Best Debt Consolidation Loans in September 2025
Rates starting at 6.70%
| Lender | User rating | APR | Term | Amount | |
|---|---|---|---|---|---|
|
7.50% – 35.99% (Test) | 12 to 84 months |
$100 – $1M |
||
|
6.99% – 35.99% | 36 to 60 months |
$2k – $5M |
||
|
5.00% – 24.00% | Up to 84 months | test | ||
|
7.99% – 35.99% | 24 to 84 months |
$1k – $50k |
||
|
7.99% – 24.99% | 36 to 84 months |
$2.5k – $40k |
Best debt consolidation loan lenders with the lowest rates
Best For: borrowers with bad credit: Upstart
- Don’t always need credit to qualify
- 15-day grace period for late payments
- Most applicants don’t need to send in paperwork to get an instant approval decision
- Doesn’t let you apply with another person
- Only two repayment terms to choose from
- Hefty origination fee possible
It can be hard to get a debt consolidation loan when you have bad credit. With a credit score minimum of just 300, online lending platform Upstart has one of the lowest score requirements around. You might even qualify if you have no credit (but you must have a college degree or be currently enrolled).
Still, between possible fees and a high maximum APR, getting a bad credit debt consolidation loan won’t come cheap. You also can’t get a lower rate by adding a second person to your loan (also called a joint loan).
Upstart has transparent eligibility requirements, including:
- Age: Be 18 or older
- Administrative: Have a U.S. address, personal banking account, email address and Social Security number
- Income: Have a valid source of income, including a job, job offer or another regular income source
- Credit-related factors: No bankruptcies within the last three years, reasonable number of recent inquiries on your credit report and no current delinquencies
- Credit score: 300+ (unless you’re an eligible college student or graduate, in which case Upstart could approve you with no credit)
Best For: borrowers with excellent credit: Best egg
- Loans available in as little as 24 hours
- Can change your due date
- Can set up your loan payments to be deducted bi-weekly
- All loans have an origination fee
- Must have a high income and excellent credit to get best rates
- Mobile app only works for Best Egg credit cards
You don’t have to have stellar credit to get a Best Egg loan. Still, you’ll only qualify for its best rates if you make at least $100,000 a year and have a credit score of at least 600. If you tick those boxes, you could get a debt consolidation loan with an APR as low as 7.99%.
Unlike some lenders, Best Egg charges an origination fee on all of its borrowers, not just those with troubled credit.
Read our expert Best Egg personal loan review.
You must meet the requirements below to qualify for a Best Egg loan:
- Citizenship: Be a U.S. citizen or permanent resident living in the U.S.
- Administrative: Have a personal checking account, email address and physical address
- Residency: Not live in the District of Columbia, Iowa, Vermont, West Virginia or U.S. territories
- Credit score: 600+
Best For: beating competitors’ rates: lightstream
- No fees
- Could beat competitors’ rates through its Rate Beat Program, but many stipulations apply
- If you sign your documents by 2:30 p.m. EST on a business day, you might get your loan the same day that you apply
- Won’t know if you qualify unless you take a hard credit hit
- Must borrow at least $5,000
- Must have good-to-excellent credit
A debt consolidation loan might save you money on interest, but fees can add up. Luckily, LightStream is a zero-fee company. Also, if another lender offers you a lower APR, LightStream beat it by .10 percentage points through its Rate Beat Program.
On the downside, LightStream doesn’t disclose its minimum credit score requirements and it doesn’t offer prequalification. You have to take a hard credit hit to check rates and eligibility, which could drop your score by a few points.
First, you must have good-to-excellent credit to qualify. It tends to approve those with:
- At least five years of credit history with a mix of accounts
- Assets such as savings, retirement and investment accounts
- An acceptable debt-to-income ratio
- A positive payment history with no delinquencies
Best For: debt consolidation loans overall: Upgrade
- Can use your car as collateral to get a better rate or bigger loan
- Can get a rate discount if you also open up an Upgrade-branded checking account
- Accepts credit scores as low as 580
- APR discount for allowing Upgrade to pay your creditors for you
- All loans have an origination fee
- Might find lower rates with another lender if you have excellent credit
- Won’t qualify if you have bad credit
Upgrade stands out as our pick for best debt consolidation loans for a few reasons. For one, it accepts credit scores as low as 580, so you don’t need perfect credit to qualify. Plus, you will get a rate discount if you let Upgrade pay your creditors directly on your behalf.
