In today’s financial landscape, managing multiple credit card debts can be overwhelming. But fear not, as we present to you the top 9 credit card consolidation companies that can help you regain control over your finances and streamline your debt repayment journey. Let’s dive into the details of each option, ensuring you make an informed decision when choosing the right consolidation company for your needs.
Achieve
- Achieve offers a minimum credit score requirement of 620.
- APR range: 7.99% to 29.99%
- Loan amounts range from $7,500 to $40,000
Achieve, formerly known as FreedomPlus, is a reputable indirect lending platform that partners with Cross River Bank and MetaBank to provide personal loans tailored for debt consolidation. Established in 2014, Achieve stands out due to its flexible loan terms, spanning from two to five years, and its accommodating loan amounts, which range from $7,500 to $40,000. These features enable borrowers to consolidate substantial debt while enjoying extended repayment periods, ultimately leading to reduced monthly payments.
One notable advantage of Achieve is its option for direct payments to creditors. In fact, borrowers who allocate 85% of their loan towards debt consolidation via direct payment increase their chances of loan approval.
However, it’s crucial to assess Achieve’s APRs, which can be relatively high depending on your current debt’s interest rates. Additionally, an origination fee between 1.99% and 4.99% of the loan amount might add to the overall loan cost. Therefore, before finalizing your decision, perform a comprehensive cost-benefit analysis to ensure Achieve aligns with your financial goals.
Pros:
- Funds available within 48 hours
- Flexible repayment terms
- Allows co-borrowers
Cons:
- Partially offline application process
- Minimum income requirement
- High minimum loan amount
Eligibility: Achieve requires applicants to have a credit score of at least 620. Prospective borrowers should also maintain a minimum annual gross income of $21,500, with Achieve limiting loans to no more than 35% of the borrower’s yearly income. If your credit score is less than stellar, Achieve permits both co-signers and co-applicants, with approximately 30% of borrowers opting for joint loans.
Loan Uses: Achieve loans serve various purposes, including home improvements, weddings, travel, medical expenses, moving costs, and, most importantly, debt consolidation. Expect a swift turnaround time, as Achieve claims loan approval on the same day of application, with funds disbursed in as little as 48 hours.
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Discover
- Discover requires a minimum credit score of 660.
- APR range: 7.99% to 24.99%
- Loan amounts available: $2,500 to $40,000
In addition to its renowned credit cards and financial solutions, Discover extends its services to personal loans across all 50 states. Discover shines in the realm of debt consolidation with loans ranging from $2,500 to $40,000 and terms extending up to seven years—unmatched by many competitors. This extended loan duration not only opens doors to lower interest rates but also facilitates manageable monthly payments.
Discover distinguishes itself further by eliminating origination fees and prepayment penalties, ensuring competitiveness in the personal loan industry. Additionally, Discover streamlines the consolidation process by directly disbursing funds to third-party creditors, saving you precious time and simplifying your financial management.
Pros:
- Option for direct creditor payments
- Absence of origination fees or prepayment penalties
- Direct payment to creditors
Cons:
- Late payment fees
- Maximum loan amount is relatively low
Eligibility: To qualify for a Discover personal loan for debt consolidation, applicants should possess a minimum credit score of 660, with the average Discover borrower boasting a score of 750. While no specific credit history length is mandated, applicants must demonstrate an annual household income of at least $25,000. Discover evaluates applicants based on credit history, recent credit activities, and other inquiries, with no provision for co-signers or co-applicants.
Loan Uses: Discover personal loans can be utilized for various personal purposes, including debt consolidation. Moreover, Discover loans accommodate small-business expenses. However, they are not suitable for post-secondary education, secured loan payoffs, or illegal activities.
Turnaround Time: Applicants typically receive same-day decisions, with funds disbursed as early as the next business day (subject to application accuracy). Discover also offers direct disbursement to third-party creditors for debt consolidation purposes.
Upgrade
- Upgrade sets a minimum credit score requirement at 580.
- APR range: 8.49% to 35.99%
- Loan amounts span from $1,000 to $50,000
Upgrade, established in 2017, provides accessible online and mobile credit and banking services, making over $3 billion in credit available to more than 10 million applicants. Although loan funding may take up to four business days, Upgrade offers a lifeline to individuals with less-than-perfect credit histories. Importantly, Upgrade offers direct payments to your existing creditors when you choose to consolidate your debts, simplifying your financial restructuring.
