If you’re paying 20%–30%+ on revolving balances, a fixed-rate debt consolidation loan can replace multiple cards with one monthly payment, often at a lower APR. You may also get a clear payoff date and avoid variable credit card rates. In today’s rate environment, shopping and prequalifying with reputable lenders is crucial. (Average personal-loan APRs have been elevated in 2025, so comparing offers matters more than ever.)
Below are three lenders that consistently show up as strong picks for credit card consolidation—covering a range from good/excellent credit to fair or thin credit.
1) SoFi — Best for No Fees and Strong Credit
Why it’s great: SoFi markets low fixed rates, no origination fees, no prepayment fees, and even no late fees—a rare combo that keeps the total cost down. It also supports same-day funding once you e-sign, and offers loan sizes up to $100,000, which is helpful if you’re consolidating several cards. SoFi
Who it fits: Borrowers with good to excellent credit who want a no-fee personal loan for credit card consolidation. Third-party reviews back this up: SoFi is frequently recommended as a top pick for strong-credit applicants.
Typical process with SoFi (and most banks/fintechs):
- Prequalify online with a soft credit check to see estimated rates/terms without impacting your score.
- Pick an offer; submit a full application (this includes a hard credit pull).
- If approved, e-sign and receive funds (often same day).
- Use the funds to pay off your credit cards; set up autopay on the new fixed-rate loan. SoFi
Why it helps with credit card debt: Replacing variable credit card APRs with one fixed payment can lower your interest costs and time to payoff. If you also stop using the cards, your credit utilization can drop over time, which may help your credit score.
2) Upgrade — Best for Fair Credit and Direct Creditor Payoffs
Why it’s great: Upgrade is designed with debt consolidation in mind and is widely available. It offers fixed-rate personal loans and explains consolidation clearly (combine multiple debts into one payment). Many borrowers with fair credit prequalify here, making it a practical option if your score isn’t elite.
Who it fits: Applicants with fair/average credit seeking a debt consolidation loan that may include features like direct pay to creditors (so funds go straight to your card issuers, reducing the temptation to spend again). Lender eligibility and APRs vary based on credit score, DTI, and credit history length, so prequalifying is smart. Debt.org
Typical process with Upgrade:
- Check your rate via a soft inquiry and compare repayment terms.
- If you accept an offer, complete the application (hard pull).
- Choose direct pay to your card companies (where available) or receive funds to pay balances yourself.
- Track one fixed monthly payment until the loan is paid off. Upgrade
Why it helps with bad-credit debt: Even if you don’t qualify for the absolute lowest APRs, moving from revolving card debt to a structured installment loan can provide a lower blended rate and a clear payoff timeline—two big wins when you’re rebuilding credit.
3) Upstart — Best for Thin Credit Files and Alternative Underwriting
Why it’s great: Upstart uses AI-driven underwriting that goes beyond the traditional score—considering factors like education and work history where allowed. It’s often cited as an option for borrowers with low scores or limited credit history who still need a credit card consolidation loan. Recent reviews continue to position Upstart as an option for bad credit loans (within legal APR caps).
Who it fits: Borrowers with thin files or less-than-perfect credit who may be declined by prime lenders. Upstart’s help docs note that minimum credit requirements vary by product and bank partner, so prequalification is the best way to know where you stand. Upstart Support
Typical process with Upstart:
- Prequalify online (soft check) to view estimated APR and term.
- If an offer works, submit the full app (hard pull).
- Receive funds to pay off your cards.
- Set up autopay; consider closing/hibernating cards with annual fees, but keep older no-fee cards open to preserve credit age.
Why it helps with bad-credit debt: If you’ve been stuck paying penalty APRs or variable rates, moving to a fixed installment can tame costs and help you budget. As you make on-time payments, you can begin rebuilding credit.
How Credit Card Consolidation Works (Step-by-Step)
- List your debts: card balances, APRs, and minimums.
- Prequalify with a few lenders (soft inquiries) to compare estimated APRs and monthly payments—this won’t ding your score. Investopedia
- Choose the best total cost, not just the lowest payment. Watch for origination fees and prepayment penalties (SoFi advertises no origination or late fees). SoFi
- Apply and fund: complete the full application (hard check), get approved, and fund.
- Pay off cards immediately (ideally via direct pay to creditors if the lender offers it).
- Lock in habits: set autopay, keep utilization low, and avoid re-charging balances.
- Consider refinancing later if rates drop. Fixed-rate loans don’t change after funding, so if the market improves, you can shop again.
Will I Save Money? (And What If I Have Bad Credit?)
You’ll save if your new blended APR (plus any fees) and loan term reduce the total interest you’ll pay versus sticking with credit cards. Even in a higher-rate year, it’s common for a personal loan APR to beat a credit card APR, especially if you’ve been hit with penalty rates. But results vary by credit profile; in 2025, personal-loan APRs remain elevated on average, so it’s vital to shop multiple offers and consider a balance transfer card if you qualify for a 0% intro APR (another high-CPC keyword path to savings).
If your credit is fair or poor:
- Start with lenders that evaluate more than just score (e.g., Upstart) or are friendly to fair credit (e.g., Upgrade).
- Consider credit counseling or a Debt Management Plan if you can’t qualify for a reasonably priced loan; these can lower card APRs and combine payments without taking on new debt. (Vet providers through the NFCC/FCAA and avoid upfront-fee “debt relief” scams.)
Quick Comparison Snapshot
- SoFi — Low-fee structure (no origination or late fees), high max loan amounts, fast funding; best for good/excellent credit seeking a clean, low-cost credit card consolidation loan.
- Upgrade — Fair-credit friendly, clear debt consolidation focus; eligibility and APRs vary by profile; look for features like direct pay to creditors.
- Upstart — Alternative underwriting that may approve thin-file or lower-score borrowers; competitive for those who don’t qualify elsewhere.
Pro Tips to Maximize Savings
- Prequalify with at least 2–3 lenders—soft pulls let you compare personal loan rates without hurting your score.
- Pick the shortest term you can afford. A longer term lowers the payment but can increase total interest.
- Use autopay for a small rate discount (many lenders offer 0.25% off) and payment protection.
- Don’t re-use the cards. If you keep them open for credit history, consider lowering limits or storing them away to avoid new balances.
- Refi if rates drop. Locking a fixed-rate loan protects you from hikes; if market rates improve, shop again.
Bottom Line
For most borrowers, the smartest path is to prequalify with a few reputable lenders, compare the APR + fees + term, and choose the lowest total cost for consolidating your credit cards.
- Pick SoFi if you have strong credit and want a no-fee, low-interest personal loan with fast funding.
- Try Upgrade if your credit is fair and you want a lender built around credit card consolidation workflows.
- Consider Upstart if you’ve got bad credit or limited history and need a lender that looks beyond the score.
If none of the rates you see beats your cards, look at a 0% balance transfer credit card, or talk to a nonprofit credit counseling agency about a Debt Management Plan—both proven paths to lower interest and faster payoff without risky gimmicks.