You also have the option of getting a secured loan by offering your car as collateral. Offering collateral can help you get a lower rate or a bigger loan. It can be risky, though, since Upgrade can repossess your car if you fall too far behind.
Upgrade’s long loan terms (24 to 84 months) can be especially handy on a debt consolidation loan. Choosing a loan with a longer term can lower your monthly payments. In trade, you will pay more interest over time. Still, the extra interest might be worth it if it makes your debt easier to manage.
Consolidating debt can also be a great time to revamp your finances as a whole. If you’re looking for a new bank, Upgrade can help with that, too.
It offers FDIC- and NCUA-insured checking accounts through Cross River Bank and other participating institutions. As long as you get at least $1,000 in direct deposits a month, you could earn benefits like rate discounts on loans and 1%-2% cash back when you use your debit card.
To qualify for a loan through Upgrade, you must meet the requirements below:
- Age: Be at least 18 years old (19 in some states)
- Citizenship: Be a U.S. citizen, permanent resident or live in the U.S. with a valid visa
- Administrative: Have a valid bank account and email address
- Credit score: 580+
Best For: easy borrowing experience: Discover
- Can manage your loan with Discover’s mobile app
- Discover will pay your creditors directly
- Customer service available seven days a week
- Won’t qualify if you have bad credit
- Doesn’t let you apply with another person
Instead of using your debt consolidation loan to pay your creditors one by one, Discover can pay them for you. You can also forget about application fees, origination fees, late fees or prepayment penalties with this lender.
In addition to having a mobile app to manage your loan, Discover accepts loan payments online, over the phone, by mail, via wire transfer or through electronic bill pay. If you run into trouble, loan specialists are available by phone every day of the week.
You’ll need to meet these eligibility criteria to get a Discover loan:
- Age: Be at least 18
- Citizenship: Have a Social Security number
- Administrative: Have a physical address, email address and internet access
- Income: Minimum income of $40,000 (individually or as a household)
- Credit score: 720+
How LendingTree works
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Take two minutes to tell us who you are and how much money you need. It’s free, simple and secure.
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Get your money
Pick a lender and sign your loan paperwork. You could see money in your account in as soon as 24 hours.
Estimate how much you can save with your debt consolidation loan rate
What is a debt consolidation loan?
A debt consolidation loan lets you combine multiple debts like credit cards, medical bills and payday loans into a single personal loan. This can simplify your budget, reduce stress and potentially save you money, depending on the rate you qualify for.
- After consolidating your debt, you will only have one bill to pay instead of several separate ones. This can help you stay organized and avoid missing due dates.
- If you’ve improved your credit score since taking the original debt, you might qualify for a lower rate on a consolidation loan.
- A lower debt payment could help you catch up on other things, like building an emergency fund or contributing more toward your retirement.
Of all the personal loan products available on the LendingTree marketplace, debt consolidation loans are the most popular. In the first quarter of 2025, 48.7% of LendingTree users seeking a personal loan did so to consolidate debt or refinance their credit cards.
Debt consolidation loan rates by credit score
Using real LendingTree marketplace data, we’ve compiled average debt consolidation rates. Find your credit band and see what you could qualify for.
| Credit score range | Average APR |
|---|---|
| 800-850 (excellent) | 11.96% |
| 740-799 (very good) | 13.62% |
| 670-739 (good) | 22.00% |
| 580-669 (fair) | 30.06% |
| 300-579 (poor) | 32.87% |
How to find a debt consolidation loan with LendingTree
1. Tell us what you need
Fill out one quick form so we can find your best offers. It takes just a few minutes, and checking rates won’t hurt your credit score.
