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, a debt consolidation loan could help simplify repayment and potentially reduce your interest costs. Some of the best debt consolidation loans are available from lenders like LightStream, SoFi®, Upgrade, LendingClub and others.
Read on to compare today's top debt consolidation lenders.
Key Takeaways
The best debt consolidation loans replace multiple high-interest debts with one payment. They work best when the new loan's annual percentage rate (APR) beats what you're currently paying.
APRs across top lenders run from about 6% to 36%. Comparing offers before you commit can save meaningful money over the life of the loan.
Borrowers with lower credit scores still have options. Lenders like Upgrade and Avant accept lower scores, though usually at higher rates.
Consolidation restructures debt but doesn't erase it. It helps most when your spending habits are under control and your income is steady.
Summary generated by AI, verified by MoneyLion editors
Best Debt Consolidation Loans: At a Glance
Lender | APR Range | Loan Amount | Best For |
|---|---|---|---|
LightStream | 7.74% to 25.39% | $5,000 to $100,000 | Quick funding |
SoFi | 6.99% to 35.49% | $5,000 to $100,000 | Larger loans |
Upgrade | 7.74% to 35.99% | $1,000 to $50,000 | Fair credit |
PersonalLoans.com | 5.99% to 35.89% | $250 to $35,000 | Multiple lender offers |
LendingClub | 5.96% to 35.99% | $1,000 to $75,000 | Peer-to-peer (P2P) loans |
Best Egg | 6.99% to 35.99% | $2,000 to $50,000 | No prepayment fees |
Discover | 6.99% to 24.99% | $2,500 to $40,000 | No origination fees |
Happy Money | 8.95% to 35.99% | $5,000 to $50,000 | Credit card debt |
Upstart | 6.20% to 35.99% | $1,000 to $75,000 | Secured loans |
Avant | 9.95% to 35.99% | $2,000 to $35,000 | Short-term loans |
LightStream
APR: 7.74% to 25.39%
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: 6.99% 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 $2,000 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 $75,000
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 $75,000, 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: 6.99% 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 day
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 6.99% 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: 8.95% 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 8.95% 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 |
How Debt Consolidation Loans Work
Whether you choose a loan, balance transfer card or debt management plan (DMP), the basic debt consolidation process is similar. Here's what to expect.
Review your current debts: Compare your balances, interest rates and income to determine which debt consolidation option best fits your situation.
Choose a consolidation method: Your options may include a debt consolidation loan, balance transfer credit card or DMP.
Pay off your existing debts: Depending on the method you choose, your lender or credit counseling agency may pay your creditors directly, or you may use the funds to pay them yourself.
Make one monthly payment: Once your debts are consolidated, you'll make a single payment until the balance is repaid.
Here's how each debt consolidation option pays off your debt:
Option | How It Works |
|---|---|
Debt consolidation loan | The lender deposits a lump sum into your account or pays your creditors directly |
Balance transfer card | Transfer eligible balances to the new card and repay them during the promotional period |
DMP | A credit counseling agency negotiates with creditors and distributes your monthly payment |
Which Debts Can You Consolidate?
Before applying for a debt consolidation loan, make sure the debts you want to combine are eligible.
Debts You Can Consolidate
Credit card balances
Medical debt
Other unsecured personal loans
Store cards
Some collection accounts
Debts You Can’t Consolidate
Mortgages
Auto loans
Federal student loans
Tax debt
Child support
What Drives Rate Differences Across Credit Tiers
Lenders consider several factors when determining your interest rate, including the items below. Your credit score then helps determine which APR range you're likely to qualify for.
Payment history
Credit utilization
Debt-to-income ratio
Loan length term
Typical APRs by Credit Score
Score Range | FICO Rating | APR |
|---|---|---|
800 and higher | Exceptional | 6% to 10% |
740 to 799 | Very good | 10% to 14% |
670 to 739 | Good | 14% to 20% |
580 to 669 | Fair | 20% to 28% |
300 to 579 | Poor | 28% to 36% |
Does Debt Consolidation Make Sense Right Now?
A debt consolidation may make sense if you have good to exceptional credit, multiple unsecured debts with different APRs, a steady income and your spending habits are under control. If it simplifies your payments and lowers your borrowing costs, it may be worth considering.
When You Should Move Forward With Debt Consolidation
You have a good to exceptional credit score — higher than 670.
You have a stable income.
You have multiple credit card debts with varying APRs.
You’d like to lump your payments into a single payment.
You’ve addressed the spending habits that created the debt.
The origination fee or transfer doesn’t outweigh the savings.
