Credit Card Consolidation

Information verified correct on May 25th, 2017

Want to reduce what you’re paying in interest while still repaying your credit card debt? Consider consolidating your credit cards.

Credit cards, while convenient, make it easy to get into debt. If you have debt across multiple credit cards that you’re repaying, you may be able to reduce the interest and fees you’re paying by consolidating them into one account. There are a few ways you can do this, including a balance transfer, a debt consolidation loan, a personal loan or a peer-to-peer loan. You can learn more about your options in the guide below and decide which one is right for you.

Prosper Personal Loan

Prosper Personal Loans

You could borrow up to $35,000 for a variety of purposes, with rates starting from 5.99%.

  • Recommended Credit Score: 640 or higher
  • Minimum Loan Amount: $2,000
  • Maximum Loan Amount: $35,000
  • Loan Term: 3 or 5 years
  • Turnaround Time: 1-3 business days
  • Simple online application process
  • No prepayment penalties

    Personal loans that could help you consolidate

    Rates last updated May 25th, 2017
    Unfortunately, none of the personal loan providers have a loan for that credit score. It you are urgent need of a small loan, you might want to check out a short term loan.
    Minimum Credit Score Max. Loan Amount APR Requirements
    Prosper Personal Loan
    Borrow only what you need for debt consolidation, home improvements, special occasions and more — with APRs based on your credit score.
    640 $35,000 From 5.99% (fixed) You are over 18 years of age, you are an American citizen or a permanent resident of the US, and you don’t have bad credit history. Go to site More
    Lending Club Personal Loan
    Borrow up to $40,000 with rates from 5.99% to 35.89% APR based on your credit score.
    660 $40,000 From 5.99% (fixed) You must be over 18 years of age, a permanent resident of the US or an American citizen and have a steady source of income. Go to site More
    Upstart Personal Loans
    This newer service looks beyond your credit score to match you with accredited investors for low-rate personal loans.
    660 $50,000 From 7.16% (fixed) 18+. US citizen or permanent resident. 660 credit score or higher. Go to site More
    NetCredit Personal Loan
    You could borrow up to $10,000 and get an interest rate personalized to your credit score
    550 $10,000 From 34% (variable) Varies based upon state of application Go to site More
    SoFi Personal Loan Fixed Rate (with Autopay)
    Borrow up to $100,000 with a competitive APR and no fees.
    Good to excellent credit $100,000 From 5.49% (fixed) You must be a U.S. citizen or permanent resident 18 years or older. Go to site More
    OneMain Financial Personal Loans
    Get funded quickly with a term loan that works for your circumstances — even with bad or no credit.
    600 $25,000 From 12.99% (fixed) Eligibility for a loan is determined by your financial history, credit history, income and expenses, and whether or not you have ever filed for bankruptcy. More
    Avant — Personal Loan
    Check your rate — without affecting your credit score — before applying for this unsecured personal loan.
    600 $35,000 From 9.95% (fixed) You must have at least a fair credit score of 580 or more), provide proof of a steady income and be a US resident who is at least 18 years old. More

    Have we missed anything in the comparison table? Tell us

    • If the provider quotes a different rate to the one above please let us know

    Personal loan lender matching services

    These matching services connect consumers with personal loan lenders. It is important to note that these services do not make credit decisions and they are not lenders, loan brokers or agents for any lender or loan broker. They can help link you up with a lender that might be able to help you access a loan.

    Rates last updated May 25th, 2017
    Unfortunately, none of the personal loan providers have a loan for that credit score. It you are urgent need of a small loan, you might want to check out a short term loan.
    Minimum Credit Score Max. Loan Amount APR Requirements
    LendingTree Personal Loan
    Apply with this online marketplace for loans to consolidate debt, buy a car, pay for a special occasion and more.
    639 $35,000 From 5.99% (variable) You must be an American citizen or a permanent resident of the US, You must be at least 18 years of age and You should have a regular source of income Go to site More
    PersonalLoans.com
    An online loan matching service that connects you with lenders for peer-to-peer, personal and bank loans for a variety of purposes.
    Varies by lender $35,000 From 5.99% (variable) You must be employed, 18+ with a bank account. Go to site More
    Zippyloan Personal Loans
    This broker matches applicants to lenders offering $100 to $15,000, often with flexible repayment options.
    $15,000 From (variable) Good credit, a steady income and manageable debt. Go to site More

    Have we missed anything in the comparison table? Tell us

    • If the provider quotes a different rate to the one above please let us know

    How does credit card debt consolidation work?

