Debt consolidation loans
A debt consolidation loan pays off several debts, usually credit cards, and replaces them with one fixed monthly payment. It saves money when the new APR is lower than the rates you pay now, and it gives you a set payoff date instead of open-ended minimum payments.
- Encrypted and secure
- No credit impact
- No personal info to CLO
- Free, no obligation
Loan terms from 2 to 60 months. Rates vary depending on the lender, your credit and your state. Maximum APR is 35.99%.
When consolidation saves money
- Your new APR is lower than the weighted average APR of the debts you're paying off.
- The fixed term is short enough that total interest drops, not just the monthly payment.
- Any origination fee is small next to the interest you save.
When it doesn't
- You keep using the cards after paying them off, which doubles the debt.
- The only offers you qualify for carry an APR close to your card rates.
- A longer term lowers the payment but raises total interest.
How to compare consolidation offers
- Add up your balances and note each APR and minimum payment.
- Get prequalified offers for the total amount with a soft credit check.
- Compare each offer's total cost against what you'd pay by keeping the current debts.
- Ask whether the lender pays creditors directly. Some do, which keeps the money from landing in your checking account.
See which lenders will work with you
Pre-qualify in minutes. Checking your rate won't affect your credit score.
Common questions
Does a debt consolidation loan hurt your credit?
Checking offers with a soft inquiry doesn't. Taking the loan adds a hard inquiry and a new account, which can lower your score slightly at first. Paying down card balances usually lowers your credit utilization, which often helps your score over time.
Is a debt consolidation loan better than a balance transfer card?
A balance transfer card can be cheaper if you can pay the balance off during the 0% intro period. A consolidation loan is often better for larger balances or when you want a fixed payment and a firm payoff date.
How much can I borrow to consolidate debt?
Through Compare Loan Offer you can request $1,000 to $50,000. The amount each lender approves depends on your income, credit and existing debt.
Ready to compare offers?
Pre-qualify in minutes. Checking your rate won't affect your credit score.