Compare debt consolidation loans

Control your debt and simplify your monthly payments with a debt consolidation loan.

It can be hard enough to manage debt without having to keep track of multiple creditors. A debt consolidation loan could help you streamline those multiple debts into a one fixed payment, often under a lower rate.Understand more about how consolidation frees up your budget, the types of debt you can consolidate and what to consider before you take it on. By learning how to compare your options, you can get the lowest rates and longest terms you’re eligible for — and peace of mind that comes with more manageable debt.

Prosper Personal Loan

Prosper Personal Loans

You could borrow up to $35,000 for a variety of purposes, with rates starting from 5.99%.

  • Recommended Credit Score: 640 or higher
  • Minimum Loan Amount: $2,000
  • Maximum Loan Amount: $35,000
  • Loan Term: 3 or 5 years
  • Turnaround Time: 1-3 business days
  • Simple online application process
  • No prepayment penalties

    How do I consolidate my debt with a personal loan?

    Taking out a personal loan to consolidate your debt lets you put all of your debt in one place as you work to pay off the loan, often at lower rates. One company, one monthly repayment: no more wondering who to pay first.

    The biggest advantage to a personal loan for consolidating your debt is saving on interest. If you have several credit cards for example, each with an APR of 12% or higher, you’re spending a lot more than you need to. You can save significantly by paying down that debt on personal loan with a 7% interest rate. With a lower interest rate and only one balance to keep track of, it may be easier to wipe out your debt for good.

    How debt consolidation works:

    debt consolidation diagram

    Compare personal loans for debt consolidation

    A selection of top personal loan lenders

    Use this table to compare the interest rates, loan amounts and eligibility requirements of top online lenders.

    Rates last updated July 22nd, 2017

    Find the best personal loans for you

    Answer two quick questions to get personalized recommendations on which lenders may approve your loan application.

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    Unfortunately, none of the personal loan providers offer loans for that credit score. If you are in urgent need of a small loan, you might want to consider a short term loan.
    Name Product Product Description Minimum Credit Score Max. Loan Amount APR Requirements
    Prosper Personal Loan
    Borrow only what you need for debt consolidation, home improvements, special occasions and more — with APRs based on your credit score.
    640
    $35,000
    From 5.99% (fixed)
    Must be 18+ years old, an American citizen or US permanent resident and have a 640+ credit score.
    Lending Club Personal Loan
    Borrow up to $40,000 with rates from 5.99% to 35.89% APR based on your credit score.
    660
    $40,000
    From 5.99% (fixed)
    You must be over 18 years of age, a permanent resident of the US or an American citizen and have a steady source of income.
    SoFi Personal Loan Fixed Rate (with Autopay)
    Borrow up to $100,000 with a competitive APR and no fees.
    Good to excellent credit
    $100,000
    From 5.49% (fixed)
    You must be a U.S. citizen or permanent resident 18 years or older.
    Avant
    Check your rate — without affecting your credit score — before applying for this unsecured personal loan.
    600
    $35,000
    From 9.95% (fixed)
    Examples: You must have good to excellent credit, provide proof of a steady income and be a US resident who is at least 18 years old (19 years old in Alabama).
    Payoff Personal Loans
    Pay down your debt with a fixed APR and one monthly payment.
    660
    $35,000
    From 8 to 25% (fixed)
    You must have a FICO score of 660 or higher, at least 3 years of credit history and a debt-to-income ratio of no more than 50%. You must live in a state where Payoff offers loans; check availability.
    LendingPoint Personal Loans
    Get a personal loan with reasonable rates even if you have a fair credit score in the 600s.
    620
    $20,000
    From 15.49% (fixed)
    Must have a fair credit score of 600 or better and verifiable income. Must live in a state where LendingPoint services.
    Laurel Road Personal Loans
    Get a personal loan with no application or origination fees and a rate discount for autopay.
    680
    $45,000
    From 5.5% (fixed)
    Must be a US citizen or permanent resident with a valid I-551 card
    OneMain Financial Personal Loans
    Get a personal or auto loan with a quick and easy application and dedicated customer support.
    600
    $25,000
    From 12.99% (fixed)
    Eligibility for a loan is determined by your financial history, credit history, income and expenses, and whether or not you have ever filed for bankruptcy.

    Compare up to 4 providers

    A selection of brokers

    One way to make sure you’re getting the best rate is to let a broker find a competitive rate for you.

    Rates last updated July 22nd, 2017
    Name Product Minimum Credit Score Max. Loan Amount APR Product Description
    LendingTree Personal Loan
    Good to excellent credit
    $35,000
    From 5.99% (fixed)
    Receive up to five loan offers in just minutes through LendingTree's simple online application process.
    LoanStart.com Personal Loans
    Varies by lender
    $35,000
    From 4.84% (fixed)
    This no-obligation service matches you with lenders offering fast peer-to-peer, personal installment and bank personal loans.
    PersonalLoans.com
    Varies by lender
    $35,000
    From 5.99% (fixed)
    Get matched with providers from a large network of banks, peer-to-peer marketplaces and direct lenders.

    Compare up to 4 providers

    What can I do to consolidate debt at a low interest rate?

    How can I find the right loan to consolidate my debt?

