A personal loan for refinancing credit cards can offer a lifeline for consolidating credit card debt. The trick is finding the best debt consolidation loan to pay off credit cards at a lower interest rate that will help you save money.
Here’s how you can find the best debt consolidation loan with the most favorable terms that you have the best odds of qualifying for.
- What are the best credit card debt consolidation loans?
- What is credit card refinancing?
- What is the smartest way to consolidate credit card debt?
- Does credit card refinancing hurt your credit score?
- What is the best loan to consolidate credit card debt?
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Lender |
Learn More |
APR |
Max. Loan Amount |
Min. Credit Score |
---|---|---|---|---|
4.99% to 17.99% | $50,000 | 650 | ||
6.24% to 10.24% | $50,000 | Not disclosed | ||
4.74% to 20.28% | $100,000 | Not disclosed | ||
2.49% to 19.99% | $100,000 | 670 | ||
5.99 to 24.99% | $35,000 | 660 | ||
5.99% to 24.99% | $40,000 | 550 | ||
Not disclosed | $50,000 | 300 (or insufficient history) | ||
5.74% to 19.99% | $100,000 | Not disclosed | ||
6.99% to 19.99% | $40,000 | 670 | ||
5.99% to 19.49% | $50,000 | 660 |
U.S. News selects the Best Loan Companies by evaluating affordability, borrower eligibility criteria and customer service. Those with the highest overall scores are considered the best lenders.
To calculate each score, we use data about the lender and its loan offerings, giving greater weight to factors that matter most to borrowers. Personal loan companies are evaluated based on customer service ratings, interest rates, maximum loan term, minimum and maximum loan amounts, minimum FICO score, online features, and origination fees.
The weight each scoring factor receives is based on a nationwide survey on what borrowers look for in a lender.
To receive a rating, lenders must offer qualifying loans nationwide and have a good reputation within the industry. Read more about our methodology.
Best for low minimum loan amounts
Before You Apply
- Minimum FICO credit score: 650
- Loan amounts: $600 to $50,000
- Repayment terms: up to 60 months
- Better Business Bureau rating: A+
Best Features
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Terms extend up to 60 months.
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There are no origination fees.
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Borrowers get funds in one or two days upon approval.
Best for same-day loans online
Before You Apply
- Minimum FICO credit score: undisclosed
- Loan amounts: $1,000 to $50,000
- Repayment terms: up to 60 months
- Better Business Bureau rating: A+
Best Features
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Loans range from $1,000 to $50,000.
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Funds are often deposited the same day.
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No prepayment penalties apply if you pay off all or part of a loan early.
Best for loans of up to $100,000 with no fees
Before You Apply
- Minimum FICO credit score: undisclosed
- Loan amounts: $5,000 to $100,000
- Repayment terms: up to 84 months
- Better Business Bureau rating: A+
Best Features
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SoFi doesn’t charge late fees.
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You can borrow up to $100,000.
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Co-borrowers are accepted.
Before You Apply
- Minimum FICO credit score: 670
- Loan amounts: $5,000 to $100,000
- Repayment terms: up to 144 months
- Better Business Bureau rating: A+
Best Features
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Borrowers can use loans for a range of purposes, from buying a car to financing a horse.
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Loans are available from $5,000 to $100,000.
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LightStream doesn’t charge origination, prepayment or late fees.
Before You Apply
- Minimum FICO credit score: 660
- Loan amounts: $2,500 to $35,000
- Repayment terms: up to 84 months
- Better Business Bureau rating: A+
Best Features
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Discover has no closing costs or origination fees.
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The lender offers loan terms from 36 to 84 months.
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Borrowers get free access to a credit scorecard that includes their FICO credit score.
Before You Apply
- Minimum FICO credit score: 550
- Loan amounts: $5,000 to $40,000
- Repayment terms: up to 60 months
- Better Business Bureau rating: A+
Best Features
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Borrowers are not charged late or returned payment fees.
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Applicants can get preapproved with no hard credit check.
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Poor-credit borrowers may be eligible.
Best for borrowers with no credit or poor credit
Before You Apply
- Minimum FICO credit score: 300 (or insufficient history)
- Loan amounts: $1,000 to $50,000
- Repayment terms: up to 60 months
- Better Business Bureau rating: A-
Best Features
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Upstart says 99% of applicants who accept their loans by 5 p.m. Eastern Time Monday through Friday will get their money in one business day.
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Upstart offers loans to borrowers with no credit scores, which traditional lenders may not do.
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You can repay all or part of your loan anytime without being charged a fee.
Best for Wells Fargo customers
Before You Apply
- Minimum FICO credit score: undisclosed
- Loan amounts: $3,000 to $100,000
- Repayment terms: up to 84 months
- Better Business Bureau rating: NR
Best Features
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Wells Fargo offers annual percentage rates starting at 5.74%, which includes a relationship discount.
