Best Credit Card Consolidation Loans in 2024

The next lender on our list of the best credit card debt consolidation loans is Upgrade, a San Francisco-based company that offers debt consolidation loans for borrowers with average or excellent credit scores.

The lender has been around for a decade. In 2017 it started focusing on online and mobile banking systems that allow them to reduce fees on everyday transactions. More than 10 million clients have secured personal loans and lines of credit from Upgrade over the past three years.

In addition to loans, Upgrade offers credit monitoring and educational support tools for clients who want to improve their finances.

Types of Financing

Upgrade offers two types of financial products: personal loans and lines of credit. Both have served as foundations for clients’ best debt consolidation programs. Upgrade is a direct lender, and its loans are available for borrowers who have good credit scores. The lender offers an option to disburse funds directly to creditors.

Regardless of how many credit or debit cards you need to pay off, you can erase your balances directly through the Upgrade platform - and you’ll also get great discounts.

Another good thing about Upgrade credit card debt consolidation loans is that you can apply for a loan with a co-signer. A co-signer signs for a loan and can help you get the loan amount you want. Only the top debt consolidation companies allow this option. A co-signer can also help you get better loan terms and more affordable rates. For lenders, it’s an extra guarantee that you’ll be able to pay off the loan.

Application Process

Upgrade is an online lender, so if you want to get a personal loan to consolidate debt, you need to apply through the website. Even if you never applied for a loan online before, you’ll find filling out the application a smooth, fast process.

Before you apply for a loan and allow the lender to make a “hard” credit inquiry, you should confirm that Upgrade is the best debt consolidation company for you. Once you arrive at the website, you’ll see boxes where you can type the loan amount you need and select the loan purpose.

This is a pre-qualifying stage of the application process. During this phase, the lender will make only a soft credit pull, which won’t affect your credit score.  

As soon as your loan is approved, you can expect money in your account within one business day.

Loan Features

At Upgrade, you can apply for loans that range from $1,000 to $50,000. Its consolidation loans require a credit score of 560 or higher. It’s also not the best credit card debt consolidation option for borrowers seeking competitive rates. The APR ranges from 8.49% to 35.99%.

Upgrade loans also include many fees. The origination fee ranges from 1.85% to 9.99%, which is much more than other lenders charge. Upgrade also charges a $10 fee for late payments. However, the company allows you to choose your due date to fit your monthly cash-flow patterns, so you can avoid penalties. It also offers long-term loans: You can choose a three-year or five-year repayment period.

Bottom Line

Despite the high APR and fees, we consider Upgrade one of the lending industry’s best loan consolidation companies. The company allows you to choose your payment date and it encourages you to check your interest rate, maximum loan amount, and other details before you apply for a loan.

It also offers some other benefits, like the co-signer option, which could help you qualify for better terms. You can get a discount by allowing Upgrade to send funds directly to your creditors. However, the top APR of 35.97% means this lender is not suitable for borrowers with low credit scores.

Reasons to Apply:

• Smooth application procedure
• Schedule payment dates to fit your needs
• Check rates with a “soft” credit inquiry
• Lower APR for borrowers with good credit

Launched in 2016, Marcus is an online platform owned by US investment bank Goldman Sachs®. Marcus offers three financial products - certificates of deposit, online savings accounts, and personal loans.

When it comes to debt consolidation loans, reviews of Marcus at BBB and Trustpilot are mixed. Some borrowers voice dissatisfaction with the company’s customer service staff, while others praise the savings accounts and overall banking experience. Marcus has an A+ BBB rating, and in 2019 it took first place in J.D. Power’s personal loan customer satisfaction study with a score of 899.

Types of Financing

Marcus is best known for its high-yield personal savings accounts, but this online bank also offers unsecured personal loans for debt consolidation. Clients’ debt consolidation reviews attest that Marcus is a good choice for borrowers who have an excellent of at least 720.

If you decide to use a personal loan to consolidate credit card debt with this lender, be sure to check your credit score first. Marcus personal loans are for borrowers who have accrued a good credit history, so if your credit score is blemished, you’ll probably have difficulties qualifying for a loan.

One benefit of working with Marcus is that the lender pays your creditors directly. You won’t have to worry about making multiple payments every month: just the one payment to Marcus.

