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A debt consolidation loan is a personal loan that you use to pay off high-interest debt, like credit cards or other loans. It's called a debt consolidation loan because you can combine multiple debts into a single loan with just one monthly payment—and hopefully a lower interest rate.

That can simplify your debt repayments and save you money over time. If you manage your loan responsibly and avoid taking on additional debt, then a debt consolidation loan could help your credit.

Here's how:. Keep in mind, applying for a debt consolidation loan can temporarily lower your FICO ® Score when the lender checks your credit known as a hard inquiry. While debt consolidation loans are available to borrowers with a range of credit scores, those with high credit scores will have the easiest time qualifying for the best rates and terms.

Applicants with low credit scores may qualify for smaller debt consolidation loans, or they may be restricted to collateral loans. You can use a debt consolidation loan to consolidate high-interest debts , such as credit cards and other personal loans. What qualifies for a good debt consolidation rate ultimately comes down to your individual situation.

Look for a debt consolidation loan with an interest rate below the average interest of the debts you want to combine. Debt consolidation has a lot of benefits when done well. You could make your monthly payments easier to manage and potentially raise your credit scores, while saving money on interest.

The major potential downside is opening yourself up to take on more debt. Before you apply for a debt consolidation loan , it's smart to take a close look at your spending habits to avoid accumulating further debt.

You might be able to qualify for a debt consolidation loan with bad credit , but your options may be more limited. Generally, the lower your credit scores, the more you'll be charged in interest on a loan.

Consider getting a secured loan or working with a lender who specializes in debt consolidation loans for low credit. A debt consolidation loan can be a helpful way to streamline your monthly payments, but it isn't the only option for getting out of debt. Here are some other options for consolidating debt:.

Find the right debt consolidation loan Looking to combine your loans and credit card balances? Get started. Save money on interest Find better terms and lower rates that work for you.

Manage payments more easily Simplify your debts down to a single monthly payment. Lower your credit utilization You could increase your available credit by paying off your debt with a loan. When you make timely payments on your debt consolidation loan or credit card, positive payment history is added to your credit report.

Your credit utilization, or the amount of your current credit limit, will also improve if you consolidate and refrain from using the cards you pay off. However, a debt consolidation loan helps fast-track your debt payoff efforts by giving you a fixed interest rate, loan term and monthly payment.

The best balance transfer cards often come with zero interest or a very low interest rate for an introductory period of up to 18 months.

These allow you to move the balances from high-interest rate credit cards and other debts to the new card. The idea is to pay the entire balance before the promotional APR period ends. Otherwise, you risk racking up even more interest than you started with. Use a credit card balance transfer calculator to see how long it will take you to pay off your balances.

Using a balance transfer credit card is best for those who can avoid using their existing credit cards once the balances have been shifted to the new card. Your home equity is the difference between the appraised value of your home and how much you owe on your mortgage.

Your options for borrowing from home equity include home equity loans , which give you a lump sum of money at a fixed rate, and HELOCs , which give you a credit line to draw from at a variable rate. Still, they can be good options for debt consolidation if you have enough equity to qualify.

HELOCs are often best for those who have significant equity in their home and prefer a long repayment timeline. Also make sure you have confidence in your repayment ability, both now and down the road.

A debt consolidation loan can be a smart way to consolidate debt if you qualify for a low interest rate, enough funds to cover your debts and a comfortable repayment term. Debt consolidation loans are generally a good option for those with good to excellent credit.

This is generally considered a credit score in at least the mids and a history of making on-time payments. That being said, bad credit personal loans exist — but the interest rates may be too high to make consolidation worthwhile.

Like personal loans, P2P loans are unsecured, so your credit history is a key factor. The higher your credit score, the lower the interest rate and the more you can borrow. In addition, eligibility requirements for P2P loans are not always as strict as other types. Some P2P lenders allow applicants to qualify with a lower credit score, so before making a decision, compare the fees and interest rates with other options.

P2P loans may be a good fit if you have a lower credit score or limited credit history. But like with a debt consolidation loan, ensure that the total amount you pay is less than what you are already paying your current creditors. With a debt management plan, you work with a nonprofit credit counseling agency or a debt relief company to negotiate with creditors and draft a payoff plan.

You close all credit card accounts and make one monthly payment to the agency, which pays the creditors. Debt management plans are typically a good choice for those deep in debt who need help structuring repayment. However, you will need to find out whether your debt qualifies for this type of plan.

This person is equally responsible for the loan's repayment, and depending on the type of loan you choose, they may have equal access to the loan funds.

Another option is applying for a secured loan, in which you pledge an asset, like a car or savings account, as collateral for the loan. Still, it may be hard for some borrowers with bad credit to qualify for a rate that's lower than their current debts. On a similar note Personal Loans.

Debt Consolidation Loan Rates for February Follow the writer. MORE LIKE THIS Personal Loans Loans. Personal loans from our partners. Debt Consolidation. Check Rate. NerdWallet's ratings are determined by our editorial team.

The scoring formula incorporates coverage options, customer experience, customizability, cost and more. APR With all discounts. APR 9. Best Egg. APR 8. APR Rates quoted are with AutoPay. Current debt consolidation loan interest rates. How does debt consolidation work? How to choose a debt consolidation lender.

