Credit Card Consolidation Loans

Best Credit Card Consolidation Loans For 2018

The best credit card consolidation loans help you consolidate credit card debt and save money.
The best way to consolidate credit card debt and repay credit cards faster is through credit card consolidation.

If you have good or strong credit, and have credit card debt, then credit card consolidation loans may help you cut your interest rate and save money.

Here are the best credit card consolidation loans and top credit card consolidation loans companies for 2018.


Compare The Best Credit Card Consolidation Loans For 2018

Lender
Rates (APR)
Minimum Credit Score
5.37% - 14.24%
None

Overview

Minimum Loan Amount: $5,000
Maximum Loan Amount: $100,000
Loan Terms: 3, 5, 7 years
Minimum Income: $50,000

Details

Origination Fees: No
Late Fees: No
Prepayment Penalty: No
Soft Credit Check: Yes

Overview

Minimum Loan Amount: $2,000
Maximum Loan Amount: $50,000
Loan Terms: 1, 2, 3 years
Minimum Income: None

Details

Origination Fees: No
Late Fees: No
Prepayment Penalty: No
Soft Credit Check: Yes

Overview

Minimum Loan Amount: $1,000
Maximum Loan Amount: $45,000
Loan Terms: 3, 4, 5 years
Minimum Income: No

Details

Origination Fees: No
Late Fees: No
Prepayment Penalty: No
Soft Credit Check: Yes

Overview

Minimum Loan Amount: $1,000
Maximum Loan Amount: $50,000
Loan Terms: 3, 5 years
Minimum Income: $12,000

Details

Origination Fees: 0% - 8%
Late Fees: Greater of (a) 5% of payment due or (b) $15
Prepayment Penalty: No
Soft Credit Check: Yes

Overview

Minimum Loan Amount: $2,000
Maximum Loan Amount: $35,000
Loan Terms: 3, 5 years
Minimum Income: None

Details

Origination Fees: 1% - 5%
Late Fees: Greater of (a) 5% of payment due or (b) $15
Prepayment Penalty: No
Soft Credit Check: Yes

Overview

Minimum Loan Amount: $1,000
Maximum Loan Amount: $40,000
Loan Terms: 3, 5 years
Minimum Income: None

Details

Origination Fees: 1% - 6%
Late Fees: Greater of (a) 5% of payment due or (b) $15
Prepayment Penalty: No
Soft Credit Check: Yes

Overview

Minimum Loan Amount: $5,000
Maximum Loan Amount: $35,000
Loan Terms: 2, 3, 4, 5 years
Minimum Income: None

Details

Origination Fees: 2% - 5%
Late Fees: No
Prepayment Penalty: No
Soft Credit Check: Yes

Overview

Minimum Loan Amount: $1,000
Maximum Loan Amount: $50,000
Loan Terms: 3, 5 years
Minimum Income: None, but must have at least $1,000 per month of free cash flow

Details

Origination Fees: 1% - 5%
Late Fees: $10 after 15-day grace period
Prepayment Penalty: No
Soft Credit Check: Yes

Overview

Minimum Loan Amount: $2,000
Maximum Loan Amount: $35,000
Loan Terms: 3, 5 years
Minimum Income: None

Details

Origination Fees: 0.99% - 5.99%
Late Fees: $15
Prepayment Penalty: No
Soft Credit Check: Yes

Advertiser Disclosure


What are credit card consolidation loans and how do they work?

Credit card consolidation loans are unsecured loans typically from $1,000 – $100,000 that are the best way to consolidate credit cards.

The best credit card consolidation loans help you save money by reducing your interest rate compared to your credit cards. Credit card consolidation loans also combine all your credit card debt into a single loan.

Here’s how the best credit card consolidation loans work. Let’s assume you have existing credit card debt from several credit cards, and your monthly payments are too high. You can combine all your credit card into a single loan known as a credit card consolidation loan.

With credit card consolidation loans, you receive a lump-sum payment of the amount of your existing credit card debt. Then, you repay the credit card consolidation loan in monthly installment payments.

This is the best way to consolidate credit cards. For credit card consolidation loans, you repay over a one to five-year period. Some credit card consolidation loans may allow for shorter or longer time periods for repayment.

