Does debt consolidation hurt your credit?

Applying adds a hard inquiry and a new account, which can dip your score briefly. Over time, consolidating credit-card debt into an installment loan can lower your revolving utilization, which may help.

When is a consolidation loan worth it?

Generally when the new APR (including fees) is meaningfully lower than your current blended rate and the term does not stretch so long that you pay more total interest. The calculator estimates the net effect.

What is an origination fee?

A one-time fee some lenders charge to issue the loan, often 1%–8%, usually deducted from your loan amount or added to the balance. It raises the real cost, so include it when comparing offers.

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Debt Consolidation Loan Calculator

Compare your current debt payoff path against a fixed-rate consolidation loan estimate before you apply.

Total debt to consolidate

Current blended APR %

Current monthly payment

New loan APR %

New loan term months

Origination fee %

Use this as an estimate only. A lower payment can still cost more if the term is stretched too long or fees are high.

How this tool works

Enter your current debt, blended interest rate, and monthly payment, then the terms of a consolidation loan offer including its APR, term length, and origination fee. The tool compares total cost both ways and estimates whether consolidating would actually save money.

Why it matters for your credit

A consolidation loan can lower your interest rate and simplify several payments into one — but a lower monthly payment can still cost more overall if the term is stretched too long or the fees are high. Running the real numbers before you apply protects you from a deal that only looks cheaper.

Frequently asked questions

Does debt consolidation hurt your credit?: Applying adds a hard inquiry and a new account, which can dip your score briefly. Over time, consolidating credit-card debt into an installment loan can lower your revolving utilization, which may help.
When is a consolidation loan worth it?: Generally when the new APR (including fees) is meaningfully lower than your current blended rate and the term does not stretch so long that you pay more total interest. The calculator estimates the net effect.
What is an origination fee?: A one-time fee some lenders charge to issue the loan, often 1%–8%, usually deducted from your loan amount or added to the balance. It raises the real cost, so include it when comparing offers.

This tool gives an educational estimate only — not a promise of a specific score change, approval, or lender decision. Explore all free tools, dispute letter templates, or the credit guides.