If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.
The latest research from The Ascent shows that the average unsecured loan balance is $11,773. And according to data from the Federal Reserve, as of Q1 2024, Americans had total household debt of $17.69 trillion -- including mortgages, auto loans, and credit card debt.
If you're struggling to keep up with your bills, or if you want to find an easier way to pay off credit card debts while potentially getting a lower interest rate, debt consolidation loans can help. With debt consolidation loans, you can combine multiple debt payments into one -- which may help you get out of debt faster and more cheaply.
You’re clicks away from finding the right loan. Answer a few questions and start comparing real offers from multiple lenders within minutes. This won’t impact your credit.
Lending Partner | Min. Credit Score | Loan Amounts | Apr Range | Next Steps |
---|---|---|---|---|
2024 Award Winner
SoFi Personal Loans
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Min. Credit Score: 680 | Loan Amounts: $5,000 - $100,000 | APR Range: Fixed: 8.99%-29.99% APR (with all discounts) | |
LightStream
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Min. Credit Score: 660 | Loan Amounts: $5,000 - $100,000 | APR Range: 8.89%-24.89% (w/ AutoPay)* | |
2024 Award Winner
Upgrade
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Min. Credit Score: 580 | Loan Amounts: $1,000 - $50,000 | APR Range: 8.49%- 35.99% APR |
Check Rates for Upgrade
Powered by Credible |
LendingClub
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Min. Credit Score: 600 | Loan Amounts: $1,000 - $40,000 | APR Range: 9.57% - 36.00% |
Check Rates for LendingClub
Powered by Credible |
Rocket Loans
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Min. Credit Score: 640 | Loan Amounts: $2,000 to $45,000; min. $5,001 in Ohio | APR Range: 9.116% to 29.99% |
*SoFi Personal Loan Disclaimer
Fixed rates from 8.99% APR to 29.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors.
Loan amounts range from $5,000–$100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-7%, which will be deducted from any loan proceeds you receive.
Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.
Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.
Impact to credit score: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Rates quoted are with AutoPay. Your loan terms are not guaranteed and may vary based on loan purpose, length of loan, loan amount, credit history and payment method (AutoPay or Invoice). AutoPay discount is only available when selected prior to loan funding. Rates without AutoPay are 0.50% points higher. To obtain a loan, you must complete an application on LightStream.com which may affect your credit score. You may be required to verify income, identity and other stated application information. Payment example: Monthly payments for a $10,000 loan at 8.49% APR with a term of 5 years would result in 60 monthly payments of $205.12. Some additional conditions and limitations apply. Advertised rates and terms are subject to change without notice. Truist Bank is an Equal Housing Lender. © 2024 Truist Financial Corporation. Truist, LightStream, and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.
Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 8.49%-35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade's bank partners. Information on Upgrade's bank partners can be found at https://www.upgrade.com/bank-partners/.
SoFi offers low interest rates and higher loan limits than most lenders. Its loans are designed for well qualified applicants. SoFi doesn't require an origination fee, late fees, or a prepayment penalty.
LightStream offers the lowest rates on personal loans, hands down, and high loan limits. Also, LightStream doesn't charge fees. All in all, this is one of the most competitive personal loan lenders you'll come across. The catch is that LightStream has stricter borrowing requirements than some other lenders.
Powered by Credible
Powered by Credible
Upgrade offers loans from $1,000 to $50,000, with terms as long as 84 months. All borrowers pay an origination fee. Loans fund in as little as a day. The best rates go to borrowers using at least some of the funds to pay off other debt.
Powered by Credible
Powered by Credible
Lending Club is ideal for borrowers who want to consolidate high-interest debt. By consolidating their high-interest debt into a single peer-to-peer loan, a borrower can save hundreds of dollars in interest.
A flexible personal loan that can be used for just about anything.
If you want to consolidate debt, Upgrade is worth a closer look. Want to tackle smaller debts spread across several credit cards? Upgrade provides personal loans as small as $1,000. Are you struggling with larger amounts of high-interest credit card debt? Upgrade loans up to $50,000 are available to qualified applicants.
Good news for people who are trying to improve their credit score: When you apply for a loan, Upgrade makes a soft credit inquiry -- not a hard credit pull. That means your credit score won't be affected just for applying (the hard credit inquiry is when you receive a loan).