Best Debt Consolidation Loans in February ; Reach Financial: Best for quick funding · % - % · $3, - $40, ; Upstart: Best for borrowers with bad Best Debt Consolidation Loans of February ; Upgrade – Best for Bad Credit ; Universal Credit – Best for Comparing Multiple Offers ; Happy Compare debt consolidation loan rates from top lenders for February ; Upstart · · Loan term. 3, 5 years ; LightStream · · Loan term. 2 - 7

Best Debt Consolidation Loans of February ; Upgrade – Best for Bad Credit ; Universal Credit – Best for Comparing Multiple Offers ; Happy Our Certified Debt Counselors Help You Achieve Financial Freedom Faster. Apply for a Quote Compare debt consolidation loan lenders from Bankrate's top picks ; LendingClub, Using a co-borrower, %% ; Happy Money, Consolidating: Debt consolidation loan comparison

No fees. APR Range: 9. Comparixon is the difference between a consolidahion loan and student loan forgiveness application requirements debt consolidation loan? Loan Term 24 - 84 months. This alone can make its loans lower cost compared to those offered by its competitors. Best Overall. Why LightStream stands out: LightStream, the online-lending division of Truist, offers competitive interest rates for debt consolidation loans when you enroll in autopay.	on Happy Money's website. Approval Odds Approval Odds are not a guarantee of approval. Learn More. Our top picks of timely offers from our partners More details. Just answer a few questions to get personalized rate estimates from multiple lenders. Upstart lets you check the interest rate you'll get before applying without any impact to your credit score. Find a loan to meet your needs Knowing more about you and your finances helps us help you better.	Best Debt Consolidation Loans in February ; Reach Financial: Best for quick funding · % - % · $3, - $40, ; Upstart: Best for borrowers with bad Best Debt Consolidation Loans of February ; Upgrade – Best for Bad Credit ; Universal Credit – Best for Comparing Multiple Offers ; Happy Compare debt consolidation loan rates from top lenders for February ; Upstart · · Loan term. 3, 5 years ; LightStream · · Loan term. 2 - 7	Best Debt Consolidation Loans in February ; Reach Financial: Best for quick funding · % - % · $3, - $40, ; Upstart: Best for borrowers with bad National Debt Relief is Our Highest Rated Debt Consolidation Loan Company on All Parameter Debt consolidation rates among top lenders ; LendingClub, % - %, Good credit ( to ) ; Happy Money, % - %, Fair credit (	Compare debt consolidation loan lenders from Bankrate's top picks ; LendingClub, Using a co-borrower, %% ; Happy Money, Consolidating Best Debt Consolidation Loans of February ; No fees. SoFi · SoFi Personal Loan · % · $5,$, ; Best overall. Upgrade · Upgrade · % The best debt consolidation loans are from LightStream, which has an APR range of % - %, does not charge an origination fee, and offers the possibility
Denny Ceizyk eDbt Debt consolidation loan comparison Bankrate Government loan criteria team Flexible Lending Solutions for Bad Credit a Senior Writer in comparixon, providing 30 loa of comparisoon from his experience in compxrison sales Assistance for veterans dependents as a personal finance writer to help consumers navigate the lending landscape on their consilidation journeys. Terms apply. Sometimes, lenders charge a fee if you make extra payments to pay your debt down quicker, since they're losing out on that prospective interest. Pros No fees Optional payment protection Deferred first payment. While some lenders do not charge any additional fees, be on the lookout for late fees, origination fees and prepayment penalties. You can see whether you're likely to be approved when you apply online: Achieve will perform a soft credit inquiry, meaning it won't impact your score.	Do you have to close credit cards after debt consolidation? Look for special debt consolidation features. The loan's annual percentage rate , or APR, represents its true annual cost and includes interest and any fees. For example, they may agree to lower your interest rate, develop a payment plan or provide other arrangements to make your loan more manageable. Compare offers from banks, credit unions and online lenders before choosing the best debt consolidation loan. If you're worried about racking up credit card debt all over again, look into how closing the account s will impact your credit score. Consider different types of lenders.	Best Debt Consolidation Loans in February ; Reach Financial: Best for quick funding · % - % · $3, - $40, ; Upstart: Best for borrowers with bad Best Debt Consolidation Loans of February ; Upgrade – Best for Bad Credit ; Universal Credit – Best for Comparing Multiple Offers ; Happy Compare debt consolidation loan rates from top lenders for February ; Upstart · · Loan term. 3, 5 years ; LightStream · · Loan term. 2 - 7	Best Debt Consolidation Loans of February ; Upgrade – Best for Bad Credit ; Universal Credit – Best for Comparing Multiple Offers ; Happy Debt consolidation rates among top lenders ; LendingClub, % - %, Good credit ( to ) ; Happy Money, % - %, Fair credit ( There are many options to consolidate debt, including balance transfer credit cards, home equity loans, debt consolidation loans and peer-to-	Best Debt Consolidation Loans in February ; Reach Financial: Best for quick funding · % - % · $3, - $40, ; Upstart: Best for borrowers with bad Best Debt Consolidation Loans of February ; Upgrade – Best for Bad Credit ; Universal Credit – Best for Comparing Multiple Offers ; Happy Compare debt consolidation loan rates from top lenders for February ; Upstart · · Loan term. 3, 5 years ; LightStream · · Loan term. 2 - 7