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Borrowers pay no origination or closing fees.
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Relationship discounts of 0.25 to 0.5 of a percentage point are available if you have a qualifying Wells Fargo checking account and make automatic payments from a Wells Fargo deposit account.
Before You Apply
- Minimum FICO credit score: 670
- Loan amounts: $3,500 to $40,000
- Repayment terms: up to 72 months
- Better Business Bureau rating: A+
Best Features
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Borrowers pay no fees for personal loans.
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Payment due dates are adjustable.
Before You Apply
- Minimum FICO credit score: 660
- Loan amounts: $1,000 to $50,000
- Repayment terms: up to 60 months
- Better Business Bureau rating: A+
Best Features
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U.S. Bank pays out loan funds relatively quickly following approval.
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U.S. Bank offers a simple loan option for as little as $100.
When you shop around for the best personal loan interest rate, you can save. Compare your personal loan offers with national average trends for personal loans to know if you’ve found a good deal.
*Rate as of Mar. 16, 2022
Credit card debt consolidation rolls multiple credit card balances into one loan.
With a personal loan for debt consolidation, you borrow a lump sum of money – ideally at a low interest rate. You then use that money to pay off some or all of your high-interest credit card balances.
Taking out a personal loan is one of the best ways to consolidate debt for consumers who have substantial credit card debt, says Mark Victoria, head of unsecured lending at TD Bank. Going forward, you have a single monthly payment to make toward the debt consolidation loan.
Credit card consolidation can offer several financial benefits:
- You could save money on interest. If your consolidation loan has a lower interest rate than the annual percentage rate for the credit cards you pay off, you’ll pay less interest over time.
- There are fewer payments to juggle. Going from multiple credit card payments each month to a single monthly payment can help streamline your financial life.
- You may get out of debt faster. If you have a lower interest rate with a credit card debt consolidation loan, more of your monthly payment goes toward the principal.
There’s also a sense of relief. Debt consolidation gives you a concrete finish line when you know your debt will be paid off, says James Lambridis, founder and CEO of financial information site DebtMD. “An unsecured debt consolidation loan typically lasts from two to five years, so you can give yourself peace of mind that at the end of the term, you will be debt-free once and for all.”
You can use a balance transfer credit card to consolidate credit card debt at an introductory 0% interest rate. But balance transfer cards can be more limited than credit card debt consolidation loans.
You may need excellent credit to be approved for a high credit limit to cover all of your credit card balances. You should expect to pay a balance transfer fee, though this fee may be lower than the interest rate on a personal loan. Most balance transfer cards offer 0% interest for 12 to 18 months, which is a shorter term length than the typical personal loan.
Balance transfer cards are best suited for consolidating small credit card balances that you can pay off within the 0% promotional period. Personal loans can be a better solution for larger debt than you can expect to be approved for on a credit card and may take more time to pay off.
“If you don’t qualify for one of the top balance transfer credit cards, using a personal loan to consolidate debt is an excellent option. A loan gives you an opportunity to pay off your debt at a lower interest rate,” says Beverly Harzog, credit card expert and consumer finance analyst at U.S. News.
Other debt consolidation loans for credit card refinancing include home equity loans and 401(k) loans. These options can be problematic, as you risk losing your home or retirement savings if you default.
Consolidating credit card debts using a personal loan can affect your credit score both positively and negatively. However, successfully paying off credit card debt using a personal loan should have a more positive than negative effect on your credit.
Applying for a loan to consolidate credit card debt can trigger a hard inquiry against your credit report, which can take a few points off your credit score. Most lenders allow you to check your rate and loan amount with a soft credit inquiry, which doesn’t affect your credit. Rate checks allow you to shop around for the best debt consolidation loan before you submit a formal application, which does trigger a hard inquiry.
Once you have a new loan open, that can affect the overall age of your credit. As a general rule, the older your account history, the better. Newer accounts could trim a few points off your score.
But inquiries and credit age are smaller factors than payment history and credit utilization, which a credit card refinancing personal loan can help with. Paying your new loan on time can improve your payment history, which accounts for 35% of your FICO score. If you’re paying off credit cards, that can improve your credit utilization ratio, which counts for 30% of your FICO score.
The two biggest mistakes to avoid with credit card debt consolidation loans are late payments and running up new balances on the cards you just paid off. Doing so can hurt your credit history and push you farther into debt.
Victoria says some people go in with the best intentions of consolidating into one loan at a lower rate. However, even though the debt has shifted, consumers should keep in mind that they still likely have access to the credit cards that got them there in the first place.
“Consolidating is the first step,” he says. “Changing spending habits should be the next priority.”
