Best Credit Card Consolidation Loans of April 2025
The best credit card consolidation loans offer low rates, flexible payment terms and direct payment to creditors. Compare your options for credit card consolidation.
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A credit card consolidation loan is a personal loan that pays off your high-interest credit cards, reorganizing multiple payments into a single, fixed monthly payment over a set term.
Here are credit card consolidation loan options and other factors to help you decide if consolidation works for you.
| Lender | NerdWallet rating | Est. APR | Loan amount | Min. credit score | Learn more |
|---|---|---|---|---|---|
5.0/5 Best for Credit card consolidation loans | 8.99-29.99% | $5,000-$100,000 | None | Get rateon SoFi's website | |
4.5/5 Best for Credit card consolidation loans | 6.99-35.99% | $2,000-$50,000 | 600 | Get rateon Best Egg's website | |
4.0/5 Best for Credit card consolidation loans | 8.99-29.99% | $5,000-$50,000 | 640 | Get rateon Achieve's website | |
5.0/5 Best for Credit card consolidation loans | 7.99-24.99% | $2,500-$40,000 | 660 | Get rateon Discover's website | |
5.0/5 Best for Credit card consolidation loans | 7.99-35.99% | $1,000-$50,000 | 580 | Get rateon Upgrade's website | |
4.0/5 Best for Credit card consolidation loans | 11.69-35.99% | $1,000-$50,000 | 580 | Get rateon Universal Credit's website | |
4.0/5 Best for Credit card consolidation loans | 8.95-17.48% | $5,000-$40,000 | 640 | See my rateson NerdWallet's secure website | |
4.5/5 Best for Credit card consolidation loans | 7.90-35.99% | $1,000-$40,000 | 600 | Get rateon LendingClub's website |
Our pick for
Credit card consolidation loans
SoFi Personal Loan
8.99-29.99%
$5,000-$100,000
None
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Qualified borrowers will find few lenders better than SoFi, thanks to thoughtful perks like unemployment protection and free financial advising.
- Multiple rate discounts.
- Fast funding.
- Large loan amounts.
- Joint loan option.
- Mobile app to manage loan.
- No option to choose initial payment date.
- High minimum loan amount.
- Must be at least 18 years old in most states.
- Must be a U.S. citizen, permanent or non-permanent resident, including DACA recipients and asylum seekers.
- Must be employed, have sufficient income from another source, or have an offer of employment to start within the next 90 days.
- Acceptable income sources: Employment, spouse’s income, retirement, alimony, child support, Social Security payments and disability benefits.
- Origination fee: 0% to 7%.
- Late fee: None.
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Upgrade personal loans come with multiple rate discounts and offer direct payment to creditors. This lender has a low minimum credit score requirement, making the perks stand out even more.
- Secured and joint loans.
- Multiple rate discounts.
- Mobile app to manage loan payments.
- Direct payment to creditors with debt consolidation loans.
- Long repayment terms on home improvement loans.
- Origination fee.
- No option to choose your payment date.
- Minimum credit score: 580.
- Minimum number of accounts on credit history: One account.
- Maximum debt-to-income ratio: 75%, including mortgage payments.
- Minimum length of credit history: Two years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security, disability benefits and other sources.
- Origination fee: 1.85% to 9.99%.
- Late Fee: $10.
- Failed payment fee: $10.
Best Egg
6.99-35.99%
$2,000-$50,000
600
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Best Egg is worth considering for borrowers looking for a secured loan or to consolidate debt, but the loans come with an origination fee.
- Wide range of loan amounts.
- Secured loan options.
- Direct payment to creditors with debt consolidation loans.
- Fast funding.
- Free credit score monitoring.
- Origination fee.
- No rate discounts.
- No mobile app to manage loan.
- Minimum credit score: 600.
- Maximum debt-to-income ratio: 70% including a mortgage.
- Minimum credit history: 3 years and 1 account.
- Acceptable income sources: Employment, household income, alimony, retirement, child support, Social Security payments and disability benefits.
- Must be a U.S. citizen or permanent resident and at least 18 years of age.