When You Should Consider Another Alternative
Your credit score is so low that you can’t qualify for the loan.
Getting the debt consolidation loan outweighs the savings.
Your income is irregular or not stable enough for you to make monthly payments.
You’re close enough to paying off your debts, and a hard inquiry will only hurt your credit.
Your debt load is too high and making payments isn’t sustainable.
Pros and Cons of Debt Consolidation Loans
Like any financial product, debt consolidation loans come with both advantages and tradeoffs. Here's a quick comparison.
Pros | Cons |
|---|---|
Repayment is simplified | Your debt is restructured but not eliminated |
You can lower your interest rate | Origination fees cut into payments |
There is a possibility to improve your credit score | To get a competitive rate, you need decent credit |
You have a fixed payoff timeline | Your credit score may be hurt in the short term |
How To Get a Debt Consolidation Loan
If you've decided debt consolidation is the right fit, follow these steps to compare lenders and complete your application.
Find out what’s on your credit report. Review for any errors and dispute any inaccuracies.
Determine which balances you want to consolidate. Gather the total amount, interest rate, minimum payment and creditor for each account.
Decide which consolidation method makes sense for you.
Prequalify with different lenders to find the best rate.
Compare the total amount — including APRs and fees — before committing to a lender.
Apply and get approval from the lender of your choice.
Once you receive funds, pay off the existing balances.
Set automatic payments for the new account.
Keep your paid-off accounts open and at zero.
Alternatives to Debt Consolidation
There are several ways to tackle debt without using a debt consolidation loan. Compare the alternatives below.
Option | How It Works | Best For |
|---|---|---|
Debt settlement | Contact creditors yourself to negotiate a lower amount, or seek a company to negotiate on your behalf | Borrowers with poor credit with a lump sum to pay creditors |
Debt snowball | Pay the minimum on every balance, and then anything extra is dedicated to paying off the smallest balance | Borrowers who need motivation to stay on track |
Debt avalanche | Pay the minimum on every balance, and anything extra is paid on the highest interest balance | Borrowers who are interested in paying off high-interest debt |
Bankruptcy | Consult with an attorney and file Chapter 7 or Chapter 13 | Borrowers with poor credit and overwhelming debt |
Debt Consolidation Loan FAQs
Does debt consolidation hurt your credit score?
Your score may temporarily drop since it's a hard inquiry on your credit. But if you continue paying off the debt, over time you may see a boost to your score.
What credit score do I need to get a debt consolidation loan?
The credit score you need depends on the lender. Most mainstream lenders like 620 or above.
What's the difference between debt consolidation and debt settlement?
Debt consolidation moves all your debt into one loan, while a debt settlement allows you to settle the debt for less than you owe. Debt settlement also causes permanent credit damage.
Are there debt consolidation loans for bad credit?
Yes, some lenders like Oportun, OneMain Financial and Upstart may work with borrowers who have bad credit.
How long does it take to get a debt consolidation loan?
Lenders can let you know within minutes or one business day whether you qualify for a debt consolidation loan.
What types of debt can I consolidate?
Most unsecured debts can be consolidated. Student loans, mortgages and tax debt aren’t able to be consolidated.
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."
Consumer Financial Protection Bureau. 2023 "What do I need to know about consolidating my credit card debt?"
Data is accurate as of July 15, 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.
Chris Ozarowski contributed to the reporting for this article.
You may like
Community Posts
Similar Posts
Disclosures
MoneyLion does not provide, own, control or guarantee third-party products or services accessible through its Marketplace (collectively, “Third-Party Products”). The Third-Party Products are owned, controlled or made available by third parties (the "Third-Party Providers"). Should you choose to purchase any Third-Party Products, the Third-Party Providers’ terms and privacy policies apply to your purchase, so you must agree to and understand those terms. The display on the MoneyLion website, app, or platform of any of a Third-Party Product or Third-Party Provider does not-in any way-imply, suggest, or constitute a recommendation by MoneyLion of that Third-Party Product or Third-Party Financial Provider. MoneyLion may receive compensation from third parties for referring you to the third party, their products or to their website.
This material is for informational purposes only and should not be construed as financial, legal, or tax advice. You should consult your own financial, legal, and tax advisors before engaging in any transaction. Information, including hypothetical projections of finances, may not take into account taxes, commissions, or other factors which may significantly affect potential outcomes. This material should not be considered an offer or recommendation to buy or sell a security. While information and sources are believed to be accurate, MoneyLion does not guarantee the accuracy or completeness of any information or source provided herein and is under no obligation to update this information. For more information about MoneyLion, please visit https://www.moneylion.com/terms-and-conditions/.