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When consolidating debt, you typically take out a personal loan that has a fixed interest rate, repayment term, and monthly payment. You use that new loan to pay off the original debt.

You’ll have just one monthly payment to make and, if you shop around for the best debt consolidation loan, you can often get a lower interest rate.

In this post:

Best debt consolidation loans for good credit

If you’ve got good credit, LendingClub, LightStream, and Marcus offer personal loans for debt consolidation. You’ll need a FICO score of at least 660 to be approved, and you may qualify for even lower rates if your credit score is in the 700s.

LenderRatesMin. credit score
LendingClub
6.95% - 35.89% APR540
Lightstream
4.99% - 16.79% APR660
Marcus
6.99% - 28.99% APR1
(For NY residents: 6.99% - 24.99% APR)
660
Compare rates from these lenders without affecting your credit score. 100% free!

Get Rates Now

All APRs reflect autopay and loyalty discounts where available | LightStream payment example | Read more about Rates and Terms

LendingClub

An innovative provider of online personal loans, LendingClub offers peer-to-peer lending, matching you with investors who have money to lend.

Pros

  • Competitive rates for borrowers with good credit
  • No prepayment penalty

Cons

  • Not as fast as some other online lenders
  • Origination fees of up to 6%
  • Some lenders have higher loan limits

Fees

  • Origination fee: 1% to 6%
  • Prepayment penalty: None
  • Late fee: $15 late fee, or 5% of overdue monthly payment

Loan terms
• 3 - 5 years

Loan amount
• $1,000 to $40,000

Loan uses
• Debt consolidation, paying off credit cards, home improvement, pool loans, vacations, and other purposes

Residency
• Must be a U.S. Citizen or Resident Alien with a valid Social Security number and physical address, currently residing in the U.S.

Time to get funds
Usually takes about 7 days

Key benefits
• The amount you pay will never increase

LendingClub personal loans review

LightStream

LightStream is the online lending division of SunTrust Bank, offering personal loans of up to $100,000 to qualified borrowers.

Pros

  • No fees
  • Large loan limits
  • Fast funding

Cons

  • More selective than some lenders

Fees

  • Origination fee: None
  • Prepayment penalty: None
  • Late fee: None

Loan terms
• 2 - 7 years

Loan uses
• Credit card refinancing, debt consolidation, home improvement, and other purposes

Residency
• Borrower must reside in the U.S.

Time to get funds
As soon as the same business day

Key benefits
• 0.50% autopay discount (only available prior to loan funding)
• $100 rebate if you’re not completely satisfied with the LightStream experience and if you fill out a questionnaire telling LightStream how they can improve their services

LightStream personal loans review

Marcus

Marcus personal loans are provided by Goldman Sachs Bank, which also offers savings accounts, CDs and personal loans to consumers through its Marcus brand.

Pros

  • No fees
  • Relatively fast funding

Cons

  • No joint applications accepted

Fees

  • Origination fee: None
  • Prepayment penalty: None
  • Late fee: None

Loan terms
• 3 - 6 years

Loan uses
• Credit card refinancing, debt consolidation, home improvement, and other purposes

Residency
• Must be a U.S. Citizen or Resident Alien with a valid Social Security number and physical address, currently residing in the U.S.

Time to get funds
Many Marcus customers receive funds in as little as five days

Key benefits
• Tailored monthly payment options designed to fit your budget
• After making 12 or more consecutive monthly payments, you can defer one payment as long as you have made all your prior payments in full and on time1

Marcus personal loans review

1APR discounts may be available for direct payment of outstanding credit card debt and autopay.

2 After making 12 or more consecutive monthly payments, you can defer one payment as long as you have made all your prior payments in full and on time. Marcus will waive any interest incurred during the deferral and extend your loan by one month (you will pay interest during this extra month). Your payments resume as usual after your deferral. Advance notice is required. See loan agreement for details.

Best debt consolidation loans for fair credit

If your credit is only fair, Best Egg, FreedomPlus, Payoff, and Prosper can be good choices for debt consolidation. Best Egg, for example, doesn’t just look at your credit score — it also looks at credit attributes from sources that include external data providers and your digital footprint.

LenderRatesMin. credit score
Best Egg
5.99% - 29.99% APR640
FreedomPlus
5.99% - 29.99% APR640
Payoff
5.99% - 24.99% APR640
Prosper
6.95% - 35.99% APR640
Compare rates from these lenders without affecting your credit score. 100% free!