- Origination fee: 0.99% - 9.99%.
Achieve Personal Loans
8.99-29.99%
$5,000-$50,000
640
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Achieve personal loans can be a good debt consolidation option for fair- or good-credit borrowers who qualify for one of the lender’s rate discounts.
- Multiple rate discounts.
- Direct payment to creditors for debt consolidation.
- Joint loan option.
- Fast approval and funding.
- Access to a dedicated loan consultant.
- Origination fee.
- High minimum loan amount.
- No mobile app.
- Minimum credit score: 640.
- Maximum debt-to-income ratio: 70% including a mortgage payment or other housing expense.
- Minimum income: None.
- Minimum credit history: 3 years across 2 accounts.
- Must be a U.S. citizen or permanent resident living in a state where Achieve operates.
- Must provide a Social Security number or ITIN.
- Origination fee: 1.99% - 8.99%.
- Late fee: $8.
Happy Money
8.95-17.48%
$5,000-$40,000
640
View details Close details
If you can qualify for a low rate, Happy Money is a smart way to consolidate high-interest credit card debt into one fixed monthly payment.
- Option to pre-qualify with a soft credit check.
- Offers direct payment to creditors.
- No late fee.
- Hardship program for borrowers in need.
- Origination fee.
- No rate discount.
- No co-sign or joint loan option.
- No option to choose initial payment date.
- Must have a valid Social Security number or individual taxpayer identification number.
- Minimum credit score: 640.
- Minimum credit history: 3 years and 2 accounts.
- Maximum debt-to-income ratio: 55%, including mortgage.
- Not a resident of Iowa, Massachusetts and Nevada.
- Origination fee: Up to 7%.
Discover® Personal Loans
7.99-24.99%
$2,500-$40,000
660
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Discover’s online experience, strong customer support and borrower perks make it a top lender for good- and excellent-credit applicants.
- No origination fee.
- Fast funding.
- Direct payment to creditors with debt consolidation loans.
- Wide variety of repayment term options.
- Available nationwide.
- No rate discount.
- Late fee.
- No co-sign or joint loan option.
- Minimum credit score: 660.
- Minimum annual household income: $25,000. Income can come from employment, retirement, alimony, child support, Social Security payments and disability benefits.
- Must provide a valid U.S. address and email address.
- Must be 18 years old with a valid Social Security number.
- Origination fee: None.
- Late fee: $39.
LendingClub
7.90-35.99%
$1,000-$40,000
600
View details Close details
LendingClub personal loans are a solid option for good-credit borrowers looking to consolidate debt and build their credit.
- Joint loan option.
- Direct payment to creditors with debt consolidation loans.
- Option to pre-qualify with a soft credit check.
- Option to change your payment date.
- Origination fee.
- Minimum credit score: 600; average borrower score is above 700.
- Minimum income: None; lender requires proof of income. Borrower average is $100,000 per year.
- Maximum DTI: 40%.
- Minimum credit history: 36 months and two accounts.
- Origination fee: 0%-8%
- Late fee: 5% of payment or $15 after 15-day grace period.
- Insufficient funds: $15.
Universal Credit
11.69-35.99%
$1,000-$50,000
580
View details Close details
A Universal Credit loan is a sound option for bad-credit borrowers looking to build credit, but rates are high compared to similar lenders.
- Offers direct payment to creditors with debt consolidation loans.
- Fast funding.
- Offers multiple rate discounts.
- Offers free credit score access.
- Charges origination fee.
- Borrowers can choose from only two repayment term options.
- Minimum credit score: 580.
- Minimum number of accounts on credit history: 1 account.
- Maximum debt-to-income ratio: 75%, including mortgage and the loan you’re applying for.
- Minimum length of credit history: 2 years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security and other sources.
- Origination fee: 5.25% to 9.99%.
- Late fee: Up to $10.
- Non-sufficient funds fee: $10.
Should I consolidate credit card debt?
If you’re struggling to keep up with credit card bills, a debt consolidation loan can give you the breathing room you need to pay down debt. It can lower your payments, reduce interest costs and help you get out of debt quicker.
