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Best debt consolidation loans of March 2024

What are the top debt consolidation loans? Hint: They have low starting APRs.

Debt consolidation loans are personal loans designed to help pay down credit cards and other consumer debts. With fixed rates as low as 7.49% APR, these loans can help you save on interest and simplify your finances with a single monthly payment. Debt consolidation can also improve your credit score.

Consolidating your debt may be a good choice if you’re among the 38% of consumers that have three or more credit cards as revealed by Finder’s Consumer Confidence Index. But these loans may be harder to qualify for now due to relatively high interest rates. You’ll need near-perfect credit and solid employment to get the most competitive deal.

But if you can qualify for a good rate, debt consolidation may be worth it. The effective federal funds rate — the rate that determines the rate on your credit cards and other loans — is sitting at 5.33% as of March 1, 2024.

11 best debt consolidation loans

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Best overall

Discover personal loans

4
★★★★★

Finder score

Read review
Min. credit score660
APR7.99% to 24.99%
Loan amount$2,500 to $40,000
  • Available in all states

Best for recent college graduates

Upstart personal loans

4.2
★★★★★

Finder score

Go to site Read review
Min. credit score300
APR7.40% to 35.99%
Loan amount$1,000 to $50,000
  • Not available in: Connecticut, Iowa, Maine, Maryland, Nevada, New York, Oklahoma, Oregon, West Virginia

Best for bad credit

OneMain Financial personal loans

3.4
★★★★★

Finder score

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Min. credit scoreNot specified
APR18% to 35.99%
Loan amount$1,500 to $20,000
  • Not available in: Alaska, Arkansas, Connecticut, Massachusetts, Rhode Island, Vermont
* OneMain Disclosures:

Not all applicants will be approved. 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). If approved, not all applicants will qualify for larger loan amounts or most favorable loan terms. 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. Loan approval and actual loan terms depend on your state of residence and your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). APRs are generally higher on loans not secured by a vehicle. Highly-qualified applicants may be offered higher loan amounts and/or lower APRs than those shown above. OneMain charges origination fees where allowed by law. 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 $500. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Visit omf.com/loanfees for more information. Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; 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. North Dakota: $2,000. 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. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.

Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07.

Time to Fund Loans: Funding within one hour after closing through SpeedFunds must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after loan closing.

Best for coapplicants

Achieve personal loans

3.4
★★★★★

Finder score

Go to site Read review
Min. credit score620
APR8.99% to 29.99%
Loan amount$5,000 to $50,000
  • Available in: Alabama, Alaska, Arizona, Arkansas, California, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington

Best for low monthly payments

LightStream personal loans

4.8
★★★★★

Finder score

Go to site Read review
Min. credit scoreGood to excellent credit
APR6.99% to 25.29%
Loan amount$5,000 to $100,000
  • Not available in: Iowa, West Virginia
*Payment example: Monthly payments for a $10,000 loan at 5.95% APR with a term of 3 years would result in 36 monthly payments of $303.99.

Truist Bank is an Equal Housing Lender. © 2020 Truist Financial Corporation. SunTrust, Truist, LightStream, the LightStream logo, and the SunTrust logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.

Best for comparing lenders

MoneyLion personal loans

4.2
★★★★★

Finder score

Go to site
Min. credit scoreVaries by lender
APRVaries by lender
Loan amount$500 to $100,000
  • Not available in: Colorado, Connecticut, New York, Vermont, West Virginia

Best for customer service

Best Egg personal loans

3.8
★★★★★

Finder score

Go to site Read review
Min. credit score640
APR7.99% to 35.99%
Loan amount$2,000 to $50,000
  • Not available in: Iowa, Vermont, West Virginia
*Trustpilot TrustScore as of December 2022. Best Egg loans are personal loans made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender or Blue Ridge Bank, N.A., Member FDIC, Equal Housing Lender. The Best Egg Credit Card is issued exclusively by First Bank & Trust, Member FDIC, Brookings SD pursuant to a license by Visa International. Visa is a registered trademark, and the Visa logo design is a trademark of Visa International Incorporated. “Best Egg” is a trademark of Best Egg Technologies, LLC. Offers may be sent pursuant to a joint marketing agreement between Cross River Bank, Blue Ridge Bank, N.A. and/or First Bank & Trust and Marlette Marketing, LLC, a subsidiary of Best Egg, Inc.

