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A debt consolidation loan is a type of personal loan that lets you combine multiple debts and leaves you with just one loan and one payment to manage. You might also qualify for a lower interest rate, which could help you save money on interest charges and even pay off your loan faster.
While you’ll typically need good to excellent credit to qualify for a debt consolidation loan, there are several lenders that offer debt consolidation loans for fair credit.
Here’s what you should know about debt consolidation loans for fair credit:
- 13 best lenders for debt consolidation with fair credit
- How to get a debt consolidation loan with fair credit
- Do debt consolidation loans hurt your credit score?
- What is a fair credit score?
- How much of a loan can you get with a 600 credit score?
- How to boost your credit score
13 best lenders for debt consolidation with fair credit
If you have fair credit — usually considered to be a credit score between 640 and 699 — you might still qualify for a debt consolidation loan from certain lenders.
Here are Credible’s partner lenders that offer fair credit personal loans for debt consolidation:
|Lender||Fixed rates||Loan amounts||Min. credit score||Loan terms (years)|
|9.95% - 35.99% APR||$2,000 to $35,000**||550||2, 3, 4, 5*|
*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.
|5.99% - 29.99% APR||$5,000 to $35,000||600||3, 5|
|6.99% - 24.99% APR||$2,500 to $35,000||660||3, 4, 5, 6, 7|
|10.68% - 35.89% APR||$1,000 to $40,000||600||3, 5|
†Based on a majority of borrowers from LendingClub's marketing partners who were issued loans between 1/1/19-12/13/19. The time it takes for your loan to be funded may vary.
|15.49% - 35.99% APR||$2,000 to $25,000||580||2, 3, 4|
|3.99% - 19.99% APR||$5,000 to $100,000||660||2, 3, 4, 5, 6, 7
(up to 12 years for home improvement loans)
|6.99% - 19.99% APR1||$3,500 to $40,0002||660|
(TransUnion FICO®️ Score 9)
|3, 4, 5, 6, 7|
1Rate reduction of 0.25% when enrolled in autopay.
2You may be required to have some of your funds sent directly to pay off outstanding unsecured debt.
3After 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.
4Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans). Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions.
|18.00% - 35.99% APR||$1,500 to $20,000||None||2, 3, 4, 5|
|5.99% - 24.99% APR||$5,000 to $40,000||640||2, 3, 4, 5|
|5.99% - 17.99% APR||$600 to $20,000 |
(depending on loan term)
|670||1, 2, 3, 4, 5|
|6.95% - 35.99% APR||$2,000 to $40,000||640||3, 5|
|5.94% - 35.97% APR||$1,000 to $50,000||580||3, 5|
|8.27% - 35.99% APR4||$1,000 to $50,0005||580||3 to 5 years4|
4The 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 24.4% and 36 monthly payments of $36 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.
5This offer is conditioned on final approval based on our consideration and verification of financial and non-financial information. Rate and loan amount are subject to change based upon information received in your full application. This offer may be accepted only by the person identified in this offer, who is old enough to legally enter into contract for the extension of credit, a US citizen or permanent resident, and a current resident of the US. Duplicate offers received are void. Closing your loan is contingent on your meeting our eligibility requirements, our verification of your information, and your agreement to the terms and conditions on the www.upstart.com website.
Your 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 Ohio is $6,000. The minimum loan amount in NM is $5100. The minimum loan amount in GA is $3,100.
6If 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.
If you have poor or fair credit, Avant could be a good option for a debt consolidation loan. You can borrow $2,000 to $35,000* with repayment terms ranging from two to five years.**
Best Egg offers personal loans from $5,000 to $50,000 with three- or five-year terms. In addition to your credit score, Best Egg also considers more than 1,500 proprietary credit attributes from sources that include external data providers as well as your digital footprint.
This means you might have an easier time qualifying with Best Egg compared to traditional lenders.
If you’re looking for a longer repayment term on a fair credit personal loan, Discover might be a good choice. You can borrow $2,500 to $35,000 with terms from three to seven years.
LendingClub is one of the few lenders that allow cosigners on personal loans, which could make it a good option if you need a cosigner to qualify. With LendingClub, you can borrow $1,000 to $40,000 with a three- or five-year term.
LendingPoint specializes in working with borrowers who have near-prime credit — generally meaning credit scores in the upper 500s or 600s. You can borrow $2,000 to $25,000 with terms ranging from two to five years.
If you need to consolidate a large amount of debt, LightStream could be a good option. You can borrow $5,000 and $100,000 with repayment terms ranging from two to seven years. If you’re approved, you could have your funds as soon as the same business day.
Marcus debt consolidation loans are available from $3,500 to $40,000 with repayment terms from three to six years. Additionally, if you make 12 consecutive on-time payments on a Marcus loan, you can defer one monthly payment interest-free.
Unlike many other personal loan lenders, OneMain Financial doesn’t have a minimum required credit score — which means it could be a good option if you have poor or fair credit.
You can borrow $1,500 to $20,000 with terms from two to five years, though keep in mind that larger loan amounts might require collateral.