    This depends on the consolidation method you opt for, and it starts with you finding out which method is right for you. Once you’ve done that, you put all of your card balances into the one account. Make sure to close your previous accounts to save yourself from paying additional fees and to keep your credit utilization below 30% (read our FAQs below for more information).

    What are your options?

    • Credit card balance transfer. Card providers usually offer 0% APR for a limited period of time, allowing you to pay off your debt. Keep in mind the card isn’t necessarily free, with purchase APR and annual fees to consider.
    • Debt consolidation personal loan. You can take out a larger personal loan and pay off your credit card balances using the funds. Some lenders also give you the option of paying your creditors directly rather than you having to divvy up the funds yourself.
    • Peer-to-peer loans. Also referred to as P2P loans, these are becoming a popular choice for people looking to pay off their credit cards. Apply for a loan online and it will be funded by one or a few “peer” investors.
    • Debt consolidation companies. These companies work by negotiating with your credit card providers to reduce your interest rate or lower your monthly repayments. You make a single payment, and the debt consolidation company will distribute the payment across your card accounts.

    “How can I decide which is the best consolidation method for me?”

    • What’s your credit score? Whether or not you have good credit will affect the interest rate you’re offered by lenders as well as your chances of being approved. Make sure the rate you are given will save you money when you consolidate your credit card debt.
    • How much debt do you have? The amount of debt you have may affect the credit you can apply for. Check the allowable limits on different accounts before you apply to ensure you can consolidate all of your debt. Other lenders may not be willing to take on your debt if it is too large, so take this into consideration as well.
    • Do you want fixed repayments or would you prefer flexibility? Different consolidation methods offer different ways to repay. For example, if you opt for a P2P loan, your payments will be fixed, whereas you can make variable payments and pay off more than you owe with a credit card.

    Find out about your credit card options

    When should you not consolidate your credit card debt?

    There are a few instances when credit card consolidation may not be the right choice to pay down your debt. You may want to reconsider if:

    • The new APR is higher than your current APR. This is a red flag and would have you paying more debt.
    • It will hurt your credit score. Taking on more debt will generally damage your credit, although this should only last a short time. If you enlist the help of a debt consolidation company, you may notice your credit score suffer, so only consider this option if you already have bad credit or have considered other options.
    • You haven’t checked the reputability of the debt consolidation company. Disreputable companies operate in the debt space, so it’s important for you to ensure you work with a company who works towards your best interest.
    Pros and Cons of credit card debt consolidation

    Pros

    • Fewer accounts to worry about. By rolling several different payments into one, you should be able to manage your repayments easier.
    • Doesn’t hurt your credit score. By consolidating your debts, you’re still only making payments on what you owe. You’re not increasing your limit.
    • Relief from high APRs. If you have two credit cards at 20% APR or more you’re rolling these into a smaller APR loan.

    Cons

    • Getting into debt to pay for debt. Getting new debt to manage old debt can be risky if you are not prepared with a plan to pay it back.
    • Secured loans may mean more risk. If you suffer a financial setback, you have your collateral to lose.
    • Longer term debt. If you’ve consolidated your old credit card debt it is usually rolled into a longer term loan. You’re monthly repayments could be lower, but the interest paid over time could be higher.

    Have more questions to ask before you consolidate your credit card debt?

    There isn’t a set limit of cards, but there will be a limit on the debt you can consolidate. Calculate the debt you have across all of your card accounts and calculate how much you can pay off as per your chosen method’s terms.
    Your credit utilization ratio is the total amount of debt you owe compared to the total amount of credit you hold. For your credit utilization ratio to have a good effect on your credit score, it needs to be within the 1%-30% range. So, if you hold a $10,000 credit card limit, you will only want a maximum of $3,000 debt on it. When it comes to opening a new account and consolidating your debt, your credit card utilization will gradually change. Remember to keep this in check as you consolidate.
    This depends on the type of method you are opting for and the lender you apply with. Check the minimum criteria that applies before you submit your application.
    These kind of loans are secured to an asset or collateral that can be seized if you don’t make your repayments. You may be able to borrow more with a secured loan but the risks can also be higher if you struggle with repayments.
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    US Personal Loans Offers

    Learn about our information service
    Lending Club Personal Loan

    Borrow up to $40,000 with rates from 5.99% to 35.89% APR based on your credit score.

    Prosper Personal Loan

    Borrow only what you need for debt consolidation, home improvements, special occasions and more — with APRs based on your credit score.

    Upstart Personal Loans

    This newer service looks beyond your credit score to match you with accredited investors for low-rate personal loans.

    PersonalLoans.com

    An online loan matching service that connects you with lenders for peer-to-peer, personal and bank loans for a variety of purposes.

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