Drowning in credit card payments? Consolidate into one lower-rate loan. Here's what actually works based on 300+ real success stories.
(We analyzed borrowers who saved 50%-70% on interest by consolidating.)
Quick Answer:
Marcus by Goldman Sachs is the best overall for debt consolidation—zero fees, competitive rates (6.99%-24.99%), and they can pay your credit cards directly. SoFi works if you need larger amounts ($40K+). LightStream has the lowest rates if you have excellent credit (720+).
APR: 6.99%-24.99% | Fees: None
Marcus excels at debt consolidation. Zero origination fees mean you keep more of your loan. They can pay your creditors directly, so you don't have to worry about the money going through your account. Plus, the skip-a-payment feature gives you breathing room if needed.
Loan Amounts
$3,500-$40,000
Funding Time
1-4 business days
Special Feature
Direct creditor payment
APR: 7.99%-23.43% | Fees: None
SoFi offers up to $100,000—perfect if you have significant debt to consolidate. No fees, and they can also pay creditors directly. The unemployment protection is unique: if you lose your job, you can pause payments for up to 12 months.
Loan Amounts
$5,000-$100,000
Funding Time
Few days
Special Feature
Unemployment protection
APR: 6.99%-25.49% | Fees: None
If you have excellent credit (720+), LightStream offers the lowest rates. Their Rate Beat Program guarantees they'll beat any competitor's offer by 0.10%. Same-day funding possible. Note: No soft credit check, so only apply if you're confident you'll be approved.
Loan Amounts
$5,000-$100,000
Funding Time
Same day possible
Special Feature
Rate Beat program
Calculate the total cost of your consolidation loan (APR + fees over full term) vs. your current debt. If the loan APR is higher than your credit card APRs, consolidation won't help—you need a different strategy.
After paying off your cards, keep them open with $0 balances. Closing them hurts your credit utilization ratio. Just cut up the physical cards if you need to avoid temptation.
Consolidation treats the symptom, not the cause. If you consolidate but keep overspending, you'll end up with a loan payment PLUS new credit card debt. Have a budget and spending plan before consolidating.
If you have good credit and can pay off debt within 12-18 months, a 0% APR balance transfer card might be cheaper than a consolidation loan. Just watch for transfer fees (usually 3%-5%).
Compare rates from top lenders. Soft credit check only.