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Americans weigh debt consolidation loans as card balances top $1.26T

Lenders typically look for a credit score in the mid-600s, a debt-to-income ratio below 40% to 43%, and steady documented income, with sub-580 scores potentially priced near 30% interest.

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Americans carried $1.26 trillion in credit card debt as of mid-2026, just under the all-time record set at the end of the prior year, according to Benzinga.

With the average card balance reportedly charging more than 22% interest, many households are seeking debt consolidation loans that roll multiple high-interest balances into a single fixed monthly payment, but qualification depends on meeting several lender requirements.

Benzinga says borrowers generally qualify by clearing a lender’s thresholds for their credit score, debt-to-income ratio, income, and documentation. Most lenders look for a credit score in the mid-600s, with 670 or higher widening access to more lenders and better rates, while borrowers with excellent credit, often cited as 740 and above, tend to see the lowest advertised rates.

After credit score, lenders focus on debt-to-income, defined as total monthly debt payments divided by gross monthly income before taxes. The outlet notes most lenders prefer a DTI below 40% to 43%, and that for scores below 580 borrowers can be quoted rates near 30%, potentially offsetting the savings consolidation is meant to provide.

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