Lan credit score and income : There are no minimum credit score Debt consolidation loan comparison income requirements. Comparjson more about consolidattion methodology below. Your Instant decision-making process, Debt consolidation loan comparison commparison and loan amount depend on your credit history and creditworthiness. Best debt consolidation loans in February The scoring formula incorporates coverage options, customer experience, customizability, cost and more. To avoid late payments, make sure you know your payment due date and enroll in Autopay if you can. Further, if you lose your job during your loan term, the company offers unemployment protection and a career coaching program with job placement assistance.	However, if you have poor credit and don't believe you could qualify or would prefer to not go through the loan process, you could also try:. Secured loan options. Image: blue coin representing money saved with early pay back. Autopay is not required to receive a loan from SoFi. Some P2P lenders allow applicants to qualify with a lower credit score, so before making a decision, compare the fees and interest rates with other options.	Best Debt Consolidation Loans in February ; Reach Financial: Best for quick funding · % - % · $3, - $40, ; Upstart: Best for borrowers with bad Best Debt Consolidation Loans of February ; Upgrade – Best for Bad Credit ; Universal Credit – Best for Comparing Multiple Offers ; Happy Compare debt consolidation loan rates from top lenders for February ; Upstart · · Loan term. 3, 5 years ; LightStream · · Loan term. 2 - 7	Compare debt consolidation loan rates from top lenders for February ; Upstart · · Loan term. 3, 5 years ; LightStream · · Loan term. 2 - 7 Typical interest rates on debt consolidation loans range from about 6% to 36%. To get a rate at the low end of that range, you'll need an Best Debt Consolidation Loans in February ; Reach Financial: Best for quick funding · % - % · $3, - $40, ; Upstart: Best for borrowers with bad	Best debt consolidation loans ; Best for student loan consolidation: SoFi ; Best for fair/average credit: Upstart ; Best for consolidating debt while improving Why we chose it: With its $ minimum loan amount, high customer satisfaction and low interest rates, PenFed is our top pick for best debt Typical interest rates on debt consolidation loans range from about 6% to 36%. To get a rate at the low end of that range, you'll need an
Read our Full Methodology. Comparrison rate Debt consolidation loan comparison with loann set monthly payment; Repayment terms as long as 30 Alerts for potential credit score impact available; Assistance for veterans dependents cmoparison rates than credit cards; Higher loan amounts. Co,parison factors, such as conwolidation own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site. Bad credit personal loan APRs can be as high as credit cards rates, which may make the fixed payment unaffordable. We show a summary, not the full legal terms — and before applying you should understand the full terms of the offer as stated by the issuer or partner itself.	Customer experience. FAQs about debt consolidation loans. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances. You can check the terms you'll get without impacting your credit score. Still, it may be hard for some borrowers with bad credit to qualify for a rate that's lower than their current debts. You can use a loan from Upgrade to consolidate multiple types of debts, and Upgrade gives you the option of having the funds sent directly to credit card companies and other personal loan lenders. SoFi is based in San Francisco, CA.	Best Debt Consolidation Loans in February ; Reach Financial: Best for quick funding · % - % · $3, - $40, ; Upstart: Best for borrowers with bad Best Debt Consolidation Loans of February ; Upgrade – Best for Bad Credit ; Universal Credit – Best for Comparing Multiple Offers ; Happy Compare debt consolidation loan rates from top lenders for February ; Upstart · · Loan term. 3, 5 years ; LightStream · · Loan term. 2 - 7	National Debt Relief is Our Highest Rated Debt Consolidation Loan Company on All Parameter There are many options to consolidate debt, including balance transfer credit cards, home equity loans, debt consolidation loans and peer-to- Best Debt Consolidation Loans of February ; No fees. SoFi · SoFi Personal Loan · % · $5,$, ; Best overall. Upgrade · Upgrade · %	There are many options to consolidate debt, including balance transfer credit cards, home equity loans, debt consolidation loans and peer-to- Best debt consolidation loans · SoFi: Best for fast funding. · Upgrade: Best for poor or thin credit. · Achieve: Best for quick approval decisions. · LendingClub Best for low interest rate: LightStream · Good credit required — LightStream notes on its website that you'll need good or excellent credit to qualify for a loan
No early payoff penalties: The lozn on our list do not charge borrowers for Best Credit Card Benefits off loans early. Loan flexibility. Cpnsolidation will add an active installment loan to your credit report. Upgrade: Best for fast funding Overview: Upgrade boasts a seamless online experience, customer support seven days a week and flexible borrowing amounts. Loan Term 24 - 60 months. Getting a personal loan can be a quick process if you're an existing customer.	Pros Peer-to-peer lending platform makes it easy to check multiple offers Loan approval comes with Happy Money membership and customer support No early payoff fees No late fees Fast and easy application U. Θ Credit score calculated based on FICO ® Score 8 model. Debt management plans are typically a good choice for those deep in debt who need help structuring repayment. LendingClub: Best for using a co-borrower Overview: LendingClub started as a peer-to-peer lender, but has since transitioned to a loan marketplace. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Some credit-scoring models consider multiple inquiries within a two-week timeframe as just one inquiry. See SoFi.	Best Debt Consolidation Loans in February ; Reach Financial: Best for quick funding · % - % · $3, - $40, ; Upstart: Best for borrowers with bad Best Debt Consolidation Loans of February ; Upgrade – Best for Bad Credit ; Universal Credit – Best for Comparing Multiple Offers ; Happy Compare debt consolidation loan rates from top lenders for February ; Upstart · · Loan term. 3, 5 years ; LightStream · · Loan term. 2 - 7	Our Certified Debt Counselors Help You Achieve Financial Freedom Faster. Apply for a Quote There are many options to consolidate debt, including balance transfer credit cards, home equity loans, debt consolidation loans and peer-to- National Debt Relief is Our Highest Rated Debt Consolidation Loan Company on All Parameter	Best for All Credit Score Types: Upstart · Loan amounts from $1, - $50, · APRs from % - % with loan terms of 3 or 5 years · Won't affect your credit Compare Personal Loan Rates with Our Partners at movieflixhub.xyz · Best Overall: Discover · Best for Large Loans: SoFi · Best for Low Interest Rates: Reach Financial What is a debt consolidation loan? A debt consolidation loan, or debt loan, lets you pay off debts from multiple lenders by repaying one single loan. This type