Ideally, the rate you receive on the loan is lower than the combined interest rate on your credit cards. You’ll need good to excellent credit (690 to 850 credit score) to qualify for the lowest rates.
If your credit card debt is unmanageable — you can’t repay it within five years and the total balance equals half or more of your gross income — then debt relief may be more effective than debt consolidation.
How to get a credit card consolidation loan
Take these steps to start the credit card consolidation loan process.
Know your balances and rates: Add up what you owe on the credit cards you want to consolidate, sorted by total balances and interest rates.
Aim to consolidate cards that have a higher rate than the annual percentage rate you can get on a consolidation loan. For example, if the rates on your credit cards are between 15% and 30% APR, look for a consolidation loan of less than 15% APR. This will save you money on interest.
A loan’s APR is its interest rate plus all fees, including origination fees. Personal loan APRs range from about 6% to 36%, depending on your credit score, debt-to-income ratio and other factors, like where you get a loan.
Estimate your savings: Use a debt consolidation calculator to understand how much you can potentially save by consolidating.
The calculator shows your credit cards’ combined APR, and you can view how different rates and loan terms impact your payment and savings.
Compare loan features: When shopping for loans, compare features as well as rates. Some lenders offer direct payment to creditors, which means they send your loan proceeds to your credit card issuers, simplifying the debt consolidation process.
Other features that may be important to you include free credit score monitoring, available rate discounts or hardship programs that temporarily suspend payments if you lose your job. Time to funding is another consideration if you need a loan fast.
Pre-qualify and apply: Pre-qualifying with lenders lets you preview the rates and loan terms you may receive, with no effect on your credit score. It also makes it easier to compare loans from multiple lenders.
After pre-qualifying and comparing options, you can formally apply for a personal loan.
Get approved and funded: Debt consolidation loans can be funded the same day you apply or take up to a week, depending on the lender.
If the lender directly pays your creditors, check to ensure the payments are applied to your balances. If direct payment isn’t offered, you’ll need to pay off each credit card with the money deposited to your bank account.
Get ready to make your first new loan payment, which will likely be one month after funding.
Credit card refinancing vs. debt consolidation
Refinancing credit card debt is similar to consolidation, but instead of getting a personal loan to pay off your credit cards, you get a low-interest credit card and transfer the balance from one or more existing credit cards onto the new card.
Refinancing is often called a balance transfer, and many balance transfer credit cards offer a 0% introductory APR for a period of 15 to 21 months. You'll likely need good or excellent credit to qualify.
» COMPARE: Best balance transfer cards
Unlike debt consolidation loans, there is no set repayment term on a credit card, and rates are often variable instead of fixed.
Balance transfers work best if you have a small balance to consolidate ($15,000 or less), and only if the interest savings outweigh any fee required to carry out the transfer. Aim to pay off the balance in full before the zero-interest promotion expires and the APR resets to its normal, higher rate.
What to do after consolidating credit cards
Plan your payments: One way to manage your loan payments and avoid late fees is by setting up automatic payments. You may even receive a rate discount for using autopay, depending on the lender.
Stick to a budget: The new loan payment should fit into a budget that allocates income toward your needs, wants, savings and debt. Budgeting can help you change your spending habits, spot areas to cut back and boost your cash flow.
Avoid new credit card debt: You’ll have a lot more spending power on your credit cards after consolidating them, and there may be some temptation to use them. Track your spending carefully and aim to keep your credit utilization ratio below 30% on each card.
Last updated on May 1, 2024
Methodology
NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial technology companies and financial institutions. We collect over 50 data points and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
To recap our selections...
NerdWallet's Best Credit Card Consolidation Loans of April 2025- SoFi Personal Loan: Best for Credit card consolidation loans
- Upgrade: Best for Credit card consolidation loans
- Best Egg: Best for Credit card consolidation loans
- Achieve Personal Loans: Best for Credit card consolidation loans
- Happy Money: Best for Credit card consolidation loans
- Discover® Personal Loans: Best for Credit card consolidation loans
- LendingClub: Best for Credit card consolidation loans
- Universal Credit: Best for Credit card consolidation loans