    Finding the right loan to consolidate your debt requires you to compare different features of personal loans for debt consolidation. You can consider the following:

    • Eligibility. Many lenders provide debt consolidation loans only to individuals with good or excellent credit scores. You usually have to meet additional eligibility criteria such as a low debt-to-income ratio, a minimum annual income and minimum length of credit history.
    • Interest. Loans come with interest, which lenders commonly advertise as annual percentage rate (APR). Bear in mind that even a seemingly small difference in percentage can have a significant effect on the total interest payable, especially if you’re borrowing a large sum. For this reason, be sure to find a low interest personal loan. To save money on interest after you’ve taken out a loan, you can pay off the loan early.
    • Fees. Prepare to pay fees in different forms. Examples include loan establishment fees, late fees and prepayment penalties.
    • Loan term. How long you take to repay your loan contributes to how much you pay as interest. While a longer loan term would have lower payments, it would also have you paying more interest.

    Ava wants to get out of debt for good

    woman-on-computer-internet-mobile-telco-featured-imageAva’s fed up with the high interest rates she’s currently paying on her credit card and personal loan. Her credit card, issued by her primary bank, has a $11,500 balance with a 21.99% APR. She took out a $6,000 personal loan to pay for relocation expenses when she moved cross-country. But she didn’t get the best deal on it — she pays over $200 each month at an 18.25% APR for a 3-year term.

    Ava wants to get out of debt faster but finds that even a $700 monthly payment on her credit card isn’t reducing the balance fast enough because of the compounding interest. She decides to search the Web for options and learns about debt consolidation loans. Because her credit score had improved since she last applied for credit, she knew she’d qualify for a more competitive interest rate now.

    After comparing her options, Ava decided on an online personal loan and completed the application in just several minutes. She was approved for a $21,500 debt consolidation loan at a 5.99% APR for a 3-year term. The money was deposited into her bank account within two business days after approval. Ava now makes one monthly payment of $653.97 and will be debt-free in three years.

    What kinds of debt can I consolidate?

    Make sure that when you’re applying for a personal loan that the APR is not higher than what you’re already paying. The interest rate is where you will see the savings. People generally consolidate these three kinds of debts:

    • Credit card debt. Having multiple credit cards requires that you keep track of making timely payments towards each, which can be cumbersome. Many credit cards also charge noticeably high APRs.
    • Personal loans. If you have multiple personal loans, you can think about bringing them under a single umbrella. Depending on your existing financial situation and creditworthiness, you may qualify for a more competitive interest rate on a debt consolidation loan.
    • Private student loans. While consolidation of federal student loans isn’t common, you can usually consolidate private student loans. Learn more about different options for managing student loans.
    • Business loan debt. Some business lenders offer debt consolidation loans as well to help you improve your cash flow by simplifying multiple payments into one.

    open field flag debt consolidation

    What should I consider before applying?

    Some people who opt for debt consolidation don’t have solid plans in place on how they will repay, and many still don’t pay enough attention to saving. If you’re consolidating your debt, it’s important that you pay close attention to the new credit you’re accumulating.

    It’s important to try to formulate and stick to a budget. If you’re paying lower payments, figure out if it’s because of a lower interest rate or an extended loan term. If you’re making smaller payments on account of a longer loan term, remember that you’ll end up paying more in interest over the course of the loan.

    What other options do I have for debt consolidation?

    The best type of debt consolidation option depends on the kind of debt you have and how much you owe. Your primary alternatives include:

    • Credit card balance transfer. If you have existing credit card debt that comes with high interest, you can look into getting a balance transfer credit card. These cards charge little to no interest on balance transfers during the introductory period, letting you consolidate credit card debt easily.
    • Secured loans and lines of credit. There are lenders that let you borrow against the equity you’ve built in your home, the value of your car or certificate of deposit. By getting a secured loan you can get a lower interest rate. The downside is you risk losing your asset if you cannot repay the loan in a timely manner.
    • Student loan consolidation. There are several lenders who specialize in student loan refinancing, including SoFi and LendEdu. If you’re only consolidating student loan debt, this may be an option to consider.

    Frequently asked questions about debt consolidation

    This refers to negotiating with a lender to reduce the balance you owe. After the settlement, the lender would render your debt as paid in full.
    Some lenders provide debt consolidation loans to individuals with less than perfect credit. In these cases, the APR you qualify for may not be as low as for someone with better credit. One option to consider is getting an installment loan. These loans tend to come with more lenient eligibility criteria, and some may offer amounts high enough to consolidate your debt.
    No. You can only transfer your existing debts to new loans that you take out in your own name.

    Some lenders offer loans with no prepayment penalties. If you’re interested in that feature, be sure to check that the lender you’re considering offers it.

    Consolidating your debt is a financial move that’s likely to increase your credit score. As you pay down your debt faster, your credit utilization ratio will go down, thus enhancing that factor in your credit score. Also, you’re establishing more payment history and possibly diversifying your credit mix — both of which are also factors that go into your credit score.

    Keep in mind that the lender will likely conduct a hard check on your credit report before finalizing your loan offer. A hard credit check could cause a temporary ding in your credit score.

    Debt relief is the forgiveness of part or all of an existing (usually overdue) balance. Debt consolidation doesn’t change your loan principal amount but rather uses a new loan to simplify your payments and possibly save you money on interest.

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    US Personal Loans Offers

    Learn about our information service
    Lending Club Personal Loan

    Borrow up to $40,000 with rates from 5.99% to 35.89% APR based on your credit score.

    Prosper Personal Loan

    Borrow only what you need for debt consolidation, home improvements, special occasions and more — with APRs based on your credit score.

    Upstart Personal Loans

    This newer service looks beyond your credit score to match you with accredited investors for low-rate personal loans.

    PersonalLoans.com

    Get matched with providers from a large network of banks, peer-to-peer marketplaces and direct lenders.

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