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Updated 2022-11-01T18:24:04Z Generally, you'll need a
personal loan for debt consolidation, which means replacing multiple loans with a single loan instead. Best debt consolidation loans Wells Fargo Personal Loan Lightstream Debt Consolidation Loan SoFi Personal Loan Payoff Loan™ Avant Personal Loan Upgrade Personal
Loan Marcus Personal Loan Discover Personal Loans Chevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options. Chevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options. Editor's rating 3/5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star Regular Annual Percentage Rate (APR) 5.99% to 21.74% (with relationship discount) Editor's rating 4/5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star Regular Annual Percentage Rate (APR) 6.99% to 21.99% (with AutoPay) $5,000 to $100,000 (for excellent credit) Editor's rating 4.25/5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star Regular Annual Percentage Rate (APR) 7.99% - 23.43% (with all discounts) Editor's rating 3.5/5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star Regular Annual Percentage Rate (APR) 7.99% - 24.99% APR Editor's rating 3.75/5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star Regular Annual Percentage Rate (APR) 9.95% to 35.95% Editor's rating 3.5/5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star Regular Annual Percentage Rate (APR) 7.46% to 35.97% Editor's rating 4.25/5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star Regular Annual Percentage Rate (APR) 6.99% to 24.99% Editor's rating 4/5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star Regular Annual Percentage Rate (APR) 6.99% to 24.99% Most personal loan lenders ask about loan purpose when starting the application process, and personal loans for debt consolidation often have higher interest rates than other personal loans and other loan types. Wells Fargo
Wells Fargo Personal Loan Fees Up to $39 late payment fee Regular Annual Percentage Rate (APR) 5.99% to 21.74% (with relationship discount) Wells Fargo Personal Loan Fees Up to $39 late payment fee Regular Annual Percentage Rate (APR) 5.99% to 21.74% (with relationship discount) Wells Fargo Personal LoanDetailsRegular Annual Percentage Rate (APR) 5.99% to 21.74% (with relationship discount) Fees Up to $39 late payment fee Pros & ConsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Check mark iconA check mark. It indicates a confirmation of your intended interaction. Large maximum loan amounts Check mark iconA check mark. It indicates a confirmation of your intended interaction. Discounts for current customers Check mark iconA check mark. It indicates a confirmation of your intended interaction. Established brick-and-mortar lender Check mark iconA check mark. It indicates a confirmation of your intended interaction. No origination fee or prepayment penalty Dash iconA dash. It often indicates an interaction to shrink a section. Significant late fees Dash iconA dash. It often indicates an interaction to shrink a section. History of mismanaging customer information Dash iconA dash. It often indicates an interaction to shrink a section. No online applications for non-customers HighlightsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.
Additional ReadingChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Flexibility makes Wells Fargo a top contender for best personal loans for debt consolidation. Wells Fargo separates debt consolidation loans from personal loans, but the interest rates are the same. Benefits include competitive interest rates and an autopay discount of 0.25% if payments are made from a Wells Fargo account. For unsecured personal loans, the most common type for debt consolidation, there are no origination or prepayment fees. Wells Fargo can send your loan funds to your Wells Fargo bank account, or to a credit account outside of Wells Fargo to pay down your debts directly. Watch out for: Wells Fargo's history with data security and compliance. The bank has faced several federal penalties for improper customer referrals to lending and insurance products, and security issues tied to creating fake accounts several years ago. Read Insider's full review of Wells Fargo. Lightstream Debt Consolidation LoanLightStream Personal Loan Regular Annual Percentage Rate (APR) 5.99% to 21.49% with AutoPay (Rates as of 10/25/2022. Rates vary by loan purpose.) LightStream Personal Loan Regular Annual Percentage Rate (APR) 5.99% to 21.49% with AutoPay (Rates as of 10/25/2022. Rates vary by loan purpose.) LightStream Personal LoanDetailsRegular Annual Percentage Rate (APR) 5.99% to 21.49% with AutoPay (Rates as of 10/25/2022. Rates vary by loan purpose.) Pros & ConsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Check mark iconA check mark. It indicates a confirmation of your intended interaction. Competitive APR Check mark iconA check mark. It indicates a confirmation of your intended interaction. Approval decisions should come shortly after applying Check mark iconA check mark. It indicates a confirmation of your intended interaction. Loans can be funded the same day Check mark iconA check mark. It indicates a confirmation of your intended interaction. Wide range of borrowing amounts and terms Check mark iconA check mark. It indicates a confirmation of your intended interaction. No fees Dash iconA dash. It often indicates an interaction to shrink a section. Only available to people with good credit Dash iconA dash. It often indicates an interaction to shrink a section. No pre-approval option
HighlightsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.
