Americans are carrying $1.26 trillion in credit card debt as of mid-2026, just shy of the all-time record set at the end of last year, and with the average card that carries a balance charging more than 22% interest, more households are hunting for a cheaper way out.
A debt consolidation loan rolls those high-interest balances into a single fixed monthly payment, often at a lower rate, but you have to qualify for it first, and lenders weigh a specific set of numbers before they approve you.
You qualify for a debt consolidation loan by clearing a lender's bar on four things: your credit score, your debt-to-income ratio, your income, and the documentation that backs it all up.
Most lenders want a credit score somewhere in the mid-600s, a debt-to-income ratio below 40% to 43%, and steady, verifiable income.
None of these is a hard cutoff on its own, and a strong showing in one area can offset a weaker one in another.
