Best Debt Consolidation Companies for Credit Card Debt

Oct 19, 2022 | Finance Help

When credit card debt gets out of hand, debt consolidation companies can help you get it under control. The best debt consolidation company for you will depend on the size and type of debt you have, your credit score, and your overall financial situation. 

How To Choose a Debt Consolidation Company

Credit card debt consolidation allows you to combine multiple debts into one monthly payment that ideally has a lower interest rate that will save you money. You should choose the option that meets your needs and balances the amount you need with terms that you can afford. 

  • Best for Lower Monthly Payments i – Accredited
  • Best for Co-Borrowers i – LendingClub
  • Best for Fast Funding i – Upstart
  • Best for Balances Over $10,000 i – Accredited
  • Best for Home Equity Options i – Prosper
  • Best for Bad Credit i – Accredited

Best for Lower Monthly Payments – Accredited

Accredited is a great option if you are looking for lower monthly payments. Accredited’s debt resolution program could lower the total amount you owe on your debt and may reduce monthly payments by up to 50%. 

Accredited logo

Editor’s Pick

✓ Lower Monthly Payment

✓ No Credit Score is Required

✓ Debt-free in 12-48 months

✓ No fee to apply

✓ A+ Rating with BBB

Best for Co-Borrowers – LendingClub

LendingClub gives you the option to consolidate your debt for a lower rate when you work with a co-borrower. This can be a good option if you have credit score concerns. Partnering with a co-borrower with better credit or a higher income may help you get a lower interest rate that will save you money. 

Lending Club logo

✓ Minimum Credit Score: 600

✓ Loans Funded In One Week

✓ Lower Rates With A Co-Borrower

Best for Fast Funding – Upstart

Upstart offers consolidation funding in as little one day! This means you won’t have to wait for your money. Their application has no minimum credit score requirement but does require a credit check. You can pre-qualify with a soft credit pull to see offers and complete the application online. 

upstart logo

✓ No Minimum Credit Score

✓ Soft Credit Check To Pre-Qualify

✓ Get Funding In One Day

Best for Balances Over $15,000 – Accredited

If you are struggling with more than $15,000 of debt, Accredited can help you get out of the debt cycle created by expensive monthly minimum payments and high-interest rates that balloon your principal balance. Accredited’s debt resolution program eliminates the need to qualify for a new loan, which can be harder when debt balances are high.

Accredited logo

Editor’s Pick

✓ Lower Monthly Payment

✓ No Credit Score is Required

✓ Debt-free in 12-48 months

✓ No fee to apply

✓ A+ Rating with BBB

Best for Home Equity Options – Prosper

Prosper debt consolidation allows you to use your home as equity to secure higher consolidation amounts and lower interest rates. This option may be good for you if you meet their credit criteria and would like to leverage the equity in your home.

Prosper logo

✓ Minimum Credit Score: 600

✓ Soft Credit Check To Pre-Qualify

✓ Home Equity Options Available

Best for Bad Credit – Accredited

Accredited has no credit score requirements, making it a good option for people without excellent scores. Their team of experts understands that debt struggles happen, so the program is designed to accommodate you. If you have already missed payments or struggled to pay your bills on time, there are options for you to take back control of your debt.

Accredited logo

Editor’s Pick

✓ Lower Monthly Payment

✓ No Credit Score is Required

✓ Debt-free in 12-48 months

✓ No fee to apply

✓ A+ Rating with BBB

What To Expect With A Debt Consolidation Company

Debt consolidation should help you manage your debt and make your pay-off plan easier, less stressful, and more affordable. A good consolidation company:

  • Customizes options to meet your needs
  • Is well-rate and reviewed
  • Provides excellent customer service
  • Consolidates your monthly payments
  • Reduces what you owe every month
  • Helps you pay off debt faster

How To Stay On Track And Get Out Of Debt

Whether you choose a debt consolidation company that offers a debt consolidation loan, balance transfer, or resolution plan, there are several ways you can stay on track:

  • Make monthly payments on-time
  • Avoid taking on any new debt
  • Follow a budget and practice healthy spending habits

Making on-time monthly payments, avoiding new debt, and following a budget will help you stay on track after consolidating your debt.  

In many cases, you can also accelerate your payoff strategy by making additional monthly payments when you are able. 

Understanding Loan Rates

Personal loan offers provided by the lenders on this page will have a rate no higher than 35.99%, with repayment terms ranging from 36 to 72 months. The actual rate depends on credit score, loan term, and other factors. Please visit the lender’s website for a representative example of the total cost of the loan, including all applicable fees.

  1. Upstart – Rates for personal loans provided by Upstart range from 5.40% to 35.99% APR with repayment terms from 36 to 60 months. 
  2. LendingClub – Rates for personal loans provided by LendingClub range from 6.34% to 35.89% APR with repayment terms from 36 to 60 months. 
  3. Prosper – Rates for personal loans provided by Prosper range from 7.95% to 35.99% APR with repayment terms from 36 to 60 months. 
  4. LightStream – Rates for personal loans provided by LightStream range from 4.49% to 20.49% APR with repayment terms from 36 to 72 months.

A representative loan example: For a $10,000 personal loan with a 36-month repayment term, 18.49% APR (including a 5% origination fee), you would receive $9,500, and your required monthly payments would be $346.65. Over the life of the loan, you would pay back a total of $12,479.52. The APR for your loan may be higher or lower than this amount. The actual rate depends on credit score, loan term, and other factors. Please visit the lender’s website for a representative example of the total cost of the loan, including all applicable fees.

i The Trusted Company Reviews Editorial Rating isn’t a simple average of all reviews. Our editorial team analyzes company reviews and considers consumer needs and program features like overall savings, customer service, monthly payments, program length, industry reputation, accreditations and more.