Additional ReadingChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Lightstream is a highly regarded lender for many loan types, and has been a top pick across Insider's coverage of the best personal loans and best auto loans. However, this lender only works with borrowers with good or better credit, with a minimum credit score requirement of 660. LightStream offers consistently competitive interest rates, though its minimum interest rate for debt consolidation is higher than its typical personal loan's interest rates. However, this lender does not have any prepayment or origination fees. Same-day funding is available with LightStream. Watch out for: Maximum loan amount limits. Only borrowers with excellent credit can borrow the $100,000 maximum, and anyone without excellent credit may not qualify for the full amount. LightStream defines excellent credit history as an account with five or more years of credit history, stable and sufficient income for debts, and a variety of credit history with little or no credit card debt. If you're looking for a debt consolidation loan, chances are you have a significant amount of debt, and may not fit these qualifications. Additionally, LightStream doesn't have a way to pre-qualify online. You'll have to apply for the loan to find out exactly what your rates and terms could look like, which could make comparison shopping difficult. Read Insider's full review of Lightstream. SoFiRegular Annual Percentage Rate (APR) 7.99% - 23.43% (with all discounts) Regular Annual Percentage Rate (APR) 7.99% - 23.43% (with all discounts) SoFi Personal LoanDetailsRegular Annual Percentage Rate (APR) 7.99% - 23.43% (with all discounts) Fixed rates from 7.99% APR to 23.43% APR APR reflect the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi rate ranges are current as of 8/22/22 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. Lowest rates reserved for the most creditworthy borrowers. 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, 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. Show more Pros & ConsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Check mark iconA check mark. It indicates a confirmation of your intended interaction. High maximum loan limit Check mark iconA check mark. It indicates a confirmation of your intended interaction. Unemployment protection Check mark iconA check mark. It indicates a confirmation of your intended interaction. No fees Check mark iconA check mark. It indicates a confirmation of your intended interaction. Competitive APR Dash iconA dash. It often indicates an interaction to shrink a section. High minimum credit score requirement Dash iconA dash. It often indicates an interaction to shrink a section. High minimum loan amount Dash iconA dash. It often indicates an interaction to shrink a section. No in-person support HighlightsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.
Additional ReadingChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.A SoFi personal loan is the best option for anyone with a high balance, as this lender makes debt consolidation loans of up to $100,000. Debt consolidation loans from this lender are comparable in rates to those offered by LightStream, but SoFi offers higher loan limits to all applicants, whereas LightStream only allows some borrowers to borrow up to $100,000. Similarly, SoFi doesn't have any application, origination, or prepayment fees. SoFi offers unique features like unemployment protection, which could put loans in forbearance for up to three months if you find yourself out of work. Watch out for: Stringent requirements. SoFi personal loans have a minimum credit score of 680. According to NerdWallet, the average income among borrowers is over $100,000. Read Insider's full review of SoFi. PayoffFees Origination fee between 0% and 5% Regular Annual Percentage Rate (APR) 7.99% - 24.99% APR Fees Origination fee between 0% and 5% Regular Annual Percentage Rate (APR) 7.99% - 24.99% APR On Happy Money®'s website Payoff Loan™On Happy Money®'s website DetailsRegular Annual Percentage Rate (APR) 7.99% - 24.99% APR Fees Origination fee between 0% and 5% Pros & ConsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Check mark iconA check mark. It indicates a confirmation of your intended interaction. Competitive interest rates Check mark iconA check mark. It indicates a confirmation of your intended interaction. No prepayment or late fees Check mark iconA check mark. It indicates a confirmation of your intended interaction. Low minimum credit score requirement Dash iconA dash. It often indicates an interaction to shrink a section. Origination fees Dash iconA dash. It often indicates an interaction to shrink a section. Slow access to funds Dash iconA dash. It often indicates an interaction to shrink a section. Limited loan purpose Dash iconA dash. It often indicates an interaction to shrink a section. Not available in all states HighlightsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.