While Upgrade’s maximum interest rates may be higher than some competitors, its loan amounts start at just $1,000 and go up to $50,000. This flexibility makes Upgrade an excellent choice for consolidating high-interest debts. Loan terms extend from two to seven years, and there’s no prepayment penalty, enabling you to save money by paying off your consolidated debts ahead of schedule. However, it’s essential to consider Upgrade’s origination fee, ranging from 1.85% to 9.99% of the loan amount, when calculating your overall savings.
Pros:
- Low minimum credit score requirement
- Loans available for business expenses
- Direct lender payoff for debt consolidation
Cons:
- Wide APR range
- Charges origination, late payment, and insufficient funds fees
Eligibility: Upgrade applicants typically require a minimum credit score of 580 to qualify for a personal loan, making it an accessible option for those with fair credit seeking debt consolidation. There’s no explicit minimum income requirement, but the average Upgrade borrower earns over $30,000 annually. Upgrade enhances loan accessibility by allowing both co-signers and co-borrowers.
Loan Uses: Upgrade loans are intended for covering credit card payments, consolidating other debts, financing home improvements, and making significant purchases. Like other lenders, Upgrade also provides direct payments to third-party creditors, although this may entail slightly longer processing times.
Turnaround Time: After approval, it generally takes up to four business days for Upgrade borrowers to receive their funds. However, when Upgrade directly pays off loans to third-party lenders, the process may take up to two weeks to complete.
Universal Credit: Accessibility Meets Flexibility
- Universal Credit sets a minimum credit score requirement at 580.
- APR range: 11.69% to 35.99%
- Loan amounts available: $1,000 to $50,000
Universal Credit operates as an online lending platform offering personal loans ranging from $1,000 to $50,000 through its partner network. Repayment terms span 36, 60 to 84 months (three, five, or seven years), allowing for adaptable debt repayment options.
Universal Credit provides access to personal loans for individuals with less-than-perfect credit histories. However, this convenience comes with trade-offs. Universal Credit’s APRs are relatively high compared to competitors, and all personal loans carry a 5.25% to 9.99% origination fee, which impacts the final loan amount. Therefore, it’s vital to account for this fee when planning your debt consolidation.
Pros:
- Flexible qualification requirements
- Next-day funding
- No prepayment penalty
Cons:
- High APR range
- Origination fee applies to all personal loans
Eligibility: Universal Credit typically requires a minimum credit score of 580, making it an inclusive option for a broad range of borrowers.
Turnaround Time: Upon approval, Universal Credit deposits funds into your bank within one business day. However, the actual availability of funds depends on your bank’s processing speed. If funds are intended for direct payment to another creditor, expect a processing time of up to two weeks.
Happy Money: Your Debt-Free Journey Begins
- Happy Money sets a minimum credit score requirement at 640.
- APR range: 11.52% to 24.81%
- Loan amounts available: $5,000 to $40,000
Happy Money, formerly known as Payoff, is an online lending platform established in 2009, specializing in fixed-rate credit card debt consolidation loans across most states (except Massachusetts, Mississippi, Nebraska, and Nevada). With loan amounts ranging from $5,000 to $40,000 and lending terms extending from two to five years, Happy Money accommodates borrowers with varying credit card balances.
Happy Money offers competitive rates, which already include an origination fee, a feature appreciated by borrowers. Furthermore, the absence of late fees, annual fees, or prepayment penalties enhances the appeal of Happy Money loans. However, it’s important to note that Happy Money exclusively offers personal loans for credit card consolidation, limiting its versatility.
Pros:
- Competitive rates with included origination fee
- Excellent customer service
- Ability to change payment date once every 12 months
Cons:
- Exclusive focus on credit card debt consolidation
- Origination fee applies
- Limited loan terms
Eligibility: To qualify for a Happy Money debt consolidation loan, applicants typically need a minimum credit score of 640, with approved applicants having an average score of 705. Other eligibility criteria include a minimum credit history of three years, no current delinquencies, and a debt-to-income ratio under 50%. There is no minimum income requirement, but Happy Money does not permit co-signers or co-applicants.
Loan Uses: Happy Money specializes in credit card debt consolidation, making it an excellent choice for readers seeking to take control of their finances and simplify debt repayment.
Turnaround Time: After submitting an application and required documents, underwriting may take three to seven business days. Following approval and paperwork completion, borrowers typically receive funds within three to six business days.