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All APRs reflect autopay and loyalty discounts where available | Read more about Rates and Terms

Best Egg

Best Egg is an online lending platform known for providing fair credit debt consolidation loans when more traditional lenders won’t. Keep in mind that you may be charged an origination fee, which will be factored into the annual percentage rate (APR) calculation. On the plus side, you can pay your Best Egg loan off early without being charged a prepayment penalty.

Pros

  • Evaluates more than your credit score
  • Fast funding
  • No prepayment penalty

Cons

  • Origination fee of up to 5.99%

Fees

  • Origination fee: 0.99% – 5.99%
  • Prepayment penalty: None
  • Late fee: $15 if payment not received within 3-day grace period

Loan terms
• 3 or 5 years

Loan amount
• $2,000 to $35,000

Loan uses
• Credit card refinancing, debt consolidation, home improvement, and other purposes

Residency
• Must be a U.S. Citizen or a Permanent Resident Alien
• Can't be a resident of IA, VT, or WV

Time to get funds
As soon as 1 - 3 business days after successful verification

Key benefits
• Choose your payment date
• You can have up to two Best Egg loans at the same time

Best Egg personal loans review

FreedomPlus

FreedomPlus can be a good choice for debt consolidation, because you can qualify for a lower rate if you use at least 85% of your loan proceeds to pay off existing debt, like high-interest credit card balances.

Pros

  • Quick decision and funding
  • Fixed interest rate
  • No prepayment penalty

Cons

  • Origination fee of up to 5%
  • The $7,500 minimum loan amount is higher than other lenders

Fees

  • Origination fee: 0% to 5%
  • Prepayment penalty: None
  • Late fee: Check with lender

Loan terms
• 2 - 5 years

Loan uses
• Debt consolidation, home improvement, wedding, travel, medical expenses, and other purposes

Residency
• Must be a resident in the U.S. with a valid Social Security number

Time to get funds
As soon as 2 business days

Key benefits
• No fees

FreedomPlus personal loans review

Payoff

Payoff specializes in debt consolidation, so you may get a better rate than you would with other lenders. But you can’t use Payoff loans for other purposes, like home improvement projects or trips — you need to use it to pay off other debt. Payoff requires a credit score of at least 640, a debt-to-income ratio of 50% or less, and three years of good credit.

Pros

  • Competitive rates
  • No fees
  • No prepayment penalty

Cons

  • $35,000 loan limit, which is lower than some lenders
  • Slower time to fund than some lenders

Fees

  • Origination fee: 0% to 5%
  • Prepayment penalty: None
  • Late fee: None

Loan terms
• 2 - 5 years

Loan uses
• Debt consolidation and credit card consolidation only

Residency
• Borrower can't reside in DC, DE, IA, LA, MA, MD, MI, MN, MS, NC, NE, NV, OH, OK, VA, VT, WA, WI, or WV

Time to get funds
As soon as 2 - 5 business days after verification

Key benefits
• Free FICO score updates
• If you lose your job, they’ll work with you on payments
• Offers scientific personality, stress, and cash flow assessments to help you get a better understanding of your personal finances

Payoff personal loans review

Prosper

Like LendingClub, Prosper is peer-to-peer lending platform that matches borrowers with investors. The process can take awhile. After your loan request has been verified, it will be listed until enough investors commit to funding it. If your loan is not funded after being listed for 14 days, no loan will be made.

Pros

  • Competitive rates
  • No prepayment penalty

Cons

  • Process can take two weeks or more
  • Origination fee of up to 5%

Fees

  • Origination fee: 2.41% to 5%
  • Prepayment penalty: None
  • Late fee: Greater of $15 or 5% of the unpaid monthly payment

Loan terms
• 3 - 5 years

Loan amount
• $2,000 to $40,000

Loan uses
• Debt consolidation, home improvement, vehicles, small business, new baby expenses, and other purposes

Residency
• Must be a U.S. resident with a bank account and Social Security number

Time to get funds
On average, within 5 days of accepting your offer

Key benefits
• All loans through prosper are unsecured (no collateral required)
• Loan review process usually completed in 7 business days or less

Prosper personal loans review

Best debt consolidation loans for bad credit

Avant, LendingPoint, Upgrade, and Upstart may be willing to lend to you even if you have what some would consider bad credit — a “subprime” FICO score of less than 640.

LenderRatesMin. credit score
Avant
9.95% - 35.99% APR600 to 700
LendingPoint
15.49% - 34.99% APRNot disclosed by lender
Upgrade
6.98% - 35.89% APR600
Upstart
6.14% - 35.99% APR1580 (in most states)
Compare rates from these lenders without affecting your credit score. 100% free!

