Why You Should Trust Us: Our Methodology for Rating Debt Consolidation Loans
To find the best places to consolidate debt, we combed through the fine print and terms of about a dozen personal loans to find the ones that were best suited to help with consolidating debt. We considered four main features:
- APR range: For the most help with debt payoff, the best personal loan for debt consolidation needs to have lower interest rates than the credit card or other debts you're consolidating. We looked for the loans that had the lowest rates possible for each credit range and purpose. The origination fees or administrative fees in our decisions, looking for loans with the fewest or lowest fees. None of the best loans listed have prepayment penalties.
- Nationwide availability: We only considered loans with availability in most or all 50 US states.
See our ratings methodology for personal loans »
At Business Insider, our reviews are guided by editorial independence, meaning our recommendations and ratings are based on objective criteria, thorough research, and expert analysis. Advertisers do not dictate our content, ensuring our reviews remain transparent and unbiased.
We rate all personal loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others based on what we think is most important.
How We Review Debt Consolidation Loans
We consulted loan and financial planning experts to inform these picks and give their insights into finding the best loans for your needs. You can read their advice at the bottom of this post.
- Ryan Wangman, personal loans reporter
Generally, What Makes a Personal Loan Good or Not Good?
Andre Jean-Pierre:
"One of the most important factors to consider in a personal loan is the interest rate. Because personal loans are typically unsecured, they usually carry higher interest rates than secured lending options. However, if a person has a strong credit profile, a personal loan can carry a lower APR than other unsecured sources of financing such as credit cards."
Forrest McCall:
"One of the best ways to use a personal loan is to pay off other high-interest debts like credit card debts. Because you can often lock in lower rates than a revolving line of credit like a credit card it can be a smart decision for your finances and save you thousands in interest payments over time."
How Should a Borrower Decide if They Should Take Out a Personal Loan?
Fred Winchar:
"Whether or not to take a personal loan depends on if one can afford it. The purpose of the loan and the value that comes with it is of importance to note. In most cases, it is beneficial to use the loan to invest in a project that can bring extra income or savings."
Ryan Wangman:
"Borrowers should carefully consider alternatives to personal loans before taking one out. Personal loans can come with high interest rates, especially for borrowers with poor credit. If you can't fit those monthly payments into your budget, steer clear of the loan."
Apply for Debt Consolidation Loan Offers Online
Best for Good to Excellent Credit
6.49% to 25.29% (with AutoPay discount, rates vary by loan purpose)
$5,000 to $100,000
660
- Competitive APR
- Approval decisions should come shortly after applying
- Loans can be funded the same day
- Wide range of borrowing amounts and terms
- No fees
- Only available to people with good credit
- No pre-approval option
LightStream offers some of the lowest rates on personal loans out there, provided you have a great credit score. The lender also has loans of up to $100,000 and can supply you with funding on the same day you apply and are approved.
LightStream Personal Loan- Loan amounts range from $5,000 to $100,000
- Loan term lengths range from 2 to 12 years
- Apply online and you'll receive a response shortly during business hours.
- Receive your funds as soon as the same day
- Loans are made by Truist Bank, member FDIC
Lightstream is a highly regarded lender for many loan types, and has been a top pick across Business Insider's coverage of the best personal loans. However, this lender only works with borrowers with good or better credit, with a minimum credit score requirement of 660.
LightStream Personal Loan offers consistently low debt consolidation loan rates, though its minimum interest rate for debt consolidation is higher than its typical personal loan's interest rates. However, this lender does not have any prepayment or origination fees. Same-day funding is available with LightStream.
Although Lighstream offers high maximum loan amount limits, only borrowers with excellent credit can borrow the $100,000 maximum, and anyone without excellent credit may not qualify for the full amount.
LightStream defines excellent credit as an account with five or more years of credit history, stable and sufficient income for debts, and a variety of credit history with little or no credit card debt. If you're looking for one of the best places to consolidate debt, chances are you have a significant amount of debt, and may not fit these qualifications.
Additionally, LightStream doesn't have a way to pre-qualify online. You'll have to apply for the loan to find out exactly what your rates and terms could look like, which could make comparison shopping difficult.
Best for Fast Funding
9.99% to 35.99%
$1,000 to $50,000
580
- Small minimum loan amount
- Quick access to funds
- Low minimum credit score
- Origination and late fees
Upgrade is a solid lender if you can qualify for its lowest interest rate. But if your credit isn't in great shape, you may be able to find a better deal elsewhere.