In the fair credit range, it can be tough to qualify for a personal loan with reasonable interest rates — many lenders have a minimum of 660 or 680. However, a Happy Money Payoff Loan™ could be a good option for people with credit scores as low as 640. Interest rates are comparable to those offered by LightStream and SoFi, but this lender has less stringent requirements. Compared with competitors Prosper and Best Egg, which both have the same 640 minimum credit score requirement, Payoff's interest rates are capped lower, and could have lower origination fees. Watch out for: Origination fees. Payoff offers loans with origination fees ranging from 0% to 5%. Competing lenders Prosper and Best Egg charge minimum 2.41% and 0.99% origination fees, respectively. The better deal will depend on your credit score, income, and repayment term. Read Insider's full review of Payoff. AvantFees Administration fee up to 4.75%, undisclosed late fee and returned payment fee Regular Annual Percentage Rate (APR) 9.95% to 35.95% Fees Administration fee up to 4.75%, undisclosed late fee and returned payment fee Regular Annual Percentage Rate (APR) 9.95% to 35.95% Avant Personal LoanDetailsRegular Annual Percentage Rate (APR) 9.95% to 35.95% Fees Administration fee up to 4.75%, undisclosed late fee and returned payment fee Pros & ConsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Check mark iconA check mark. It indicates a confirmation of your intended interaction. Funds generally deposited by the next business day Check mark iconA check mark. It indicates a confirmation of your intended interaction. No prepayment penalty Dash iconA dash. It often indicates an interaction to shrink a section. Multiple types of fees Dash iconA dash. It often indicates an interaction to shrink a section. High maximum APR Dash iconA dash. It often indicates an interaction to shrink a section. Low maximum loan limit HighlightsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.
Additional ReadingChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.With bad credit, a personal loan for debt consolidation can be expensive, or hard to qualify for. An Avant personal loan is the best bet for borrowers with poor credit, requiring a minimum credit score of 600. Compared with other personal loan lenders offering debt consolidation loans for bad credit borrowers, Avant's terms are the most generous. While there is an administration fee, it could be lower than competitors' fees with a cap at 4.75%. Avant also has the advantage of quick, next-day funding available. Watch out for: High rates with a low credit score. While Avant is accessible to borrowers with poor credit scores, approval might go hand in hand with high interest rates on your loan. Read Insider's full review of Avant. UpgradeFees Origination fee between 1.85% and 8.00% and a late fee of up to $10 Regular Annual Percentage Rate (APR) 7.46% to 35.97% Fees Origination fee between 1.85% and 8.00% and a late fee of up to $10 Regular Annual Percentage Rate (APR) 7.46% to 35.97% Upgrade Personal LoanDetailsRegular Annual Percentage Rate (APR) 7.46% to 35.97% Fees Origination fee between 1.85% and 8.00% and a late fee of up to $10 Pros & ConsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Check mark iconA check mark. It indicates a confirmation of your intended interaction. Small minimum loan amount Check mark iconA check mark. It indicates a confirmation of your intended interaction. Quick access to funds Check mark iconA check mark. It indicates a confirmation of your intended interaction. Low minimum credit score Dash iconA dash. It often indicates an interaction to shrink a section. Origination and late fees Dash iconA dash. It often indicates an interaction to shrink a section. Not available in all states
HighlightsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.
Additional ReadingChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Upgrade is great for fast cash because it allows you to get your money within one business day after your loan is reviewed and approved. You're also able to get a loan for as little as $1,000, which is less than many of the other competitors on our list. It could be a good choice if you only have a small amount of debt you need to consolidate. What to watch out for: Origination and late fees. Your origination fee will be between 2.90% and 8%, and you'll pay a late fee of as much as $10 if you don't make a full payment within 15 days of your due date. Read Insider's full review of Upgrade. Marcus by Goldman SachsRegular Annual Percentage Rate (APR) 6.99% to 24.99% Regular Annual Percentage Rate (APR) 6.99% to 24.99% On Goldman Sachs's website Marcus Personal LoanOn Goldman Sachs's website DetailsRegular Annual Percentage Rate (APR) 6.99% to 24.99% Pros & ConsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Check mark iconA check mark. It indicates a confirmation of your intended interaction. No fees Check mark iconA check mark. It indicates a confirmation of your intended interaction. Low minimum APR Check mark iconA check mark. It indicates a confirmation of your intended interaction. On-time payment reward Check mark iconA check mark. It indicates a confirmation of your intended interaction. Application can be completed in several minutes Dash iconA dash. It often indicates an interaction to shrink a section. Low maximum loan amount Dash iconA dash. It often indicates an interaction to shrink a section. Can't add co-borrower to application HighlightsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.
Marcus by Goldman Sachs is a great fee-free option for borrowers who can make on-time payments to qualify for the company's reward program. If you pay your loan on time and in full every month for one year, you can forgo a month of payments, and interest will not accrue during that period. Marcus will then extend your loan by one month. Marcus by Goldman Sachs also has very competitive APRs on its loan products. What to watch out for: Unable to add a co-borrower to your application. If your creditworthiness isn't in the best shape and you're hoping to add a co-borrower to boost your chances of approval, you won't be able to do so with Marcus. Read Insider's full review of Marcus by Goldman Sachs. DiscoverRegular Annual Percentage Rate (APR) 6.99% to 24.99% Regular Annual Percentage Rate (APR) 6.99% to 24.99% Discover Personal LoansDetailsRegular Annual Percentage Rate (APR) 6.99% to 24.99% Pros & ConsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Check mark iconA check mark. It indicates a confirmation of your intended interaction. N/A Dash iconA dash. It often indicates an interaction to shrink a section. N/A HighlightsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.
