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Best debt consolidation loans in March 2024

Mar 27, 2024

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PERSONAL LOANS

LightStream: BEST FOR HIGH-DOLLAR LOANS AND GENEROUS REPAYMENT TERMS

4.7

Est. APR
7.99- 25.49%
* with AutoPay
Loan term
2-7 yrs*
Loan amount
$5k- $100K
Min credit score
695
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PERSONAL LOANS

Upstart: BEST FOR LITTLE CREDIT HISTORY

4.8

Est. APR
7.80- 35.99%
Loan term
3-5 yrs
Loan amount
$1k- $50K
Min credit score
300
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Achieve: Bankrate 2024 Awards Winner for Best Debt Consolidation Loan

4.7

Est. APR
8.99- 35.99%
Loan term
2-5 yrs
Loan amount
$5k- $50K
Min credit score
620
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PERSONAL LOANS

LendingClub: BEST FOR USING A CO-BORROWER

4.7

Est. APR
9.57- 35.99%
Loan term
2-5 yrs
Loan amount
$1k- $40K$4,000 - $55,000
Min credit score
600
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PERSONAL LOANS

Happy Money: BEST FOR CONSOLIDATING CREDIT CARD DEBT

4.6

Est. APR
11.72- 17.99%
Loan term
2-5 yrs
Loan amount
$5k- $40K
Min credit score
640
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PERSONAL LOANS

Best Egg: BEST FOR HIGH-INCOME EARNERS WITH GOOD CREDIT

4.6

Est. APR
8.99- 35.99%
Loan term
3-5 yrs
Loan amount
$2k- $50K
Min credit score
600
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PERSONAL LOANS

Citi® Personal Loan: BEST FOR MULTIPLE DISCOUNTS

4.6

Est. APR
10.49- 19.49%
Loan term
1-5 yrs
Loan amount
$2k- $30K
Min credit score
Not disclosed
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PERSONAL LOANS

Upgrade: BEST FOR FAST FUNDING

4.7

Est. APR
8.49- 35.99%
with AutoPay
Loan term
2-7 yrs
Loan amount
$1k- $50K
Min credit score
600
See offersArrow Right

Check rate with Bankrate

PERSONAL LOANS

Avant: BEST FOR PEOPLE WITH BAD CREDIT

4.7

Est. APR
9.95- 35.99%
Loan term
1-5 yrs
Loan amount
$2k- $35K
Min credit score
550

PERSONAL LOANS

Discover: BEST FOR GOOD CREDIT AND NEXT-DAY FUNDING

4.8

Est. APR
7.99- 24.99%
Loan term
3-7 yrs
Loan amount
$2.5k- $40K$2.5k-$40k
Min credit score
660

In the last two years, we helped fund over $744 million in loans. Let’s fund yours next.

Compare debt consolidation loan lenders from Bankrate's top picks 

Before making a decision with your debt, use the table below to take a deeper look at our top consolidation loans. Scan each of our top debt consolidation lenders and compare the loan terms, amounts, APR ranges and minimum credit scores to find the best option for your consolidation needs.

LENDER BEST FOR EST. APR LOAN AMOUNT LOAN TERM MIN. CREDIT SCORE
Discover Good credit and next-day funding 7.99%-24.99% $2,500-$40,000 3-7 years 660
LightStream High-dollar loans and longer repayment terms 8.99%-24.39% * with AutoPay $5,000-$100,000 2-7 years 695
Upstart Best for little credit history 7.80%-35.99% $1,000-$50,000 3 or 5 years No requirement
Achieve Quick approval 8.99%-35.99% $5,000-$50,000 2-5 years 620
Citi Multiple discounts 10.49%-19.49% $2,000-$30,000 1-5 years 720
LendingClub Using a co-borrower 9.57%-35.99% $1,000-$40,000 2-5 years 600
Happy Money Consolidating credit card debt 11.72%-24.67% $5,000-$40,000 2-5 years 640
Avant People with bad credit 9.95%-35.99% $2,000-$35,000 1-5 years 550
Upgrade Fast funding 8.49%-35.97% $1,000-$50,000 2-7 years 600
Best Egg High-income earners with good credit 8.99%-35.99% $2,000-$50,000 3-5 years 600

A closer look at our top debt consolidation loan lenders

The following lenders listed are the same as the ones highlighted above, except we're taking a closer look at each option, highlighting the most important aspects of each loan. This includes the lender's loan offerings and how they stand out against other lenders, who each loan is best for and why and, when available, unique Bankrate user data insights. 

