.99%3 - 6 yearsUp to $50,000Show detailsCheck Rate

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Best Egg
4.99% - 35.99%2 - 5 yearsUp to $50,000Show detailsCheck Rate

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Discover
Personal Loans
5.99% - 24.99%3 - 7 yearsUp to $35,000Show detailsCheck Rate

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FreedomPlus
7.99% - 29.99%2 - 5 yearsUp to $50,000Show detailsCheck Rate

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Happy Money
5.99% - 24.99%2 - 5 yearsUp to $35,000Show detailsCheck Rate

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LendingClub
7.04% - 35.89%2 - 5 yearsUp to $40,000Show detailsCheck Rate

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LendingPoint
7.99% - 35.99%2 - 5 yearsUp to $25,000Show detailsCheck Rate

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LightStream
3.99% - 19.99%2 - 7 yearsUp to $100,000Show detailsCheck Rate

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Marcus by Goldman Sachs
6.99% - 19.99%3 - 6 yearsUp to $40,000Show detailsCheck Rate

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OneMain Financial
18.00% - 35.99%2 - 5 yearsUp to $20,000Show detailsCheck Rate

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PenFed
5.49% - 17.99%1 - 5 yearsUp to $50,000Show detailsCheck Rate

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Prosper
7.95% - 35.99%3 or 5 yearsUp to $40,000Show detailsCheck Rate

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SoFi
6.99% - 22.28%32 - 7 yearsUp to $100,000Show detailsCheck Rate

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Universal Credit
8.93% - 35.93%3, 5, or 7 yearsUp to $50,000Show detailsCheck Rate

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Upgrade
5.94% - 35.97%3 - 7 yearsUp to $50,000Show detailsCheck Rate

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Upstart
4.37% - 35.99%3, 5, or 7 yearsUp to $50,000Show detailsCheck Rate

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All APRs reflect autopay and loyalty discounts where available. Read more about rates and terms1

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Here’s what customers are saying about Credible

trustpilot 5 stars

Rogelio paid off his credit
card debt

The process was easy and quick. The rate was competitive and the staff very friendly. I was surprised to have been approved since my bank had turned me down. My loan was to refinance credit card debt.

See review on Trustpilot
trustpilot 5 stars

Nicole consolidated her
credit card debt

I was able to consolidate all of my credit card debt within days of my application. The process was quick and easy to understand. I highly recommend this service.

See review on Trustpilot
trustpilot 5 stars

Melissa consolidated
high-interest credit card debt

Definitely recommend! Quick, easy and worth your time to consolidate credit cards! I finally have a way to pay this debt off in a short time.

See review on Trustpilot

Why use a loan to pay off credit card debt?

reason type

Lower rates

Getting rid of high-interest debt can save you money on interest payments.

reason type

Improve your credit

Making on-time payments on a loan can boost your credit score.

reason type

Know when you’ll be debt free

Instead of having an open-ended term with your credit card company, a loan provides you with an end date so pay off is in sight.

Our process

How Credible works

Checking rates won’t affect your credit score

Our Impact

We're making a difference

With Credible, you can save money while enjoying a simple, intuitive personal loan shopping process.

in 2021 We’ve helped over

55,600 people

save money on their loans

We've saved our customers

over $92 million

in interest on their loans

review-star-1review-star-2review-star-3review-star-4review-star-5

Excellent customer service

I was apprehensive when I first started... but the customer service was excellent .. I got a good deal very quickly and they helped me .. totally recommend it

See Manpreet's review
review-star-1review-star-2review-star-3review-star-4review-star-5

Great rates for consolidation

Outstanding, competitive rates. It let me shop different vendors without having to go to multiple sources and provide my info. I will be saving a ton ...

See Greg's review
review-star-1review-star-2review-star-3review-star-4review-star-5

Easy process

I was able to refinance my student loan and secure a much lower rate than I had with my other servicer. The process was so easy!

See Alicia's review

Individual experience may vary.

Commonly asked questions

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By Jamie Young

Written by

Jamie Young

Personal Loan Editor

Jamie Young is a Credible authority on personal finance. Her work has appeared on some of the best-known media outlets including Time, CBS News, Huffington Post, Business Insider, AOL, MSN, and more.

Time MagazineCBSHuff Post
& Matt Carter

Written by

Matt Carter

Personal Loan Editor

Matt Carter is a writer and editor for Credible. His work has been featured by CNBC, CNN Money, Consumer Reports, Money, USA Today, The New York Times, The Wall Street Journal, The Washington Post, and more.

CNBCWSJThe New York Times

Updated April 21, 2022

Reviewed by Ashley Harrison

Ashley Harrison

Reviewed by

Ashley Harrison

Personal Loan Editor

As a Credible authority on personal finance, Ashley Harrison has covered topics that include student loans, personal loans, and more. She’s been an editor and editorial assistant in the online personal finance space for three years.

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."

