Best Debt Consolidation Loans for Bad Credit

How Student Loan Hero Gets Paid

How Student Loan Hero Gets Paid

Student Loan Hero is compensated by companies on this site and this compensation may impact how and where offers appears on this site (such as the order). Student Loan Hero does not include all lenders, savings products, or loan options available in the marketplace.

Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Student Loan Hero is an advertising-supported comparison service. The site features products from our partners as well as institutions which are not advertising partners. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products.

Editorial Note: This content is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by the financial institution.

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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

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.

Avant

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.

LENDER
APR
Credit Req.
Terms
Origination Fee
APR 9.95%
To
35.99%
*
Credit Req.600Minimum Credit Score
Terms24 to 60 **Years
Origination FeeUp to 4.75% **

See Offers Secureon Lendingtree's secure websiteLender Disclosure

Avant Disclosures

*If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state.

**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.

Based on the responses from 7,302 customers in a survey of 140,258 newly funded customers, conducted from August 1, 2018 – August 1, 2019, 95.11% of customers stated that they were either extremely satisfied or satisfied with Avant. 4/5 Customers would recommend us. 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.

Pros

  • 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.

Cons

  • APR as high as 35.99%.
  • Loans typically are awarded to applicants with credit scores .
  • 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.

LENDER
APR
Credit Req.
Terms
Origination Fee
APR 18.00%
To
35.99%
Credit Req.Not specified
Terms24, 36, 48, and 60Months
Origination FeeVaries

See Offers Secureon Lendingtree's secure websiteLender Disclosure

OneMain Financial Disclosures

Not all applicants will qualify for larger loan amounts or most favorable loan terms.  Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral).  Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance.  Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions.  APRs are generally higher on loans not secured by a vehicle. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount.  Flat fee amounts vary by state, ranging from $25 to $400.  Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan.  OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes.
 
Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600.
 
Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: North Carolina: $7,500. New York: $20,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.

OneMain Financial offers personal loans between $1,500 and $20,000 with terms of 24 to 60 months. Annual percentage rates (APRs) range from 18.00% 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.

Pros

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

Cons

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

While OneMain Financial has some downsides, including higher APRs 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.

LENDER
APR
Credit Req.
Terms
Origination Fee
APR 9.24%
To
17.24%
Credit Req.580Minimum Credit Score
Terms1 to 5Years
Origination FeeNo origination fee

Visit Apple Federal Credit Union Secureon Apple Federal Credit Union's secure website

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.

Pros

  • 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 12 to 60 months.
  • Lowest APR is 9.24%.

Cons

  • 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 0.00% with terms up to 60 months.

LENDER
APR
Credit Req.
Terms
Origination Fee
APR 8.75%
Credit Req.525Minimum Credit Score
Terms1 to 5Years
Origination FeeNo origination fee

Visit Affinity Federal Credit Union Secureon Affinity Federal Credit Union's secure website

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.

Pros

  • 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.

Cons

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

With a relatively low maximum APR of 0.00% 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?

LendingTree allows you to compare rates from multiple lenders by filling out one easy form. How Student Loan Hero Gets Paid

How Student Loan Hero Gets Paid

Student Loan Hero is compensated by companies on this site and this compensation may impact how and where offers appears on this site (such as the order). Student Loan Hero does not include all lenders, savings products, or loan options available in the marketplace.

Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Student Loan Hero is an advertising-supported comparison service. The site features products from our partners as well as institutions which are not advertising partners. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products.

How Student Loan Hero Gets Paid

How Student Loan Hero Gets Paid

Student Loan Hero is compensated by companies on this site and this compensation may impact how and where offers appears on this site (such as the order). Student Loan Hero does not include all lenders, savings products, or loan options available in the marketplace.

Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Student Loan Hero is an advertising-supported comparison service. The site features products from our partners as well as institutions which are not advertising partners. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products.

RATES (APR)loan amount
5.99% – 18.85%1 $5,000 to $100,000
7.86% – 35.99% $1,000 to $50,000
5.94% – 35.97%* $1,000 to $50,000
99.00% – 199.00%2 $500 to $4,000
5.99% – 24.99%3 $5,000 to $40,000
7.99% – 29.99%4 $7,500 to $40,000
compare rates on Lendingtree now
NMLS #1136: Terms & Conditions Apply
1 Includes AutoPay discount. Important Disclosures for SoFi.

SoFi Disclosures

  1. Fixed rates from 5.99% APR to 18.85% APR (with AutoPay). SoFi rate ranges are current as of March 19, 2020 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 creditworthiness, years of professional experience, income and other factors. See APR examples and terms. 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. 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.
  5. 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. (www.nmlsconsumeraccess.org)
2 Includes AutoPay discount. Important Disclosures for Opploans.

Opploans Disclosures

Direct 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.

  1. To qualify, a borrower must (i) be a U.S. citizen or permanent resident; (ii) reside in a state where OppLoans operates; (iii) have direct deposit; (iv) meet income requirements; (v) be 18 years of age (19 in Alabama); and, (vi) meet verification standards.
  2. NV Residents: The use of high-interest loans services should be used for short-term financial needs only and not as a long-term financial solution. Customers with credit difficulties should seek credit counseling before entering into any loan transaction.

  3. OppLoans performs no credit checks through the three major credit bureaus Experian, Equifax, or TransUnion. Applicants’ credit scores are provided by Clarity Services, Inc., a credit reporting agency.

  4. Based on customer service ratings on Google and Facebook. Testimonials reflect the individual’s opinion and may not be illustrative of all individual experiences with OppLoans. Check loan reviews.

  5.  

    Rates and terms vary by state.

3 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.
4 Important Disclosures for FreedomPlus.

FreedomPlus Disclosures

  1. The loan terms presented are not guaranteed and APRs presented are estimates only. To obtain a loan you must submit additional information and documentation and all loans are subject to credit review and our approval process. The range of APRs is 7.99% to 29.99% and your actual APR will depend upon factors including your credit score, usage and history, the requested loan amount, the stated loan purpose, and the term of the requested loan. To qualify for a 7.99% 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. All loans are made by Cross River Bank and MetaBank®, N.A., Members FDIC.
* Important Disclosures for Upgrade Bank.

Upgrade Bank Disclosures

Personal loans made through Upgrade feature APRs of 5.94%-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. Accept your loan offer and your funds will be sent to your bank or designated account within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes the transaction. From the time of approval, funds should be available within four (4) business days. Funds sent directly to pay off your creditors may take up to 2 weeks to clear, depending on the creditor. Personal loans issued by Upgrade’s lending partners. Information on Upgrade’s lending partners can be found at https://www.upgrade.com/lending-partners/.

 

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