Debt Consolidation Loans for Bad Credit Rates in December 2025
Bad credit? You have options. LendingTree users with bad credit get 7+ debt consolidation loan offers on average
| Lender | User rating | APR | Term | Amount | Min. credit score | |
|---|---|---|---|---|---|---|
|
7.23% – 24.00% (Test) | 12 to 84 months | Up to $125M | Not specified | ||
|
7.99% – 35.99% | 36 to 84 months | Starting at $2k | Not specified | ||
|
7.99% – 35.99% | 24 to 84 months |
$1k – $50k |
580 |
Best debt consolidation for bad credit lenders with the lowest rates
Best for: Overall debt consolidation loans for bad credit – Upstart
The full range of available rates varies by state. A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 21.58% and a 9.84% origination fee of $984, for an APR of 26.82%. In this example, the borrower will receive $9016 and will make 60 monthly payments of $275. APR is calculated based on 5-year rates offered in December 2023. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
QA Test
- One of the lowest credit score requirements on the market
- Can get your money one day after you’re approved
- Sends money directly to your current creditors
- Only two repayment terms to choose from (12 or 84 months)
- Although you may be approved with bad credit, your rate will probably be high
- Can’t take out a loan with a second person
I shopped for personal loans with Upstart using my real personal information to better understand the application process. Here’s what I found:
- Application experience: Upstart ’s application is straightforward and clear. It has more questions than the average loan application, but these questions are tied to its AI algorithm designed to improve users’ chances of approval.
- Unusual questions to prepare for: Amounts in checking, savings and investment accounts; car payment; miles on car
If you have bad (or no) credit, lending platform Upstart is worth exploring. At just , Upstart has the lowest credit threshold of all the picks on our list. In fact, Upstart may approve you even if you don’t have any credit. Unlike other traditional lending companies, Upstart approves some borrowers who don’t have a credit history.
But if you have bad credit, you’ll likely be on the hook for a hefty origination fee and likely pay rates as high as 24.00%. You’ll also only have the option to choose between two repayment terms, whereas other lenders have multiple terms you can choose from.
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
- Employment: Have a job or job offer that starts within six months, or have regular income
- Credit-related factors: Debt-to-income (DTI) ratio no higher than 50% (45% in Connecticut, Maryland, New York and Vermont), no bankruptcies within the last year, fewer than six inquiries on your credit report in the last six months and no current delinquencies
- Credit score: + (unless you’re an eligible college student or graduate, in which case Upstart could approve you with no credit)
Best for: Getting lower rates with a secured loan – Best Egg
- Lower rates and better odds of approval using your home’s fixtures as collateral
- No risk to your home if you can’t make payments
- No additional paperwork or appraisal necessary
- Hard to sell home before you pay off your loan
- Charges one-time origination fee on every loan
I shopped for personal loans with Best Egg using my real information. Here’s what I found:
- Application experience: Best Egg asks more questions than the average lender, but its application is clear and easy to complete. Once you have offers, you can quickly click through to a loan agreement that outlines next steps and how much you’ll pay.
- Unusual questions to prepare for: Annual income for other people in your household, other types of accounts held (e.g., savings, retirement and investments), car payment, number of cash advances taken in past six months
If you’re a homeowner and looking for the lowest debt consolidation rates for your credit score, consider applying with Best Egg . Best Egg offers a homeowner discount that allows you to use your home’s fixtures (like cabinets) as collateral in exchange for lower rates and better approval odds.
Keep in mind that as long as you’re paying off your secured loan, it will be hard to sell or refinance your home since Best Egg will have a lien on your home’s fixtures.
Best Egg uses your home’s permanent fixtures as collateral, but no appraisal is needed. Instead, Best Egg will review your credit history and home equity to see if you qualify.
You must also 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: +
Best for: Stretching out your payments – Upgrade
Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 7.99%-35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% 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 $341.48. Over the life of the loan, your payments would total $12,293.46. 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 bank partners. Information on Upgrade’s bank partners can be found at https://www.upgrade.com/bank-partners/.
- Offers repayment terms as long as 84 months
- May get money within a day of accepting loan offer
- Use your car as collateral to improve your approval chances
- Get better odds of approval by adding a second person with good credit to your loan
- Keeps 1.85%-9.99% out of every loan as an origination fee
- Charges a $10 late payment fee
I shopped for personal loans with Upgrade using my real information. Here’s what I found:
- Application experience: Upgrade ’s application is very quick with few questions, and it’s easy to apply with a co-borrower — you can add their information on the first page.
- Unusual step to prepare for: Must create an account to see your rates
Lending platform Upgrade offers the longest repayment terms on our list. Longer terms mean you’ll likely pay more in interest over the life of the loan in exchange for cheaper monthly payments.
Plus, Upgrade offers joint loans. If you’re looking to consolidate debt that you and someone else have accrued together, it’s worth your time to check your rates with Upgrade . You can also put your car up as collateral with a secured loan to access lower rates.
If your score is low, you’ll likely pay a steep origination fee. Upgrade also charges $10 for missed or late payments.
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+
Bad credit debt consolidation loan rates averaging at 30.19%
Concerned about the high rate?
We have tips below to increase your approval odds and improve your credit score to lower your rate.
Debt consolidation loans for bad credit rate trends over time
Rates for borrowers with a credit score below 580 have remained under 31.00% for over a year. The average debt consolidation loan rate for bad credit on the LendingTree marketplace was 30.19% APR in October 2025.
What to know about debt consolidation loans for bad credit
It can be hard to know if a debt consolidation loan is right for you — or even if you’ll qualify for a loan that saves you money.
Debt consolidation loans help people like you combine multiple debts into one. The goal is to lower your monthly payments and the total amount of interest you pay.
