8 Best Credit Card Consolidation Loans of January 2021

on Payoff's website

Payoff

4.5

Min. Credit Score

640

Est. APR

5.99 - 24.99%

Loan Amount

$5,000 - $40,000

on Payoff's website

Min. Credit Score

640

Key facts

Payoff’s debt consolidation loans are used solely for the purpose of paying off credit card debt.

Pros

Competitive rates among online lenders.
Offers direct payment to creditors.
Reports payments to all three major credit bureaus.
No prepayment or late fees.

Cons

Charges origination fee.
No rate discount for autopay.
Requires several years of credit history.

Qualifications

Minimum credit score: 640.
Minimum credit history: Three years.
At least two open accounts on credit report.
Maximum debt-to-income ratio: 50% (excluding mortgage).
Free cash flow: At least $1,000.
Zero credit delinquencies.
Must be able to provide income verification.
No bankruptcies filed within the past two years.
Must provide Social Security number.

Available Term Lengths

2 to 5 years

Fees

Origination fee: 0% - 5%.

Disclaimer

This does not constitute an actual commitment to lend or an offer to extend credit. Upon submitting a loan application, you may be asked to provide additional documents to enable us to verify your income, assets, and financial condition. Your interest rate and terms for which you are approved will be shown to you as part of the online application process. Most applicants will receive a variety of loan offerings to choose from, with varying loan amounts and interest rates. Borrower subject to a loan origination fee, which is deducted from the loan proceeds. Refer to full borrower agreement for all terms, conditions and requirements.

on Upgrade's website

Upgrade

5.0

Min. Credit Score

580

Est. APR

6.94 - 35.97%

Loan Amount

$1,000 - $50,000

on Upgrade's website

Min. Credit Score

580

Key facts

Upgrade directly pays creditors for credit card consolidation, and may lend to borrowers with fair credit scores.

Pros

Allows secured, co-signed and joint loans.
Offers rate discount with direct payment to creditors on debt consolidation loans.
Rate discount for autopay.

Cons

Charges origination fee.
Charges late fee.

Qualifications

Minimum credit score: 580.
Minimum annual income: None; average borrower income is $87,000.
Minimum credit history: 3 years.
Minimum number of accounts on credit history: 2.
Minimum monthly free cash flow: $800.
Maximum debt-to-income ratio: Varies between 55% and 65% including the loan you’re applying for and mortgage payments. To see your post-loan DTI, calculate your monthly payments on a personal loan, and then add them to your debt-to-income calculation.
Average loan amount is $10,000.
Average repayment term is 40 months.

Available Term Lengths

3 to 5 years

Fees

Origination fee: 2.9% to 8%.

Disclaimer

Personal loans made through Upgrade feature APRs of 6.94%-35.97%. All personal loans have a 2.9% to 8% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade's lending partners. Information on Upgrade's lending partners can be found at https://www.upgrade.com/lending-partners/. Accept your loan offer and your funds will be sent to your bank or designated account within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes the transaction. From the time of approval, funds should be available within four (4) business days. Funds sent directly to pay off your creditors may take up to 2 weeks to clear, depending on the creditor.

on Upstart's website

Upstart

4.5

Min. Credit Score

580

Est. APR

6.16 - 35.99%

Loan Amount

$1,000 - $50,000

on Upstart's website

Min. Credit Score

580

Key facts

Upstart offers direct payment to creditors and may be an option for fair-credit borrowers.

Pros

Accepts borrowers new to credit.
Able to fund loans within one business day.
Offers direct payment to creditors with some debt consolidation loans.

Cons

Borrowers can choose from only two repayment term options.
Charges origination fee.

Qualifications

Minimum credit score: 580.
Minimum credit history: none, this lender accepts borrowers with credit history too limited to produce a FICO score.
Minimum gross income: $12,000.
Employment: Full-time job, full-time job offer starting in 6 months, a regular part-time job, or another source of regular income.
Must have U.S. residential street address where borrower resides (unless military personnel on active duty).
Must be at least 18 years old.
Valid email account required.
Personal bank account with U.S. routing number required.

Available Term Lengths

3 to 5 years

Fees

Origination fee: 0% - 8%.
Late fee: 5% of past due amount or $15, whichever is greater.

