A good time to consider a credit card consolidation loan is when you have more monthly credit card payments than you can reasonably manage. The point of a consolidation loan is to simplify your monthly payments, and possibly to lower your overall interest charges. Combining several credit card payments into one payment can make dealing with your monthly budget much easier.  A debt consolidation loan can be a great tool for managing your finances if used correctly. That being said, it depends on the type of loan you choose for consolidation, the lender offering the loan and the terms and conditions that come with it. If you can find a good deal on a large personal loan that will cover all of your credit card debt, then it’s probably a wise choice.  The types of loans people use for consolidation will vary depending on each borrower's specific financial situation. If you have a decent or good credit score, you may be able to get approved for a traditional bank or credit union loan. This is usually a good route to take, as many bank and credit union loans offer competitive interest rates and repayment terms.  If your credit score leaves much to be desired, then you may have to consider alternatives. Many banks and credit unions have strict policies on who they can offer loans to. And those with low credit scores tend to get denied personal loans from these institutions. In this case, some borrowers may turn to what is known as a “personal installment loan.” Personal installment loans are larger and usually carry better interest rates than some other short-term loans like payday and title loans. They also allow borrowers to repay the loan over the course of several months, up to a couple of years in some cases. And the best part is, borrowers with lower credit scores may still be able to get one.  If you're considering credit card consolidation, but you have a low credit score, a personal installment loan may be a good option. No matter what kind of loan you choose, make sure you are 100% sure you can repay it before signing on the dotted line.