What makes a credit card consolidation loan
If you’re looking for the best credit card consolidation loan to consolidate your credit card debt, it can feel like you have limited options if your credit score is only fair. But, there are companies out there that you can look at. We evaluated almost 60 different national lenders to get down to this list of seven companies. The criteria we used to evaluate them include the following:
- Criteria 1: Likelihood of someone with fair credit to be approved
- Criteria 2: Competitive APRs and fees
- Criteria 3: Positive reputation as a lending company
- Criteria 4: Features for people who are specifically trying to pay down their credit card debt
7 Options for Credit Card Consolidation Loans – Fair Credit – 2024
Okay, so here are the best credit card consolidation loans for people with Fair credit.
Achieve
Achieve offers loans between $5,000 and $50,000 with an APR between 8.99% and 35.99%. Their loans do have an origination fee between 2% and 7%. Their minimum FICO is 620. They offer particular discounts for adding a cosigner, using loan proceeds to pay off other debts, and showing you have sufficient retirement funds. They will pay your credit card debts off directly.
Best Egg
Best Egg offers the person with fair credit a variety of lending options including consolidation loans, personal loans, and secured loans. They lend between $2,000 and $50,000 with APRs between 8.99% and 35.99%. Their origination fees are between 1% and 9%. They offer secured as well as unsecured loans and will pay off your credit cards directly.
Lending Club
Lending Club offers loans between $1,000 and $40,000. Their lowest interest rate is 9.57% and their highest is 35.99%, with an origination fee between 3% and 8%. Their minimum credit score is 600 which is one of the lowest minimums for the companies on this list. They will pay off your other debts for you. You can’t use a cosigner on their loan to increase the chance of approval.
Upgrade
Upgrade lends between $1,000 and $50,000 at an APR between 8.49% and 35.99%. They do charge an origination fee between 1.85% and 10%. They offer unsecured as well as secured loans. Upgrade also offers rate discounts for putting your payment on autopay, consolidating debt, and securing your loan with your motor vehicle. They will pay off your credit cards directly.
I believe it is important that a company will pay off your credit cards off directly for a couple of reasons: first, it means that their approval models will recognize that the loan will not add to your debt-to-income ratio. Second, it shows that they cater to your desire to get out of debt, and not risk increasing your overall debt load.
The following brands are good options for borrowing, but they just don’t pay off your credit cards directly.
Avant
Avant lends up to $35,000, with an APR between 10% and 36%. They do charge an origination fee, which they call an administration fee. However, they are one of the few lenders that will offer a prorated reimbursement of the fee if you pay the loan off early.
LendingPoint
LendingPoint lends between $2,000 and $36,500. Their lowest APR is 7.99% (which is good) and their highest is the standard 36%. They charge an origination fee of up to 10% and a late payment fee which is one of the highest in the industry, at $30. You will want to pay particular attention to their fees and the length of the loan they offer you.
Prosper
Prosper is one of the most transparent lenders on this list. They lend between $2,000 and $50,000 with an APR between 9% and 36%. Their origination fee ranges between 1% and 8%. If you are late on a payment, you will get a fee and maybe even a failed payment fee. Prosper will accept a cosigner on the loan, which can increase your odds of approval.
Shop around for the right credit card consolidation loan for you
While these are companies you can consider, your best option is the company that will give you the best terms. That is why it is important to shop around. At The Yukon Project, we’ve tried to make shopping around easy. If you visit our marketplace page, you can apply to one of our premium lenders. At the same time, we will check your rate with up to 40 other lenders. We will present you with all the companies that will approve you. You can select the best option for you. And, applying will not negatively affect your credit score.
Last thought on Credit Card Consolidation Loans for people with Fair Credit in 2024
The last thought that I have for you is that you should always check with your personal bank or credit union. There are many small banks out there that will be willing to help existing customers. Still, it’s a good idea to always shop around. Just because you’ve been with a bank for 10 years, it doesn’t mean that they will give you the best rates.
