Debt consolidation loans
A debt consolidation loan replaces several high-APR debts (most often credit cards) with one fixed-payment personal loan. If the new loan's APR is meaningfully lower than your weighted credit-card APR, consolidation can reduce both monthly cash-flow strain and total interest paid over the life of the debt.
Why apply here.
- 01Combine multiple credit-card balances into one fixed monthly payment
- 02Loan amounts from $1,000 to $50,000
- 03Fixed APRs typically 6.99% to 35.99%
- 04Common term lengths: 24, 36, 48, and 60 months
- 05Pay off the loan early with no prepayment penalty at most lenders
About this loan.
Does a debt consolidation loan hurt my credit score?+
Short-term, your score may dip a few points after the new hard inquiry and a new account on your report. Mid-term, consolidating usually lowers your credit utilisation, which can raise your score. Long-term, on-time payments build credit history.
Should I close my credit cards after consolidating?+
Usually no. Closing cards reduces your total available credit and increases your utilisation ratio, which can lower your score. Most experts recommend keeping the cards open but unused, or used lightly and paid in full each month.
Is consolidating credit-card debt with a personal loan actually cheaper?+
Only if the personal loan's APR is meaningfully lower than your weighted credit-card APR. With current average credit-card APRs above 20%, borrowers with good credit who qualify for single-digit personal-loan rates can save thousands. Run the numbers in the debt-payoff calculator before signing.
How long does it take?+
After you accept an offer and e-sign, the lender typically deposits funds via ACH to your checking account the next business day. You then use those funds to pay off the consolidated balances directly.