The term, amount, and APR of any loan we offer to you will depend on your credit score, income, debt payment obligations, loan amount, credit history and other factors. Your loan agreement will contain specific terms and conditions. About half of our customers get their money the next day. After successful verification, your money can be deposited in your bank account within 1-3 business days. The timing of available funds upon loan approval may vary depending upon your bank’s policies. Loan amounts range from $2,000– $50,000. Residents of Massachusetts have a minimum loan amount of $6,500 ; Ohio, $5,001; and Georgia, $3,001.

For a second Best Egg loan, your total existing Best Egg loan balances cannot exceed $100,000. Annual Percentage Rates (APRs) range from 8.99%–35.99%. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0.99%–8.99% of your loan amount, which will be deducted from any loan proceeds you receive. The origination fee on a loan term 4-years or longer will be at least 4.99%. Your loan term will impact your APR, which may be higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest APR. For example: a 5‐year $10,000 loan with 9.99% APR has 60 scheduled monthly payments of $201.81, and a 3‐year $5,000 loan with 7.99% APR has 36 scheduled monthly payments of $155.12. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents. Best Egg products are not available if you live in Iowa, Vermont, West Virginia, the District of Columbia, or U.S. Territories. TO REPORT A PROBLEM OR COMPLAINT WITH THIS LENDER, YOU MAY WRITE OR CALL–Operations Manager, Email: crt-resolutions@bestegg.com, Address: P.O. Box 42912, Philadelphia, PA 19101, Phone: 1-855-282-6353. This lender is licensed and regulated by the New Mexico Regulation and Licensing Department, Financial Institutions Division, P.O. Box 25101, 2550 Cerrillos Road, Santa Fe, New Mexico 87504. To report any unresolved problems or complaints, contact the division by telephone at (505) 476-4885 or visit the website https://www.rld.nm.gov/financial-institutions/

Best for smaller loan amounts

PenFed Credit Union personal loans

3.6
★★★★★

Finder score

Read review
Min. credit score580
APR8.99% to 17.99%
Loan amount$600 to $50,000
  • Available in all states

Best for member perks

SoFi personal loans

4.4
★★★★★

Finder score

Go to site Read review
Min. credit score680
APR8.99% to 29.49% fixed APR
Loan amount$5,000 to $100,000
  • Available in all states
Fixed rates from 8.99% APR to 29.99% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 3/06/23 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. 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. Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive. Autopay: 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. Autopay is not required to receive a loan from SoFi. Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.

Best for line of credit

Tally+ Express Line of Credit

3.7
★★★★★

Finder score

Read review
Min. credit score660
APR7.90% to 29.99%
Loan amount$2,000 to $20,000
  • Available in: Arkansas, California, Colorado, Connecticut, District of Columbia, Florida, Georgia, Idaho, Illinois, Iowa, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New Mexico, New York, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Washington, Wisconsin

Best for a HELOC

U.S. Bank

Read review
Min. Credit Score660
Fixed Rate OptionYes
Annual Fee$75
APR8.95% to 13.10%

Methodology: How we choose the best debt consolidation lenders

Finder’s editorial experts review more than 120 personal loans on the market to narrow down the best for consolidating high-interest credit cards and other debt. For other options, we also looked at providers offering home equity lines of credit, given HELOCs are a common personal loan alternative for debt consolidation.

We weigh each lender across 16 key metrics:

  • Minimum APR
  • Maximum APR
  • Origination fees
  • Minimum loan amount
  • Maximum loan amount
  • Minimum loan term
  • Maximum loan term
  • Number of states served
  • Minimum credit score
  • Joint application availability
  • Turnaround time
  • Online application availability
  • Prequalification process
  • BBB ratings
  • Trustpilot ratings
  • Other features, such as rate discounts

We update our best picks as lending products change, disappear or emerge in the market. We also regularly review and revise our selections to make sure that our best provider lists reflect the most competitive products available.

Compare other loan options

What is a debt consolidation loan and how does it work?

Debt consolidation loans are personal loans that combine two or more debts into a fixed-rate loan with one monthly payment. Lenders also use the term debt consolidation to refer to debt refinancing, where you use the loan to pay off one credit account.

Debt consolidation loans offer fixed interest rates that are lower than credit cards on average, helping you to save on interest, manage your repayments and create a pathway out of debt. They can also improve your credit score by diversifying the types of credit accounts on your credit report, adding to your history of on-time payments and lowering your credit utilization ratio — the amount of credit you’re using versus the amount of credit available to you.

