Best credit card consolidation loans of April 2024

Jamie Young

BLUEPRINT

Updated 5:56 p.m. UTC April 22, 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.

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What you should know

In addition to offering competitive annual percentage rates (APRs) and charging no personal loan fees, SoFi offers a 0.25% rate discount to borrowers who have their funds sent directly to their creditors. You can also get another 0.25% off your rate if you sign up for automatic payments plus another 0.125% reduction if you’re already a SoFi customer.

SoFi’s credit card consolidation loans are available for $5,000 to $100,000 and come with terms ranging from two to seven years. Borrowers also have access to a wide range of benefits, such as financial planning.

Pros and cons

Pros

No fees.
Multiple discounts available (up to 0.625%).
Maximum $100,000 loan amount.
Same-day funding available.

Cons

Could be hard to qualify if you don’t have good credit.
Must borrow at least $5,000.
Not available in Mississippi.

More details

Interest rates: 8.99% to 29.49%.
Loan amounts: $5,000 to $100,000.
Repayment terms: 2 to 7 years.
Discounts and perks: Direct lender payment discount (0.25%), autopay discount (0.25%) and existing customer discount (0.125%).
Fees: None.
Min. credit score: 680.
Can make direct payment to third-party creditors: Yes.

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What you should know

Upgrade provides access to free credit monitoring as well as educational resources to help you know how best to manage and improve your credit health. This could make Upgrade a good option if you’re looking to better understand and build your credit.

With Upgrade, you can borrow $1,000 up to $50,000. Additionally, you could have your loan funded within one day of approval. The lender also provides the option to send the money directly to your creditors to make the process even easier.

Pros and cons

Pros

Free credit monitoring and educational resources.
Loan amounts up to $50,000.
Repayment terms as long as 7 years.

Cons

High maximum APR.
Charges an origination fee.
Charges fees for late and returned payments.

More details

Interest rates: 8.49% to 35.99%.
Loan amounts: $1,000 up to $50,000.
Repayment terms: 2 to 7 years.
Discounts and perks: No prepayment penalty.
Fees: Origination fee (1.85% to 8.99%), late payment fee (up to $10) and returned payment fee ($10).
Min. credit score: 580.
Can make direct payment to third-party creditors: Yes.

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If you’re looking for fast funding, Achieve — which rebranded from FreedomPlus in December 2022 — could be a good choice. The lender offers same-day approval decisions as well as funding within 24 to 72 hours. You can borrow $5,000 to $50,000 and choose a term from two to five years.

Achieve also offers rate discounts to borrowers who opt to have the lender pay off their creditors directly, apply with a co-borrower or show proof of sufficient retirement savings.

Pros and cons

Pros

Same-day approval decisions.
Funding within 24 to 72 hours.
Accepts credit scores as low as 620.

Cons

Charges an origination fee.
Not available in all states.
Must borrow at least $5,000.

More details

Interest rates: 8.99% to 35.99%.
Loan amounts: $5,000 to $50,000.
Repayment terms: 2 to 5 years.
Discounts and perks: Rate discount for borrowers who opt to have their creditors paid directly, apply with a co-borrower or show proof of sufficient retirement savings.
Fees: Origination fee (1.99% to 6.99%).
Min. credit score: 620.
Can make direct payment to third-party creditors: Yes.

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What you should know

Unlike many personal loan lenders, LendingClub allows you to apply with a co-borrower, which could help you qualify for a larger loan amount or better rate than you’d get on your own. Note that you and your co-borrower will be equally responsible for repaying the loan.

LendingClub loans range from $1,000 to $40,000 and come with terms from three to five years. If you’re approved, you could receive your funds in as little as 24 hours.

Pros and cons

Pros

Allows co-borrowers.
Funding in as little as 24 hours after approval.
No minimum credit score requirement.

Cons

Charges an origination fee.
Charges late fees.
Limited repayment terms (only 3 to 5 years).

More details

Interest rates: 8.98% to 35.99%.
Loan amounts: $1,000 to $40,000.
Repayment terms: 3 to 5 years.
Discounts and perks: No prepayment penalty.
Fees: Origination fee (3% to 8%), late fee (5% of outstanding payment amount or $15, whichever is greater) and insufficient funds fee ($15).
Min. credit score: No minimum.
Can make direct payment to third-party creditors: Yes.

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What you should know

If you’d like to pay off your debt over a longer period of time, Discover might be a good option. Terms range from three to seven years with loan amounts from $2,500 to $40,000. Keep in mind that while choosing a longer term can reduce your monthly payments, you’ll also pay more in interest over time.