2. Compare your offers
LendingTree has America’s largest lender network. Compare offers from up to five lenders and watch banks compete for your business.
3. Apply and win
Once you find an offer you like, it’s time to formally apply. After you get your debt consolidation loan, use it to pay off your credit cards, medical bills or most any other debt that you’re juggling.
Expert insights on debt consolidation loans in 2025
What’s one thing you wish more people knew before applying for a debt consolidation loan?
I wish people knew how profound the savings can be when debt consolidation is done right. Depending on how big your balance is, consolidation can save hundreds or even thousands of dollars over the life of that loan. That’s a big deal.
Schulz goes on to say that debt consolidation loans can be one of the most powerful weapons in the battle of debt, but that it’s still important to read the fine print and check for fees.
Is now a good time to consolidate debt?
If you have pretty good credit and multiple high-interest debts, it may be a good time to consolidate. Credit cards have variable rates that fluctuate with the market.
A consolidation loan locks you into an APR that won’t change. This could come in handy since there’s no way to know how tariffs will impact the economy and interest rates.
Push also emphasizes the importance of shopping around and comparing loans. Otherwise, she says you could be leaving money on the table.
How does debt consolidation work?
Debt consolidation doesn’t change how much you owe; it reorganizes it. Here’s the process:
- Get out your bills and figure out how much you owe. You can consolidate credit cards, medical bills and unsecured personal loans.
- Write down your interest rate on each of these bills and average them.
- Using how much you owe as a guide, shop for a debt consolidation loan. Prioritize offers that have a lower rate than your current average.
- Pick a lender (we can help with that), finalize your loan and use it to pay off your debt.
- Say goodbye to multiple bills and hello to one simple debt consolidation loan payment.
An example of how debt consolidation works
Imagine a working mom named Lisa. Even though Lisa had solid budgeting habits, she was struggling to keep up with her multiple credit card bills — all with different due dates and high interest rates. Her credit had improved from 660 to 760, and she realized she might qualify for a better deal.
Her cards were charging interest rates between 27% and 29%, averaging out to about 28%. She had $9,000 in credit card debt and was paying about $373 a month, most of which went toward interest.
Looking for a smarter option, Lisa used LendingTree to compare loan offers. She found one with a 17% interest rate (18% APR) and decided to consolidate her credit card balances into a personal loan.
The result?
- Her monthly payment dropped by $52
- She saved $1,870 in interest over three years
- And now she only has one bill to manage
Pros and cons of debt consolidation
Debt consolidation can be a powerful tool for your personal finance toolbox, but consolidating does have its drawbacks. Namely, you’ll want to slow down or stop using your credit cards after consolidating. Otherwise, you’ll be digging yourself into a larger hole. Here are some more pros and cons to think about.
PROS
- You can save money on interest when you qualify for lower rates
- Simplifies several monthly debt payments into one
- Can help you get out of debt sooner and know exactly when you’ll be debt-free
CONS
- Likely need good or excellent credit to qualify for lower rates
- Lender may keep part of your loan as an origination fee, which means you may have to borrow more
- Requires a hard credit hit, which will ding your credit score by a few points
- It won’t fix bad habits that may have led to the debt
What kind of debt can you consolidate?
You can consolidate unsecured debt, which is debt that doesn’t require collateral.
Credit card debt
Use a debt consolidation loan to stop credit card interest in its tracks.
Typically, credit card interest compounds daily. Every day, your credit card company calculates how much interest you owe on your current balance, and then adds it to what you owe. That means you’re paying interest on your interest.
Debt consolidation loans also come with interest, but it only applies to what you borrowed (your principal). Paying off your loan early generally saves interest and, as long as you stick to your payment schedule, your interest won’t grow.
Medical bills
You can also consolidate medical bills with a debt consolidation loan. Before you do, call the phone number on your bill and see if they have any financing options. Many medical billing companies offer medical loans with low- or no-interest for a certain period of time.