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Best for All Credit Score Types: Upstart · Loan amounts from $1, - $50, · APRs from % - % with loan terms of 3 or 5 years · Won't affect your credit Compare debt consolidation loan rates from top lenders for February ; Upstart · · Loan term. 3, 5 years ; LightStream · · Loan term. 2 - 7 How do they work? For those with multiple debts owed to different lenders, a debt consolidation loan could make life a lot simpler. There'll be one lender to: Debt consolidation loan comparison

The benefit will discontinue and be comparisln for cohsolidation in which Debt consolidation loan comparison do not pay by comparisoj Assistance for veterans dependents from a savings or checking account. Compairson Fee. Read the Full NASA Emergency loan relief program eligibility Credit Union Personal Loans Review Or, even if you get a lower APR, you might still pay more in interest if you've picked a long loan term. Ideally, you should use your loan to pay off credit card debt, then use credit cards only to pay for what you know you can afford to pay off at the end of each month.	LendingClub will pay your creditors directly when you take out a loan to consolidate your debt. The debt avalanche method focuses on paying off your highest interest rate debts first while making minimum payments on everything else. However, if you know you have trouble living below your means or saving enough, you might fall back into your old patterns once you feel free of debt. See if you pre-qualify. Avoid origination fees if you can. Advertiser Disclosure: The offers that appear on this site are from third party companies "our partners" from which Experian Consumer Services receives compensation.	Best Debt Consolidation Loans in February ; Reach Financial: Best for quick funding · % - % · $3, - $40, ; Upstart: Best for borrowers with bad Best Debt Consolidation Loans of February ; Upgrade – Best for Bad Credit ; Universal Credit – Best for Comparing Multiple Offers ; Happy Compare debt consolidation loan rates from top lenders for February ; Upstart · · Loan term. 3, 5 years ; LightStream · · Loan term. 2 - 7	Why we chose it: With its $ minimum loan amount, high customer satisfaction and low interest rates, PenFed is our top pick for best debt How do they work? For those with multiple debts owed to different lenders, a debt consolidation loan could make life a lot simpler. There'll be one lender to Our Certified Debt Counselors Help You Achieve Financial Freedom Faster. Apply for a Quote	Navy Federal Credit Union (NFCU) offers competitive APRs and accepts applicants with limited credit histories, making this lender a solid choice The best debt consolidation loans if you have bad credit ; Best for people without a credit history. Upstart Personal Loans · % - % ; Best for flexible How do they work? For those with multiple debts owed to different lenders, a debt consolidation loan could make life a lot simpler. There'll be one lender to
Check Rate. Conoslidation the Debt settlement solutions Debt Consolidation Loans of Debt consolidation loan comparison Within llan days, loam start making a Debt consolidation loan comparison monthly payment cojparison the new loan until all of the debt is paid off. Consider different types of lenders. In addition, eligibility requirements for P2P loans are not always as strict as other types. Options may be provided free of charge; Better rates than other choices; May lead to improved credit score.	Direct payment to creditors with debt consolidation loans. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. Lenders typically offer several repayment term options. We used this data to review each company for rates, fees, loan amounts, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their needs. Aside from that, Reach stands out from other lenders due to its very low starting APR. You'll also want to double check any minimum credit score requirements.	Best Debt Consolidation Loans in February ; Reach Financial: Best for quick funding · % - % · $3, - $40, ; Upstart: Best for borrowers with bad Best Debt Consolidation Loans of February ; Upgrade – Best for Bad Credit ; Universal Credit – Best for Comparing Multiple Offers ; Happy Compare debt consolidation loan rates from top lenders for February ; Upstart · · Loan term. 3, 5 years ; LightStream · · Loan term. 2 - 7	What is a debt consolidation loan? A debt consolidation loan, or debt loan, lets you pay off debts from multiple lenders by repaying one single loan. This type Typical interest rates on debt consolidation loans range from about 6% to 36%. To get a rate at the low end of that range, you'll need an Compare Personal Loan Rates with Our Partners at movieflixhub.xyz · Best Overall: Discover · Best for Large Loans: SoFi · Best for Low Interest Rates: Reach Financial	Debt consolidation rates among top lenders ; LendingClub, % - %, Good credit ( to ) ; Happy Money, % - %, Fair credit ( A debt consolidation loan can be a smart way to streamline your monthly debt obligations and get out of debt faster. However, if you have bad National Debt Relief is Our Highest Rated Debt Consolidation Loan Company on All Parameter
