Best Credit Card Consolidation Loans

If you’re juggling multiple credit cards, you should know about personal loans, which could allow you to consolidate those payments into one and save money on interest.

The personal loan marketplace is exploding right now, with online lenders offering alternatives to local banks. These lenders promise easy applications, quick funding, low interest rates — though in many cases, the teaser rates advertised are available to a select few customers with top-tier credit history — and low or no origination fees. In many cases, it’s an attractive and inexpensive way to pay off high interest rate credit cards.

Sound promising? NerdWallet pulled together its picks for the best credit card consolidation loans.

• Best overall credit card consolidation loans
• Best credit card consolidation loans for good credit
• Best credit card consolidation loans for average credit
• Best credit card consolidation loans for poor credit

Best overall credit card consolidation loans

These lenders offer competitive interest rates, good customer service and quick funding.

Payoff caters to this market; in fact, credit card consolidations are the only loans the company offers. It does this business well, with competitive interest rates, a reasonable credit score requirement and a range of loan terms. Payoff’s Lift program helps borrowers who aren’t yet qualified for a loan to improve their credit score. Earnest stands out for its customer service, low interest rates, flexible repayment term and — perhaps most impressive of all — absolutely no fees.

APR: 8% to 22% fixed Loan amount: $5,000 to $25,000 Loan terms: 2 to 5 years Minimum credit score: 660 Time to funding: 2 to 5 business days Fees: Payoff charges a “Payoff Platform Fee” that ranges from 2% to 5% of the loan amount, depending on term, included in APR. No late fee.

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APR: 4.25% to 9.25% fixed Loan amount: $2,000 to $50,000 Loan terms: 1, 2 and 3 years Minimum credit score: No minimum. Earnest considers credit in conjunction with alternative factors, like bank account balances, education and earning potential. Time to funding: One business day once approved Fees: None, including for late payments or insufficient funds. The company will instead work with you to adjust your payment amount.

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Best credit card consolidation loans
for good credit

Borrowers with strong credit scores will benefit from low interest rates from these lenders.

Both LendingClub and Prosper are peer-to-peer lenders, and they reward high-quality borrowers with low interest rates and favorable terms. These lenders should be your first stop if you have a good credit score. Note that if your credit is not just good, but excellent, you may save money by instead using a balance transfer offer to consolidate your credit card debt.

APR: 5.99% to 32.99% fixed Loan amount: $1,000 to $35,000 Loan terms: 2 to 5 years Minimum credit score: 600 Time to funding: Within seven days Fees: 1% to 5% origination fee, included in APR. Late fee is the greater of 5% of payment due or $15.

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APR: 5.99% to 36.00% fixed Loan amount: $2,000 to $35,000 Loan terms: 3 and 5 years Minimum credit score: 640 Time to funding: 2 to 8 business days after loan is approved Fees: 1% to 5% origination fee, included in APR. Late fee is the greater of 5% of payment due or $15.

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Best credit card consolidation loans
for average credit

These lenders have fair interest rates for average credit scores.

Upstart, another peer-to-peer lender, frequently offers the best interest rates for customers who fall into the average credit score bucket and will fund your loan the next business day.

APR: 4.67% to 29.99% fixed Loan amount: $3,000 to $35,000 Loan terms: 3 years Minimum credit score: 640 Time to funding: Next business day Fees: 1% to 6% loan origination fee depending on loan grade, included in APR. Late fee is the greater of 5% of the payment due or $15.

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Best credit card consolidation loans
for poor credit

Vouch allows friends and family to sponsor your loan.

 It’s hard to find a loan if you have what’s considered bad or poor credit, but Vouch has a unique underwriting system that allows friends and family members to “vouch” for the borrower by pledging to pay a set amount if you default. The more of these “sponsors” you have, the better your loan terms. It’s a unique system that looks beyond your credit score.

APR: 7.35% to 29.99% fixed Loan amount: $500 to $15,000 Loan terms: 1 to 3 years Minimum credit score: 600 for borrower; 580 for a qualified sponsor. Time to funding: Applications are approved within 1 to 2 business days, with loans funded 1 to 2 days after that. Fees: 1% to 5% origination fee, included in APR. Late fee is 5% of payment due, with minimum of $15.

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Arielle O’Shea is a staff writer at NerdWallet, a personal finance website. Email: aoshea@nerdwallet.com. Twitter: @arioshea.

from NerdWallet Credit Card Blog
http://www.nerdwallet.com/blog/loans/credit-card-consolidation-loans/