Disclaimer

1)This offer is conditioned on final approval based on our consideration and verification of financial and non-financial information. Rate and loan amount are subject to change based upon information received in your full application. This offer may be accepted only by the person identified in this offer, who is old enough to legally enter into contract for the extension of credit, a US citizen or permanent resident, and a current resident of the US. Duplicate offers received are void. Closing your loan is contingent on your meeting our eligibility requirements, our verification of your information, and your agreement to the terms and conditions on the www.upstart.com website. 2) § Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. The minimum loan amount in MA is $7,000. The minimum loan amount in Ohio is $6,000. The minimum loan amount in NM is $5,100. The minimum loan amount in GA is $3,100. 3) ‡ The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 15% and 36 monthly payments of $33 per $1,000 borrowed. There is no down payment and no prepayment penalty. Average APR is calculated based on 3-year rates offered in the last 1 month. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.

on LightStream's website

LightStream

5.0

Min. Credit Score

660

Est. APR

4.49 - 20.49%

Loan Amount

$5,000 - $100,000

on LightStream's website

Min. Credit Score

660

Key facts

LightStream targets strong-credit borrowers with no fees and low rates for almost any purpose, including credit card consolidation.

Pros

No fees.
Competitive rates among online lenders.
Rate discount for autopay.
Special features including rate beat program and satisfaction guarantee.

Cons

No option to pre-qualify on its website.
Requires several years of credit history.

Qualifications

Minimum credit score: 660.
Several years of credit history; excellent-credit borrowers have at least five, according to LightStream.
Multiple account types within your credit history, like credit cards, a car loan or other installment loan and a mortgage.
Strong payment history with few or no delinquencies.
Investments, retirement savings or other evidence of an ability to save money.
Enough income to pay existing debts and a new LightStream loan.

Available Term Lengths

2 to 7 years

Fees

Origination fee: None.
Late fee: None.

Disclaimer

Your loan terms are not guaranteed and may vary based on loan purpose, length of loan, loan amount, credit history and payment method (AutoPay or Invoice). AutoPay discount is only available when selected prior to loan funding. To obtain a loan, you must complete an application on LightStream.com, which may affect your credit score. You may be required to verify income, identity and other stated application information. Payment example: Monthly payments for a $5,000 loan at 12.8% APR with a term of 3 years would result in 36 monthly payments of $168. Some additional conditions and limitations apply. Advertised rates and terms are subject to change without notice. SunTrust now Truist is an Equal Housing Lender. © 2020 Truist Financial Corporation. SunTrust®, Truist, LightStream®, the LightStream logo, and the SunTrust logo are service marks of Truist Financial Corporation. All rights reserved. All other trademarks are the property of their respective owners. Lending services provided by SunTrust now Truist Bank.

on Goldman Sachs's website

Marcus by Goldman Sachs

5.0

Min. Credit Score

660

Est. APR

6.99 - 19.99%

Loan Amount

$3,500 - $40,000

on Goldman Sachs's website

Min. Credit Score

660

Key facts

Marcus offers direct payment to creditors for debt consolidation, and appeals to borrowers with fair to good credit.

Pros

No fees.
Competitive rates among online lenders.
Wide variety of repayment term options.
Rate discount for autopay.
Offers direct payment to creditors for debt consolidation loans.

Cons

No co-sign, joint or secured loan option.
Funding could take up to four business days.

Qualifications

Minimum credit score: 660.
Must be 18 or over, 19 in Alabama and 21 in Mississippi and Puerto Rico.
Must have a valid U.S. bank account and Social Security or Individual Tax I.D. Number.
May need to provide proof of income, including recent pay stubs or bank statements.

Available Term Lengths

3 to 6 years

Fees

Origination fee: None.
Late fee: None.

Disclaimer

Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans). Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions.

on FreedomPlus's website

FreedomPlus

4.0

Min. Credit Score

620

Est. APR

7.99 - 29.99%

Loan Amount

$7,500 - $40,000

on FreedomPlus's website

Min. Credit Score

620

Key facts

FreedomPlus offers direct payment to creditors for debt consolidation, and is an option for borrowers with good to excellent credit.

Pros

Able to fund loans within two business days.
Option to change your payment date.
Offers direct payment to creditors with debt consolidation loans.

Cons

Charges origination fee.
High minimum loan amount.
No option to include co-signer.