When you apply, have a list of the accounts you want to consolidate along with the payoff amount — how much you’ll owe when the lender disburses the funds. If approved, your lender will either pay off your creditors directly or transfer your funds into your bank account so that you can pay off your creditors.

You can consolidate almost any unsecured debt, including credit cards, personal loans, medical bills or short-term loans like payday or installment loans.

While you can’t use a personal loan to consolidate student debt in most cases, you can refinance federal and private loans with a student loan provider. If you have federal loans, you can also work with your loan servicer directly to apply for student loan consolidation. Federal loan consolidation works by combining all of your loans into one with a rate that’s an average of the interest rates you’re currently paying.

When debt consolidation makes sense (and when it doesn’t)

Debt consolidation doesn’t reduce the amount of debt you currently owe — but if you can get a low rate, it can reduce interest charges and make your monthly budget easier to manage.

Debt consolidation loans can make sense if:

  • You can qualify for a lower rate than what you’re paying across existing debts.
  • The debt consolidation loan has a monthly payment you can easily afford.
  • Your monthly bills are less than 50% of your monthly income.
  • You want to close accounts but need to pay off balances first.
  • It will take you two to five years to pay off your existing unsecured debt.

Debt consolidation loans may not make sense if:

  • You’ll pay more interest with the debt consolidation loan than if you were to keep your accounts separate.
  • You have poor credit and can’t qualify for a low interest rate on a personal loan.
  • You’re at risk of accumulating more debt after you consolidate.
  • You can pay off your existing unsecured debt in less than a year or two.

How to get a debt consolidation loan

If you have good credit, an unsecured personal loan may be the simplest way to consolidate your debt. You could use a credit card or home equity loan, but credit cards can come with high rates. And to get a home equity loan, you need to have built up at least 20% of equity in your home.

Here are five steps to getting a personal loan to consolidate your debt:

  1. Get an estimate of your payoff amounts. Contact your creditors for an estimate of how much you’ll need to pay to close the account on the date you plan on consolidating your debt. This will include the balance, interest and any fees associated with account closure.
  2. Check your credit score. Your credit score is very important in your eligibility for an unsecured personal loan. Plan on most lenders requiring at least 620 to 670 to qualify.
  3. Compare your options. Compare lenders that both offer the loan amount you need and you’re likely to qualify with. Ask about origination fees and how they affect the amount you can borrow. Also ask about discounts, and if the lender can pay your creditors directly for a smoother process.
  4. Prequalify for a loan. After you’ve narrowed your options to a few lenders, complete an online form to get a quote on the loan amount, rates and terms you might receive. Prequalification typically involves a soft credit check that doesn’t harm your credit score.
  5. Consolidate your debts. If you’re approved for a loan, the lender ideally can pay your creditors directly. You can usually set a date for when you want your creditors to be paid. After your debts are paid off with the consolidation loan, you repay that loan, typically in monthly installments.

How to compare debt consolidation loans

If you’re consolidating to save money, then the debt consolidation loan’s APR is the most important factor. Your credit score is largely what determines the rates you qualify for. The majority of lenders offer starting rates around 5% to 7%, but they can get as high as 36%, depending on your credit score and the loan term you select.

After you find lenders that offer low rates, compare features that include:

  • Prequalification. Most personal loan providers allow you to prequalify with a soft credit check to get an idea rate offers before moving forward with a hard credit check. It’s helpful to reach out to your creditors for payoff amounts, current interest rates and to find out your credit score before applying.
  • Extra fees. It’s common to pay origination fees, which can be as high as 10% of the loan amount. Other fees include late fees or prepayment penalties — but many lenders on our list don’t require those fees altogether, like SoFi and Marcus.
  • Pays creditors directly. Many lenders pay your creditors directly once funds go through, which is less work for you.
  • Discounts. Look for relationship discounts if you’re consolidating with your personal bank or credit union, student borrower discounts and autopay discounts. Many rate discounts are either 0.25% or 0.50%, and some lenders let you stack for deeper savings.
  • Lots of term options. Ideally, you want a short loan term because that means fewer interest charges over the course of the loan, but that also means a higher monthly payment. Look for lenders with multiple term options to choose the best for your budget and goals.
  • Lender’s reputation. Read customer reviews and ratings to gain insight on how a lender handles customer support and how fast grievances are resolved. An overwhelming number of complaints may be a sign to find another lender.
  • Hardship options and deferments. Some lenders allow you to defer a payment or two if you’re in a rough financial spot. Personal loans typically last at least two years, so it is worth knowing if a lender offers hardship plans in case something goes amiss.