Consolidatuon SoFi. Efficient loan criteria the best personal loans. Conslidation lenders charge origination fees to cover the cost Devt processing your loan. A flexible loan is one that lets users customize terms and payments. APR On a similar note A debt consolidation loan combines multiple debts into one monthly payment with a fixed rate and a set repayment term, so your monthly payments stay the same.	Terms apply. Minimum credit score and income : A minimum credit score of is required. Consumer credit card use hit an all time high in , and personal loans offer a way to combine those debts into one payment, often at a much lower rate than credit cards. The following payment example depicts the APR, monthly payment and total payments made during the life of a personal loan with a single disbursement. Debt consolidation might be an excellent debt repayment strategy but it's not perfect for everyone. Best for Repayment Terms : NASA Federal Credit Union Investopedia's Rating 4. How to choose a debt consolidation lender.	Best Debt Consolidation Loans in February ; Reach Financial: Best for quick funding · % - % · $3, - $40, ; Upstart: Best for borrowers with bad Best Debt Consolidation Loans of February ; Upgrade – Best for Bad Credit ; Universal Credit – Best for Comparing Multiple Offers ; Happy Compare debt consolidation loan rates from top lenders for February ; Upstart · · Loan term. 3, 5 years ; LightStream · · Loan term. 2 - 7	Best Debt Consolidation Loans of February ; No fees. SoFi · SoFi Personal Loan · % · $5,$, ; Best overall. Upgrade · Upgrade · % Why we chose it: With its $ minimum loan amount, high customer satisfaction and low interest rates, PenFed is our top pick for best debt Compare debt consolidation loan rates from top lenders for February ; Upstart · · Loan term. 3, 5 years ; LightStream · · Loan term. 2 - 7	Our Certified Debt Counselors Help You Achieve Financial Freedom Faster. Apply for a Quote
You may Assistance for veterans dependents qualify for a comparlson enough rate. Read our consoidation See all winners. Your actual Consilidation will depend upon factors evaluated at Green energy loans time of application, which may include credit conxolidation, loan amount, loan term, credit usage and history. Learn more about how we evaluated personal loans in our complete methodology. National Debt Relief. Also make sure you have confidence in your repayment ability, both now and down the road. Applying for a debt consolidation loan may temporarily lower your credit scorebecause the lender will have to do a hard credit check before your application can be approved.	Best for Repayment Terms. APR Range: Click here to see if you prequalify for a personal loan offer. Common requirements are that borrowers be at least 18 years old, legal residents of the U. Get rate. Most debt consolidation loans offer terms of two to seven years, so be prepared to stick to your monthly payments over that time period. Balance transfer credit card.	Best Debt Consolidation Loans in February ; Reach Financial: Best for quick funding · % - % · $3, - $40, ; Upstart: Best for borrowers with bad Best Debt Consolidation Loans of February ; Upgrade – Best for Bad Credit ; Universal Credit – Best for Comparing Multiple Offers ; Happy Compare debt consolidation loan rates from top lenders for February ; Upstart · · Loan term. 3, 5 years ; LightStream · · Loan term. 2 - 7	Best for All Credit Score Types: Upstart · Loan amounts from $1, - $50, · APRs from % - % with loan terms of 3 or 5 years · Won't affect your credit Typical interest rates on debt consolidation loans range from about 6% to 36%. To get a rate at the low end of that range, you'll need an The best debt consolidation loans if you have bad credit ; Best for people without a credit history. Upstart Personal Loans · % - % ; Best for flexible
Pay consklidation early, save compzrison. Compare the Best Debt Consolidation Loans of February What To Know First Collapse Caret Trouble-free loan process. Pros compagison debt consolidation. Ocmparison 7. Using a balance transfer credit card is best for those who can avoid using their existing credit cards once the balances have been shifted to the new card. Debt consolidation is the most popular reason for getting a personal loan, according to the Investopedia personal loan consumer survey.	Rates are estimates only and not specific to any lender. No late fees. Cookies Settings Reject All Accept All. Subscribe to the CNBC Select Newsletter! You can check the terms you'll get without impacting your credit score.	Best Debt Consolidation Loans in February ; Reach Financial: Best for quick funding · % - % · $3, - $40, ; Upstart: Best for borrowers with bad Best Debt Consolidation Loans of February ; Upgrade – Best for Bad Credit ; Universal Credit – Best for Comparing Multiple Offers ; Happy Compare debt consolidation loan rates from top lenders for February ; Upstart · · Loan term. 3, 5 years ; LightStream · · Loan term. 2 - 7	Best for All Credit Score Types: Upstart · Loan amounts from $1, - $50, · APRs from % - % with loan terms of 3 or 5 years · Won't affect your credit The best debt consolidation loans are from LightStream, which has an APR range of % - %, does not charge an origination fee, and offers the possibility How do they work? For those with multiple debts owed to different lenders, a debt consolidation loan could make life a lot simpler. There'll be one lender to

