Best credit card consolidation loans of July 2024
Updated 11:02 a.m. UTC July 8, 2024
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If you’re overwhelmed by credit card debt on multiple cards, a credit card consolidation loan could help you combine it into one simple payment with a lower, fixed interest rate. A credit card consolidation loan could also allow you to pay off your debt faster — and save you money on interest.
To help you find the best credit card consolidation loans in 2024, we compared interest rates, loan amounts, repayment terms and minimum credit score requirements. We also looked for lenders that will send payments directly to your creditors to make the credit card consolidation process even easier.
Best credit card consolidation loans
- SoFi: Best overall.
- Upgrade: Best for building credit.
- Achieve: Best for fast funding.
- LendingClub: Best for co-borrowers.
- Discover: Best for lower minimum APR.
- Happy Money: Best for fair credit.
- LightStream: Best for competitive rates.
Compare the best credit card consolidation loans
INTEREST RATES | LOAN AMOUNTS | LOAN TERMS | DIRECT PAYMENT TO CREDITORS? | |
---|---|---|---|---|
8.99% to 29.49%
| $5,000 to $100,000
| 2 to 7 years
| Yes
| |
Upgrade
| 8.49% to 35.99%
| $1,000 to $50,000
| 2 to 7 years
| Yes
|
Achieve
| 8.99% to 35.99%
| $1,000 to $50,000
| 2 to 5 years
| Yes
|
LendingClub
| 8.98% to 35.99%
| $1,000 to $40,000
| 2 to 5 years
| Yes
|
Discover
| 7.99% to 24.99%
| $2,500 to $40,000
| 3 to 7 years
| Yes
|
Happy Money
| 11.72% to 17.99%
| $5,000 to $40,000
| 2 to 5 years
| Yes
|
Lightstream
| 8.89% to 25.99%
| $5,000 to $100,000
| 2 to 7 years (depending on loan type)
| No
|
All rates include discounts where noted by the lender and are accurate as of July 8, 2024.
Methodology
Our expert writers and editors have reviewed and researched multiple lenders to help you find the best credit card consolidation loan. Out of all the lenders considered, the seven that made our list excelled in areas across the following categories (with weightings): loan cost (35%), loan details (25%), eligibility and accessibility (20%), customer service (10%) and direct creditor payment (10%).
Within each major category, we considered several characteristics, including APR ranges, prepayment penalties, maximum loan amounts and terms, minimum credit score requirements and co-signer acceptance. We also evaluated each provider’s customer support options and customer reviews.
Why some lenders didn’t make the cut
Of the personal loan lenders that we reviewed, only a fraction made the cut. The lenders that didn’t have high enough scores to be included received lower ratings due to having higher interest rates and not allowing co-signers.
Pros and cons of credit card consolidation
Pros
- Simplify repayment: By taking out a credit card consolidation loan, you’ll be able to combine your debt into a single loan with one simple payment. This means you won’t have multiple payments and due dates to keep track of.
- Save money: When you take out a personal loan for credit card consolidation, you could qualify for a loan with a lower interest rate than what you’ve been paying. This will save you money on interest and total cost over the life of the loan.
- Pay off debt sooner: Credit card debt can seem overwhelming and never ending. But with a credit card consolidation loan, you’ll have a fixed monthly payment and repayment term — and finally have an end in sight. Plus, you could end up paying off your debt faster than you would have.
Cons
- Fees: Some credit card consolidation loans come with fees that could increase your overall costs, such as origination fees, late fees and prepayment penalties. When comparing personal loan lenders, make sure to see if the total expense offsets how much you can save on credit card interest.
- Not a long-term solution: Although debt consolidation can help you save money and get out of debt sooner, it doesn’t fix poor financial habits — like chronic overspending. Make a plan before you move forward with consolidating your credit cards to ensure you’re prepared to break the cycle of debt.
Frequently asked questions (FAQs)
In many cases, the best way to consolidate your credit card debt is to take out a low-interest personal loan. This debt consolidation loan will pay off all (or some, if you choose) of your credit card debt, and you’ll be left with a single, fixed payment each month instead of juggling multiple credit card due dates.
A debt consolidation loan can be a good idea if you have credit card debt at high interest rates spread across multiple cards and are struggling to pay your balances each month. Taking out a credit card consolidation loan with a lower interest rate and more favorable terms can help you pay your debt off sooner — and save money on interest in the process.
When you initially apply for a credit card consolidation loan, you could see a minor decrease in your credit score — by about five points — but that’s usually temporary.
But a debt consolidation loan can also help improve your credit. If you continuously make your payments on time, this improves your payment history and can positively impact your overall credit. The consolidation loan might also help improve your credit utilization ratio over time — the amount you owe compared to the total credit limit you have available across all accounts — or diversify your credit mix.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.