Debt consolidation loan rates by credit score

Average personal loan APRs for 2023 show that low-credit borrowers pay APRs that are four times those of high-credit borrowers, according to statistics from LendingTree based on information from TransUnion, Federal Reserve Bank of New York and The Wall Street Journal.

Credit score rangeAverage APR
720+12.55%
680–71919.60%
660–67930.16%
640–65941.55%
620–63955.31%

The most competitive rates for personal loans go to the borrowers with the best credit scores, unsurprisingly.

Note that personal loan APRs rarely top 36%: The average rates in this table include other types of personal borrowing methods, such as high-interest installment loans and payday loans, which tend to come with higher interest rates and more fees.

It may be better to hold off on consolidating your debt if your credit score is below 620, at least until you can take steps to increase your credit score. A higher score will increase your chances of qualifying for favorable rates, especially if your goal with consolidating is to save money on interest charges.

Will debt consolidation hurt my credit score?

The hard credit check that comes with applying for new credit can cause a drop your credit score — between 5 to 15 points for 12 months, depending on your current credit score. But the dip is temporary.

As a bonus, if you consolidate credit card debt, it can decrease your credit utilization ratio and improve your credit score. And if you make the consolidation loan payments on time, it’s likely to also improve your credit score if the lender reports on-time payments to the major credit bureaus. Your payment history makes up some 35% of the factors that go into your credit score.

Most debt consolidation loans are unsecured personal loans that are reflected on your report as an active loan.

Alternatives to a debt consolidation loan

If a personal loan doesn’t quite fit your situation, look to alternatives designed to consolidate your debt:

  • Balance transfer credit cards. It’s what it sounds like — you move one or more debts onto a single balance transfer credit card with a low or 0% introductory rate to save on interest.
  • Home equity products. Own a home with at least 20% equity? You could take on a home equity loan or home equity line of credit (HELOC) to consolidate your debt. Most home equity products are large, low-interest loans.
  • Cash-out refinance. Typically available for homes with at least 20% equity, a cash out refi replaces your home’s current mortgage with a new, larger loan. The difference between your old mortgage and the new one is what you get to “cash out” — received as cash.

How much can I save from consolidating debt?

If your debt consolidation loan has a lower rate than the credit accounts you’re currently paying, you could save money.

Say you have two credit cards:

One has a $7,000 balance with a 19% APR — the average rate on a credit card, according to the Federal Reserve. The second has a $3,000 balance with a 26% APR. This works out to $10,000 in debt.

Let’s also say you qualified for a debt consolidation loan of $10,000 with the average personal loan rate of 11.23% over a two-year term.

Here’s a breakdown of the cost and time to pay off your debt, depending on how you choose to make payments.

How it worksBalanceMonthly paymentTime to pay off debtTotal interest
Paying the minimum monthly paymentYour lender calculates the minimum payment by adding the outstanding interest to 1% of your credit card balance.$10,000$275.83*309 months$16,296.04
Paying fixed monthly paymentsYou pay the amount you’d pay with a debt consolidation loan toward your credit card each month.$10,000$47617 months

    $1,293.08

    Paying off a debt consolidation loanYou pay monthly installments toward the loan’s principal and interest.$10,000$47624 months$1,211.53

    *Your minimum payment would decrease to $180.83 after you pay down the $3,000 card — which could take about 19 years.

    Compared to making minimum monthly payments on your credit card, a debt consolidation loan can save you a total of $15,084.51. It also gets you out of debt about 24 years earlier — assuming that you don’t use either of your credit cards during that time.

    But due to the high rates on the market today, a debt consolidation loan will save you only $81 over making the fixed monthly payments of the same amount toward your credit card debt. And you won’t get out of debt as quickly or have the flexibility to skip payments if you have an unexpected expense.

    While savings aren’t as big as they may have been in the past, the fixed interest rate on a debt consolidation loan protects you against rate increases. This extra cost is worth considering in a climate where interest rates are expected to rise.

    Recap of best debt consolidation lenders:

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    To make sure you get accurate and helpful information, this guide has been edited by Kelly Suzan Waggoner and reviewed by Anna Serio, a member of Finder's Editorial Review Board.
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