Upgrade Personal Loan- Loan amounts range from $1,000 to $50,000
- Loan term lengths range between 2 to 7 years
- You can get your money within one business day after your loan is reviewed and approved
- Loans made by Upgrade's lending partners
Upgrade Personal Loan is one of the best companies to consolidate debt because it is great for fast cash. This lender allows you to get your money within one business day after your loan is reviewed and approved.
You're also able to get a loan for as little as $1,000, which is less than many of the other competitors on our list. It could be a good choice if you only have a small amount of debt you need to consolidate.
Be aware that Upgrade does charges origination and late fees that could impact your loan consolidation rates. You could pay a late fee of up to $10 if you don't make a full payment within 15 days of your due date.
Best for High Balances
8.99% to 35.49% fixed (with all discounts)
$5,000 to $100,000
680
- High maximum loan limit
- No fees required
- Competitive APR
- High minimum credit score requirement
- High minimum loan amount
- No in-person support
SoFi is a strong personal loan lender for those with high credit scores — you'll get perks like no fees required. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.
SoFi- Loan amounts range from $5,000 to $100,000
- Loan term lengths range from 2 to 7 years
- Usually receive your money in a few business days after your application is approved
- Loans are made by SoFi Lending Corp.
SoFi reporting that the average weighted income among borrowers is over $100,000.
Best for Bad Credit
9.95% to 35.99%
$2,000 to $35,000
600
- Funds generally deposited by the next business day
- No prepayment penalty
- Multiple types of fees
- High maximum APR
- Low maximum loan limit
Avant Personal Loan is a good personal loan provider, especially if you have a lower credit score and need to receive your loan money quickly. Just be prepared to pay a high APR if you do have a low score.
Avant- Loan amounts range from $2,000 to $35,000
- Loan term lengths range between 2 to 5 years
- Administration fee of up to 4.75%, which will be deducted from your loan proceeds when the loan is funded, and late fee that varies by state
- Loans made by WebBank, member FDIC
Getting a loan with bad credit, whether to consolidate debt or for something else, can be expensive, or hard to qualify for. An fast personal loan funding.
While Avant is accessible to borrowers with poor credit scores, approval might go hand in hand with high interest rates on your loan. Additionally, borrowers may face origination fees and limited loan amounts compared to other lenders.
Best for Fair Credit
11.72% - 17.99% fixed
$5,000 to $40,000
640
- Competitive interest rates
- No prepayment or late fees
- Low minimum credit score requirement
- Origination fees
- Slow access to funds
- Limited loan purpose
- Not available in all states
A Happy Money Payoff Loan personal loan is a great option for those with good credit scores who are eligible for the lender's lowest APR. However, borrowers can only use the funds to consolidate credit card debt.
Happy Money Payoff Loan™- Loan amounts range from $5,000 to $40,000
- Loan term lengths range between 2 to 5 years
- Origination fee anywhere between 0% and 5%
- Won't be able to get a loan from Happy Money if you live in Maine, Massachusetts, Nebraska, or Nevada
- Can only use for credit card debt consolidation
- Loans made by one of Payoff's lending partners
In the fair credit range, it can be tough to qualify for a personal loan with reasonable interest rates — many lenders have a minimum of 660 or 680. However, a Payoff Loan™ could be a good option for people with credit scores as low as 640. Interest rates are comparable to those offered by LightStream and SoFi, but this lender has less stringent requirements.
Compared with competitors Prosper and Best Egg, which both have the same 640 minimum credit score requirement, Payoff's interest rates are capped lower, and could have lower origination fees.
Payoff offers loans with a 0% to 5% origination fee. Competing lenders Prosper and Best Egg charge 1.00% to 9.99% and 0.99% and 9.99% origination fees, respectively. The better debt consolidation rates will depend on your credit score, income, and repayment term.
Best for Limited Credit History
6.60% to 35.99% fixed
$1,000 to $50,000 (borrowers in four states are subject to higher minimum loan amounts: Massachusetts: $7,000, Ohio: $6,000, New Mexico: $5,100, Georgia: $3,100)
300
- Small minimum loan amounts
- No prepayment penalty
- Quick loan fund disbursement
- Only three and five year terms
- Potential for high origination fees
Upstart could be the right lender if you have a strong work and education history, but you have a low credit score or limited credit history. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.
Upstart- Loan amounts range from $1,000 to $50,000. However, borrowers in four states are subject to higher minimum loan amounts: Massachusetts: $7,000, Ohio: $6,000, New Mexico: $5,100, Georgia: $3,100
- Loan term lengths are either 3 or 5 years
- Can have origination fees up to 8%
- Considers employment and education history when making loan approval decisions
- Loans are made through one of several Upstart-powered bank partners
credit scores when determining loan eligibility. Upstart assesses factors such as work experience and education, making it easier for individuals with low or no credit scores to qualify.