If you have bad credit (FICO Score below 580), you might be wondering if you’ll even qualify. It’s possible, but you’ll need to compare the rates you’re currently paying with the ones in your offer to make sure consolidating is worth it.
Use the LendingTree debt consolidation calculator to see how much you could save with lower rates. When you get an offer, use our calculator again to see if you’ll save on the total cost of your loan.
Estimate how much you’ll save with your debt consolidation loan for bad credit rate
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How to improve your odds of qualifying for a debt consolidation loan
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What to do if you don’t qualify for a loan
Don’t qualify? You still have options. Consider the strategies below to help you manage your debt.
Debt management strategies
You can pay off your debt on your own with the right plan. Create a budget, limit your expenses and use extra money to pay off the debt. Consider different debt payoff techniques, and choose the one that works for you.
Improve your credit score
The best way to improve your chances of getting a new loan is to boost your credit score. Improving your score may take time, but using your credit responsibly can help bring your score back up. Start by making on-time payments and disputing possible errors.
Get your own credit report card for free with LendingTree Spring. We’ll show you how you’re doing on each of the factors that affect your credit, like payment history and credit utilization. Plus, we’ll give you personalized recommendations on how to improve your score.
Bankruptcy
Bankruptcy is a legal process that clears your debt under certain conditions, giving you a clean slate. The cons? You may have to give up some of your assets, and your credit will take a major hit. Bankruptcy can also affect your ability to borrow money in the future.
Debt settlement
Debt settlement services will likely hurt your credit score by encouraging you to miss payments and avoid contacting creditors while the company negotiates with them. There are risks to using these services, and you should consult a credit counselor before signing up.
Expert insights on debt consolidation loans for bad credit in 2025
Prioritize offers lower than your current rates and ideally below 36% APR, a common max for personal loans. Prequalify to get an idea of offers you could receive without touching your credit.
Should you get a debt consolidation loan if you have bad credit? If you can honestly answer “yes” to the following three questions, it’s likely a good financial move.
- Will you save money? If you have serious credit problems, you’ll likely have trouble qualifying for a good rate. Use our debt consolidation loan calculator to compare the interest rates on your current debts with your debt consolidation loan offers. (You can check your rates by prequalifying for a debt consolidation loan — it won’t affect your credit.)
- Do you have a plan to pay off the debt? Consolidation alone usually isn’t enough to help you become debt-free. But if you’re willing to follow a plan to get out of debt, a consolidation loan can be the first step in the right direction.
- Can you avoid new debt? Paying off your current debts with a consolidation loan and racking up more debt will land you in financial hot water. Make sure you’re committed to avoiding new debt, or consolidation could make your current finances even worse.
Having bad credit can make you an easy target for predatory lenders that offer payday loans or car title loans. These types of loans don’t typically require a credit check, but they come with high APRs and short repayment terms that can trap you in a cycle of debt.
Pros and cons of a debt consolidation loan for bad credit
Pros
- Save money with lower interest rates than you’re currently paying
- Can reduce the size — and number — of monthly payments
- Could improve your credit score if you can keep up with your new payments
Cons
- Hard to get low rates with bad credit
- May not qualify for a large enough loan to pay off all debts
- New hard inquiry can hurt your credit
Alternatives to consolidating debt with bad credit
Credit counseling or debt management plan
If you’ve fallen into debt, you could contact a nonprofit credit counseling agency that helps people negotiate with creditors and creates a debt management plan. Debt management plans can simplify your monthly debt payment, much like a consolidation loan does.
Credit counselors often are an affordable option relative to financing your debt, but make sure you find a credit counselor who meets your specific needs. They can also help you create a budget and teach money management skills.
Home equity loan
Sometimes you can get lower rates when you use your home as collateral. With a home equity loan or home equity line of credit (HELOC), you can use your home to finance your new loan — but watch out, because nonpayment can eventually lead to foreclosure.
Other secured loan
Using collateral like cars, bank accounts and other valuable items can help you qualify for lower rates. Secured loans will likely have better terms — but again, they come with the risk that the lender will take your asset if you stop making payments.
401(k) loan
Some companies let you borrow from your 401(k). The interest you pay goes back into your 401(k), but you can only borrow up to half of the vested amount or $50,000 (if the vested amount is higher). You might also have to pay the balance in full if you leave your job.
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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.
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Frequently asked questions
If you’re able to keep up with your loan payments, debt consolidation loans may actually improve your credit score. As you pay off your debt, you’ll show creditors that you can make payments on time. Over time, this can boost your credit score.
Different lenders have different credit score requirements. Some will require that you have a good credit score, while others will accept fair credit. The lower your credit score, the higher your APR will likely be.
Yes, you can get a debt consolidation loan with bad credit. However, you’ll likely pay high rates, and you may need to take out a secured loan or apply with a co-borrower. If you’re stuck with high rates, you can always refinance your personal loan down the road.
If you want to apply for a debt consolidation loan but have a lot of debt, getting approved may be difficult, but not impossible. For starters, check your credit score to see where you stand and work on cutting down on your debt. You can do this by using methods like the debt snowball method or the debt avalanche method.
Our methodology
LendingTree’s team of expert writers and editors reviewed more than 30 lenders and lending platforms — and shopped directly with 15 of them — to find the best debt consolidation loans for bad credit. To make our list, lenders must offer debt consolidation loans, advertise a minimum credit score of 580 or lower and cap their annual percentage rates (APRs) at 36% or lower.
According to our systematic rating and review process, the best personal loans for bad credit come from Upstart, Best Egg, Upgrade, Avant and OneMain Financial. LendingTree reviews and fact-checks our top lender picks on a monthly basis.
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.