If you’re interested in the best debt consolidation loan to pay off credit cards, it helps to know how to compare consolidation loan companies. As you’re shopping around for a personal loan to eliminate credit card debt, consider these factors:
- Minimum loan amount
- Maximum loan amount
- Minimum and maximum loan repayment terms
- Interest rate and APR
- Loan fees, including origination fees, late payment fees and prepayment penalties
- Funding and payment options
- Minimum credit score and income requirements
- Customer service reviews
When looking for the best credit card debt consolidation options, it’s important to figure out what works best for your budget. That also means taking into account what your new monthly payment would be for a loan. Understand how long it will take you to pay it off and what you’ll pay in interest.
“You should only consolidate your debt if you’re able to lock yourself in at a lower interest rate and/or lower your monthly payment,” Lambridis says. He cautions that a lower credit score could translate to a higher interest rate on a credit card consolidation loan, potentially overriding any savings benefit.
Find out how fast you’ll receive funds: Some loan companies offer funding as soon as the next business day. If the lender offers direct payment, it can send funds directly to your creditors to pay off accounts.
Flexible payment options can help, too. Some lenders may allow you to set your payment due date, which can help you balance monthly payments in a way that works best for you.
Before You Apply
- Minimum FICO credit score: 640
- Loan amounts: $2,000 to $50,000
- Repayment terms: up to 60 months
- Better Business Bureau rating: A+
Best Features
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Loan funding typically takes one to three business days.
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The minimum loan amount is $2,000 in most states.
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Borrowers incur no prepayment penalty.
Best for digital customer care
Before You Apply
- Minimum FICO credit score: undisclosed
- Loan amounts: $2,000 to $45,000
- Repayment terms: up to 60 months
- Better Business Bureau rating: A+
Best Features
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Same-day loan funding is available for up to $25,000.
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No prepayment penalties apply.
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An online application process is available.
Before You Apply
- Minimum FICO credit score: 700
- Loan amounts: $5,000 to $50,000
- Repayment terms: up to 72 months
- Better Business Bureau rating: A+
Best Features
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Customers can expect an entirely digital borrowing experience.
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Flexible loan terms are three to six years.
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Loan amounts range from $5,000 to $50,000.
Before You Apply
- Minimum FICO credit score: undisclosed
- Loan amounts: $1,000 to $47,500
- Repayment terms: undisclosed
- Better Business Bureau rating: A+
Best Features
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Find loans to help you pay for cosmetic procedures, dental implants, funeral expenses and more.
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Borrow from $1,000 to $47,500.
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Pay no interest on principal if repaid within six months.
Best for loan amounts of up to $50,000
Before You Apply
- Minimum FICO credit score: undisclosed
- Loan amounts: $1,000 to $50,000
- Repayment terms: up to 84 months
- Better Business Bureau rating: A-
Best Features
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Loans and lines of credit are available up to $50,000.
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Borrowers can complete the entire loan process online.
Best for low fees and discounts
Before You Apply
- Minimum FICO credit score: undisclosed
- Loan amounts: $1,000 to $35,000
- Repayment terms: up to 60 months
- Better Business Bureau rating: A+
Best Features
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No prepayment penalty and no origination or application fee.
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Get a 0.25-percentage-point discount if you set up autopay using a PNC checking account.
Best for flexible credit requirements
Before You Apply:
- Minimum FICO credit score: undisclosed
- Loan amounts: $300 to $10,000
- Repayment terms: up to 48 months
- Better Business Bureau rating: A+
Best Features
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No credit history requirement.
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In some states, there is an in-person application option in addition to the online application.
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Secured and unsecured loan options available in some states.
Before You Apply
- Minimum FICO credit score: undisclosed
- Loan amounts: $2,000 to $35,000
- Repayment terms: up to 60 months
- Better Business Bureau rating: A
Best Features
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Borrowers with fair credit scores can qualify.
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Funds for unsecured personal loans can be generally deposited the next business day after approval.
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Secured and unsecured loans are available.
Best for FICO scores between 580 and 669
Before You Apply
- Minimum FICO credit score: 580
- Loan amounts: $2,000 to $36,500
- Repayment terms: up to 60 months
- Better Business Bureau rating: A+
Best Features
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Receive loan funds as soon as the next business day after approval.
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Qualify for a personal loan with fair credit.
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Prequalify with a soft credit inquiry that won’t harm credit.
Before You Apply
- Minimum FICO credit score: 600
- Loan amounts: $7,500 to $50,000
- Repayment terms: up to 60 months
- Better Business Bureau rating: A+
Best Features
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Qualify with a fair credit score of 600.
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Access personal loans up to $50,000.
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Prepay loans without fees.
Advertising Disclosure: Some of the loan offers on this site are from companies
who are advertising clients of U.S. News. Advertising considerations may impact
where offers appear on the site but do not affect any editorial decisions,
such as which loan products we write about and how we evaluate them. This site
does not include all loan companies or all loan offers available in the marketplace.
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