Once approved for an Upgrade loan, the funds will hit a borrower's bank account within four days (often sooner). Loan terms stretch from two to seven years, giving you more control over the size of your monthly payment.
But here's a drawback of Upgrade loans: no cosigners are allowed, so if your credit score is struggling, this could be bad for your chances of getting approved. Plus, if your credit score is on the low end, origination fees up to 9.99% can be costly.
Upgrade offers one of the longest repayment terms in the personal loan business.
If you're looking to consolidate debt but still have a (fairly) healthy credit score, LightStream could be a good choice. LightStream personal loans are available from $5,000 to $100,000, with no origination fees or prepayment penalties. Loan terms ranging from 24 to 48 months allow you some control over your monthly payment amount. Although you'll likely need a credit score of 660 or greater, LightStream allows co-applicants, which can be good news for borrowers with a lower FICO® Score. If you've been approved for a personal loan by another lender, LightStream will beat that lender's rate by 0.1%.
Because there are no origination fees, LightStream loans cost less than most. Another advantage of LightStream is that this company allows you to bring a co-applicant who may have a higher credit score.
SoFi requires a good credit score of 680 or higher. However, if you qualify, the lender offers some pretty attractive benefits, including loan amounts from $5,000 to $100,000. You can also bring a co-borrower if you don't qualify on your own. The lender also considers alternative sources to determine creditworthiness for borrowers who haven't had time to build a long credit history. Unlike many lenders, SoFi charges no origination fee or prepayment penalty.
LendingClub is a fintech company working with a network of investors. These investors are specifically looking for people they can loan money to. Loans are available from $1,000 to $40,000, with terms of 36 or 60 months. Because it's a network of investors, there's a good chance you will find funding.
Just like with other lenders, LendingClub borrowers who have low credit scores are likely to pay higher interest rates than people with stronger credit. LendingClub origination fees run from 3% to 6%. So if you have a high enough credit score to qualify for a different lender that doesn't charge origination fees, you might be better off applying with a different company. Instead of spending several percentage points on loan fees, you could keep more money in your bank account.
The biggest difference for LendingClub is that investors choose which loans they want to fund. This can make it more likely for borrowers with lower credit scores to receive loans via LendingClub than with traditional lenders. But just like with a bank loan or any other loan, borrowers with lower credit scores are likely to pay higher interest rates.
Did you know that Rocket offers more than home loans? Yep. Rocket also provides personal loans, ideal for consolidating high-interest debt. If your credit score is 640 or higher you are eligible to apply for a Rocket debt consolidation loan ranging from $2,000 to $45,000. Repayment terms are either 36 or 60 months, and you can expect same-day loan approval. You may even receive same-day funding. But watch out for one drawback: this lender charges origination fees of as high as 7%.
Rocket is one of the rare lenders that may be able to provide same-day funding.
Yes, there are consolidation loans available if you have bad credit. Here are a few extra steps you can take to increase your chances of getting approved:
For more information, check out our list of best personal loans for bad credit.
Lending Partner | Min. Credit Score | Loan Amounts | APR Range | Best For |
---|---|---|---|---|
SoFi Personal Loans | 680 | $5,000 - $100,000 | Fixed: 8.99%-29.99% APR (with all discounts) | Low APR for borrowers with high income |
LightStream | 660 | $5,000 - $100,000 | 8.89%-24.89% (w/ AutoPay)* | Borrowers with good credit |
Upgrade | 580 | $1,000 - $50,000 | 8.49%- 35.99% APR | Debt consolidation and fair credit |
LendingClub | 600 | $1,000 - $40,000 | 9.57% - 36.00% | Low APR for borrowers with good to excellent credit scores |
Rocket Loans | 640 | $2,000 to $45,000; min. $5,001 in Ohio | 9.116% to 29.99% | Flexible personal loans |
It can be easy to confuse refinancing and consolidating, but they are two different strategies meant to accomplish the same goal -- to become debt free.
Credit card refinancing involves transferring your credit card balance to a card with a lower interest rate (more on this in a moment). Debt consolidation streamlines multiple debt payments into a single payment, using a personal loan.