Also, ask for an itemized bill and review it for duplicate charges and other mistakes. Medical billing errors are more common than you might think.
Student loans
If you want to consolidate student loans, you’ll want to look for student loan refinancing. This isn’t the same as a debt consolidation loan. Most debt consolidation loan lenders don’t let you use funds for educational purposes. On the plus side, student loan refinancing tends to come with cheaper rates than debt consolidation loans.
If you have federal student loans, it’s best to keep them federal and consolidate them with a Direct Consolidation Loan. When you refinance a federal student loan with a public refinancing company, you lose borrower benefits like income-driven repayment plans.
Business debt
You’ll need a specific business debt consolidation loan to consolidate business debt. Most personal loan lenders (the kind on this list) don’t let you use their funding for business purposes. However, you may qualify for a business debt refinancing through the Small Business Administrations (SBA).
Learn more about how to get an SBA loan.
Why use LendingTree?
$2.8B in funding
In 2024 alone, LendingTree helped find funding for over $2.8 billion in personal loans.
$1,659 in savings
LendingTree users save $1,659 on average just by shopping and comparing rates.
309,000 loans
In 2024, LendingTree helped find funding for over 309,000 personal loans.
Should I get a debt consolidation loan?
It can be hard to figure out whether debt consolidation, debt relief or bankruptcy is the best solution for your unique circumstances. Using this chart can help you find the right path.
Debt consolidation vs. debt relief: What’s the difference?
Debt relief and debt consolidation aren’t the same. Knowing the difference between them can help you make the best choice.
Debt relief
Debt relief, specifically debt settlement, is a way that you can get some of your debt forgiven. If you enroll in a debt settlement program, a company will negotiate your debt on your behalf for a fee. You should only consider debt relief if you have bad credit and are very behind on your credit card bills. Credit card debt relief negatively impacts your credit score.
Debt consolidation
Debt consolidation can simplify your budget, save you interest and lower your monthly debt bill. But you have to be able to afford your debt for debt consolidation to help (not hurt). If you can’t pay your debt in full, then debt relief may make more sense.
If you are drowning in debt with no feasible way out, bankruptcy is a valid solution. It’s also one of the most drastic personal finance actions you can take. Learn more about bankruptcy vs. debt consolidation to get started.
Alternatives to debt consolidation loans
A debt consolidation loan might not be the right fit for you, and that’s OK. You do have other options.
Balance transfer credit card with 0% APR
How it works: A 0% APR balance transfer credit card consolidates credit card debt with an introductory no-interest period.
PROS
- No interest as long as you pay off your balance transfer card during the introductory period (which could last as long as 21 months)
- Non-introductory APR may still be lower than your current cards
CONS
- Variable APR that goes up and down based on the economy
- Only works for credit card debt
- Usually requires good-to-excellent credit
- May pay a 3% to 5% balance transfer fee to move the debt from your existing cards to the balance transfer card
Home equity loan
How it works: Tap into your home’s equity to pay off debt by using your home as collateral.
PROS
- Fixed interest rates, in most cases
- Payments are the same each month
- Typically lower rates than a loan that doesn’t require collateral
- May be able to consolidate a lot of debt, depending on your equity, credit score and property value
CONS
- Must be a homeowner with equity
- Can lose your home if you don’t pay
- May go underwater, which means you owe more on your home than it’s worth
- May require closing costs (2% to 5% of your loan amount)
401(k) loan
How it works: A 401(k) loan involves borrowing money from your retirement savings plan.
PROS
- No credit check
- You pay the interest back to yourself instead of losing it to a lender
- Won’t hurt your credit if you can’t pay back your 401(k) loan
CONS
- No investment growth on what you borrow until you pay it back)
- May need repay in a lump sum if you leave your job
- Taxable as income if you can’t repay
- 10% penalty if you don’t repay (unless you’re 59.5 years old or older)
Debt management plan
How it works: With the help of a certified credit counselor, create a debt management plan to repay your debt within five years.