Get Rates Now

All APRs reflect autopay and loyalty discounts where available | Read more about Rates and Terms

Avant

Avant is an online lending platform that provides loans from WebBank, an FDIC-insured, state-chartered industrial bank. Avant made its first loan in 2013 and has helped more than 600,000 people find a loan that’s right for them.

Pros

  • Low 580 minimum credit score
  • Fast funding
  • No prepayment penalty

Cons

  • Origination fee of up to 4.75%

Fees

  • Origination fee: Administrative fee of up to 4.75%
  • Prepayment penalty: None
  • Late fee: Varies by state

Loan terms
• 2 - 5 years*

Loan amount
• $2,000 to $35,000**

Loan uses
• Debt consolidation, emergency expense, life event, home improvement, and other purposes

Residency
• Must be a resident in the U.S. with a valid Social Security number

Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)

Key benefits
• Fast online process, with e-signed contract
• Receive funds as soon as next business day (if approved by 4:30pm CT, Monday through Friday)
• Options for borrowers with less than perfect credit (most of Avant’s customers have credit scores in the 600 to 700 range)

Avant personal loans review

*If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state.

**Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33.

LendingPoint

LendingPoint’s main business is serving “near prime” borrowers with fair credit. If you’re paying high rates on your credit cards, you may be able to refinance that debt by taking out a personal loan from LendingPoint at a lower interest rate.

Pros

  • No prepayment penalty
  • Fast funding

Cons

  • Up to 6% origination fee

Fees

  • Origination fee: 0% to 6%
  • Prepayment penalty: None
  • Late fee: Check with lender

Loan terms
• 2 - 4 years

Loan amount
• $2,000 to $25,000

Loan uses
• Home improvement, consolidate debt, credit card refinancing, relocate, make a large purchase, and other purposes

Residency
• Must be a U.S. Citizen or Permanent Resident with a verifiable Social Security number

Time to get funds
As soon as the next business day

Key benefits
• Available to "near prime" borrowers with credit scores as low as 585
• Streamlined approval and application process
• No prepayment penalty

LendingPoint personal loans review

Upgrade

Upgrade is an online lending platform that also provides free credit monitoring, alerts, and education to help you understand your credit potential and lower the cost of borrowing.

Pros

  • Fast funding
  • Borrow up to $50,000 (with supporting income)
  • No prepayment penalty

Cons

  • Origination fee of up to 6%

Fees

  • Origination fee: 1.5% to 6%
  • Prepayment penalty: None
  • Late fee: $10 if payment not received within 15 calendar days

Loan terms
• 3 - 5 years

Loan amount
• $1,000 to $50,000

Loan uses
• Debt consolidation, credit card refinancing, home improvement, and other purposes

Residency
• Borrower can't be a resident of CO, IA, MA, MD, VT, or WV

Time to get funds
Within a day of clearing necessary verifications

Key benefits
• Free credit monitoring
• Free educational resources that can help borrowers

Upgrade personal loans review

Upstart

Upstart is an online lending platform that provides personal loans from several lending partners. Upstart says its evaluation process looks not only at your credit score, but your education, major, and job history.

Pros

  • Fast funding
  • Borrow up to $50,000
  • No prepayment penalty

Cons

  • Up to 8% origination fee

Fees

  • Origination fee: 0% to 8%
  • Prepayment penalty: None
  • Late fee: 5% of the unpaid amount or $15, whichever is greater, if payment not received within 15 days

Loan terms
• 3 - 5 years1

Loan amount
• $1,000 to $50,0002

Loan uses
• Payoff credit cards, consolidate debt, take a course or bootcamp, relocate, make a large purchase, and other purposes

Residency
• Must be a U.S. Citizen or Permanent Resident with a verifiable Social Security number

Time to get funds
As soon as 1 - 3 business days3

Key benefits
• Can apply for a second loan after making six on-time monthly payments ($50,000 maximum principal on all loans)

Upstart personal loans review

1The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 20% and 36 monthly payments of $35 per $1,000 borrowed. There is no down payment and no prepayment penalty. Average APR is calculated based on 3-year rates offered in the last 1 month. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.

2Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Loans are not available in West Virginia or Iowa.The minimum loan amount in MA is $7,000. The minimum loan amount in OH is $6,000. The minimum loan amount in NM is $5,100. The minimum loan amount in GA is $3,100.

3If you accept your loan by 5pm EST (not including weekends or holidays), you will receive your funds the next business day. Loans used to fund education related expenses are subject to a 3 business day wait period between loan acceptance and funding in accordance with federal law.