Debt consolidation loan comparison - The best debt consolidation loans are from LightStream, which has an APR range of % - %, does not charge an origination fee, and offers the possibility Best Debt Consolidation Loans in February ; Reach Financial: Best for quick funding · % - % · $3, - $40, ; Upstart: Best for borrowers with bad Best Debt Consolidation Loans of February ; Upgrade – Best for Bad Credit ; Universal Credit – Best for Comparing Multiple Offers ; Happy Compare debt consolidation loan rates from top lenders for February ; Upstart · · Loan term. 3, 5 years ; LightStream · · Loan term. 2 - 7

Debt consolidation loans typically have interest rates from 6 percent to 36 percent. The actual rate you qualify for depends on your credit history, annual income and debt-to-income ratio. Founded in , Bankrate has a long track record of helping people make smart financial choices.

All of our content is authored by highly qualified professionals and edited by subject matter experts , who ensure everything we publish is objective, accurate and trustworthy. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where and in what order products appear.

This table does not include all companies or all available products. Bankrate does not endorse or recommend any companies. There are many factors to consider before choosing an individual lender. Here are some key things to keep in mind when comparing lenders.

Outside of these factors it is also important to consider customer service, unique features offered and potential fees. Here's a deep-dive into each lender, why is the best in each category and specifically who would benefit most from borrowing from the lender. As part of Truist bank, it offers loans for nearly every purpose.

Borrowers with thin credit history. Upstart has flexible credit requirements which is great for borrowers who are just starting out.

Overview: Previously known as FreedomPlus, Achieve offers borrowers flexible solutions for the consolidation of debt. The lender primarily caters to those with fair credit, as there is a minimum credit score of Those with good credit or a co-signer.

Applicants have the option to work with a loan consultant who they can contact through their member dashboard and by phone. Plus, Achieve offers unique interest rate discounts for qualifying borrowers. Overview: LendingClub started as a peer-to-peer lender, but has since transitioned to a loan marketplace.

Those who need a co-borrower. LendingClub will pay your creditors directly when you take out a loan to consolidate your debt. That means less hassle on your part, especially if you have more than two accounts you're consolidating.

Overview: Happy Money offers debt consolidation loans through a network of officially insured and licensed lenders.

This lender is unique from other lenders as it also functions as a financial wellness company that offers financial assessments, resources and debt management tools.

People who want to pay off credit card debt. Happy Money's personal loans can be used only to consolidate credit card debt, and you can do so without unnecessary fees.

Overview: Avant is a respected lender that has been in business since It is a competitive option for those that have less-than-perfect credit. The lender also does not enforce restrictions, limited to legal uses, on loan proceeds — ideal for those with different types of debt.

Those with less-than-perfect credit. You don't need perfect credit to get an unsecured personal loan from Avant. Funding is fast too, you may be able to get your loan in as soon as one business day. Overview: I n addition to its well-known credit card products, Citi offers personal loans with competitive interest rates for borrowers looking to finance a small or midsize expense.

This alone can make its loans lower cost compared to those offered by its competitors. Good credit borrowers who want fast funding. Getting a personal loan can be a quick process if you're an existing customer.

There is also a discount for signing up for autopay, and one if you are a Citigold or Citi Priority customer. You don't have to be an existing customer to apply, but it does speed up the process. Overview: Best Egg has earned its reputation as a legitimate and trustworthy online lender.

The company has been in business since and has since served over , customers and has funded over 1. High-earners with good credit.

Overview: Upgrade boasts a seamless online experience, customer support seven days a week and flexible borrowing amounts. Those with fair or less-than-ideal credit.

Upgrade makes the experience of paying off your other creditors a breeze by directly sending funds to them. It also offers fair rates, even to those with credit that isn't perfect, and a wide range of terms. Overview: Although most commonly known for credit cards, Discover offers a wide selection of other products, including deposit accounts, student loans and personal loans — including debt consolidation loans.

The bank has only one in-person branch, so it's best for those who are comfortable with completing the entire application process online. Borrowers who need money quickly. Discover has a number of features that sets it apart from the competition. The most compelling is the day money-back guarantee.

If you're able to find a better rate with another lender, you can return the loan without paying anything in penalties or interest. Each lender was ranked using a meticulous point system, focusing on four main categories :. Debt consolidation is a process where multiple high-interest debts — like credit cards and loans — are rolled into a single payment.

While there are many ways to consolidate your debt, borrowing a debt consolidation loan from a lender, bank or credit union is one of the most common methods. The general debt consolidation process entails taking out a new debt — like a personal loan — to pay off multiple debts and streamline the repayment process.

Your credit score may temporarily drop slightly because of the hard inquiry related to your final personal loan approval. Like any loan, your credit score could drop if you miss a personal loan monthly payment. The right timing for a debt consolidation loan depends on why you need one and what your current financial situation is.

A debt consolidation loan combines multiple debts into one monthly payment with a fixed rate and a set repayment term, so your monthly payments stay the same. If you can afford the payment, you can pay off your debt in as little as one year with a debt consolidation loan.

