Three consolidation paths — pick the right one
(1) Personal loan: fixed rate 7–22% depending on FICO, 2–5 yr term, no collateral. Best for $5K–$50K credit card debt with 670+ FICO. (2) 0% balance transfer card: 12–21 months at 0% then 22–28%, 3–5% transfer fee. Best for $3K–$15K with a hard payoff plan. (3) HELOC: 7–10% variable, requires home equity, secured by your house. Best for $20K+ with material savings, but you're trading unsecured debt for secured — credit cards can't take your home, a HELOC can.
The behavior problem
70%+ of consolidation borrowers run their credit cards back up within 24 months — ending up with the consolidation loan AND new card balances. Fix the spending pattern before consolidating, or the consolidation just buys time before a bigger crisis. If you can't trust yourself, close the cards after consolidation even though it dings your credit score.
When consolidation makes ZERO sense
Don't consolidate if: (1) the new APR is within 3 points of the old weighted average — fees eat the savings; (2) you're going from 5-yr payoff to 7-yr payoff without a material rate drop; (3) you're using a HELOC for unsecured debt without a clear repayment plan; (4) consolidation requires giving up a 0% promotional period that hasn't expired yet.
Where to shop for a consolidation loan
Top 2026 lenders for credit card consolidation: SoFi, Marcus by Goldman, LightStream, Upstart, Discover Personal Loans, LendingClub. Marketplaces like Credible, Even Financial, and NerdWallet show 4–8 offers via soft credit pull. Bring offers from 3+ lenders before committing — rates vary 4–6 percentage points across lenders for the same applicant.
Related guides
Long-form playbooks on the same topic, written by the RevenueLab editorial team.
Personal Loan Guide 2026: Real Rate Bands by Credit Tier, the Origination Trick, and When Consolidation Pays
2026 personal loan APR bands by credit tier, the origination-fee math the ads hide, and the alternatives (balance transfer, HELOC, hardship plan) that often beat a personal loan.
Read the guideSBA 7(a) Loan Guide 2026: The Four Gates, DSCR Math, Rates, and What Kills the Packet
The 4-gate underwriting process, why 1.25× DSCR is the magic number, 2026 rates (Prime + 2.75%), 6 fees to expect, and the mistakes that kill SBA loan packets at the bank.
Read the guideFAQ
Will debt consolidation hurt my credit?
Short-term: small dip from the hard credit pull (5–10 points) and the new account (5–10 points). Long-term: usually helps, because consolidating credit cards onto a fixed-term loan reduces revolving utilization, the second-largest credit score factor.
Is a debt consolidation loan tax-deductible?
Personal loan interest: not deductible. HELOC interest used to pay off credit cards: also no longer deductible after the 2017 tax law unless the borrowed funds were used to substantially improve your primary residence.
Should I close my credit cards after consolidation?
Usually no. Closing reduces your available credit (raises utilization on remaining cards) and shortens your average credit history — both hurt your score. Keep them open with zero balance and minimal monthly use ($5 streaming subscription auto-paid in full).
What credit score do I need for a personal consolidation loan?
Excellent rates (7–10%): 720+ FICO. Good rates (11–15%): 670–719 FICO. Workable rates (16–22%): 600–669 FICO. Below 600: limited options, often subprime lenders with origination fees of 5–10%.
Can I consolidate medical debt?
Yes — personal loans and credit card balance transfers both accept medical debt. Before consolidating, negotiate the medical bill directly: hospitals routinely offer 30–50% discounts for prompt payment in full and 0% interest payment plans up to 24 months.
Is debt settlement the same as consolidation?
No. Settlement (e.g., National Debt Relief) negotiates to pay 40–60% of the balance — major credit damage, often a 1099 tax bill on forgiven debt, and 24–48 months of skipped payments. Consolidation pays 100% of debt at a lower rate, with no credit damage.
How this calculator is built
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Written by Sam Doshi and the RevenueLab editorial team. We don't sell the data feeds this tool is built on.
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Last reviewed
June 2026. We re-check every figure on the platform on a rolling quarterly cycle.
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See our editorial policy and disclaimer. Results are estimates, not advice.