Best Egg: Cracking the Consolidation Code
- Best Egg sets a minimum credit score requirement at 640.
- APR range: 8.99% to 35.99%
- Loan amounts available: $2,000 to $50,000
Best Egg operates as a lending platform available in most states (excluding Iowa, Vermont, West Virginia, and Washington, D.C.). Personal loans, issued by Cross River Bank, range from $2,000 to $35,000, with the possibility of offers extending up to $50,000. Best Egg offers payment terms spanning from three to five years, making it an appealing choice for those seeking to consolidate various debts over time.
One point to consider with Best Egg is that it does not directly pay off creditors, requiring borrowers to manage the repayment process independently. Additionally, borrowers are subject to an origination fee, which varies between 0.99% and 8.99% of the loan amount. It’s crucial to account for this fee when evaluating the potential savings of consolidating your debts with a Best Egg personal loan. Nevertheless, Best Egg allows borrowers to pay off their loans early without incurring prepayment penalties, which can save money in the long run.
Pros:
- Loan terms available up to five years
- Low minimum APR
- No prepayment penalty
Cons:
- No direct payment to third-party creditors
- Origination fee applies
- Maximum repayment term of five years
Eligibility: Best Egg typically requires a minimum credit score of 640 to qualify for a personal loan. However, eligibility criteria may also consider factors such as income, debt payment obligations, credit history, and more.
Loan Uses: Best Egg personal loans can be used for a variety of purposes, including debt consolidation, credit card refinancing, home improvements, moving and relocation expenses, taxes, and medical costs. However, like many other lenders, Best Egg loans cannot be used for post-secondary education expenses, purchasing securities, or engaging in illegal activities.
Turnaround Time: The application process for a Best Egg personal loan is generally swift, taking less than five minutes. Loan approval and funding can take one to three business days, with some customers even receiving same-day funding.
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LendingClub: Your Peer-to-Peer Lending Partner
- LendingClub sets a minimum credit score requirement at 600.
- APR range: 9.57% to 35.99%
- Loan amounts available: $1,000 to $40,000
LendingClub is a prominent peer-to-peer lender and the largest online platform for personal loans. Operating in most states (except Iowa), LendingClub has facilitated over $55 billion in loans since its inception in 2007, serving over 3 million customers. While it may not offer the fastest funding, LendingClub shines in its ability to directly pay your creditors, streamlining the logistics of debt consolidation.
Applicants can borrow from $1,000 to $40,000 through LendingClub, which provides more flexibility for paying off outstanding debts, even if you have substantial balances. However, LendingClub’s APRs tend to be higher than those of other lenders, with rates reaching 35.89%. Loan terms are restricted to three or five years, which might limit flexibility compared to other debt consolidation options. Additionally, LendingClub imposes an origination fee, ranging from 2% to 6% of the total loan amount, necessitating careful consideration when assessing the potential savings from consolidating loans.
Pros:
- Direct payment to third-party creditors through balance transfer loans
- Co-applicants are permitted
- Available to borrowers with fair to excellent credit
Cons:
- Origination and late fees
- Limited availability of loan terms
- High APR range
Eligibility: To qualify for a LendingClub personal loan, applicants typically require a minimum credit score of 600 and a credit history spanning three years. Debt-to-income ratios are also considered, with different thresholds for single and joint applicants. While LendingClub permits co-applicants living in the same household, co-signers are not accepted.
Loan Uses: LendingClub personal loans can be used for various purposes, including debt consolidation. The platform offers direct payment to third-party lenders, simplifying the debt consolidation process. However, like many other lenders, LendingClub loans cannot be used for post-secondary education expenses, purchasing securities, gambling, or illegal activities.
Turnaround Time: LendingClub borrowers typically receive their loan funds within four days of approval. However, this timeline may vary based on application completeness and additional documentation requirements.
LightStream: Illuminating Your Financial Journey
- LightStream sets a minimum credit score requirement at 660.
- APR range: 7.99% to 25.49% with autopay
- Loan amounts available: $5,000 to $100,000
LightStream, a consumer lending division of Truist (resulting from the merger of SunTrust Bank and BB&T), offers unsecured personal loans ranging from $5,000 to $100,000. Loan amounts may vary depending on the purpose of the loan. With repayment terms spanning from two to seven years, LightStream provides an ideal solution for individuals seeking to spread out payments for significant expenses over time.
