Featured Debt Consolidation Offer
1
Accredited Debt Relief
15% to 25%
A+
Compare the Best Debt Consolidation Loans of 2025
Best Debt Consolidation Loans: A Closer Look
BEST DEBT CONSOLIDATION LOAN FOR CREDIT CARD DEBT
SoFi®
Minimum Credit Score
650
APR range
8.99% to 35.49%
Loan amounts
$5,000 to $100,000
650
8.99% to 35.49%
$5,000 to $100,000
SoFi has risen to prominence as one of the most recognizable online lenders. At SoFi, you can apply for various types of loans, including loans for school, debt consolidation and more.
Why We Like It
SoFi loans feature no origination fees or late fees. Additionally, SoFi loans offer a 0.25% rate discount when using autopay, and SoFi can send loan funds directly to your creditors.
What We Don’t Like
You need a credit score of at least in the mid-600s to qualify. However, SoFi accepts co-applicants, and applying with someone who has good credit could improve your loan terms.
Who It’s Best For
SoFi is a good choice for credit card debt consolidation because it lacks fees and offers large loan amounts that can cover high card balances. Borrowers also receive one complimentary financial planning session, which could be an opportunity to discuss credit card spending with an advisor.
- No origination fee
- Discounts for using autopay
- Same-day funding possible
- Transparent eligibility requirements for self-employed workers
- Good credit is necessary
- High interest rates compared to competitors
Lender details
Eligibility
- Minimum credit score:650 620
- Co-signers/co-borrowers: Accepted
Funding Speed
Funding may occur within one business day of clearing verification.
BEST DEBT CONSOLIDATION LOAN FOR LOW INTEREST RATES
U.S. Bank
Minimum Credit Score
720
APR range
7.99% to 24.99%
with autopay
Loan amounts
$1,000 to $50,000 for existing U.S. Bank customers and up to $25,000 for new customers
Depends on the area you live in
720
7.99% to 24.99%
with autopay
$1,000 to $50,000 for existing U.S. Bank customers and up to $25,000 for new customers
Depends on the area you live in
US Bank is a major bank with 2,000 physical branches across 26 states. It also serves borrowers nationwide through online lending services.
Why We Like It
US Bank offers loans with no origination fees or late fees, and its interest rate cap (24.99% APR) is lower than that of several other competing lenders on this list.
What We Don’t Like
The average turnaround time for loans is one to four days. In comparison, competing lenders may offer next-day funding or even same-day funding. US Bank also doesn’t provide the option to pay your third-party creditors directly, so you’ll have to get funds and pay creditors yourself.
Who It’s Best For
US Bank is a good no-fee option for borrowers with a credit score above 700 who need to consolidate high-interest debt balances of less than $50,000.
- Discounts for using autopay
- No origination fees
- Good credit is necessary
- Loan funding may take longer than competitors
BEST DEBT CONSOLIDATION LOAN FOR LIMITED CREDIT
Upstart
Minimum Credit Score
300
APR range
6.60% to 35.99%
Loan amounts
$1,000 to $75,000
300
6.60% to 35.99%
$1,000 to $75,000
Upstart utilizes an underwriting model that considers factors beyond just credit to approve borrowers for loans. According to Upstart, its underwriting approach can approve 43% more applications and provide interest rates that are 33% lower than traditional underwriting models.
Why We Like It
Upstart may accept borrowers for debt consolidation loans who have limited credit or less-than-perfect credit.
What We Don’t Like
Upstart offers only two loan terms: 36 months and 60 months. This limits your ability to personalize your debt payoff schedule.
The origination fee, which can be as high as 12%, is also substantial. If the fee to consolidate debt with Upstart exceeds the interest savings, it may not be a cost-effective option.
Who It’s Best For
Upstart is best suited for borrowers who want to consolidate debt balances but don’t have strong enough credit to qualify for other loan options with lower fees.
- No prepayment penalty
- Flexible qualifying criteria
- High origination fees
- Only two repayment terms
- Co-signers and co-borrowers not accepted
Lender details
Eligibility
- Minimum credit score: 300
- Co-signers/co-borrowers: Not accepted
Funding Speed
Next-day funding may be available if you accept a loan before 5 p.m. ET on a business day.
BEST DEBT CONSOLIDATION LOAN FOR SMALL DEBT BALANCES
PenFed
Minimum Credit Score
Not disclosed
APR range
8.99% to 17.99%
Loan amounts
$600 to $50,000
Not disclosed
8.99% to 17.99%
$600 to $50,000
Founded in 1935, PenFed is a credit union that anyone can join by opening a PenFed savings account and making an initial deposit of $5. Becoming a member unlocks access to loan products, deposit accounts and other banking services.