Another benefit: You can check your credit card consolidation loan rates and manage your loan with the lender’s mobile app. And you can set up auto-pay if you’d like.

Marcus offers only unsecured personal loans. The lender doesn’t provide co-signed or secured loans.

Application Process

If you want to apply for a Marcus personal loan, you can fill out forms on the website or telephone the company, where a sales consultant will take your information and step you through the process. Marcus makes loans in all 50 states, Puerto Rico, and  Washington, DC.

Applicants must meet lender requirements that vary from state to state.

Before you apply for a loan, Marcus will check your credit with a “soft” inquiry that won’t jeopardize your credit score. 

Like other debt consolidation loan companies we have reviewed, Marcus will ask for personal information. After verification, the lender sends a loan offer.

Marcus says it sends the money to your account within couple of days after your loan is approved; you could receive funds in as little as 3 days.

Loan Features

Marcus loan rates are fixed, which means the APR you sign up for won’t change during the life of the loan. Compared to other lenders on our list, Marcus has an excellent APR. If you have a good credit history, you can qualify for a loan with an interest rate as low as 6.99%. The highest APR is 24.99%, which is still less than you’ll pay for loans from some other lenders.

Marcus offers its best credit card consolidation loan rates to borrowers who use the auto-pay option. This is a good strategy for reducing your APR by 0.25%.

You won’t be surprised by additional fees when you sign up for a loan with Marcus. There are no origination fees or prepayment fees. If you make 12 consecutive monthly payments on time, you’ll get a reward: You can defer a month. Your loan’s term will be extended by one month, but you won’t pay any extra.

Marcus makes loans of $3,500 to $40,000, but the amount you qualify to borrow depends on your credit score, payment history, and other factors.

Bottom Line

Marcus makes some of the best credit card consolidation loans in the industry. The lender is a terrific partner for those who have good or excellent FICO scores. However, borrowers with fair credit can also qualify and get affordable rates.

Reasons to Apply:

• Excellent mobile app
• Competitive rates
• Flexible loan terms
• Smooth application process

_{Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. Rates range from 6.99% to 24.99% APR, and loan terms range from 36 to 72 months. For NY residents, rates range from 6.99%-24.74%. Only the most creditworthy applicants qualify for the lowest rates and longest loan terms. Rates will generally be higher for longer-term loans. 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. Receive a 0.25% APR reduction when you enroll in AutoPay. This reduction will not be applied if AutoPay is not in effect. When enrolled, a larger portion of your monthly payment will be applied to your principal loan amount and less interest will accrue on your loan, which may result in a smaller final payment. See loan agreement for details.}

Avant is among the best debt consolidation companies in the US for borrowers who have low credit scores. This reputable Chicago-based operator has provided more than $6.5 billion in funding to more than 800,000 borrowers since it was founded in 2012. Avant is focused on providing financial products for middle-income clients, allowing them to apply for various types of loans despite imperfect credit scores.

The BBB awards this lender an A rating, while Trustpilot gives it 4.5 stars of 5. Borrowers praise the lender’s financial products, helpful customer service staff, and excellent mobile app.

Types of Financing

Avant is well known for its secured and unsecured loans, including the best consolidation loans and loans for relocation, car repairs, home renovation, and other purposes. For credit card consolidation, Avant allows you to borrow a lump sum to cover the debts on all your credit cards, leaving you with a single monthly payment to make.

You can also sign up for an auto-pay option so you’ll make your payments on time. We think this is a great option. Regular payments are little miracles when it comes to improving your credit score.

Application Process

Like other debt consolidation companies, Avant allows you to apply for a loan through its website. Just type your personal details, the desired loan amount, and the loan purpose into a form at the website. The lender will then check your credit score. Don’t worry; at this stage, Avant makes only a soft inquiry that won’t affect your credit score.

After you complete the pre-application procedure, Avant sends you loan offers. You are not obliged to accept any of them. The company will not charge you anything for this service.

If you decide to take out a loan, you need to create an Avant account and verify your personal information first. Avant works like other lenders - before approving your debt consolidation loan, it reviews your personal details, Social Security number, address, and so on. The lender also inquires about your salary and other types of income such as child support and alimony.