Generally, no — personal loans are still widely available despite the COVID-19 pandemic, which could be especially valuable if you need help making ends meet. You'll still typically need good credit and verifiable income to get approved for a loan with most lenders, including online lenders, banks, and credit unions. Keep in mind that some lenders might have more stringent requirements to ensure that borrowers can repay their loans, though.

Additionally, some lenders are offering coronavirus hardship loans that might be easier to qualify for if the pandemic has impacted your employment. These small emergency loans might come with low or even 0% interest, depending on the lender.

Read More: COVID-19: How Personal Loan Lenders Are Helping Borrowers

A credit card consolidation loan is a type of personal loan used to pay off credit card balances. This process (also known as credit card refinancing) will leave you with just one loan and payment to manage — which can greatly simplify your repayment.

Depending on your credit, you could get a lower interest rate on a personal loan than what you’re currently paying on your credit cards — this could save you money on interest and potentially help you repay your debt faster.

Or you might opt to extend your repayment term to reduce your monthly payments and lessen the strain on your budget. Just keep in mind that choosing a longer term means you’ll pay more in interest over time.

A credit card consolidation loan is used to pay off existing credit card debt. Through this process, you can combine your balances from multiple credit cards so you’ll have just one loan with a single, more manageable payment.

Ideally, a credit card consolidation loan could get you a lower interest rate than you’ve been paying — which could save you hundreds or even thousands of dollars on interest charges over time.

Annual percentage rate (APR) is the actual cost you’ll pay for taking out a loan. Your loan APR includes both your interest rate and any fees charged on the loan, such as origination fees.

The APR on credit cards tends to be higher than personal loans, which means you might be able to get a lower APR by consolidating your credit card debt with a personal loan. And unlike credit cards, personal loans generally come with fixed interest rates, so your rate and payment will stay the same throughout the life of the loan.

There are several situations where consolidating your credit card debt might be a good idea, such as:

  • You can get a lower interest rate. If you consolidate your credit card debt, you might qualify for a lower interest rate than what you’ve been paying. This could save you money on interest as well as potentially help you pay off your debt faster.

  • You need a lower monthly payment. Personal loans typically come with repayment terms from one to seven years, depending on the lender. Choosing a longer term can reduce your monthly payment and lessen the strain on your budget — though keep in mind that extending your term means you’ll pay more interest over time.

  • You have multiple debts to manage. Consolidating your credit card debt will leave you with just one loan and payment to worry about. You also have the option to consolidate other types of debt with a personal loan, not just credit cards — for example, you could consolidate bills or other loans.

If you consolidate credit card debt with a personal loan and can qualify for a lower interest rate, you could save a significant amount of money on interest over the life of your loan.

For example, say you're repaying $10,000 in credit card debt at 16.91% interest. In order to pay that debt off in two years, you'd have to make monthly loan payments of $494, and you'd pay $1,856 in interest charges. Additionally, since most credit cards have variable interest, you might end up paying more than this.

Refinancing that debt into a two-year credit card consolidation loan with a fixed 10.36% interest rate would lower your monthly payment by $31 and save you $741 in interest.

Also keep in mind that most lenders — including Credible’s partner lenders — don’t charge fees for repaying your loan early, so you might be able to save even more if you can afford to pay off your loan ahead of schedule. You can use Credible’s Personal Loan Calculator to see how much you’ll pay for a personal loan — and how much you might be able to save.

Generally, shopping around and comparing your loan options from multiple lenders likely won’t hurt your credit score — so long as the lender lets you see your personalized options with only a soft credit check, that is. For example, checking your prequalified rates from Credible’s partner lenders only requires a soft credit pull, which won’t impact your credit.

When you apply for a credit card consolidation loan, the lender will perform a hard credit check to determine your creditworthiness. This could cause a slight drop in your score — however, this effect is usually only temporary, and your score will likely bounce back within a few months.

Additionally, a credit card consolidation loan could actually help improve your credit score. For example, making on-time payments on your loan could boost your score. You might also be able to lower your credit utilization by consolidating your debt, which could also help your score.

Ultimately, the positive impact on your credit score from a credit card consolidation loan will likely outweigh any initially negative effects.

Another option for consolidating your credit card debt is with a balance transfer card. With a balance transfer card, you can move your balance from one card to another.

If you’re considering a personal loan vs. a balance transfer card, here are some pros and cons of each approach to keep in mind:

ProsCons

Credit card consolidation loan

  • Lower interest rates than credit cards

  • Longer repayment terms (usually 1 to 7 years, depending on the lender)

  • Can consolidate multiple types of debt

  • Fewer options for poor or fair credit

  • Might come with fees (such as origination fees)

  • No rewards or perks

Balance transfer card

  • Some cards come with a 0% APR introductory period

  • Might come with rewards or perks

  • Could help you establish a longer credit history

  • Higher interest rates than personal loans

  • Will likely come with a balance transfer fee (typically 3% to 5% of the balance you want to transfer)

  • Could tempt you to rack up more credit card debt

There’s no difference. A credit card consolidation loan is simply a type of personal loan that can be used to pay off credit card debt. However, keep in mind that you can use a personal loan for almost any other personal expense, too — such as consolidating other kinds of debt or making large purchases.

