Our Picks for the Best Debt Consolidation Loans

Debt consolidation loans can be a powerful financial tool for anyone struggling with multiple debts. By combining credit card balances, medical bills, and personal loans into a single monthly payment, you can lower your interest rate, simplify your finances, and accelerate your path to debt freedom.

But not all debt consolidation loans are created equal. Some lenders specialize in fair credit, while others focus on high loan amounts, secured options, or balance transfers. To help you navigate your options, we researched dozens of lenders and narrowed the list to our top picks for the best debt consolidation loans.

Why Choose a Debt Consolidation Loan?

Debt consolidation isn’t just about moving debt from one place to another. It works best when:

  • You qualify for a lower APR than your current debts.
  • You can secure a shorter loan term to pay off debt faster.
  • You’re committed to avoiding new debt while paying off your loan.

When used correctly, a debt consolidation loan reduces your interest costs and helps you stay on track financially.

Best Debt Consolidation Loan Picks

Best for Fair Credit: LendingClub

  • APR Range: From 7.04%
  • Loan Amounts: $1,000 – $40,000
  • Credit Score Requirement: As low as 600
Best for Fair Credit: LendingClub APR Range: From 7.04% Loan Amounts: $1,000 – $40,000 Credit Score Requirement: As low as 600
Best for Fair Credit: LendingClub APR Range: From 7.04% Loan Amounts: $1,000 – $40,000 Credit Score Requirement: As low as 600

LendingClub is one of the most established personal loan providers and a reliable choice for debt consolidation. With a low entry loan amount, it’s ideal for borrowers with smaller balances. While only top applicants receive the lowest APRs, LendingClub remains a strong option for those with fair credit.

Best for Approval Options: Achieve

  • APR Range: Varies by creditworthiness
  • Loan Amounts: $5,000 – $50,000
  • Unique Features: Co-borrower option, home equity collateral
Best for Approval Options: Achieve APR Range: Varies by creditworthiness Loan Amounts: $5,000 – $50,000 Unique Features: Co-borrower option, home equity collateral
Best for Approval Options: Achieve APR Range: Varies by creditworthiness Loan Amounts: $5,000 – $50,000 Unique Features: Co-borrower option, home equity collateral

Achieve is designed for borrowers with meaningful debt who may need extra help qualifying. By allowing co-borrowers and collateral, Achieve improves approval odds for borrowers with less-than-perfect credit.

Best for Secured Loans: Best Egg

  • APR Range: 6.99% – 35.99%
  • Loan Amounts: $2,000 – $50,000
  • Unique Feature: Loans secured by home fixtures (not equity)
Best for Secured Loans: Best Egg APR Range: 6.99% – 35.99% Loan Amounts: $2,000 – $50,000 Unique Feature: Loans secured by home fixtures (not equity)
Best for Secured Loans: Best Egg APR Range: 6.99% – 35.99% Loan Amounts: $2,000 – $50,000 Unique Feature: Loans secured by home fixtures (not equity)

Best Egg stands out for its hybrid loan model, letting borrowers secure loans with household fixtures instead of risking home equity. This makes it a safer middle ground between unsecured and fully secured debt consolidation loans.

Best Bank Option: Citi

  • APR Range: 7.99% – 19.49%
  • Loan Amounts: $2,000 – $30,000
  • Perks: No origination, late, or NSF fees
Best Bank Option: Citi APR Range: 7.99% – 19.49% Loan Amounts: $2,000 – $30,000 Perks: No origination, late, or NSF fees
Best Bank Option: Citi APR Range: 7.99% – 19.49% Loan Amounts: $2,000 – $30,000 Perks: No origination, late, or NSF fees

Citi is one of the few banks that both offers personal loans and directly pays off creditors. With no added fees and competitive rates, Citi is an excellent choice for existing bank customers with credit scores above 670.

Best for Good Credit: Happy Money

  • APR Range: 7.85% – 29.99%
  • Loan Amounts: $5,000 – $40,000
  • Focus: Credit card debt consolidation
Best for Good Credit: Happy Money APR Range: 7.85% – 29.99% Loan Amounts: $5,000 – $40,000 Focus: Credit card debt consolidation
Best for Good Credit: Happy Money APR Range: 7.85% – 29.99% Loan Amounts: $5,000 – $40,000 Focus: Credit card debt consolidation

Happy Money partners with credit unions to provide “Payoff Loans.” Because credit unions are not-for-profit, borrowers often enjoy lower interest rates and reduced fees, making this an attractive option for those with strong credit.