Unlike most personal loan lenders, Discover doesn’t charge an origination fee, which can help you save money on a credit card consolidation loan. But you do need a minimum income of $25,000 to qualify.

Pros and cons

Pros

Repayment terms as long as 7 years.
No origination fee.
Repayment assistance programs available.

Cons

Lower loan amounts compared to some lenders.
Co-borrowers not permitted.
Charges late fees.

More details

Interest rates: 7.99% to 24.99%.
Loan amounts: $2,500 to $40,000.
Repayment terms: 3 to 7 years.
Discounts and perks: Offers repayment assistance programs.
Fees: Late fee ($39).
Min. credit score: Does not disclose.
Can make direct payment to third-party creditors: Yes.

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Happy Money (previously Payoff) offers personal loans specifically for credit card consolidation. These loans range from $5,000 to $40,000 and come with terms from two to five years. Happy Money also provides the option to pay your credit card issuer directly.

While Happy Money’s loans do come with an origination fee from 0% to 5% of the loan amount, you won’t have to worry about any other fees typically associated with personal loans.

Pros and cons

Pros

No late fees or prepayment penalties.
Accepts fair credit scores.
Excellent Trustpilot reviews.

Cons

Charges an origination fee.
Doesn’t allow co-signers.

More details

Interest rates: 11.72% to 17.99%.
Loan amounts: $5,000 to $40,000.
Repayment terms: 2 to 5 years.
Discounts and perks: No fees outside of origination fee.
Fees: Origination fee (0% to 5%).
Min. credit score: 640.
Can make direct payment to third-party creditors: Yes.

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If you’ve already been approved by a credit card consolidation lender, it might still be a good idea to check your options with LightStream’s Rate Beat Program. This program could get you a rate that’s 0.1% lower than any competing lender’s rate offer that you’ve been approved for — meaning you could qualify for a highly competitive APR.

With a LightStream credit card consolidation loan, you can borrow $5,000 to $100,000 with terms from two to seven years. You can also take advantage of a 0.5% rate discount if you sign up for automatic payments prior to your loan funding. However, unlike other lenders, LightStream doesn’t provide the option to pay your creditors directly.

Pros and cons

Pros

Can get a rate 0.1% lower than competitors offer through the Rate Beat Program.
Loan amounts up to $100,000.
No fees.

Cons

Direct creditor payment not available.
Must borrow at least $5,000.
No prequalification option.

More details

Interest rates: 8.89% to 25.99%.
Loan amounts: $5,000 to $100,000.
Repayment terms: 2 to 7 years.
Discounts and perks: Rate Beat Program (0.10%) and autopay discount (0.50%).
Fees: None.
Min. credit score: Does not disclose.
Can make direct payment to third-party creditors: No.

Compare the best credit card consolidation loans

	INTEREST RATES	LOAN AMOUNTS	LOAN TERMS	DIRECT PAYMENT TO CREDITORS?
SoFi	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%	$5,000 to $50,000	2 to 5 years	Yes
LendingClub	8.98% to 35.99%	$1,000 to $40,000	3 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 12 (depending on loan type)	No

_{All rates include discounts where noted by the lender and are accurate as of April 22, 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.

Jamie Young

BLUEPRINT

Jamie Young is Lead Editor of loans and mortgages at USA TODAY Blueprint. She has been writing and editing professionally for 12 years. Previously, she worked for Forbes Advisor, Credible, LendingTree, Student Loan Hero, and GOBankingRates. Her work has also appeared on some of the best-known media outlets including Yahoo, Fox Business, Time, CBS News, AOL, MSN, and more. Jamie is passionate about finance, technology, and the Oxford comma. In her free time, she likes to game, play with her two crazy cats (Detective Snoop and his girl Friday), and try to keep up with her ever-growing plant collection.

Ashley Harrison

BLUEPRINT

Ashley Harrison is a USA TODAY Blueprint loans and mortgages deputy editor who has worked in the online finance space since 2017. She’s passionate about creating helpful content that makes complicated financial topics easy to understand. She has previously worked at Forbes Advisor, Credible, LendingTree and Student Loan Hero. Her work has appeared on Fox Business and Yahoo. Ashley is also an artist and massive horror fan who had her short story “The Box” produced by the award-winning NoSleep Podcast. In her free time, she likes to draw, play video games, and hang out with her black cats, Salem and Binx.