With a minimum credit score requirement of just 300, Upstart offers accessibility that many other lenders do not, making it an attractive option for those who are building or rebuilding their credit. Another key advantage of Upstart is its quick funding process, allowing borrowers to receive funds as soon as the next business day if approved by 5 p.m. ET.
While Upstart's flexible qualification criteria make it appealing, it does come with higher costs, including origination fees of up to 12% and APRs of 6.60% to 35.99% fixed. Additionally, the lack of co-signer options may limit borrowing opportunities for some applicants.
Compare Today's Debt Consolidation Rates
Debt Consolidation Loan Company Trustworthiness
The BBB measures businesses based on factors like their responsiveness to customer complaints, honesty in advertising, and transparency about business practices.
We've compared each institution's Better Business Bureau score to give you another piece of information to choose your lender. Whether you're considering a APR that is lower than the average you're paying on the debt you want to consolidate. If you can't qualify for a lower rate, a debt consolidation loan might not be a good choice for you.
Also consider the loan amounts, associated fees and penalties, as well as a lender's credit score minimum and other eligibility requirements when choosing a debt consolidation loan.
Alternatives to Debt Consolidation Loans
If you're looking for one of the best loans for debt consolidation because your credit cards carry high APRs, it's worth your time to consider some alternatives.
Debt Consolidation vs. Negotiating a Lower Interest Rate
One often underutilized strategy is to simply ask your credit card company for a lower rate. There's no guarantee that they'll agree. However, they may well do so, especially if you've been diligent about payments. You can also ask about upgrading your credit card, which may come with a lower APR and other perks.
Debt Consolidation vs. O% APR Credit Card
You may also be able to get a lower rate by transferring your balances to a different credit card. Cards designed for this purpose improving your credit score by paying down balances and making timely payments. Consider applying with a co-signer who has strong credit or looking for lenders that specialize in working with lower credit scores.
FAQs
What is a debt consolidation loan?
A debt consolidation loan combines multiple debts into a single loan with one monthly payment, ideally at a lower interest rate. This can simplify repayment and potentially save money on interest over time.
What should your credit score be for a debt consolidation loan?
Most lenders prefer a credit score of at least 600-650 for a debt consolidation loan, though higher scores (700+) generally qualify for better interest rates. Some lenders like Upstart Personal Loan may approve borrowers with scores below 600, but they often charge higher interest rates or require additional conditions.
Which banks offer debt consolidation loans?
Many banks and credit unions offer debt consolidation loans, including Wells Fargo, Discover, SoFi, and Marcus by Goldman Sachs. These institutions typically offer fixed-rate personal loans that can be used to pay off credit card or other unsecured debt.
What kind of loan do I need to consolidate debt?
Personal loans are the most common type of loan used for debt consolidation. Other options for consolidating debt include a balance transfer credit card.
Is debt consolidation a good idea?
If you're struggling to pay multiple debts every month, a debt consolidation loan may be right for you. It can help make debt repayment more manageable. However, you could end up paying more in the long run, especially if your credit isn't in great shape.
Fixed rates from 8.99% APR to 35.49% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 08/08/25 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. 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 above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and 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 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive.
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 receive an additional (0.25%) interest rate reduction on your Personal Loan (your "Loan"), you must set up Direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A., or enroll in SoFi Plus by paying the SoFi Plus Subscription Fee, all within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled Direct Deposit to an eligible Direct Deposit Account in accordance with SoFi's reasonable procedures and requirements to be determined at SoFi's sole discretion, or during periods in which SoFi successfully receives payment of the SoFi Plus Subscription Fee. This discount will be lost during periods in which SoFi determines you have turned off Direct Deposit to your Checking and Savings account or in which you have not paid for the SoFi Plus Subscription Fee. You are not required to enroll in Direct Deposit or to pay the SoFi Plus Subscription Fee to receive a Loan.
Terms and conditions apply. Offer good for personal loan customers with credit cards and personal loans in their name only and subject to lender approval. To receive the offer, you must: (1) register and/or apply through this landing page; (2) complete a loan application with SoFi within 90 days of your application submit date; (3) meet SoFi's underwriting criteria; (4) apply 50% or more of your loan proceeds directly to your lenders/creditors. Once conditions are met and the loan has been disbursed, the interest rate shown in the Final Disclosure Statement will include an additional 0.25% rate discount. SoFi reserves the right to change or terminate the Direct Pay Rate Discount Program to unenrolled participants at any time with or without notice. It takes about 3 business days for your creditor/lender to receive payment after your loan is signed. You will be responsible for making all required payments to avoid credit card and other loan fees.
