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Compare debt consolidation loans

One monthly payment — potentially with lower rates and better terms.

Editor's choice: SoFi personal loans

SoFi personal loans logo
  • Low starting APR at 5.99%
  • No fees
  • Unemployment protection available
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Compare debt consolidation loans

We reviewed nearly 100 lenders to help you find a personal loan to combine your current debt into one monthly repayment. If you're struggling with more debt than you make in a year or can't make changes to your spending habits, you might want to consider other debt relief options.

Name Product Filter Values APR Min. Credit Score Loan Amount
Best Egg personal loans
5.99% to 29.99%
600
$50,000
A prime online lending platform with multiple repayment methods.
Credible personal loans
2.49% to 35.99%
Fair to excellent credit
$100,000
Get personalized rates in minutes and then choose an offer from a selection of top online lenders.
SoFi personal loans
5.99% to 19.63%
680
$100,000
A highly-rated lender with competitive rates, high loan amounts and no fees.
Upgrade personal loans
5.94% to 35.97%
600
$50,000
Affordable loans with two simple repayment terms and no prepayment penalties.
Monevo personal loans
3.49% to 35.99%
None
$100,000
Quickly compare multiple online lenders with competitive rates depending on your credit.
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How do debt consolidation loans work?

Debt consolidation loans combine two or more debts into one monthly repayment. It’s a personal loan that you use to pay off your credit card balance and other debts, which then you then repay at the rate and terms of your new loan. Typically you can borrow between $5,000 and $50,000 with rates from 5% to 36% and terms from 3 to 7 years.

A debt consolidation loan can help you manage your repayments and create a pathway out of debt. However, you should know the total cost of your debts before taking out a debt consolidation loan.

You will need to list the accounts you want to consolidate and the payoff amounts on your application. If approved, your lender will either pay off your creditors directly or transfer your funds into your bank account so you can pay off your creditors yourself.

How much can I save?

Use the debt consolidation calculator to estimate how much you could save and what your monthly payment could be with a new personal loan.

Debt Consolidation Savings CalculatorCalculate how much you could save by consolidating your debt.

Your current balances

Debt amount
Interest rate

$

%

Debt amount
Interest rate

$

%

3)
Debt amount
Interest rate

$

%

Total monthly payments

$

Add another balance

New loan terms

Loan length in years

Years

CALCULATE

Fill out the form and click "Calculate" to see your estimated savings and new monthly payment.
or
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You'll save an estimate of !

Before Consolidation
After Consolidation

Balance
$
$

Interest rate
%
9%

Year(s) to pay off
~

Monthly payment
$
$

Total interest paid

Total balance paid

You currently have a total debt balance of $ with an average rate of %. By consolidating them into a new loan at 9% APR with a -year term, you'd pay approximately $ per month. Your estimated total savings would be .

Your total monthly payments is not enough to cover the interest. Your loan(s) will never be paid off.
Compare debt consolidation loans now

Am I eligible?

You generally need to meet the following criteria at a minimum to get a debt consolidation loan:

While every lender will have its own criteria, lenders typically want you to meet these basic requirements before offering a loan:

  • Active checking or savings account
  • Regular source of income
  • US citizen or permanent resident
  • At least 18 years old
  • No bankruptcies or foreclosures

The most competitive deals are available to borrowers with good or excellent credit and a low debt-to-income ratio (DTI).

How do I get a debt consolidation loan?

To get the best deal, follow these tips:

  • Compare lenders. You should compare your personal loan options to see which lenders you qualify for.
  • Apply for preapproval. Most lenders offer preapproval that allows you to check your rate before you borrow. This means no hard hit to your credit score until you’re ready to complete a full application.
  • Keep your accounts open. Older accounts with repaid balances improve your score. Even when you pay off your credit cards with a debt consolidation loan, keep the accounts open — just avoid taking on new debt with them.
  • Correct your credit report. If there is any incorrect information on your credit report, reach out to the credit bureau and the creditor to have it fixed. This may help improve your score by a few points.

How much will a debt consolidation loan cost?

Ideally, a debt consolidation loan won’t cost you anything you weren’t already going to pay in interest with your existing loans. While some debt consolidation loans come with origination fees — usually 1% to 5% of your loan amount — it’s possible to find a consolidation loan offering no upfront fees.