Qualifications

Minimum credit score: 620; borrower average is 700. The company uses the FICO 8 credit scoring model.
Minimum debt-to-income ratio: 45%, excluding mortgage.
Minimum credit history: 3 years.
Minimum number of accounts on credit history: 2.
No bankruptcy in the last 24 months.

Available Term Lengths

2 to 5 years

Fees

Origination fee: 1.99% - 4.99%.
Late fee: $15 or 5% of amount due, whichever is greater.
Unsuccessful payment fee: $15.

Disclaimer

The loan terms presented are not guaranteed and APRs presented are estimates only. To obtain a loan you must submit additional information and documentation and all loans are subject to credit review and our approval process. The range of APRs is 7.99% to 29.99% and your actual APR will depend upon factors including your credit score, usage and history, the requested loan amount, the stated loan purpose, and the term of the requested loan. To qualify for a 7.99% APR loan, a borrower will need excellent credit on a loan for an amount less than $12,000.00, and with a term equal to 24 months. Adding a co-borrower with sufficient income; using at least eighty-five percent (85%) of the loan proceeds to directly pay off qualifying existing debt; or showing proof of sufficient retirement savings, could help you also qualify for the lowest rate available. All loans are made by Cross River Bank and MetaBank®, N.A., Members FDIC.

on LendingClub's website

LendingClub

4.0

Min. Credit Score

600

Est. APR

10.68 - 35.89%

Loan Amount

$1,000 - $40,000

on LendingClub's website

Min. Credit Score

600

Key facts

LendingClub offers a balance transfer loan to help borrowers consolidate credit cards. It sends your loan proceeds to up to 12 creditors to simplify the process.

Pros

Offers co-signed and joint loan options.
Offers direct payment to creditors with debt consolidation loans.
Soft credit check with pre-qualification.

Cons

Borrowers can only choose from two repayment term options.
Rates are high compared to other online lenders.
Charges an origination fee.

Qualifications

Minimum credit score of 600. LendingClub uses FICO 8 credit scoring model.
Minimum credit history of three years.
Debt-to-income ratio of less than 40% for single applications, 35% combined for joint applicants.

Available Term Lengths

3 to 5 years

Fees

Origination fee: 1% to 6%
Late fee: Greater of $15 or 5% of payment after 15-day grace period.

Disclaimer

All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage and history. The APR ranges from 10.68% to 35.89%. For example, you could receive a loan of $6,000 with an interest rate of 9.56% and a 5.00% origination fee of $300 for an APR of 13.11%. In this example, you will receive $5,700 and will make 36 monthly payments of $192.37. The total amount repayable will be $6,925.32. Your APR will be determined based on your credit at time of application. The origination fee ranges from 2% to 6% (average is 4.86% as of 7/1/2019 – 9/30/2019). In Georgia, the minimum loan amount is $3,025. In Massachusetts, the minimum loan amount is $6,001 if your APR is greater than 12%. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months or longer. Loans require sufficient investor commitment before they can be funded or issued.

See my rates

on NerdWallet's secure website

Discover® Personal Loans

5.0

Min. Credit Score

660

Est. APR

6.99 - 24.99%

Loan Amount

$2,500 - $35,000

See my rates

on NerdWallet's secure website

Min. Credit Score

660

Key facts

Discover is ideal for consumers with good to excellent credit who want to consolidate high-interest debt, and it offers direct payment to creditors.

Pros

No origination fee.
Offers direct payment to creditors.
Offers mobile app to manage loan.
Able to fund loans within one business day.
Wide variety of repayment term options.

Cons

Charges late fee.
No co-signed, joint or secured loan options.
No rate discount for autopay.

Qualifications

Minimum credit score: 660; borrower average is 750.
Must be a U.S. citizen or permanent resident.
Must be at least 18 years old.

Available Term Lengths

3 to 7 years

Fees

Origination fee: None.
Late fee: $39.

Disclaimer

This is not a commitment to lend from Discover Personal Loans. Your approval for a loan is determined once you apply and is based on your application information and credit history. Your APR will be between 6.99%-24.99% based upon creditworthiness at time of application for loan terms of 36-84 months. For example, if you get approved for a $15,000 loan at 6.99% APR for a term of 72 months, you’ll pay just $256 per month. Our lowest rates are available to consumers with the best credit. Many factors are used to determine your rate, such as your credit history, application information and the term you select. Not all applications will be approved.