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Debt consolidation loans

How We Get Paid

We want this to be a “win-win” situation. So we only want to get paid if we bring you value in the form of finding a personal finance option that works for you. Not by selling your data. Credible receives compensation when we help you find the best product from one of our lending partners. The amount of our compensation does not impact how and where lenders appear on our site, and Credible charges you no fees of any sort. Some lenders may take traffic sources into account when offering credit terms.

Easily consolidate your debt into one low-interest monthly payment.

Rates from 7.49% APR1

Loan amounts from $600 to $200,000

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Close with a better rate than you prequalify for on Credible and get a $200 gift card.Terms Apply.

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Top Lenders

Compare debt consolidation loan rates from top lenders for February 2024

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2 - 5 years

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2 - 5 years

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3 - 10 years

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3 - 7 years

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2 - 5 years

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2 - 5 years

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2 - 7 years

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2 - 5 years

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2 - 5 years

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2 - 7 years

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3, 5, or 7 years

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2 - 7 years

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3, 5 years

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1 - 5 years

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The rates that appear are from companies which Credible receives compensation. This compensation does not impact how or where products appear within the table. The rates and information shown do not include all financial service providers or all of the displayed lender's available services and product offerings.

Credible’s rating criteria incorporates 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more.

Read our full methodology.

Calculate your savings with Credible

Use our debt consolidation calculator to see how different terms and interest rates can change what you pay over time.

1. Enter your current loan details

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2. Choose a rate to compare

Our lender rates vary from 7.49% to 35.99% APR1

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3. Check the results

With an interest rate of 12.00% over 5 years, you will pay per month and in interest over the lifetime of your loan.

Total interest:

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Current Loan

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Monthly payment:

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We're making a difference

With Credible, you can save money while enjoying a simple, intuitive personal loan shopping process.

in 2023 We helped over

69,600 people

save money on their loans

We've saved our customers

over $63 million

in interest on their loans

Benefits of a debt consolidation loan

reason type

Lower rates

Getting rid of high-interest debt can save you money on interest payments.

reason type

Improve your credit

Making on-time payments on a loan can boost your credit score.

reason type

Know when you’ll be debt free

Instead of having an open-ended term with your credit card company, a loan provides you with an end date so payoff is in sight.

For all your goals

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Our lender partners support personal loans for many different loan purposes. They offer low interest rates and a variety of loan amounts and loan terms to help you meet your personal and financial goals.

Loan goals

Debt Consolidation

Pay off high-interest debt by combining it all into a single loan and payment at a lower interest rate.

Debt Consolidation Loans
Loan goals

Home Improvement

Finance a home improvement project from major repairs to a remodel or addition.

Home Improvement Loans
Loan goals

Credit Card Refinancing

Refinance high-interest credit debt by combining it all into one loan and payment at a lower interest rate.

Credit Card Refinancing Loans
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Loans for those who may have credit difficulties (like poor credit or a thin credit history).

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A debt consolidation loan is any loan that you use to pay off multiple debts. Instead of multiple payments, you only have one payment to manage; and, ideally, the interest rate on the debt consolidation loan is lower than the net interest you paid prior to consolidating debt. You can use a personal loan, a home equity loan, or a credit card balance transfer to consolidate debt.

You can get a debt consolidation loan from a number of personal loan lenders. Ideally, you’ll have a good credit score (a FICO score of 670 or above), sufficient income to make monthly payments, and a debt-to-income ratio (DTI) below 36%. However, since you’re not taking on new debt, you may get approved with a higher DTI.

If your credit score isn’t good, you may still be able to get approved by a lender that offers personal loans for fair credit. Borrowers with bad credit should consider applying with a cosigner or co-borrower, or using collateral to get approved.

Debt consolidation rates are impacted by a range of factors, including:

  • Your credit score: A higher credit score usually means a lower annual percentage rate (APR).

  • Your DTI: A lower DTI will help you qualify for a lower APR.

  • The loan amount: Higher loan amounts may have higher APRs.

  • The repayment term: Shorter repayment terms often have lower interest rates, but not always.

  • The lender: Rates differ across lenders, which is why it’s best to prequalify with multiple lenders to find the best debt consolidation loan rates.

Pros:

  • Trade multiple payments for one payment.

  • Potentially lower your interest rate.

  • Potentially lower your monthly payment.

  • Decrease your credit utilization, in some cases, and quickly increase your credit score.

  • Get a clear timeline for paying off debt.

  • Improve your credit in the long term by making timely payments.

  • Many lenders can pay your creditors directly (and give you a discount for it).

  • Funding can be quick with a debt consolidation personal loan or credit card balance transfer.

Cons:

  • The loan application may temporarily lower your credit score.

  • Some loans have origination fees.

  • It can be hard to qualify for debt consolidation if you have bad credit.

  • It will hurt your credit if you can’t make payments.

  • You may be tempted to borrow more money than needed to pay off debt.

  • Loan approval and funding can take a month or more with a home equity loan.

Read more: Pros and Cons of Debt Consolidation

When shopping for debt consolidation loans, follow these steps:

  1. Consider how much money you need to consolidate your debt.

  2. Prequalify with a few lenders to get a sense of the APR you’ll pay.

  3. Use a personal loan calculator to estimate monthly payments based on that APR for different repayment periods.

  4. Find lenders that offer the loan amount you need and the repayment term you want.

  5. Prioritize lenders that pay your creditors directly (some will give you an interest rate discount for doing so).

  6. Prequalify with those lenders to find the loans with the best terms and lowest APRs for you.

  7. Seek out lenders without origination fees — an origination fee is deducted from the amount you borrow upfront and will reduce what your creditor receives.

A debt consolidation loan should improve your credit score if you make timely payments and pay off the loan in full. When you first apply, you may see your score dip by a few points — but this is temporary and shouldn’t last more than a year.

If you’re consolidating credit card debt, you could quickly see an increase in your credit score once your credit cards are paid off. This is because your credit utilization will decrease as long as you keep those accounts open. If you make late payments, or fail to pay off the loan, a debt consolidation loan could hurt your credit.

While a personal loan is often a great way to consolidate debt, it may be easier to qualify or get a lower rate with other options. Consider these alternatives:

  • Credit card balance transfer

  • Home equity loan

  • Home equity line of credit (HELOC)

  • Cash-out refinance (home or car)

  • Cash-value life insurance loan

  • 401(k) loan

  • Borrow money from friends and family

Yes, you can refinance a personal loan used for debt consolidation, and you may be able to refinance a home equity loan or HELOC used for debt consolidation as well. If you used a credit card balance transfer, you can’t refinance it, but you could roll the balance into a personal loan at a lower rate if you aren’t able to pay it off within the promotional APR period.

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