When you’re focused on paying off debt, high interest rates can be demoralizing. It’s deflating to watch a sizable portion of each payment go toward paying your lender rather than lowering your debt.
One solution could be using a debt consolidation loan to lower your interest rate. Essentially, you use a new personal loan to pay off existing debt.
It might sound counterintuitive to borrow your way out of debt, but the benefits can be worth it. Here are seven of the best debt consolidation loans available today as well as tips on making sure you pick the best one for you.
Top 7 debt consolidation loans
1. LendingTree – Start Shopping Here
LendingTree allows for you to compare debt consolidation loans from multiple lenders at once, including the lenders below. With LendingTree’s online form, you can receive offers from up to 5 different lenders and there will only be a soft pull on your credit, meaning that your score won’t be negatively impacted. We recommend that you start here and comparison shop between lenders in order to get the best rates on your loan. (Note: Student Loan Hero is owned by LendingTree).
2. Upstart
- Soft credit check that delivers a rate quote in minutes for Upstart debt consolidation loans
- Fixed interest rates
- Loan amounts of $1,000 to $50,000
- Loan terms of three and five years
- No administration fees or prepayment penalties
- Origination fee of 1 to 8 percent
- Minimum FICO score of 620
- Minimum annual income of $12,000
3. SoFi
- Soft credit check with an instant rate quote for SoFi debt consolidation loans
- Fixed APRs – 5.99% to 18.72%
- Rate discount of 0.25% after setting up autopay
- Loan amounts of $5,000 to $100,000
- Loan terms of three, five, and seven years
- No origination fees or prepayment penalties
- No minimum FICO score
- Minimum annual income of $50,000
- Unemployment protection that can temporarily pause payments after job loss
- Late-fee forgiveness after three consecutive on-time payments
4. Payoff
- Soft credit check for Payoff personal loan rate estimates
- Loans designed to consolidate or refinance credit card balances and other debt
- Fixed rates on debt consolidation loans
- Loan amounts of $5,000 to $35,000
- Loan terms of two, three, four, and five years
- Minimum FICO score of640
- No minimum income
- Origination fee of 2 to 5 percent, tied to the loan term
- No application fees, late fees, or prepayment penalties
5. LendingClub
- Peer-to-peer lending platform with flexible eligibility requirements for LendingClub personal loans
- Soft credit check for rate estimates
- Fixed rates
- Loan amounts of $1,000 to $40,000
- Loan terms of three and five years
- Minimum FICO score of 600
- No application fees or prepayment penalties
- Origination fee of 1 to 6 percent
6. Earnest
- Soft credit check for Earnest personal loan rate estimates
- Fixed rates on personal loans
- Loan amounts of $2,000 to $50,000
- Loan terms of one, two, and three years
- No origination fees, application fees, late payment fees, or prepayment penalties
- Minimum FICO score of 660, with a flexible underwriting program
7. Avant
- Accessible debt consolidation, with a minimum FICO score of just 580 for personal loans through Avant
- Soft credit check for rate estimates
- Fixed loan rates
- Loan amounts of $2,000 to $35,000
- Loan terms of two, three, four, and five years
- No prepayment penalties
- One-time administration fee of up to Up to 4.75%, upon loan disbursement
- May not be used for student debt
How to pick the best debt consolidation loan for you
As you search for the best debt consolidation loan, decide how you plan to use it. For example, you might try to accomplish one or more of the following objectives:
- Pay off debt faster
- Get a lower interest rate and make your debt less expensive
- Lower your monthly payment
- Combine your debt into one loan that’s simpler to track and manage
If you keep your end goal in mind, you can quickly home in on the loan features and terms that will help you achieve it. Here are a few questions to consider as you review various debt consolidation loans to find the right one for you.
——
Looking for the best rates on a personal loan? Check out LendingTree’s personal loan shopping tool. Dozens of lenders work with LendingTree, our parent company, to provide personal loans to people like you. By filling out just one form, you can get multiple loan offers at once. Even better, LendingTree only does a soft credit pull, so there’s no impact on your credit score. Have great credit? You could qualify for a rate under 6%. Have less-than-stellar credit? Many lenders that work with LendingTree have less restrictive requirements, so you might have better chances of getting a loan.
——
How much debt do I need to consolidate?
Lenders have different rules for the amounts you can borrow to consolidate debt. Loan minimums usually range from $1,000 to $5,000, and maximums can be anywhere from $35,000 to $100,000.
