Best Debt Consolidation Loans for Bad Credit

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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.

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Paying monthly bills can become overwhelming when your debts are spread out between credit cards and loans, making it hard to keep track of payments and how much you owe. Debt consolidation loans can be an affordable solution and make it much easier to pay your bills. Instead of juggling multiple debt payments a month, you’ll make only one payment. And, in some cases, you can lower your total monthly debt payment with a debt consolidation loan.

Here are the top debt consolidation loans for those with bad credit.


LendingTree can help you explore whether a debt consolidation loan is right for you. (Disclosure: Student Loan Hero is owned by LendingTree.) An online tool can compare your options by providing personal loan information from multiple lenders. You’ll just need to supply some basic information, such as the loan total for which you’re interested, your address and your birth date.


An online lender, Avant was founded in 2012 with a focus on making loans easier to get. Avant prides itself on its fast loan approval process. With its five-minute application process, it makes it easy to get money quickly. Avant branded credit products are issued by WebBank, member FDIC.

Avant’s primary financial product is personal loans. Loan amounts, fees and APRs vary by state, but, in most cases, loan amounts range between $2,000 and $35,000 with APRs between 9.95% and 35.99% and terms between 24 to 60 months. Loan administration fees typically are Up to 4.75%.

Avant does not service loans in Colorado, Iowa, Vermont, Washington, West Virginia or Wyoming.


  • Five-minute application process.
  • Customer service representatives are available seven days a week by phone, chat or email.
  • Customized loan options.
  • Fixed rates.
  • Receive money as soon as the next business day.


  • APR as high as 35.99%.
  • Loans typically are awarded to applicants with credit scores Varies.
  • Does not offer loans in all states.
  • Some borrowers may pay a loan administration fee.

Avant’s debt consolidation loans could be more expensive since the lender’s interest rates tend to be high and some borrowers are charged an administration fee. But if you need money quickly, this online lender has an easy application process and gets money to qualified borrowers the next business day.

OneMain Financial

OneMain Financial, which has been in business for more than 100 years, is a good option for borrowers who may have not have excellent credit. While it does not offer the lowest interest rates on personal loans, OneMain Financial looks at more than credit history when determining whether you are eligible for a loan. Personal loans can be used for almost anything, including vacations, home improvement and debt consolidation, but they cannot be applied to postsecondary education or business expenses or be used for gambling.

OneMain Financial offers personal loans between $1,500 and $30,000 with terms of 24 to 60 months. Interest rates range from 16.05% to 35.99%, and OneMain Financial looks at credit history, expenses, income, debt and your state of residence when deciding the loan’s rate.

Personal loan size is restricted for residents of many states, so it’s important to check OneMain Financial’s policies. For example, the minimum loan amount for Alabama residents is $2,100, and the maximum loan amount for new customers in New York is $7,500. While you can apply for a loan online through OneMain Financial, if approved you’ll need to visit one of OneMain Financial’s 1,600 branches in 44 states to meet with a loan specialist and verify your identity, income, expenses and employment.


  • Fixed rates and payments.
  • No prepayment fees.
  • Borrower could receive money the same day as approval.
  • Local branches nationwide.


  • High interest rates.
  • Many loan size restrictions by state.
  • Must visit a branch to discuss your loan.

While OneMain Financial has some downsides, including higher interest rates and a requirement that you visit a branch to complete your loan application, it can be a good option for borrowers with average credit. Applicants who are approved can get their money the same day, and OneMain Financial allows a wide variety of uses for personal loans.

Apple Federal Credit Union

Apple Federal Credit Union, which is based in northern Virginia, was created in 1956 by teachers, for teachers. Its membership has since expanded to include anyone who lives or works in designated Washington, D.C., counties, and its financial products — including personal loans that can be used for debt consolidation — were designed to promote financial well-being.

To join Apple Federal Credit Union, you have to live, work, worship, volunteer or attend school in Fairfax, Frederick or Prince William counties or in the cities of Fairfax, Manassas or Manassas Park. You can also attend or work at designated public schools and universities. Household and immediate family members of Apple Federal Credit Union members also may join.

To apply for a Signature personal loan, you’ll need:

  • A government-issued photo ID such as a driver’s license, military ID or state-issued ID
  • A recent pay stub, W-2 or filed and signed tax returns if you are self-employed

Along with personal loans, Apple Federal Credit Union offers a one-time loan for first-year teachers in designated schools in northern Virginia. This 0% loan can be used for any expenses the teacher has, and applicants can borrow up to $3,500 with a maximum term of 24 months.


  • Three times over the life of a Signature personal loan, borrowers can skip a payment if they have made at least 12 consecutive, on-time payments.
  • Fixed-rate payments.
  • Lump-sum funding.
  • No early payoff penalties.
  • Loans up to $50,000.
  • Terms up to 60 months.
  • Lowest APR is 9.24%.


  • Membership limited to residents of northern Virginia and people who work and attend certain schools.
  • A fee of $25 is charged for each approved missed payment.
  • Not all applicants will qualify for the lowest APR.
  • Membership costs $20 a year.

