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, 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!
|Lender||APR Range||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Includes AutoPay discount. Important Disclosures for Payoff.
3 Important Disclosures for FreedomPlus.
4 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
5 Important Disclosures for LendingPoint.
6 Important Disclosures for LendingClub.
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 www.lendingclub.com 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 reviews.lendingclub.com
**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.
8 Important Disclosures for Avant.
* 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
** 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|
|7.69% – 35.99%||$1,000 - $50,000|
|7.99% – 35.89%*||$1,000 - $50,000|
|5.99% – 24.99%2||$5,000 - $35,000|
|5.99% – 29.99%3||$7,500 - $40,000|
|6.79% – 20.89%4||$5,000 - $50,000|
|9.99% – 35.99%5||$2,000 - $25,000|
|6.95% – 35.89%6||$1,000 - $40,000|
|6.99% – 18.24%7||$5,000 - $75,000|
|9.95% – 35.99%8||$2,000 - $35,000|