If you know how big your debt consolidation loan needs to be to pay off your existing debt, you can narrow your search to lenders that offer loans of that size.
How quickly do you want to pay off this debt?
Another key factor to consider is your loan term, which is the length of time you’ll have to pay off this debt.
A shorter loan term will help you get out of debt faster and could save you interest. A longer term will stretch out repayment over a longer period, resulting in lower monthly payments.
Debt consolidation loan terms can range from one year up to seven years, and most lenders will state the loan lengths they offer. Use our personal loan calculator to see how different loan terms could affect your total costs and monthly payments. Always check to see if a lender offers the term you prefer.
What are the costs of each debt consolidation loan?
As you’re shopping, keep a close eye on costs — specifically, debt consolidation loan rates and fees. That way, you’ll avoid any surprising or unexpected fees.
It’s also important to keep a close eye on all costs to ensure you don’t end up with a debt consolidation loan that’s even more expensive than the debt it replaced.
Does the lender offer soft credit check rate estimates?
Checking advertised rates is a smart way to get an idea of the rate a lender will charge you. But to know for sure which debt consolidation loans offer the best deals, you’ll need to collect rate estimates.
Many debt consolidation lenders allow you to request a rate quote. You submit an initial request, and the lender uses it to perform a soft credit check that doesn’t affect your credit but allows the lender to generate a rate quote specific to you.
If you collect and compare offered APRs from multiple lenders, you’ll be able to find the best debt consolidation loans.
Can I meet this lender’s eligibility standards?
A rate check also can help you figure out whether you’re likely to qualify for a debt consolidation loan without incurring a hard credit check or completing a full application.
Most lenders also provide general guidelines about what kinds of applicants they accept. Pay attention to any credit score or income requirements.
Does this lender restrict loan use?
Most personal loans are flexible and have few, if any, restrictions on how you may use the funds. Many lenders even advertise debt consolidation as a smart use for a personal loan.
Still, be sure to double-check for any rules about consolidating debt with a particular lender. For instance, some financiers don’t allow you to use personal loans to pay off student loan debt. All the lenders highlighted in this list of the best consolidation loans allow borrowers to use loans to consolidate debt.
Should you consolidate your debt with a personal loan?
A debt consolidation loan can be a smart way to manage and pay off debt.
But to know for sure whether a debt consolidation loan will lead to the outcome you want, you’ll need to compare your options. Our credit card consolidation calculator can help you project whether (and how much) you could save by using a personal loan to pay off your credit cards.
You’ll probably need at least fair credit to qualify for a personal loan, and lenders reserve the best rates for borrowers with excellent credit. Check your credit score and reports before you start applying for personal loans and make sure you can qualify for the rates you’re hoping to get.
Consolidating debt with a personal loan can help you achieve a lower interest rate, decrease monthly payments, or pay off debt faster. If you have high-interest debt, such as credit card balances, but are keeping up with payments and maintaining good credit, you’re an ideal candidate for debt consolidation.
Interested in a personal loan?
LendingTree allows you to compare rates from multiple lenders by filling out one easy form. Advertiser DisclosureStudent Loan Hero Advertiser Disclosure
Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.
Student Loan Hero Advertiser Disclosure
Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.
| Lender | RATES (APR) | loan amount | |
|---|---|---|---|
 | 5.99% – 18.82%1 | $5,000 to $100,000 | |
 | 8.13% – 35.99% | $5,000 to $30,000 | |
 | 7.99% – 35.97%* | $1,000 to $35,000 | |
 | 99.00% – 199.00%2 | $500 to $4,000 | |
 | 5.99% – 24.99%3 | $5,000 to $35,000 | |
 | 7.99% – 29.99%4 | $7,500 to $40,000 | |
| compare rates on Lendingtree now | |||
1 Includes AutoPay discount. Important Disclosures for SoFi. SoFi Disclosures
Opploans DisclosuresDirect Deposit required for payroll. Opploans currently operates in these states: . *Approval may take longer if additional verification documents are requested. Not all loan requests are approved. Approval and loan terms vary based on credit determination and state law. Applications processed and approved before 7:30 p.m. ET Monday-Friday are typically funded the next business day.
Payoff Disclosures
FreedomPlus Disclosures
Upgrade Bank DisclosuresPersonal loans made through Upgrade feature APRs of 7.99%-35.97%. All personal loans have a 2.9% to 8% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade’s lending partners. Information on Upgrade’s lending partners can be found at https://www.upgrade.com/lending-partners/. | |||