Discover: Best for good credit and next-day funding 

Discover
Rating: 4.8 stars out of 5
4.8

Overview: Discover tested its first credit card in 1985 and has come a long way since. Headquartered in Riverwoods, Illinois, Discover has grown into a company that offers digital banking services well beyond just credit cards — and that product suite includes personal loans. 

Est. APR
7.99%–24.99%
Loan amount
$2.5k-$40k
Min credit score
660

Lightstream: Best for high-dollar loans and generous repayment terms

LightStream
Rating: 4.7 stars out of 5
4.7

Overview: Lightstream offers funded loan amounts up to $100,000 — nearly twice the maximum amount that most of the lender's we reviewed offered. With terms up to 84 months, it makes the loan ideal for consolidating large amounts of debt when you need longer to pay it off. 

Est. APR
7.99%–25.49%
Loan amount
$5k– $100k
Min credit score
695

Upstart: Best for limited credit history

Upstart
Rating: 4.8 stars out of 5
4.8

Overview: Upstart is Bankrate's 2024 award winner for best bad credit personal loan — it offers loans up to $50,000 and applicants can potentially qualify even without having enough credit history to generate a score. 

Est. APR
7.80%–35.99%
Loan amount
$1k– $50k
Min credit score
300

Achieve: Best debt consolidation loan

Achieve
Rating: 4.7 stars out of 5
4.7

Overview: Formerly known as Freedom Plus, Achieve's low credit minimum and co-borrower option sets this lender apart as the best consolidation loan. Plus, it offers borrowers flexible debt consolidation solutions, as long as they have at least $5,000 of debt that needs to be financed with a loan. 

Est. APR
8.99%–35.99%
Loan amount
$5k– $50k
Min credit score
620

Citi personal loan: Best for multiple discounts 

Citi® Personal Loan
Rating: 4.6 stars out of 5
4.6

Overview: Unlike other lenders, Citi doesn’t charge any application, origination or late payment fees, and there are no prepayment penalties. This can make its loans cost less compared to those offered by its competitors.

Est. APR
10.49%–19.49%
Loan amount
$2k– $30k
Min credit score
Not specified

LendingClub: Best for using a co-borrower

LendingClub
Rating: 4.7 stars out of 5
4.7

Overview: Headquartered in San Francisco, LendingClub started as a peer-to-peer lender in 2007, but has since transitioned to a loan marketplace. Its minimum loan amount is lower than many other lenders at just $1,000.

Est. APR
9.57%–35.99%
Loan amount
$4,000 - $55,000
Min credit score
600

Happy Money: Best for consolidating credit card debt

Happy Money
Rating: 4.6 stars out of 5
4.6

Overview: Happy Money's loan, the Payoff Loan, is made specifically for consolidating credit card debt and features one of the lowest APR maximums on the market. This lender is also unique from other lenders as it also functions as a financial wellness company that offers financial assessments, resources and debt management tools.

Est. APR
11.72%–17.99%
Loan amount
$5k– $40k
Min credit score
640

Avant: Best for people with bad credit

Avant
Rating: 4.7 stars out of 5
4.7

Overview: Founded in 2012 and headquartered in Chicago, Avant is one of the few lenders that accept borrowers with a credit score under 600. Having been a respected lender since 2012, it's become known as a competitive option for those who have bad credit. 

Est. APR
9.95%–35.99%
Loan amount
$2k– $35k
Min credit score
550

Upgrade: Best for fast funding

Upgrade
Rating: 4.7 stars out of 5
4.7

Overview: Upgrade is one of the newer companies on our list, founded in 2016. It isn't the only lender that offers same-day funding, but it also extends this benefit to borrowers with fair credit. Along with these features Upgrade offers a seamless online experience and customer support seven days a week.

Est. APR
8.49%–35.99%
Loan amount
$1k– $50k
Min credit score
600

Best Egg: Best for high-income earners with good credit

Best Egg
Rating: 4.6 stars out of 5
4.6

Overview: Best Egg's loans are ideal for consolidation of many types of unsecured debt, from credit cards to medical debt. It has funded over 1.1 million loans since its inception in 2014. 