How quickly will you receive the money from your credit card consolidation loans? Some of the best credit card consolidation loans companies will fund as early as the next business day.
The proceeds of your credit card consolidation loans are used to repay your existing, higher interest credit card debt.

How can you get the best credit card consolidation loans with low interest rates?

For the best way to consolidate credit cards, credit card consolidation loans are your best bet.

The best credit card consolidation loans companies want to lend to responsible borrowers who have a good or strong credit profile. That means a credit score in the mid 600’s, stable and recurring income and a low debt-to-income ratio. Overall, credit card consolidation companies want to ensure that you can repay the loan. Many borrowers have credit scores above 700, and these borrowers often qualify for lower interest rates.

The stronger your credit score, the lower the interest rates on the credit card consolidation loans. The lower the interest rates on the credit card consolidation loans, the less amount of interest that you will have to pay.

For credit card consolidation loan interest rates, you can choose a fixed interest rate or a variable interest rate. Fixed interest rates mean that the credit card consolidation loans have interest rates that do not change. Variable interest rates mean that the credit card consolidation loans have interest rates that do change over time.

The best way to consolidate credit cards in a rising interest rate environment is with fixed-rate credit card consolidation loans. Why? The best credit card consolidation loans are ones with fixed rates because you always know your monthly payment. Plus, your interest rate won’t change when you have a fixed interest rate.

Similarly, if interest rates are decreasing, it may make sense to choose a variable interest rate if you think variable interest rates will be less than the fixed interest rate. It also may make sense to choose a variable interest rate if you think you can repay credit card consolidation loans in a short time period. The introductory rate on variable interest rate loans is usually lower than fixed interest rate loans.

What is the best way to consolidate credit cards?

The best way to consolidate credit cards is with credit card consolidation loans. When you consolidate credit card debt, for example, you combine all your existing credit card debt into one loan. This credit card consolidation loan has a lower interest rate than your credit card debt, which saves you money. Plus, you can make one monthly payment instead of multiple monthly payments. The goal is to pay off your debt more quickly with credit card consolidation loan interest rates that are lower than credit card interest rates.

Borrowers with good to strong credit can qualify for the best credit card consolidation loans with low interest rates. With the best credit card consolidation loans, the goal is to consolidate credit cards at a lower interest rate.

For example, let’s assume that you have $30,000 of credit card debt at 15% interest. Based on your credit score and other factors, let’s assume that you could obtain credit card consolidation loansat6%. This means that you potentially could cut your interest payments by more than half.

What’s the best way to consolidate credit cards and where can you find the lowest rates for credit card consolidation loans?

If you want to know the best way to consolidate credit cards and find the lowest rates, the answer is easy. The best credit card consolidation loans come from companies that specialize in credit card consolidation loans such as online lenders and banks. For the best credit card consolidation loans, you can apply directly online through Make Lemonade and check your interest rate for free. You also can complete the application in minutes.

You can use Make Lemonade and its free comparison tools to compare the best credit card consolidation loans and the best credit card consolidation loan companies for your specific needs.

For all credit card consolidation loans, make sure you understand the interest rate, monthly payment, loan term and any fees.

What are the best reasons to use credit card consolidation loans?

There are several reasons why credit card consolidation loans may be right for you.

Lower Interest Rates: First, the best credit card consolidation loans usually have lower interest rates than credit cards. For example, let’s assume that you have credit card APR of 15%. With good to strong credit, you may qualify for credit card consolidation loans at 7%. Therefore, in this example, you could cut your credit card interest by over 50%.

Unsecured Loans: Second, credit card consolidation loans are unsecured loans. This means that you do not have to pledge assets as collateral in order to obtain credit card consolidation loans. This also may favor you as a borrower if you are unable to repay credit card consolidation loans, for example. In contrast, a mortgage is a secured loan, which means if you default on your mortgage, your lender would own your home.

Fast Funding: Third, with some credit card consolidation loans, you can receive your funds as quickly as 24 hours. To apply for credit card consolidation loans, the process is simple. You can compare the best credit card consolidation loans on Make Lemonade and then apply directly online.

What documents do you need to apply for credit card consolidation loans?

To apply for credit card consolidation loans, credit card consolidation companies will require that you provide several documents. The good news is that you can typically submit these documents online. Using an online lender is the best way to consolidate credit cards.