Apple Federal Credit Union is a good choice for residents of northern Virginia since it is easy to join and offers generous loan amounts and terms. But Apple Federal Credit Union does not disclose its full range of APR rates or minimum credit scores to qualify for personal loans, which could impact applicants with a poor credit history.

Affinity Federal Credit Union

One of the oldest credit unions in the nation, Affinity Federal Credit Union serves people who live and work in parts of New Jersey and Connecticut. It offers no-fee personal consolidation loans with APRs between 9.75% to 18.00% with terms up to 120 months.

It’s not difficult to join Affinity Federal Credit Union if you live, work, worship or go to school in New Brunswick or parts of New Jersey and Connecticut, or if you join an affiliated group. Qualifications for membership include:

  • Working for a company or membership in an organization approved by Affinity Federal Credit Union.
  • Donating $5 while applying to join the Connecticut Jump$tart Coalition or the New Jersey Coalition for Financial Education.

To maintain membership, all members must keep $5 in a “membership eligibility account.” Consumers can apply online, over the phone or at one of Affinity Federal Credit Union’s branches. You’ll need to provide contact information, a government-issued ID and your Social Security number.

Along with credit score, Affinity Federal Credit Union considers payment history, income, length and limit of credit lines, debt-to-income ratio and employment history when determining loan eligibility.


  • Fixed rates.
  • Fixed payments.
  • No application fees, annual fees or prepayment penalties.
  • Offers helpful online debt consolidation calculator.
  • Simple online application process.
  • Low maximum APR.


  • Requires membership to apply for a debt consolidation loan.
  • Does not publish credit score requirements.

With a relatively low maximum APR of 18.00% for debt consolidation loans, Affinity Federal Credit Union could be a good place to apply for consumers with less-than-stellar credit. Affinity Federal Credit Union also looks at more than your credit score, which could boost your chances of approval.

Interested in a personal loan?

Here are the top personal loan lenders of 2019!
LenderAPR RangeLoan Amount 
1 Includes AutoPay discount. Important Disclosures for SoFi.

SoFi Disclosures

  1. Fixed rates from 5.990% APR to 16.240% APR (with AutoPay). Variable rates from 5.75% APR to 14.60% APR (with AutoPay). SoFi rate ranges are current as of March 18, 2019 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 5.75% APR assumes current 1-month LIBOR rate of 2.50% plus 4.28% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.
  2. To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.
    See Consumer Licenses.
  3. Minimum Credit Score: Not all applicants who meet SoFi’s minimum credit score requirements are approved for a personal loan. In addition to meeting SoFi’s minimum eligibility criteria, applicants must also meet other credit and underwriting requirements to qualify.
  4. SoFi Personal Loans are not available to residents of MS. Maximum interest rate on loans for residents of AK and WY is 9.99% APR, for residents of IL with loans over $40,000 is 8.99% APR, for residents of TX is 9.99% APR on terms greater than 5 years, for residents of CO, CT, HI, VA, SC is 11.99% APR, and for residents of ME is 12.24% APR. Personal loans not available to residents of MI who already have a student loan with SoFi. Personal Loans minimum loan amount is $5,000. Residents of AZ, MA, and NH have a minimum loan amount of $10,001. Residents of KY have a minimum loan amount of $15,001. Residents of PA have a minimum loan amount of $25,001. Variable rates not available to residents of AK, TX, VA, WY, or for residents of IL for loans greater than $40,000.
  5. If you lose your job through no fault of your own, you may apply for Unemployment Protection. SoFi will suspend your monthly SoFi loan payments and provide job placement assistance during your forbearance period. Interest will continue to accrue and will be added to your principal balance at the end of each forbearance period, to the extent permitted by applicable law. Benefits are offered in three month increments, and capped at 12 months, in aggregate, over the life of the loan. To be eligible for this assistance you must provide proof that you have applied for and are eligible for unemployment compensation, and you must actively work with our Career Advisory Group to look for new employment. If the loan is co-signed the unemployment protection applies where both the borrower and cosigner lose their job and meet conditions.
  6. Terms and Conditions Apply: SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (

2 Includes AutoPay discount. Important Disclosures for Payoff.

Payoff Disclosures

  1. All loans are subject to credit review and approval. Your actual rate depends upon credit score, loan amount, loan term, credit usage and history. Currently loans are not offered in: MA, MS, NE, NV, OH, and WV.

3 Important Disclosures for FreedomPlus.

FreedomPlus Disclosures

  1. All loans available through are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. All loan and rate terms are subject to eligibility restrictions, application review, credit score, loan amount, loan term, lender approval, and credit usage and history. Eligibility for a loan is not guaranteed. Loans are not available to residents of all states – please call a FreedomPlus representative for further details. The following limitations, in addition to others, shall apply: FreedomPlus does not arrange loans in: (i) Arizona under $10,500; (ii) Massachusetts under $6,500, (iii) Ohio under $5,500, and (iv) Georgia under $3,500. Repayment periods range from 24 to 60 months. The range of APRs on loans made available through FreedomPlus is 5.99% to a maximum of 29.99%. APR. The APR calculation includes all applicable fees, including the loan origination fee. For Example, a four year $20,000 loan with an interest rate of 15.49% and corresponding APR of 18.34% would have an estimated monthly payment of $561.60 and a total cost payable of $7,948.13. To qualify for a 5.99% APR loan, a borrower will need excellent credit on a loan for an amount less than $12,000.00, and with a term equal to 24 months. Adding a co-borrower with sufficient income; using at least eighty-five percent (85%) of the loan proceeds to directly pay off qualifying existing debt; or showing proof of sufficient retirement savings, could help you also qualify for the lowest rate available.