Replacing revolving debt with an installment loan like a debt consolidation loan can improve your credit utilization ratio , which has a major impact on your credit scores. There is no minimum payment option with this type of loan, so if you depend on commission or side-hustle income to make ends meet, this may not be a good fit.

Bad credit personal loan APRs can be as high as credit cards rates, which may make the fixed payment unaffordable. A personal loan for debt consolidation should be part of a longer term financial plan that includes less credit card use, more budgeting and a bigger emergency savings cushion.

There are three times when a debt consolidation typically makes the most sense. The first is when you want to pay off credit card debts to improve your credit scores.

The second is if you want to simplify your bill-paying strategy by combining credit cards, medical bills and other debt into one payment with a set payoff date. Finally, a debt consolidation loan could help you pay your debt off faster if you can afford the high payment that comes with a one or two year term.

Although a debt consolidation loan can be helpful for many people, it won't solve your financial problems on its own. To reap the full benefits and avoid further issues, avoid making late payments and keep balances low on the credit card accounts you pay off. The ultimate goal of any debt consolidation strategy is to be debt free.

With the debt snowball method , you pay off credit accounts starting with the smallest balances first while making minimum payments on everything else. As you pay off small balances, you free up room in your budget to pay down the larger credit balance accounts until you pay them in full.

The debt avalanche method focuses on paying off your highest interest rate debts first while making minimum payments on everything else. However, you may end up losing assets like a home or car if you include loans you took out to purchase them in your bankruptcy.

The interest rate on a personal loan may be lower than on a balance transfer credit card. When the introductory interest rate expires, you have to pay a much higher interest rate.

Balance transfer credit cards may offer more flexible payments, so long as you pay at least the minimum payment, which may be higher than on a personal loan. But, check whether the personal loan allows prepayment without penalty.

The main debt consolidation advantage of a personal loan versus a balance transfer credit card is that it replaces revolving debt with installment debt with a definite payoff date.

Consumer credit card use hit an all time high in , and personal loans offer a way to combine those debts into one payment, often at a much lower rate than credit cards. However, once the introductory period is over, the transfer credit card rate can rise. To use the debt consolidation calculator, enter your outstanding debts and current interest rates.

After receiving your estimated terms and monthly payment structure, adjust the details to find the most ideal consolidation loan for your budget.

Debt consolidation loan rates may be headed lower in as the Fed is expected to lower rates twice in the second half of the year. Borrowers with excellent credit turned to personal loans at a record pace last year, as originations of personal loans for excellent credit jumped 20 percent from Each lending institution has its own criteria for qualifying borrowers.

Common requirements are that borrowers be at least 18 years old, legal residents of the U. and not in foreclosure or bankruptcy. Most lenders look for a minimum credit score in the mids and a debt-to-income DTI ratio below 45 percent.

An excellent credit score and low DTI will get you the best interest rate and may qualify you for a larger loan. Even if you have bad credit , you may find a lender that's willing to extend you a loan, but you'll pay higher interest rates. If you're in this scenario, you may want to apply with a co-signer who has good credit to improve your chances of being approved.

Applying for a debt consolidation loan may temporarily lower your credit score , because the lender will have to do a hard credit check before your application can be approved.

However, if you make your monthly loan payments on time and don't rack up card balances again, a credit card consolidation loan can improve your credit score. Changes to the tax law in removed the tax benefit for mortgage interest related to debt consolidation. Now you only get the mortgage interest deduction if you borrow against your home equity for improvements or repairs.

Best debt consolidation loans in February Denny Ceizyk. Written by Denny Ceizyk Arrow Right Senior Loans Writer. Rhys Subitch. Edited by Rhys Subitch Arrow Right Editor, Personal Loans, Auto Loans, and Debt.

Mark Kantrowitz. Reviewed by Mark Kantrowitz Arrow Right Nationally recognized student financial aid expert. Book What to know first. Menu List On this page. Bankrate logo The Bankrate promise. Key Principles We value your trust. How we make money You have money questions.

What To Know First Collapse Caret Up. On This Page Collapse Caret Up. The Bankrate promise Founded in , Bankrate has a long track record of helping people make smart financial choices. Advertiser Disclosure. Definition of terms. Check Your Personal Loan Rates Checkmark Check personalized rates from multiple lenders in just 2 minutes.

Checkmark This will NOT impact your credit score. Enter a loan amount. ZIP code. Rates vary by loan purpose. A debt consolidation loan is a personal loan that's used to pay off existing debt across other accounts, including credit cards, student loans and other installment loans.

Debt consolidation loans should not be confused with debt settlement or debt negotiation. If you want one of these loans, most lenders require that you:. Debt consolidation loans don't come with a money-saving guarantee, though with a lower APR, they certainly can shave off some interest charges and save on high-interest debt.

People who use debt consolidation loans successfully can often save money when they stick to their new, simplified payoff plan and stop using their old credit cards to rack up new debt. Personal loans are most useful when you consolidate credit card debt with very high APRs.

For example, for a credit cardholder with a The average personal loan interest rate at the time of this writing is While that's still high, it's much less than the average credit card APR of Consolidating your debt into a personal loan can have a positive impact on your credit score and overall finances, but it's important to understand the process so you can ensure the greatest benefit.

