Best Personal Loans For Consolidating Debt & Credit Cards in the USA in 2025
If you’ve got several piles of debt, you might have considered consolidating all of it into a single low-interest loan. This can lower your monthly payment, simplify your life, and accelerate your payoff time. Consolidation allows you to spend less on high-interest personal loans and speed up your payoff on credit card balances. But which companies are the best ones to use for debt consolidation? Where should you look? We are going to tell you which companies have the best debt consolidation loans, what we like about each one, and even how you can make sure you get the best deal you can in your circumstances.
We’ve spent years in the lending industry. We understand how companies think, but we’ve also studied people’s finances. We want to bring those two things together to help you make the right fit. We currently track over 50 national lenders. So, we have an idea of what’s out there.
Every single lender on this list will pay off your other debts with the proceeds of the new loan. It’s convenient when a lender will do that, but it also shows that the lender knows that the loan is meant to replace your other debts and not just stack on top of them. That means that the new loan won’t change your debt-to-income ratio. In theory, it should be easier to be approved by these companies because of that.
Here are the top lenders for people who need to consolidate their debt.
Best Egg Debt Consolidation Loans
Best Egg offers loans to people with credit scores above 620. So, if you have fair credit, they could be a good option for you. Their APRs range from 7.99% and 35.99%. Of course, that top range might be too high to consolidate other debt. Remember that you want to get a consolidation loan that has an APR that is at least 2 – 3 percentage points lower than the interest rate on the debt you want to consolidate. Best Egg lends between $2,000 and $50,000 at terms between 3 and 5 years. Three years seems a little long if you are borrowing only $2,000, so you will want to keep an eye on that. They charge origination fees between 0.99% and 8.99%. I think origination fees above 5% are too high, but if your APR is good, you can overlook a high origination fee. Best Egg offers unsecured loans, like all the other lenders on this list, but they can also secure your loan with a lien against your motor vehicle or the fixtures permanently attached to your home. Best Egg will not actually use your home itself as collateral. So, that’s good. Securing your loan can make it easier to be approved, get a larger loan amount, or get a lower APR. They also offer a discount for homeowners.
Citi Debt Consolidation Loans
Citi is the consumer banking division of Citigroup, one of the largest banks in the United States. They offer debt consolidation loans to people with Good-to-Excellent credit. They lend between $2,000 and $30,000 with terms up to 5 years. $30,000 is one of the lowest top loan amounts in the industry, so if you need more money than that, start with the others on this list. Their APRs range from a low of 10.49% to a high of 20.49%. They offer a discount if you sign up for autopay at the time that you accept the loan. And they offer discounts to their priority customers. One great thing about Citi is that they don’t charge origination fees or late fees. The full cost of borrowing is wrapped up in that interest rate.
Happy Money Debt Consolidation Loans
Happy Money is a fintech company that connects potential borrowers to credit unions. For that reason, they tend to have very good APRs. Their lowest APR isn’t particularly special in this group (11.72%), but their top rate of 17.99% is one of the best in the industry. They claim that they will lend to people with credit scores as low as 640, which is pretty forgiving, especially because of their low APRs. They won’t lend less than $5,000 or more than $40,000. $40,000 is still one of the lower top rates on this list. They do charge an origination fee between 1.5% and 5.5%. But the origination fee is accounted for in the APR…and any origination fee below 5% is pretty standard. It’s also great that they will not charge a late fee if you are late with one of your monthly payments.
LendingClub Debt Consolidation Loans
LendingClub claims that they will approve people with credit scores as low as 600. So, if you have fair credit, LendingClub could be the lender for you. They offer loans between $1,000 and $40,000 with terms between 2 and 5 years. Their APRs range from 8.98% and 35.99% and charge an origination fee between 3% and 8%. While the origination fee is accounted for in the APR, you want a lower origination fee if you plan on paying off the loan early since you don’t get a refund on the origination fee. Only take the loan from them if they are offering an APR that is lower than the interest rates on the debts you want to consolidate. If you are late on a payment, LendingClub will charge you either $15 or 5% of the late amount, whichever is greater.
Sofi Debt Consolidation Loans
Sofi is one of the biggest fintech companies out there. In fact, they have become a bank, as well. They won’t lend less than $5,000, but their maximum loan amount is a whopping $100,000. So, they should be able to cover whatever consolidation needs you might have. Their loans have terms between 2 and 7 years. Of course, you would probably need a seven year term if you are borrowing $100,000. But, be careful not to take a long term on smaller amounts. That just means paying more interest than you need to. Their lowest APR is a respectable 8.99% and their top APR is 29.49%. They will focus on lending to people with Good-to-Excellent credit, but might approve people in the top of the Fair range. If you want to strengthen your application, Sofi will allow you to add a cosigner to your loan. A cosigner agrees to pay off your loan if you fail to. A cosigner will help your application the most if their credit profile is stronger than yours. Sofi offers APR discounts when you sign up for autopay, when you are consolidating other debt, and when you have direct deposit into a Sofi bank account.
Upgrade Debt Consolidation Loans
Upgrade serves people with Fair-to-Good credit. Their lowest rate (8.49%) is likely reserved for the top ten percent of their applicants. Their top APR of 35.99% is probably what people with credit scores in the low Fair range would get. That might not be low enough to justify consolidating other debt. Remember, you want to get a debt consolidation loan that has an APR that is at least 2 to 3 percentage points lower than the interest rate of the debt you would be consolidating. If you can’t drop your APR, it would be better to pay off the debt in place. Upgrade offers loans between $1,000 and $50,000 with terms between 2 and 7 years. While a seven-year term would lower your monthly payment, it would mean paying a lot in interest over time. Select the lowest terms that you can afford. Upgrade charges an origination fee that could be as high as 10%. They also offer loans that can be secured by the title to your motor vehicle. This can significantly lower the cost of the loan…but the trade-off is that you will risk losing your vehicle if you have trouble repaying the loan. If you’re late on a payment, Upgrade will charge a $10 fee. If your ACH withdrawal fails, they will charge you a $10 failed payment fee. Upgrade does offer discounts for autopay, securing the loan, and for consolidation.
There are a few other lenders that get an honorable mention. Achieve focuses on helping people with Fair credit get out of debt and even offer services like debt settlement. Discover can consolidate or allow you to balance transfer to one of their credit cards. However, they won’t let you consolidate balances that are currently on a Discover credit card. Wells Fargo, TD Bank, and Santander also have good debt consolidation options, but they are more restrictive. You might even struggle to be approved by them if you are not already a customer.
When you’re shopping for a debt consolidation loan, brand doesn’t really matter. All of these companies are well-respected companies in the space, but that doesn’t mean that they would give you the best deal. Every lender has their own algorithm. You might be denied by one lender only to be given a great offer by another one. That’s why it is crucial that you shop around. If you can do it, you should always get 2 to 3 approvals in hand before you accept a loan. That’s how you get the best deal you can in your situation.
At The Yukon Project, we’ve tried to make shopping around easy. If you visit our marketplace page, you can search for debt consolidation loans. When you apply to any one of our featured lenders, we will check your rate with up to 40 other lenders behind the scenes. Our partners use a soft credit check, so applying won’t hurt your credit score. We will show you all of your approved offers so you can see whether debt consolidation would help you solve your problem.
If you have any questions, post them in the chat below. And, if you have any experience with consolidating debt, leave a comment below. We are trying to build a community of people who can share their experience so we can all make better decisions about our finances. If you found this information useful, please like this video and subscribe to our channel. Your support helps us out and we really appreciate it.
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