Recap of the best debt consolidation loans

LenderBest forRatesMin. credit score
Avant
Bad credit9.95% - 35.99% APR600 to 700
Best Egg
Fair credit5.99% - 29.99% APR640
FreedomPlus
Fair credit5.99% - 29.99% APRNot disclosed by lender
LendingClub
Good credit6.95% - 35.89% APR540
LendingPoint
Bad credit15.49% - 34.99% APRNot disclosed by lender
Lightstream
Good credit4.99% - 16.79% APR660
Marcus
Good credit6.99% - 28.99% APR1
(For NY residents: 6.99% - 24.99% APR)
660
Payoff
Fair credit5.99% - 24.99% APR640
Prosper
Fair credit6.95% - 35.99% APR640
Upgrade
Bad credit6.98% - 35.89% APR600
Upstart
Bad credit6.14% - 35.99% APR1580 (in most states)
Compare rates from these lenders without affecting your credit score. 100% free!

Get Rates Now

All APRs reflect autopay and loyalty discounts where available | LightStream payment example | Read more about Rates and Terms

How to compare debt consolidation lenders

When comparing personal loans for debt consolidation, it’s important to request rates from multiple lenders. While it used to be banks and credit unions were the main place to look for unsecured personal loans, many online lenders now compete to offer better deals. Credible lets you fill out a single form and request rates from multiple lenders without affecting your credit score.

Although shopping for a lower interest rate can save you money, also take into account:

  • Origination fees: Origination fees are charged by some lenders and often taken out of your loan proceeds before you receive them. So always factor them in when deciding how much to borrow. (Ex. If you need to pay off $9,000 in credit card debt and you’ll be charged a 5% origination fee, you should borrow $9,450 in order to have $9,000 deposited in your bank account.)
  • Repayment term: Most lenders will let you pay back personal loans over two to three years. But if you need to take out a large loan, it’s helpful to be able to take five to seven years. A longer repayment term can make your monthly payments more affordable, but you’ll usually pay a higher interest rate and rack up more interest charges as a result.
Use a personal loan calculator so you can better understand your options when it comes to choosing the loan that’s right for you.

How to qualify for the best rates

To qualify for the best rates:

  1. Check your credit: Use AnnualCreditReport.com to request free copies of your credit report from all three credit bureaus.
  2. Review your report for errors: Check for errors and any other issues that you can easily take care of, like small delinquent bills.
  3. Pay down debt: If you’re able, paying down credit card balances that are near your borrowing limit can help improve your credit score. There’s more to qualifying for a loan than your credit score, but a good score can help you get a lower rate.

Credible’s picks for best debt consolidation loans

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Checking rates won’t affect your credit

Methodology: Credible evaluated loan and lender data points in nine categories to identify the "best companies" for personal loans. We looked at each lender's interest rates, fees, and the availability of repayment terms and discounts. We also considered each company's eligibility requirements, time to receive funds, and the level of customer service provided. Lenders received additional points for their willingness to participate in a marketplace, and the ability for consumers to request rates with a soft credit check. Because every lender has its own system for evaluating borrowers, the best loan or lender will depend on an individual's unique circumstance, the loan features that are most important to them, and the interest rate and terms they qualify for.

About Rates and Terms: Rates for personal loans provided by lenders on the Credible platform range between 3.99% - 35.99% APR with terms from 24 to 84 months. Rates presented include lender discounts for enrolling in autopay and loyalty programs, where applicable. Actual rates may be different from the rates advertised and/or shown and will be based on the lender’s eligibility criteria, which include factors such as credit score, loan amount, loan term, credit usage and history, and vary based on loan purpose. The lowest rates available typically require excellent credit, and for some lenders, may be reserved for specific loan purposes and/or shorter loan terms. The origination fee charged by the lenders on our platform ranges from 0% to 8%. Each lender has their own qualification criteria with respect to their autopay and loyalty discounts (e.g., some lenders require the borrower to elect autopay prior to loan funding in order to qualify for the autopay discount). All rates are determined by the lender and must be agreed upon between the borrower and the borrower’s chosen lender. For a loan of $10,000 with a three year repayment period, an interest rate of 7.99%, a $350 origination fee and an APR of 11.51%, the borrower will receive $9,650 at the time of loan funding and will make 36 monthly payments of $313.32. Assuming all on-time payments, and full performance of all terms and conditions of the loan contract and any discount programs enrolled in included in the APR/interest rate throughout the life of the loan, the borrower will pay a total of $11,279.43. As of March 12, 2019, none of the lenders on our platform require a down payment nor do they charge any prepayment penalties.

About the author
Matt Carter
Matt Carter

Matt Carter is a Credible expert on student loans. Analysis pieces he’s contributed to have been featured by CNBC, CNN Money, USA Today, The New York Times, The Wall Street Journal and The Washington Post.

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