A debt consolidation program can save you money and time. Here are a few other benefits:
Most financial decisions, including personal loans for debt consolidation, have pros and cons. Here are some drawbacks:
TIP
If you're getting ready to apply for a debt consolidation loan, start by outlining your current monthly expenses and income. Then, estimate how much you can put toward a loan payment each month. (Remember, the loan payment will replace some of your other debt payments.) That way, you'll know ahead of time what size loan payment is best for you -- and you can confidently work toward paying off that debt.
Personal loans for debt consolidation can be a great way to meet your financial goals, but they're not the only option. Here are some alternatives to a debt consolidation loan.
A balance transfer card offers an introductory rate, most often a 0% APR for a set time period (typically 12 to 21 months). You apply online, give the new credit card company a list of the balances you want to be transferred, and wait to hear back from it. Transfer fees usually range from 3% and 5% of the balance transferred. But beware: The card's interest rate will rise dramatically as soon as the intro period ends. You should plan to pay the card off in full before then.
If you owe less on your mortgage than your home is worth, that means you have equity and can borrow against it. If you use a home equity loan for debt consolidation, you'll owe your mortgage lender instead of your other creditors (like credit card issuers). The interest rate might be lower on a home equity loan than you'd pay on a credit card or personal loan. The danger is that you could lose your home if you miss payments.
While the best move with a 401(k) plan -- or any other retirement plan -- is to leave it alone and let it grow, some plans do allow for borrowing. You don't have to worry about your credit score when borrowing from your 401(k) because no credit check is required.
A 401(k) loan generally lets you borrow 50% of your 401(k) balance or $50,000, whichever is less (with some exceptions). When you take out a 401(k) loan, you pay interest to yourself by putting your interest payments back into your retirement account. However, if you don't pay back the loan within five years, you will owe income tax and a penalty of 10%.
A debt consolidation loan is a loan used to pay off other debt. It usually has a lower interest rate than other debt (like credit card debt). You can also use it to pay off multiple debts -- for example, multiple credit cards or loans. Then, you have only one debt payment to remember instead of several.
Getting a debt consolidation loan could help your credit score go up. Consolidating debt leaves you with more available credit (for example, paid off credit cards). As long as you don't add charges to the cards you just paid off, the credit utilization portion of your credit score improves. In addition, making monthly payments on time helps boost your score.
The credit score required to consolidate debt depends on the lender. Some lenders that cater to those with poor credit consider applicants with scores as low as 560-580.
How much debt you can consolidate depends on a number of factors, including your credit history, income, and how much money a lender will offer you.
Ramsey is not a fan of debt consolidation loans, believing that it will take you longer to repay the debt. In his opinion, the longer it takes you to repay the loan, the more interest you'll pay.
A longer term on a debt consolidation loan is not necessarily a bad thing, if you can use that loan to get a lower interest rate, a lower monthly payment, and build momentum to pay off debt faster. Use a debt payoff app and crunch the numbers to see how long it will take you to pay off existing debt at the rate you're paying. Then, find out how much a consolidation loan will cost you monthly. Finally, compare the total interest paid in both scenarios.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
*SoFi Personal Loan Disclaimer
Fixed rates from 8.99% APR to 29.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors.
Loan amounts range from $5,000–$100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-7%, which will be deducted from any loan proceeds you receive.
Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.
Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.
Impact to credit score: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Rates quoted are with AutoPay. Your loan terms are not guaranteed and may vary based on loan purpose, length of loan, loan amount, credit history and payment method (AutoPay or Invoice). AutoPay discount is only available when selected prior to loan funding. Rates without AutoPay are 0.50% points higher. To obtain a loan, you must complete an application on LightStream.com which may affect your credit score. You may be required to verify income, identity and other stated application information. Payment example: Monthly payments for a $10,000 loan at 8.49% APR with a term of 5 years would result in 60 monthly payments of $205.12. Some additional conditions and limitations apply. Advertised rates and terms are subject to change without notice. Truist Bank is an Equal Housing Lender. © 2024 Truist Financial Corporation. Truist, LightStream, and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.
Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 8.49%-35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade's bank partners. Information on Upgrade's bank partners can be found at https://www.upgrade.com/bank-partners/.