Est. APR
8.99%–35.99%
Loan amount
$2k– $50k
Min credit score
600

What are debt consolidation loans and how do they work? 

A debt consolidation loan is a type of financing that combines several other debts — usually high-interest rate credit cards — into one new loan with a fixed payment. You can save you thousands of dollars in interest charges by using a personal loan to consolidate debt instead of continuing to pay the minimum payment on multiple variable interest rate credit cards. This is especially true if you secure a lower interest rate.

How do debt consolidation loans work? 

The general debt consolidation loan process starts with deciding which debts you want to pay off. Next, you’ll need to qualify based on the lender’s requirements. A high credit score is necessary to get the best rates. 

The lender will deposit your funds into your bank account to pay off the other debts you choose, or will send the money directly to your creditors. Once the loan is paid out, you'll make payments based on your chosen terms.

When is a debt consolidation loan a good idea?  

While a great repayment tool, a debt consolidation loan won’t change your spending habits. If your income suddenly drops or you incur more debt, a fixed monthly payment may become a burden. Weighing the pros and cons will help you decide if it’s the best move for your finances.

Green circle with a checkmark inside

Pros

  • Interest rates are fixed and usually lower than credit cards and payday loans.
  • You’ll only have one monthly payment to track instead of several.
  • No collateral is typically required — your car and home are safe.
  • Funding may be available in as little as one business day.
  • Credit scores could improve after credit cards are paid off.
Red circle with an X inside

Cons

  • Maximum terms are usually limited to seven years which could make payment high.
  • Rates may be higher for borrowers with bad credit.
  • Funds can’t be reused as they’re paid off like credit cards.
  • Origination fees may be as high as 10 percent.
  • Prepayment penalties may limit how quickly you can pay the balance off.
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Ask the experts: When is the best time to get a debt consolidation loan?

There are three times when a debt consolidation typically makes the most sense. The first is when you want to pay off credit card debts to reduce how much interest you pay and improve your credit scores. The second is if you want to simplify your bill-paying strategy by combining credit cards, medical bills and other debt into one payment with a set payoff date. Finally, a debt consolidation loan could help you pay your debt off faster if you can afford the high payment that comes with a one or two year term.

- Denny Ceizyk | Bankrate Senior Loans Writer

Calculate what you could save by consolidating

To use the debt consolidation calculator, enter your outstanding debts and current interest rates. After receiving your estimated terms and monthly payment structure, adjust the details to find the most ideal consolidation loan for your budget.

How to compare debt consolidation loans 

There are many factors to consider before choosing an individual lender. Here are some key points to keep track of when comparing lenders.

  • Check loan amount ranges: The maximum or minimum you can borrow will vary depending on the lender. Add up the balances of all the credit you want to consolidate to make sure you apply for enough to  accomplish your goal. 
  • Learn approval requirements: Lenders consider your credit score, income and debt-to-income ratio when assessing loan applications. Some specialize in bad credit loans, while excellent credit lenders tend to offer low rates for high credit scores.
  • Review interest rates: Different lenders advertise different annual percentage rates. The lowest advertised rate is never guaranteed and your actual rate depends on your credit. 
  • Look for fees: While some lenders do not charge any additional fees, be on the lookout for late fees, origination fees and prepayment penalties. Factor these in when calculating how much money you need to borrow. 
  • Compare the payment on different loan terms: Most debt consolidation lenders offer repayment terms ranging between one and seven years. A longer term gives you the lowest payment, but at a higher rate. You’ll typically get a lower rate for a shorter term. Although a shorter term will save you a bundle in interest, your monthly payment will be larger. 

How to get a debt consolidation loan 

Whether you have bad credit or excellent credit, the steps for getting a debt consolidation loan are the same — though you will have an easier time qualifying with a higher credit score. 

1. Add up the balances of all the debts you want to combine

Check your current statements for the most accurate figures, and add a few extra hundred for interest that will accrue while you’re waiting to fund your debt consolidation loan. It’s easier to reduce your loan amount then increase it once you’re approved. 