What sets LightStream apart is its commitment to customer satisfaction, offering no origination, late payment, or prepayment fees. Moreover, the lender provides a 0.50% rate discount for borrowers who enroll in autopay, along with a 30-day loan experience guarantee and a rate-beat program. LightStream even beats competitors’ interest rates by 0.1% for eligible applicants.
LightStream extends its services to all 50 states, Washington, D.C., and Puerto Rico, with customer support available seven days a week. While LightStream lacks a dedicated mobile app, customers can easily manage their accounts through LightStream.com.
Pros:
- No origination, prepayment, or late fees
- Competitive rates
- Fast approval and funding
Cons:
- No prequalification process
- Limited flexibility in choosing a due date
- Restrictions on the use of loan proceeds
Eligibility: LightStream recommends a good to excellent credit profile for personal loan applicants. A strong credit history with multiple account types, stable income to service existing debts, and eligibility based on credit score, income, and other factors can influence loan terms. LightStream does not offer prequalification but allows joint applications.
Loan Uses: LightStream personal loans can be used for various purposes, including debt consolidation, credit card refinancing, home improvements, purchasing vehicles, and more. However, loan proceeds cannot be used for post-secondary education expenses, real estate purchases, investments, or illegal activities. Borrowers are also prohibited from using LightStream loan funds to refinance an existing LightStream loan.
Turnaround Time: LightStream borrowers may receive funds on the same day of approval if their application is processed before 2:30 p.m. Eastern time on a banking business day. To achieve same-day funding, applicants must promptly review and electronically sign the loan agreement, provide funding preferences and banking details, and complete the final verification process—all within the required time frame.
SoFi: Your Financial Partner for Life
- SoFi sets a minimum credit score requirement at 680.
- APR Range: 8.99% to 25.81% with autopay
- Loan amounts available: $5,000 to $100,000
SoFi is an esteemed online lending platform that offers unsecured fixed-rate personal loans across all states. Established in 2011, SoFi has provided over $50 billion in loans and stands out for its flexibility in allowing high loan amounts and extended loan terms.
Loans offered by SoFi range between $5,000 and $100,000, making it an excellent choice for individuals with excellent credit who need to secure a substantial loan. Loan amounts available may vary depending on your state of residence. With repayment terms spanning from two to seven years, SoFi provides extensive flexibility for those meeting the minimum credit score requirement (680) and annual income (at least $45,000). SoFi even permits joint applications; however, co-signers are not allowed.
Borrowers who qualify for SoFi enjoy comparatively low APRs. Furthermore, SoFi does not charge origination fees, late fees, or prepayment penalties—a notable feature since many personal loan lenders impose origination or late payment fees, at the very least.
However, it’s important to note that SoFi does not offer direct payment to a borrower’s other creditors for debt consolidation. This means that loan proceeds will be deposited into your bank account, and you’ll be responsible for paying off your other lenders individually. Nevertheless, SoFi provides customers with a range of additional benefits and discounts, including unemployment protection and the ability to change their payment due date once a year.
Pros:
- Prequalification with a soft credit check
- Funding available in as little as one to two days
- High loan amounts and extended terms
Cons:
- No direct payment to third-party creditors for debt consolidation
- Some applicants may find qualification standards challenging
- Co-signers are not permitted
Eligibility: To qualify for a SoFi personal loan, applicants typically require a minimum credit score of 680. Many successful applicants have a score of 700 or higher. Additionally, applicants must have an annual income of at least $45,000, although the average income of a SoFi borrower is over $100,000.
Loan Uses: SoFi personal loans can be used for various purposes, including debt consolidation, credit card refinancing, home improvements, moving and relocation expenses, taxes, and medical costs. However, similar to other lenders, SoFi loans cannot be used for post-secondary education expenses, purchasing securities, engaging in illegal activities, or refinancing an existing LightStream loan.
Turnaround Time: Borrowers who choose SoFi may receive their funds in as little as one to two business days following approval and the acceptance of loan terms.
In conclusion, when considering debt consolidation loans, it’s essential to evaluate your financial situation, credit score, and specific debt consolidation needs to choose the lender that best aligns with your goals and preferences. Each lender has its unique features and requirements, making it crucial to thoroughly research and compare options before making your decision. Remember that a well-informed choice can pave the way for a more stable and debt-free financial future.