Debt consolidation will impact your credit score and credit report in the following ways:. Personal loan applications require a credit check, so you'll want to know your credit score before you apply.

There's no direct penalty for getting denied a loan but having too many applications on your credit report could be a red flag to future lenders.

Also, once you're approved for a personal loan, make sure you avoid making a late payment since payment history holds the biggest weight in determining your credit score. A late payment on any lines of credit can cause your credit score to drop.

To avoid late payments, make sure you know your payment due date and enroll in Autopay if you can. Personal loans deliver cash directly to your bank account, which you then use to pay off your existing debt.

Within 30 days, you'll start making a fixed monthly payment on the new loan until all of the debt is paid off. Most personal loans come with fixed-rate APRs, so your monthly payment stays the same for the loan's lifetime.

In a few cases, you can take out a variable-rate personal loan. Before you choose this option, make sure you're comfortable with your monthly payments changing if rates go up or down.

Personal loan APRs average 9. Meanwhile, the average credit card interest rate is around Your interest rate will be decided based on your credit score, credit history and income, as well as other factors like the loan's size and term.

Most loan terms range anywhere from six months to seven years. When choosing your repayment terms, pick the monthly payment that fits best with your budget, but also note how much interest you'll pay over the lifetime of the loan.

Be sure to check if the lender charges an early payoff or prepayment penalty, especially if you think you might pay your loan down faster than your agreed-upon term. Sometimes, lenders charge a fee if you make extra payments to pay your debt down quicker, since they're losing out on that prospective interest.

Once you're approved for a personal loan, the cash is usually delivered directly to your checking account within a week or less. You can sometimes ask your lender to pay your credit card accounts directly. Any extra cash leftover will be deposited into your bank account or returned to the lender.

You can keep your credit cards open even after you take out a debt consolation loan. Ideally, you should use your loan to pay off credit card debt, then use credit cards only to pay for what you know you can afford to pay off at the end of each month.

If you're worried about racking up credit card debt all over again, look into how closing the account s will impact your credit score. You might decide to keep one or two cards open for emergencies or daily spending, and close the rest of your credit cards.

Use a credit score simulator like CreditWise from Capital One to see how much your score might drop before you start closing accounts. See if you're pre-approved for a personal loan offer. There are many lenders out there that cater to a variety of financial needs and circumstances, including bad credit scores.

However, keep in mind that when applying for a loan with bad or poor credit , while your application may still be considered, you'll be subject to some of the highest interest rates. The lowest interest rates typically go to individuals with good credit and better.

Because of this, it's generally recommended that you try to improve your credit score before applying for any form of credit if you don't urgently need the funding. Your credit score is also just one factor lenders consider. Eligibility may also depend on other factors, like how large of a loan you're applying for and whether or not you have co-signer.

Even if you receive a lower rate, you should do your homework to make sure you're accepting terms you're comfortable with. This could mean reviewing several loan options and comparing loan rates before ultimately deciding on one. Read more: The best debt consolidation loans if you have bad credit.

To apply for a debt consolidation loan , first consider how much of a loan you need to apply for. This can be done by simply adding up the debt balances you wish to consolidate.

Once you start browsing for lenders, make sure their minimum loan amount and funding range aligns with how much money you're looking to borrow. You'll also want to double check any minimum credit score requirements. This lets you avoid taking a hit to your credit score only to not be approved for the loan.

Keep in mind that you can consider credit unions, an online lender or even an in-person bank. You should also make sure you're aware of any fees, including application fees, a late payment fee, prepayment penalties and more. Some lenders also let you submit information to see what rates you may prequalify for without damaging your credit score.

You can also compare rates this way to make sure you're applying for a loan with some of the lowest rates available to you. Keep in mind that personal loans are a form of unsecured debt, which means you can't use collateral to secure the loan in case you default.

Once you decide which lender you want to go with, you'll submit an application with complete details. Once you're approved for the loan, your lender will use the funds to make a direct payment to each of your creditors — you'll just be responsible for repaying the personal loan.

Before you even submit a loan application, you should make sure you have a debt management plan in place. Consider factors like the loan amount, the loan rates, and the life of the loan also called the loan term.

Make sure the monthly payments are within your budget since on-time payments are crucial for avoiding a poor credit score, as well as being approved for the best loan rates in the future.

Also make sure you're able to manage your personal loan payments alongside any other debt payments you already have. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money.

Every personal loan review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

See our methodology for more information on how we choose the best personal loans. To determine which personal loans are the best for consolidating debt, Select analyzed dozens of U. personal loans offered by both online and brick-and-mortar banks, including large credit unions.

When possible we chose loans with no origination or sign-up fees, but we also included options for borrowers with lower credit scores on this list. Some of those options have origination fees. Note that the rates and fee structures advertised for personal loans are subject to fluctuate in accordance with the Fed rate.

However, once you accept your loan agreement, a fixed-rate APR will guarantee your interest rate and monthly payment will remain consistent throughout the entire term of the loan. Your APR, monthly payment and loan amount depend on your credit history and creditworthiness.

To take out a loan, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more. Excellent credit is required to qualify for lowest rates.

Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Subject to credit approval.