Use a debt consolidation calculator for a rough look at how much you could save, and what your new payment will look like. 

2. Check your credit scores

The lowest advertised debt consolidation interest rates go to the highest credit score borrowers. That doesn’t mean you won’t benefit from a debt consolidation loan even with bad credit. It just means you may need to refinance your debt consolidation loan to save more money as your credit scores improve. 

3. Compare loan options by prequalifying with several lenders

Most debt consolidation lenders offer a prequalification option, which allows you to get a ballpark of the terms and APRs you may be eligible for without hurting your credit score. Review the APRs, terms and fees to decide which option is right for you.

4. Apply with the debt consolidation lender you choose

Unless you do business in person at your local bank or credit union, you’ll apply for your loan online. The lender will collect information like your pay stubs, previous employment contacts and last few years of address history. Your credit will be pulled to confirm your credit score and look at how much other debt you carry. 

One thing worth noting: If your credit report score is lower than you estimated or you have too much debt compared to your income, the lender could reduce your loan amount, increase your rate or do both. 

5. Finalize your papers, get your funds and pay off your debts

Once your approval is completed, provide any additional documents the lender requests. Some debt consolidation lenders pay your creditors directly, while others give you the funds to pay them on your own. 

Lightbulb

Bankrate tip

Resist the urge to open new credit cards. As your credit scores improve, you may be inundated with new credit card offers. Avoid them and focus on building savings. 

Alternatives to personal loans for debt consolidation 

If you’re not convinced a personal loan is the right fit for your debt consolidation plans, you may want to consider the pros and cons of other loan options. Balance transfer cards, home equity loans, home equity lines of credit, peer-to-peer loans and debt management plans may work better depending on how much debt you have, your credit scores, and how quickly you’d like to pay off the balances. 

Other debt consolidation loan options

Explore the options listed below if a debt consolidation loan isn't the best fit for your finances. 

Ways to consolidate debt without a new loan

The ultimate goal of any debt consolidation strategy is to be debt free. If you don’t qualify for debt consolidation loans, you may want to consider other strategies for paying off debt

Ask the experts: Is a personal loan better than a balance transfer credit card for debt consolidation?


Nationally recognized student financial aid expert

The interest rate on a personal loan may be lower than on a balance transfer credit card. However, balance transfer credit cards may offer a teaser rate, even a 0% interest rate, that is good for a few months. When the introductory interest rate expires, you have to pay a much higher interest rate. Balance transfer credit cards may offer more flexible payments, so long as you pay at least the minimum payment, which may be higher than on a personal loan. But, check whether the personal loan allows prepayment without penalty.

Senior Loans Writer

The main debt consolidation advantage of a personal loan versus a balance transfer credit card is that it replaces revolving debt with installment debt with a definite payoff date. Consumer credit card use hit an all time high in 2023, and personal loans offer a way to combine those debts into one payment, often at a much lower rate than credit cards. Balance transfer cards are a good choice for borrowers who are very disciplined with their credit use, and can take advantage of teaser rates as low as 0%. However, once the introductory period is over, the transfer credit card rate can rise.

How the Federal Reserve impacts debt consolidation loans 

Debt consolidation loan rates may be headed lower in 2024 as the Fed is expected to lower rates twice in the second half of the year. That could mean extra savings if you’re carrying a lot of high-interest rate credit card debt from last year. 

Despite the lower rate forecast, the average personal loan rate edged up to 11.94 percent in January 2024, a slight increase from the 11.60 average rate in December 2023. 

Higher rates didn’t deter personal loan borrowers in 2023. They borrowed an average of $11,281, the highest average on record, according to TransUnion data. Borrowers with excellent credit turned to personal loans at a record pace last year, as originations of personal loans for excellent credit jumped 20 percent from 2022.

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Personal Loan Interest Rate Forecast For 2024

Average personal loan interest rates hover around 11 to 12 percent in late 2023.

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FAQs about debt consolidation loans

How we made our picks for the best debt consolidation loan lenders

Bankrate's trusted personal loans industry expertise

57 years

in business

30

lenders reviewed

20

loan features weighed

665

data points collected

To select the best personal loans, Bankrate’s team of experts evaluated over 30 lenders. Each lender was ranked using a meticulous 20-point system, focusing on four main categories: