10 Best Debt Consolidation Loans: Which Is Right for You?
If you have multiple high-interest debts, such as credit card balances or medical bills, then debt consolidation could be a way to save money and make repayment easier. Read on to learn about the best debt consolidation loans available today.
Key Takeaways
Debt consolidation loans replace multiple high-interest debts with a single monthly payment. They work best when your new loan carries a lower annual percentage rate (APR) than the debts you're paying off.
Rates and terms vary widely across lenders. APRs range from around 5.99% to 35.99%, so comparing offers before committing can make a big difference in total cost.
Borrowers with lower credit scores still have options. Lenders like Upgrade and Avant accept lower scores, though they typically come with higher rates.
Watch out for origination fees. Some lenders charge up to 9.99% upfront, which can offset the savings from a lower interest rate if you're not careful.
Summary generated by AI, verified by MoneyLion editors
Best Debt Consolidation Loans: At a Glance
LightStream: Best for quick funding
SoFi®: Best for larger loans
Upgrade: Best for fair credit
PersonalLoans.com: Best for multiple lender offers
LendingClub: Best for peer-to-peer (P2P) loans
Best Egg: Best for no prepayment fees
Discover: Best for no origination fees
Happy Money: Best for credit card debt
Upstart: Best for secured loans
Avant: Best for short terms
LightStream
APR: 7.27% to 23.89%
Loan terms: 24 to 240 months
Loan amounts: $5,000 to $100,000
Fees: None
Funding time: As soon as the same day as your application
LightStream is a division of Truist Bank and offers a host of benefits for debt consolidation loans, including $0 fees, same-day funding, loan terms up to 240 months and loan limits up to $100,000.
Rates are reasonable and you can sign up for autopay to get a discount of 0.50%. The company also offers a Rate Beat Program that promises to beat any comparable rate from a competitor by 0.10%.
Pros and Cons of LightStream
Pros | Cons |
|---|---|
Fast funding | Excellent credit needed for lowest rates |
High loan limits of $100,000 | Loans required to be identical to qualify for Rate Beat Program |
SoFi
APR: 7.74% to 35.49%*
Loan terms: 24 to 84 months
Loan amounts: $5,000 to $100,000
Fees: None
Funding time: As soon as same day
SoFi debt consolidation loans offer no fees, possible same-day funding and terms ranging from 24 to 84 months. Rates are higher, but they offer a 0.25% autopay discount.
Prequalifying for the loan won't affect your credit, and it only takes about a minute. You can apply with a co-applicant if you're not sure you'll qualify on your own.
Pros and Cons of SoFi
Pros | Cons |
|---|---|
Long loan terms available | Debt consolidation loans only offered for unsecured debts, like credit card debt |
High loan limits | Must meet state eligibility qualifications for approval |
Upgrade
APR: 7.74% to 35.99%
Loan terms: 24 to 84 months
Loan amounts: $1,000 to $50,000
Fees: 1.85% to 9.99% origination fee
Funding time: Within one business day
Upgrade has a quick, one-page application you can complete online to check your rate and get a loan decision within seconds.
Fixed-rate loans are offered between $1,000 and $50,000, with rates going up to 35.99% plus an origination fee of 1.85% to 9.99%. Upgrade sends your funds within one day of verifying your identity and your financial information.
Pros and Cons of Upgrade
Pros | Cons |
|---|---|
Rapid funding after verification | Rates can go as high as 35.99% |
Loans up to $50,000 | Origination fee |
PersonalLoans.com
APR: 5.99% to 35.89%
Loan terms: 61 days to 96 months
Loan amounts: $250 to $35,000
Fees: Origination fees up to 10%
Funding time: As soon as the next business day after signing your loan agreement
PersonalLoans.com serves as a connector between borrowers and lenders. After you complete an online application, lenders in the PersonalLoans.com network will review your information and decide whether or not to extend credit. You can receive funding in as little as one business day after your application.
Personal installment loans typically require a credit score of 580 or higher and at least $2000 in monthly income. For P2P loans, you should have a credit score of 600 and an income of at least $2,000 per month.
Pros and Cons of PersonalLoans.com
Pros | Cons |
|---|---|
Network of lenders | Origination fees |
Lowest rates are competitive | Relatively low maximum funding amount |
LendingClub
APR: 5.96% to 35.99%
Loan terms: 24 to 84 months
Loan amounts: $1,000 to $40,000
Fees: Origination fee up to 8%
Funding time: As few as 3 days
LendingClub works somewhat like its competitor PersonalLoans.com in that it doesn't originate loans itself, but rather, connects investors and borrowers.
LendingClub provides access to loans of between $1,000 and $40,000, with interest rates as low as 5.96%. Loan terms are 24 to 84 months and origination fees cost between 0% and 8%.
Pros and Cons of LendingClub
Pros | Cons |
|---|---|
P2P lenders offering access to numerous funding sources | Highest rates reach 35.99% |
High customer satisfaction | High origination fees |
Best Egg
APR: 6.99% to 35.99%
Loan terms: 36 to 60 months
Loan amounts: $2,000 to $50,000
Fees: Origination fee of 0.99% to 9.99%
Funding time: 1 to 3 business days
With Best Egg, you can apply online and have your funding in as little as one business day. The company offers loan terms of 36 to 60 months, which contain no hidden fees or prepayment penalties.
Rates as low as 6.99% make the lender competitive with peers, but you'll need at least a good credit score and a higher income to qualify for that rate.