Best for High Debt Loads: SoFi

  • APR Range: Competitive, varies by borrower
  • Loan Amounts: $5,000 – $100,000
  • Features: Multiple repayment options, no origination fees
Best for High Debt Loads: SoFi APR Range: Competitive, varies by borrower Loan Amounts: $5,000 – $100,000 Features: Multiple repayment options, no origination fees
Best for High Debt Loads: SoFi APR Range: Competitive, varies by borrower Loan Amounts: $5,000 – $100,000 Features: Multiple repayment options, no origination fees

If you’re consolidating large debt balances, SoFi is one of the few lenders that offers loans up to $100,000. They also provide multiple loan term options, giving borrowers the flexibility to select what best fits their budget.

Best for Balance Transfers: Discover

  • APR Range: Personal loans vary, balance transfer promo: 0% for 15 months
  • Loan Amounts: $2,500 – $40,000
Best for Balance Transfers: Discover APR Range: Personal loans vary, balance transfer promo: 0% for 15 months Loan Amounts: $2,500 – $40,000
Best for Balance Transfers: Discover APR Range: Personal loans vary, balance transfer promo: 0% for 15 months Loan Amounts: $2,500 – $40,000

Discover offers both personal loans and balance transfer credit cards. Their current 0% balance transfer APR for 15 months can help disciplined borrowers pay off debt quickly without interest charges.

Honorable Mention: Upgrade

  • APR Range: 8.49% – 35.99%
  • Loan Amounts: $1,000 – $50,000
  • Credit Requirement: Accepts scores as low as 620
Honorable Mention: Upgrade APR Range: 8.49% – 35.99% Loan Amounts: $1,000 – $50,000 Credit Requirement: Accepts scores as low as 620
Honorable Mention: Upgrade APR Range: 8.49% – 35.99% Loan Amounts: $1,000 – $50,000 Credit Requirement: Accepts scores as low as 620

Upgrade offers flexible loan options for borrowers with average credit, including secured loans that may reduce APRs and increase approval chances.

How to Choose the Best Debt Consolidation Loan

When comparing lenders, focus on three key factors:

  • APR: Lower interest rates mean faster savings.
  • Fees: Origination, late, or prepayment fees can add up.
  • Loan Term: Choose the shortest repayment schedule you can afford.

Remember: debt consolidation only works if you pay less in interest and stay disciplined.

FAQs About Debt Consolidation Loans

1. What credit score do I need for a debt consolidation loan?
Most lenders require a minimum score of 600–640. Better credit scores qualify for lower APRs.

2. Does applying for a debt consolidation loan hurt my credit?
Our marketplace partners use soft credit checks for pre-qualification, which do not impact your score. A hard inquiry will occur only if you accept a loan.

3. How much money can I borrow with a debt consolidation loan?
Loan amounts typically range from $1,000 to $100,000, depending on the lender and your credit profile.

4. Can I pay off a debt consolidation loan early?
Yes. Many lenders, including SoFi and Citi, allow early repayment without prepayment penalties.

5. Is a balance transfer better than a debt consolidation loan?
It depends. Balance transfers can save money with 0% APR offers, but if you don’t pay off the debt before the promotional period ends, interest charges may spike.

6. What fees should I watch out for?
Look for origination fees, late payment fees, and prepayment penalties. Lenders like Citi stand out for having zero fees.

7. How do I know if debt consolidation is right for me?
Debt consolidation works best if you:

  • Have high-interest debt (like credit cards).
  • Qualify for a lower APR.
  • Can afford the monthly payment without taking on new debt.

Final Thoughts

The best debt consolidation loan is the one that saves you money and helps you stay debt-free long term. Whether you’re consolidating credit cards, medical bills, or personal loans, lenders like SoFi, LendingClub, Citi, and Happy Money provide excellent options for different financial needs.

At The Yukon Project, we make comparing offers simple. Apply once, and we’ll check rates with up to 40 lenders using a soft credit pull. You’ll see multiple offers side by side and choose the one that helps you pay off debt faster.

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Jonathan Walker