Payoff loans are available for $5,000 to $40,000 and are specifically designed for credit card consolidation. Additionally, Payoff offers free FICO score updates and will work with you on payments if you lose your job.
If you only need to consolidate a small amount of debt, PenFed might be a good choice — you can borrow as little as $600 up to $35,000 with terms from one to five years. Keep in mind that you’ll need to join the credit union if you are approved and decide to accept the loan.
With Prosper, you can borrow $2,000 to $40,000 with a three- or five-year term. Keep in mind that because Prosper is a peer-to-peer lender, the loan process can take longer compared to other lenders — on average, it takes three to five business days from start to origination if you’re approved.
Upgrade offers personal loans from $1,000 to $50,000 with three- or five-year terms. Additionally, Upgrade borrowers have access to free credit monitoring and educational resources that could help you build your credit.
If you have little to no credit, Upstart could be a good choice — in addition to your credit, it will consider your education and job history to determine creditworthiness. You can borrow $1,000 to $50,0005 with Upstart.
How to get a debt consolidation loan with fair credit
If you’re ready to get a debt consolidation loan with fair credit, follow these four steps:
- Check your credit. When you apply for a personal loan for debt consolidation, the lender will review your credit to determine your creditworthiness. It’s a good idea to check your credit before you apply to see where you stand. You can use a site like AnnualCreditReport.com to review your credit reports for free. If you find any errors, dispute them with the appropriate credit bureaus to potentially boost your credit score.
- Compare lenders and choose a loan option. Be sure to compare as many lenders as you can to find the right loan for you. Consider not only interest rates but also credit requirements, repayment terms, and any fees charged by the lender. Afterward, pick the loan option that best suits your needs.
- Complete the application. Once you’ve chosen a lender, you’ll need to fill out a full application and submit any required documentation, such as tax returns or pay stubs.
- Get your funds. If you’re approved, the lender will have you sign for the loan so you can get your money. The time to fund for personal loans is usually about one week — though some lenders will fund loans as soon as the same or next business day after approval. You might also have the option to have the funds sent directly to your creditors, depending on the lender.
Do debt consolidation loans hurt your credit score?
Anytime you apply for a new loan, the lender will perform a hard credit check to determine your creditworthiness. This could cause a slight dip in your credit score — though this is usually only temporary, and your score will likely bounce back within a few months.
If you decide to take out a debt consolidation loan, be sure to also consider how much that loan will cost you over time. This way, you can prepare for any added expenses. You can estimate how much you’ll pay for a loan using our personal loan calculator below.
Enter your loan information to calculate how much you could pay
With a $ loan, you will pay $ monthly and a total of $ in interest over the life of your loan. You will pay a total of $ over the life of the loan.
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What is a fair credit score?
In general, a fair credit score is considered to be a FICO score between 640 and 699. Here are the credit score ranges you’ll typically come across:
|Credit score ranges||Credit rating|
|640 to 699||Fair|
|700 to 749||Good|
|750 and up||Excellent|
Personal loan interest rates by credit score
Your credit score plays a large role in deciding what interest rate you qualify for, along with your repayment term and the lender itself. In general, the better your credit, the lower the interest rate you’ll likely get — which means you’ll pay less in interest over the life of your loan.
Here are the average personal loan interest rates by credit score offered to borrowers who used Credible to take out a three-year personal loan in May 2021:
|Credit score ranges||Average APR|
|Less than 600||31.87%|
|600 to 639||29.26%|
|640 to 679||24.57%|
|680 to 719||17.96%|
|720 to 779||12.86%|
|780 or above||8.88%|
How much of a loan can you get with a 600 credit score?
Personal loans typically range from $600 to $100,000, depending on the lender. However, if you’re looking to get a personal loan with a 600 credit score (or lower), keep in mind that your credit score, repayment term, and other factors will likely affect how much you’ll actually be able to borrow.
Before taking out a personal loan for debt consolidation, remember to consider as many lenders as possible to find a loan that works for you. Credible makes this easy — you can compare your prequalified rates from multiple lenders in two minutes.
How to boost your credit score
While you might qualify for a debt consolidation loan with fair credit, these loans often come with higher interest rates compared to good credit loans. If you’d like to get approved for better rates in the future, it could be a good idea to spend some time building your credit.
Here are a few ways to potentially boost your credit score:
- Pay all of your bills on time: Payment history makes up the biggest part of your credit score — 35%. Making on-time payments could help you build a positive payment history while improving your credit score.
- Pay down credit card balances. Your credit utilization — or the amount of debt you owe compared to your credit limits — makes up 30% of your credit score. Paying down credit cards and other debts could help reduce your credit utilization and boost your score.
- Become an authorized user. A simple way to help build credit — especially if you don’t have a credit history yet — is to become an authorized user on a credit card account. This can help build your credit without you even having to use the card.
Raising your credit score could help you save money in the long run on future loans, as you’ll have a better chance of qualifying for lower rates.
About Rates and Terms: Rates for personal loans provided by lenders on the Credible platform range between 4.99-35.99% APR with terms from 12 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.