If your new loan’s APR is lower than the average APR on your current debts, you’ll save money overall. But even if it’s higher, you may be able to reduce your monthly repayment with a longer term — just keep in mind that this can increase the total amount you pay in interest. In general, you need to have excellent credit and a low debt-to-income ratio to qualify for the lowest APRs.

Will debt consolidation hurt my credit score?

It may. Whenever you apply for a personal loan, your lender will do a hard pull of your credit to confirm you qualify. This will lower your score by a few points — but it will likely bounce back after a few months of on-time payments.

Your credit score might decrease if you continue to use your credit cards after consolidating them. It might also decrease if you miss payments on your new loan. But provided you keep up with your finances, you’re unlikely to see a big decrease in your score with a debt consolidation loan.

Balance transfer credit cards vs. debt consolidation loans

Balance transfer credit cards can offer exciting perks, like 0% interest for a year or more on transferred balances. But you face a high revert APR if you’re not able to pay off your debt within the intro period.

A balance transfer credit card could be a suitable way to consolidate debt if you’re certain you’ll pay off your consolidated balance within a year. If you need more time, a debt consolidation loan could be a better deal because the interest rate is lower.

Keep in mind that getting a balance transfer credit card will add another account to your credit utilization ratio, so you’ll want to consider the limit you’re approved for. On the other hand, debt consolidation loans won’t be added to your credit utilization ratio.

Deeper dive into balance transfer credit cards vs. debt consolidation loans

3 steps to take after getting a debt consolidation loan

So you were approved for a debt consolidation loan? Here are a few ways to make the most of it.

  1. Sign up for autopay. Some lenders offer an interest rate discount for borrowers who register to have automatic repayments withdrawn from their account each month. Plus it can help you avoid late fees.
  2. Learn how to budget. Budgeting can help you avoid needing a debt consolidation loan again by helping you manage your spending.
  3. Build an emergency fund. Most Americans can’t afford a $400 emergency expense. Having at least six months of personal expenses saved up can help you avoid going into debt again when the unexpected happens.

What type of debt do Americans stress about?

Finder published a paper in August 2020 analyzing which types of debt puts stress on Americans, including which age and gender stress the most. Our paper includes original research and predictions from experts including Jennifer Tomko, LCSW and Owner of Clarity Health Solutions, Howard Dvorkin, CPA and Chairman of Debt.com and Timo Wilson, CEO of ASAP Credit Solutions.

Download your free copy

All the content may be republished with a link to this page
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Bottom line

A loan could help you consolidate multiple debts into one monthly repayment with lower rates or better terms. But beware of the temptation to spend more now that your credit cards are freed up.

Think a consolidation loan is right for you? Compare the best debt consolidation loans. Or browse our debt consolidation guide for other options available.

Frequently asked questions

Our answers to common questions about debt consolidation loans.

Will I be able to consolidate all of my debt with one loan?

It depends on your credit profile and eligibility. Lenders look at your total existing debt, overall creditworthiness and even the type of credit accounts you hold when considering your approved loan amount, rates and terms.

If your debt totals more than $100,000, you most likely won’t be able to consolidate all of it into one loan — most lenders max out their personal loans at $100,000. And this option is only available for borrowers with excellent credit.

Are debt consolidation loans safe?

As a tool, yes. It comes down to finding a legitimate lender.

You’ll find many reputable lenders offering debt consolidation. Look for privacy and security policies on a lender’s website, and read user reviews to get a feel for any lenders you’re considering.

Can I get a debt consolidation loan with bad credit?

A low credit score won’t necessarily stop you from getting a debt consolidation loan. There are lenders that offer personal loans for bad credit, but you won’t see as low of APRs as you would with a higher credit score.

Will a debt consolidation loan help me get out of debt faster?

It might. Your current APR, monthly payments and total interest can decrease with the right debt consolidation loan — ultimately saving you money.

However, these loans are often in terms of three to five years. This may be longer than it would take to pay off one or more of your individual debts. Even if it is, it’s worth considering the amount you’d save and the convenience of having your debt in one place before ruling out these tools.

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Editor's choice: SoFi personal loans

SoFi personal loans logo
  • Low starting APR at 5.99%
  • No fees
  • Unemployment protection available

Go to site

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