Here is some of the information you will likely need to apply for the best credit card consolidation loans:

  • Proof of identity (e.g., driver’s license, Social Security Card or passport)
  • Social Security Number
  • Proof of income such as a pay stub
  • Proof of address (e.g., utility bill or copy of your lease agreement)
  • Gross income
  • Other debt
  • Monthly expenses
  • Previous address

Some credit card consolidation loans companies may ask for additional information, but these requirements are typical.

How do you apply for credit card consolidation loans?

Applying for credit card consolidation loans is simple and fast.

1. Compare the best credit card consolidation loans: It’s easy to find the best way to consolidate credit cards. Use Make Lemonade’s free comparison tools to find the best credit card consolidation loans. Compare rates, loan terms, fees and more. With most online credit card consolidation loans, you can learn your new credit card consolidation loans rates in minutes for free with no impact to your credit score.

2. Collect key documents: Make sure you have copies of any documents to help you secure the best credit card consolidation loans. Examples of credit card consolidation loans documents may include proof of income, proof of address, your driver’s license number and Social Security number.

3. Apply online: The best way to consolidate credit cards is online. You can apply for credit card consolidation loans online directly through Make Lemonade with one or more of our partners. Make Lemonade’s credit card consolidation loans comparison table and comparison tools can help find the best credit card consolidation loans for you.

4. Wait for approval: Since the best way to consolidate credit cards is online, many companies will provide you with an approval decision in minutes.

How do you get approved for credit card consolidation loans?

To get approved for the best credit card consolidation loans, there are several steps that you can take. The best way to consolidate credit cards is online with credit card consolidation loans. Credit cards consolidation loans work well for borrowers with good to strong credit who have a history of financial responsibility. Plus, good to strong credit means you can qualify for lower interest rates. That means more money saved when you consolidate credit cards.

What if you do not have good or strong credit? Then, you can use a creditworthy cosigner to help you get approved for credit card consolidation loans. If you do not have good credit, you may be able to use a qualified, creditworthy cosigner. A cosigner who has good credit can help you when they assume equal financial responsibility for credit card consolidation loans. This can be an effective strategy to obtain credit card consolidation loans even if you don’t have good credit.

Credit is not the only factor that credit card consolidation companies evaluate. They may also evaluate, among other criteria, you income, other debt obligations, monthly expenses and monthly cash flow. Again, the higher your income and lower your monthly expenses, the more comfort lenders will have to approve you for credit card consolidation loans. This helps present you as a borrower who can repay debt obligations and still have money remaining to pay monthly expenses.

What are peer-to-peer credit card consolidation loans?

Peer-to-peer loans are credit card consolidation loans that are funded by another individual or investor. Some borrowers consider peer-to-peer lending the best way to consolidate credit cards.
Companies such as Prosper, Lending Club and Upstart are example of peer-to-peer lending platforms for some of the best credit card consolidation loans.

Peer-to-peer credit card consolidation loans companies have online platforms that match borrowers and lenders together. Therefore, you can borrow credit card consolidation loans from individuals or investors who provide you with the money through the lender platform.

Many of the best credit card consolidation loans companies use peer-to-peer lending, and have among the best credit card consolidation loans.

For quick credit card consolidation loans, peer-to-peer lending platforms can be a smart option.

Can credit card consolidation loans improve your credit score?

We already addressed that the best way to consolidate credit cards is through credit card consolidation loans. Many people also ask whether credit card consolidation loans can improve your credit score. The answer is yes, and here’s why.

Credit cards are revolving credit, which means you borrow money each month and pay back the credit card debt. This process repeats every month in a revolving fashion. Credit card consolidation loans are different. With credit card consolidation loans, you borrow money upfront and receive the funds in a lump-sum payment. Credit card consolidation loans are considered installment debt, not revolving credit. “Installment debt” means that that you repay the same amount each month in installments.

Credit bureaus like to see diversity of debt, so having an installment loan and revolving credit can help show credit bureaus that you can manage different types of debt. This debt diversity can help improve your credit score.

So, if you have credit card debt and are paying a high interest rate, it is worth considering credit card consolidation loans to help reduce your monthly payments. Having credit card consolidation loans may also improve your financial profile because your monthly debt obligation are reduced. Of course, once you have been approved for the best credit card consolidation loans, you have to be financially responsible and repay the loans to help you become debt-free.