PROS
- Free or low cost
- Credit counselor may be able to negotiate to bring down fees and interest rates
- Can consolidate many types of debt
- Promotes healthy financial habits
CONS
- Can only be used for debts that don’t require collateral
- Will probably have to stop using or close your credit cards
- Can’t open up new credit while working through the plan (which can take five years)
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Frequently asked questions
To qualify for a debt consolidation loan, most lenders require a minimum credit score — typically 580 or higher, though some lenders go as low as 300. You may also need to show proof of income, stable employment or assets and a clean credit history without recent delinquencies or bankruptcies.
Try prequalifying with lenders to check your eligibility without hurting your credit score. It can help you understand your odds before officially applying.
If you don’t qualify due to poor credit, consider alternatives:
- Secured loans (like a home equity loan), which use your property as collateral and may improve approval odds, but put your assets at risk if you default
- 401(k) loans, which don’t require a credit check, but reduce your retirement savings and must be repaid on a set timeline
It’s possible to get a debt consolidation loan with bad credit, but no loans are guaranteed. Upstart accepts scores as low as 300, and may waive these requirements for eligible college students and grads. But generally, even no-credit-check loans require you to meet some requirements, even if a minimum credit score isn’t one of them.
A debt consolidation loan can be a great way to consolidate medical bills, especially if you’re carrying the debt on a credit card.
Compared to credit cards, debt consolidation loans tend to have lower rates if you have at least good credit. Debt consolidation loans have fixed interest rates. Credit card interest rates are variable (can fluctuate with the economy) and interest typically compounds daily when you carry a balance. In other words, you pay interest on your interest.
No, you can’t consolidate student loans with other debts. But if you have more than one student loan bill, you can consolidate them by refinancing.
As a general rule, you should only consolidate federal student loans with a federal Direct Consolidation Loan. Otherwise, you’ll lose income-driven repayment plans and other protections specific to federal student loans.
Debt consolidation can affect your score in a few ways. First, most loans require a hard credit hit. Hard credit hits typically drop your score by five points or less. Also, your score can take a hit anytime you take out a new loan or card, depending on how much debt you currently have.
Many borrowers actually see a boost to their score after consolidating, especially after consolidating credit card debt. Credit card debt is included in your credit utilization ratio and loans aren’t. Credit utilization measures how much revolving debt you have available compared to how much you’re using.
Wiping out a lot of credit card debt can dramatically improve your credit utilization ratio. This may improve your “amounts owed” credit scoring factor (which makes up 30% of your FICO Score).
Whatever the initial effect on your credit score, debt consolidation can help you increase your credit score over the long term. If you choose an option with affordable payments, you can build up a healthy payment history, which is central to a good credit score.
No, you usually can’t be arrested for not paying a debt, with two exceptions. If you were sued by debt collectors and ignored a court order, the judge can issue an arrest warrant. Judges can also issue a warrant for your arrest if you don’t pay as promised on a court-ordered installment plan.
Our methodology
Accessibility. We look for lenders with fewer barriers to approval and award points for lower credit requirements, nationwide access, fast funding and simple applications.
Rates and terms. We prioritize lenders that offer low starting rates, minimal fees, flexible terms and APR discount opportunities.
Repayment experience. We choose lenders with strong reputations, convenient self-service tools, responsive support and borrower-friendly perks.
We reviewed more than 30 lenders that offer personal loans to determine the overall best nine lenders by these metrics. According to our standardized rating system, the best debt consolidation loans come from Upgrade, Upstart, Best Egg, LightStream, Discover, Happy Money, PenFed Credit Union, Achieve, SoFi and Prosper.
Why trust our methodology?
Our writers and editors dig through the facts, contact lenders directly and even go through the application process ourselves if it helps better explain what you can expect. As a Certified Financial Education Instructor℠, I’m committed to breaking down complex financial details so people can make confident, informed decisions with their money.
Jessica’s experience in editing and financial education helps shape LendingTree articles that are clear, accurate and truly useful to readers. Her certification means our recommendations are built on a foundation of consumer-first financial knowledge — not just numbers.