Pros and Cons of Best Egg
Pros | Cons |
|---|---|
Rates as low as 6.99% | Rates top out at 35.99% |
High maximum funding level of $50,000 | Potentially high origination fees |
Discover
APR: 7.99% to 24.99%
Loan terms: 36 to 84 months
Loan amounts: $2,500 to $40,000
Fees: None
Funding time: As soon as the next business days
There are no fees to originate a loan via Discover, which offers funding of $2,500 to $40,000. Funds arrive in one or more business days and personal loan rates range from 7.99% to 24.99%.
Pros and Cons of Discover
Pros | Cons |
|---|---|
No fees to originate loans | Relatively low maximum of $40,000 |
Flexible terms of between three and seven years |
Happy Money
APR: 7.95% to 35.99%
Loan terms: 2 to 5 years
Loan amounts: $5,000 to $50,000
Fees: Origination fee varies by lender
Funding time: 3 to 6 business days
Happy Money, previously known as Payoff, is another platform that connects borrowers with lending partners.
The company offers loans from $5,000 to $50,000 for terms of two to five years. Rates range from 7.95% to 35.99%, with the best rates going to those with good credit scores.
Pros and Cons of Happy Money
Pros | Cons |
|---|---|
Clearly articulated minimum standards | High minimum loan requirement of $5,000 |
No late payment fees | Origination fees not disclosed up front |
Upstart
APR: 6.20% to 35.99%
Loan terms: 3 or 5 years
Loan amounts: $1,000 to $75,000
Fees: Origination fee up to 12%
Funding time: As soon as 1 business day
Upstart can help you find a loan to fit nearly any need, from $1,000 to $75,000. It's more flexible than some platforms. Partner lenders might offer borrowers the option to secure their loans with their vehicles, for example, and your education, area of study and job history can help you qualify for a loan even if your credit score is low.
You can check your rate with an easy one-page online application. Rates vary from 6.20% to 35.99%, and you can receive your money in as little as one business day.
Pros and Cons of Upstart
Pros | Cons |
|---|---|
Easy application process | Origination fees |
Secured loans sometimes available | Loan terms limited to either three or five years |
Avant
APR: 9.95% to 35.99%
Loan terms: 24 to 60 months
Loan amounts: $2,000 to $35,000
Fees: Administration fees up to 9.99%
Funding time: As soon as the next business day
Flexible loan terms of 24 to 60 months are one of Avant's highlights. The company can also provide funding by the next business day.
Loan amounts range from $2,000 to $35,000, with rates of 9.95% to 35.99%.
Pros and Cons of Avant
Pros | Cons |
|---|---|
Good range of loan maturities | Top rates of 35.99% are high |
Rapid financing of loans | Administration fees |
Final Take
Debt consolidation can be a useful tool for managing high-interest debts and simplifying your finances.
Before signing up for one, make sure that your new loan has better terms than your existing debts.
Shop around and compare different lenders, as terms, rates and fees can vary widely.
FAQs
What does consolidation mean for loans?
A consolidation loan provides the cash you need to pay off other debts. You consolidate those debts by replacing them with a single loan.
Do consolidation loans hurt your credit?
Applying for a debt consolidation loan can temporarily lower your credit score due to the hard inquiry that lenders make during the application process. However, if you're approved for the loan and make consistent, on-time payments, your credit score should recover and might even improve over time.
How long does a consolidation loan affect your credit?
The initial hard inquiry from a loan application will stay on your credit report for two years. However, its impact on your credit score lessens over time.
What are the drawbacks of a debt consolidation loan?
One potential drawback of a debt consolidation loan is that you might be tempted to accumulate more debt once your credit cards are paid off. To avoid this, it's essential to have a plan in place for managing your money and avoiding additional debt.
What loans are eligible for consolidation?
Most unsecured debts, like credit cards, personal loans, medical bills and some types of student loans, can be consolidated with a personal loan. However, it's less common to consolidate secured debt, like a home mortgage or auto loan, with a personal loan. Check with potential lenders to find out what types of debt they will consolidate.
Are consolidation loans hard to get?
They can be, but some lenders have options for borrowers with damaged credit.
What credit score do you need for a debt consolidation loan?
Minimum credit scores vary by lender. However, at least one included in this roundup has a low 580 minimum.
Key Terms
Debt consolidation: The process of combining multiple debts into a single loan, ideally at a lower interest rate. It simplifies repayment by replacing several monthly payments with one fixed payment.
Origination fee: A one-time upfront charge some lenders deduct from your loan proceeds before funding. It adds to the total cost of borrowing and should be factored into any loan comparison.
APR: The yearly cost of borrowing expressed as a percentage, including both interest and fees. Comparing APRs across lenders is the most reliable way to evaluate the true cost of a loan.
P2P lending: A model where borrowers are connected directly with individual investors rather than a traditional bank. Platforms like LendingClub use this model to fund personal and consolidation loans.
Hard credit inquiry: A formal credit check triggered when you apply for a loan. It can temporarily lower your credit score by a few points and stays on your report for two years, though its impact fades over time.
Summary generated by AI, verified by MoneyLion editors
Sources
Federal Trade Commission. 2024. "Carrying credit card debt? How to avoid debt relief scams."
Federal Trade Commission. "Debt Collection FAQs."
Data is accurate as of May 29, 2026, and is subject to change.
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.
*Fixed rates from 8.74% 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 11/03/25 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.
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