Consolidating credit card debt or simply paying it off are both viable strategies for managing your credit cards. However, the right option for you will depend on your individual circumstances and financial goals.

Paying off your credit cards

If you choose to pay off your credit cards without consolidating them, you won’t be able to take advantage of the lower fixed rates that personal loans offer. Additionally, credit card variable rates can fluctuate, which could land you with higher interest charges and prolong your repayment time. You’ll also have to keep track of the payments and rates on each card to stay on top of them.

However, if you have relatively small balances on each of your cards and can repay them in a short amount of time, then simply paying off your cards might be an easier option.

Consolidating your credit card debt

If you use a personal loan to pay off your credit cards, you’ll be left with just one loan and payment to worry about. Additionally, you’ll typically have a fixed rate that won’t change over the life of the loan. And because personal loan rates are usually lower than credit card rates, you might be able to save on interest over time and potentially pay off your debt faster.

However, if you have poor credit, you could have a hard time qualifying for a better rate. In this case, it might make more sense to simply focus on repaying your credit card balances through on-time payments.

Keep in mind that building a positive payment history and lowering your credit utilization — or how much you owe on your cards versus your total credit limits — could help improve your credit score over time and make it easier to qualify for better rates in the future.

This mainly depends on the type of lender you choose. For example, getting a credit card consolidation loan through an online lender could be a faster process than going through a traditional bank or credit union.

The time to fund for a credit card consolidation loan also depends on the lender. Here are the funding times you can generally expect:

  • Online lenders: Less than 5 business days

  • Banks: 1 to 7 business days

  • Credit unions: 1 to 7 business days

There are also some lenders that offer fast personal loans with quicker funding times. For example, several of Credible’s partner lenders provide same- or next-day loan funding after approval.

If you’d like to get your loan funds as soon as possible while avoiding delays, be sure to:

  • Fill out the application as accurately as you can

  • Submit any required documentation in a timely manner

Yes – if you take out a credit card consolidation loan, you don’t have to close your credit cards once they’ve been paid off. However, it’s important to make sure you don’t fall into bad spending habits with your newly-paid off credit cards.

Here are a few ways to keep your credit card spending manageable so you don’t end up with more debt:

  • Make a plan for how to use your cards. If you have multiple credit cards, consider using just one of them for regular spending. You might use your others for recurring payments each month — such as a gym membership or streaming subscription — so they can continue building your credit history. This way, you can more easily keep track of your spending.

  • Pay off your credit card each month. If you pay off your balance before your due date each month, you can avoid paying interest. Be sure to only spend what you can afford to pay back before your due date.

  • Don’t spend for rewards. While credit cards can offer various rewards, don’t let these potential perks affect your spending decisions. If you do, you could end up with a large balance to pay off — which likely isn’t worth whatever rewards you get.

You’ll typically need good to excellent credit to qualify for a personal loan. However, there are also several lenders that offer debt consolidation loans for bad credit — though remember that you’ll likely be offered higher interest rates on these loans compared to the rates received by borrowers with good credit.

Another option to get approved more easily is by applying with a creditworthy cosigner. Not all lenders allow cosigners on personal loans, but some do. Even if you don’t need a cosigner to qualify, having one could get you a better interest rate than you’d get on your own.

If you can wait to consolidate your debt, you could also consider working to build your credit to qualify for better rates in the future. Some ways you might be able to do this include:

  • Making on-time payments: Your payment history is one of the biggest factors that make up your credit score. If you pay your monthly bills on time, you could see an improvement in your score.

  • Paying down your credit card balances: Your credit utilization is another major factor in your credit score. You can lower your credit utilization by paying down your balances, which could help boost your credit score.

  • Avoiding new loans: Whenever you apply for a new loan, the lender will perform a hard credit check that could cause a drop in your score. While this impact is usually only temporary, it’s a good idea to avoid taking out new loans when possible if you’re focused on building your credit.

To find the best credit card consolidation lender, you’ll need to do your research and compare as many lenders as possible so you can find the right loan for your needs. Consider not only interest rates but also repayment terms and any fees charged by the lender — then you can choose which lender works best for you.

As you shop around, be sure to keep an eye out for potential personal loan scams , too. A few red flags to watch out for include:

  • Not requiring a credit check

  • Demanding upfront payment before processing your application

  • Pressuring you to make an instant decision

  • Asking you to send them money in a way that’s harder to trace and doesn’t involve bank accounts (such as with a prepaid gift card)

Remember that if you take out a credit card consolidation loan through Credible, you can see your prequalified rates from multiple lenders that have been thoroughly vetted. Credible evaluated loan and lender data points for 22 lenders in 10 categories to identify some of the best personal loan companies.

Here are Credible's partner lenders that offer personal loans for credit card consolidation:

A credit card consolidation loan could be a good way to take control of your credit card debt and hopefully save money along the way.

If taking out a credit card consolidation loan seems like the right fit for your situation, here are some additional resources that could help you learn more about how to get one: