Credit card debts are common in most American households and debt consolidation is a great way to get out of it faster. Debt consolidation allows you to combine your multiple credit card debts into one single loan and make a monthly lump sum payment.

There are several benefits to consolidating your credit card debts.

First, by finding a debt consolidation loan with a lower APR than the APR on your current loans, you can save a lot of money and pay them off faster. Second, it makes managing multiple credit debts very easy and convenient, as a debt consolidation loan requires you to just make a single payment. Third, a debt consolidation loan can help you reduce your credit card utilization ratio by paying off credit card debts on time and in turn have a positive impact on your credit score. By clearing off your credit card debts with a consolidation loan, you can significantly improve your credit score.

Below are two of the best credit card debt consolidation loans available online.

SoFi
The SoFi website states that borrowers have improved their credit scores on an average by 17 points. They did so by taking a consolidation loan that helped them pay off their credit card debts. SoFi is the recommended choice for individuals with a good credit. SoFi offers debt consolidation loans up to $100,000 with APRs beginning from 5.49% fixed or 5.21% variable (with AutoPay). The loan term is between three and seven years.

LendingClub
LendingClub is a popular online loan provider that offers debt consolidation loans up to $40,000. The interest rates range between 5.99% and 35.89% and the loan term is anywhere between three and five years. The APR is decided based on the amount borrowed, the loan term and the borrower’s credit score. A personal loan with LendingClub can help borrowers improve their credit score by 19 points on an average. LendingClub does not charge any hidden fees or prepayment fees. LendingClub is a BBB accredited business.