4 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

  1. Personal Loan Rate DisclosureFixed interest rates from 6.79% – 20.89% (6.79% – 20.89% APR) based on applicable terms. Lowest rates range from 5.99%-18.99% (5.99%-18.99% APR), are for eligible applicants, require a 3-year repayment term, and include our Loyalty and Automatic Payment Discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
  2. Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower has a qualifying account in existence with us at the time the borrower has submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, student loans or other personal loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI and VT. This discount will be reflected in the interest rate and Annual Percentage Rate (APR) disclosed in the Truth-In-Lending Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan, and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
  3. Automatic Payment Discount: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their Citizens Bank Personal Loan during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account two or more times within any 12-month period, the borrower will no longer be eligible for this discount.

5 Important Disclosures for LendingPoint.

LendingPoint Disclosures

  • Loan approval is not guaranteed. Actual loan offers and loan amounts, terms and annual percentage rates (“APR”) may vary based upon LendingPoint’s proprietary scoring and underwriting system’s review of your credit, financial condition, other factors, and supporting documents or information you provide. Origination or other fees from 0% to 6% may apply depending upon your state of residence. Upon LendingPoint’s final underwriting approval to fund a loan, said funds are often sent via ACH the next non-holiday business day. LendingPoint makes loan offers from $2,000 to $25,000, at rates ranging from a low of 9.99% APR to a high of 35.99% APR, with terms from 24 to 48 months. The loan offer(s) shown reflect a 28 day payment cycle which is being offered as a courtesy as many of our customers are paid on a biweekly schedule and thus this may better align the loan payment dates with your actual income receipt schedule.

6 Important Disclosures for LendingClub.

LendingClub Disclosures

All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.95% to 35.89%*. The origination fee ranges from 1% to 6% of the original principal balance and is deducted from your loan proceeds. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at the time of application. The average origination fee is 5.49% as of Q1 2017. In Georgia, the minimum loan amount is $3,025. In Massachusetts, the minimum loan amount is $6,025 if your APR is greater than 12%. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the website. All loans via LendingClub have a minimum repayment term of 36 months. Borrower must be a U.S. citizen, permanent resident or be in the United States on a valid long term visa and at least 18 years old. Valid bank account and Social Security number are required. Equal Housing Lender. All loans are subject to credit approval. LendingClub’s physical address is: LendingClub, 71 Stevenson Street, Suite 1000, San Francisco, CA 94105.

†Per reviews collected and authenticated by Bazaarvoice in compliance with the Bazaarvoice Authentication Requirements, supported by anti-fraud technology and human analysis. All reviews can be reviewed at

**Based on approximately 60% of borrowers who received offers through LendingClub’s marketing partners between January 1, 2018 to July 20,2018. The time it will take to fund your loan may vary.

7 Important Disclosures for Earnest.

Earnest Disclosures

  1. Earnest does not lend in Alabama, Delaware, Kentucky, Nevada, or Rhode Island.

8 Important Disclosures for Avant.

Avant Disclosures

* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.

** 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

* Important Disclosures for Upgrade Bank.

Upgrade Bank Disclosures

* Your loan terms are not guaranteed and are subject to our verification and review process. You may be asked to provide additional documents to enable us to verify your income and your identity. This rate includes an Autopay APR reduction of 0.5%. By enrolling in Autopay your payments will be automatically deducted from you bank account. Selecting Autopay is optional. Annual Percentage Rate is inclusive of a loan origination fee, which is deducted from the loan proceeds. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. All loans made by WebBank, member FDIC. Please refer to Upgrade’s Terms of Use and Borrower Agreement for all terms, conditions and requirements.

** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.

5.75% – 16.24%1$5,000 - $100,000

Visit SoFi

7.69% – 35.99%$1,000 - $50,000

Visit Upstart

7.99% – 35.89%*$1,000 - $50,000

Visit Upgrade

5.99% – 24.99%2$5,000 - $35,000

Visit Payoff

5.99% – 29.99%3$7,500 - $40,000

Visit FreedomPlus

6.79% – 20.89%4$5,000 - $50,000

Visit Citizens

9.99% – 35.99%5$2,000 - $25,000

Visit LendingPoint

6.95% – 35.89%6$1,000 - $40,000

Visit LendingClub

6.99% – 18.24%7$5,000 - $75,000

Visit Earnest

9.95% – 35.99%8$2,000 - $35,000

Visit Avant

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.


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