Discover offers a 30-day money-back guarantee. You can send back your funds by check if you decide within 30 days of receiving your loan that you no longer want it. You won't be charged any interest. The lender also has a relatively low minimum APR when compared with other personal loan companies. What to watch out for: Late fee. Discover may charge a late fee of up to $39, so if you're worried about potentially missing a payment the lender might not be the best choice for you. Read Insider's full review of Discover. Other personal loans we considered
Which lender is the most trustworthy?We've compared each institution's Better Business Bureau score to give you another piece of information to choose your lender. The BBB measures businesses based on factors like their responsiveness to customer complaints, honesty in advertising, and transparency about business practices. Here is each company's score: With the exception of Wells Fargo, our top picks are rated A+ by the BBB. Keep in mind that a high BBB score does not guarantee a positive relationship with a lender, and that you should continue to do research and talk to others who have used the company to get the most complete information possible. The BBB does not have a rating for Wells Fargo as the company responds to previously closed complaints. Previously, the organization gave Wells Fargo an F rating. In the past few years:
If you're uncomfortable with this history, you may want to use one of the other personal loan lenders on our list. MethodologyTo find the best personal loans for debt consolidation, we combed through the fine print and terms of about a dozen personal loans to find the ones that were best suited to help with consolidating debt. We considered four main features:
Frequently asked questionsWhy trust our recommendations?Personal Finance Insider's mission is to help smart people make the best decisions with their money. We understand that "best" is often subjective, so in addition to highlighting the clear benefits of a financial product, we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don't have to. Debt consolidation takes all sorts of debts, including credit cards, medical debt, or typically any other type of unsecured debt, and rolls it into one loan. To consolidate debt, you get a loan from one lender for the total amount of debt you'd like to combine. Then, you use those funds to pay off the individual, smaller debts. At the end, you have all of your debt rolled into one monthly payment, one deadline for debt repayment, and a smaller interest rate. Most personal loans allow a variety of uses, and while most include credit card consolidation or debt consolidation, not all do. Make sure to read the fine print of any personal loan you're applying for, and make sure that debt consolidation is an acceptable use of your loan. All of the loans we considered had an option to use the loan for debt consolidation, if not a separate loan, which we included details for.
Liz Knueven Personal Finance Reporter Liz was a reporter at Insider, primarily covering personal-finance topics. Before joining Insider, she wrote about financial and automotive topics as a freelancer for brands like LendingTree and Credit Karma. She earned her bachelor's degree in writing from The Savannah College of Art and Design. She lives and works in Cincinnati, Ohio. Find her on Twitter at @lizknueven. Read more Read less
Ryan Wangman is a reporter at Personal Finance Insider reporting on personal loans, student loans, student loan refinancing, debt consolidation, auto loans, RV loans, and boat loans. He is also a Certified Educator in Personal Finance (CEPF). In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership. He graduated from Northwestern University and has previously written for The Boston Globe. Learn more about how Personal Finance Insider chooses, rates, and covers financial products and services here >> Read more Read less Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Read our editorial standards. Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available. **Enrollment required. Related articlesLoadingSomething is loading. Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. More... Do consolidation loans have low interest rates?Debt consolidation loans typically have interest rates from 6 percent to 36 percent. The actual rate you will qualify for depends on your credit history, annual income and debt-to-income ratio.
What kind of loan do I need to consolidate debt?Two additional ways to consolidate debt are taking out a home equity loan or 401(k) loan. However, these two options involve risk — to your home or your retirement. In any case, the best option for you depends on your credit score and profile, as well as your debt-to-income ratio.
Does it hurt your credit score if you consolidate debt?Debt consolidation — combining multiple debt balances into one new loan — is likely to raise your credit scores over the long term if you use it to pay off debt. But it's possible you'll see a decline in your credit scores at first. That can be OK, as long as you make payments on time and don't rack up more debt.
Where is the best place to consolidate debt?Best Debt Consolidation Loans of November 2022. Upgrade: Best overall.. Marcus, SoFi: Best for no fees.. Happy Money: Best for paying off credit card debt.. LightStream: Best for low rates.. Universal Credit: Best for bad credit.. Best Egg: Best for secured loan option.. Discover: Best for fast funding.. |
Best low interest personal loans for debt consolidation
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