Once your loan is approved, the funds will be in your account within one business day. You can use the Avant mobile app to check your account’s status, track payments, and manage your account.

Loan Features

Avant loans come with a high APR - as high as 35.99% if you have a low credit score. Even if you have a perfect credit score, the minimum APR is 9.95%, which we consider too high for this sort of loan.

Avant debt consolidation loan interest rates aren’t the end of the bad news. The company also charges a high original fee: 4.75% of your loan amount. Each late payment will cost you $25.

Avant credit card consolidation loans start at $2,000. The maximum is low compared to what you can get from other lenders: $35,000.

Bottom Line

With long repayment terms, late fees, and high interest rates, Avant is not the best option for everyone. Borrowers with a low credit score could find it the best loan consolidation option, regardless of how high the monthly payments are. But if you can meet the qualifications for a debt consolidation loan from one of the other vendors on our list, you will probably save money.

Reasons to Apply:

• Mobile app for tracking your loan
• Simple online application
• Fast funding
• Flexible repayment

Founded in 2009, Happy Money is a California-based lender marketplace that helps match qualified borrowers with lenders that specialize in personal loans for debt consolidation. Happy Money doesn’t make loans directly to borrowers, but its services can help you find and secure the best loan at the most favorable terms. 

The company says its services have helped thousands of borrowers get out of debt and improve their credit score by an average of 40 points. In our opinion, this makes it one of the best credit card debt consolidation companies on the market. Happy Money is accredited by BBB, which gives it an A+ rating.

Types of Financing

The first thing you should know is that Happy Money isn’t a direct lender. Payoff collaborates with Green State Credit Union, Teachers Federal Credit Union, First Tech Federal Credit Union, US Alliance Financial, Alliant, Blue Federal Credit Union, MSUFCU, and Veridian Credit Union. It is these companies that fund your loan. However, the money will be transferred from Happy Money to your account, so the loan you get is a loan from Happy Money. 

Unlike other lenders, Happy Money offers loans only for credit card debt consolidation. These loans are unsecured, meaning that you don’t need to provide collateral to qualify.

Application Process 

Getting a personal loan for credit card debt at Happy Money starts with an online form on the company’s website. It requires personal information like your name, address, and Social Security number. The company will also check your credit score, but don’t worry. At this stage of the application, Happy Money makes only a “soft” inquiry that will not affect your credit score.

Happy Money is well known for its low credit score requirements. You can secure a Happy Money debt consolidation loan with a minimum credit score of 640.

In addition to checking your credit score, the company will also ask you about your monthly income. To qualify for credit card consolidation loans, Happy Money requires a debt-to-income ratio of 50% or less. It means that the total of your monthly debt payments must be less than half of your monthly gross income. 

Happy Money credit card consolidation loans are available for US citizens except for residents of Massachusetts and Nebraska. 

Loan Features 

Happy Money is an excellent solution for borrowers who need a significant amount of money to cover their debts. Happy Money personal loans range from $5,000 to $40,000. If your credit score is good enough, you can qualify for the company’s most competitive debt consolidation loan rates. The APR can be as low as 7.99%, which is a better deal than you’ll find at most of Happy Money’s competitors. The maximum APR is 29.99%. 

To cover administrative costs, many lenders charge an origination fee, which is typically rolled into the loan. For example, if you need to borrow $10,000 to pay off your credit debt, the lender might make you a loan of $10,200 and deduct a 2% origination fee. Happy Money origination fees range from 0% to 5% depending on your credit score, loan amount, and other factors.

Credit card debt consolidation loans can have long or short repayment schedules. At Happy Money, the minimum term is two years and the maximum is five years.

Happy Money doesn’t charge application fees, monthly administration fees, or even late payment fees. You should still make your payments on time, however. Late payments are reported to credit bureaus and they can reduce your credit score.

Bottom Line 

If you have a good credit score and high credit card debts, you are likely to find that Happy Money offers the market’s best personal loans for debt consolidation. 

The company has a competitive APR, and although it does charge an origination fee, there are no other fees to worry about. Customers praise the lender’s prequalification process, during which you can check your rates without affecting your credit score.

Reasons to Apply:

• No application fee
• Increase your credit score by up to 40 points
• No late payment fees
• Long repayment terms