Why We Like It
PenFed loan amounts start at just $600 with loan terms as short as 12 months, so it’s an option for borrowers who need to consolidate small sums. Additionally, PenFed provides loans with no origination fee and lets you send money to third-party financial institutions via ACH transfer.
What We Don’t Like
PenFed doesn’t offer any discounts for using autopay, and the best interest rates available aren’t as low as those offered by competing lenders.
Who It’s Best For
PenFed loans are ideal for borrowers seeking a small loan with no fees.
- Loans start at $600
- No origination fees or prepayment penalties
- Low minimum APR
- No rate discount for using autopay
- Credit union membership necessary for funding
- Loans only go up to $50,000
Lender details
Eligibility
- Minimum credit score: Not disclosed
- Co-signers/co-borrowers: Yes
Funding Speed
Next-day funding may be available. The speed of funding may be longer or shorter depending on what time of day you apply for a loan.
BEST DEBT CONSOLIDATION LOAN FOR EXCELLENT CREDIT
LightStream
APR range
6.49% to 25.79%
with autopay
Minimum Credit Score
660
Loan amounts
$5,000 to $100,000
6.49% to 25.79%
with autopay
660
$5,000 to $100,000
LightStream, the online lending division of Truist, offers loan rates as low as 6.49% APR on debt consolidation loans for borrowers with strong credit.
Why We Like It
LightStream has no origination fees and offers an autopay discount of 0.50% points. The lender also provides a rate beat program, which promises to beat competitor rates if you’re approved for a better deal on the same loan terms elsewhere.
What We Don’t Like
LightStream doesn’t offer the option to prequalify for loans without a hard credit check, so you’ll have to complete the full application to shop for rates with the lender.
Who It’s Best For
LightStream loans are best suited for borrowers with very good to excellent credit, which is defined as a FICO Score of 740 or higher. For eligible borrowers, LightStream loans can be an affordable way to consolidate high-interest debt, thanks to low rates and no fees.
- Low rates backed by a rate beat guarantee
- No origination fees
- Same-day funding possible
- Discounts for using autopay
- Good credit is necessary
- No way to prequalify without a hard credit check
Lender details
Eligibility
- Minimum credit score: 660
- Co-signers/co-borrowers: Accepted
Funding Speed
Same-day funding may be available if you sign documents, provide a bank account and complete the loan verification process before 2:30 p.m. ET.
BEST DEBT CONSOLIDATION LOAN FOR CREDIT BUILDING
Upgrade
Minimum Credit Score
580
APR range
7.74% to 35.99%
Loan amounts
$1,000 to $50,000
580
7.74% to 35.99%
$1,000 to $50,000
Upgrade is a provider of loans and other financial products, including reward checking accounts and credit monitoring services.
Why We Like It
Upgrade loans offer terms of two to seven years, providing you with multiple years to repay your debt consolidation loan if necessary. When you take out a personal loan with Upgrade, you also get access to credit health insights in your Upgrade account dashboard.
What We Don’t Like
Upgrade has an origination fee of up to 9.99%, which is important to consider before borrowing.
Who It’s Best For
Upgrade loans are ideal for borrowers working on building strong credit history. Credit health monitoring is free and can help you track credit score growth as you pay off debt.
- Fair credit may be accepted
- Discounts for using autopay or using funds to consolidate debt
- Origination fee
- High interest rates compared to competitors
BEST DEBT CONSOLIDATION LOAN FOR MILITARY MEMBERS AND THEIR FAMILIES
USAA
Minimum Credit Score
Not disclosed
APR range
10.24% to 18.51%
with autopay
Loan amounts
$2,500 to $100,000
Not disclosed
10.24% to 18.51%
with autopay
$2,500 to $100,000
USAA is a bank that serves active-duty service members, veterans, certain government employees and qualifying family members.
Why We Like It
USAA’s lack of origination fees can significantly reduce borrowing costs. USAA also accepts co-applicants, and applying with someone who has strong credit could improve your loan terms.
What We Don’t Like
We couldn’t find an option to prequalify without a hard inquiry, so it’s less convenient to shop for rates with the lender.
Who It’s Best For
USAA is best for existing USAA members, service members and eligible family members. Members may find low rates and fees on loans and other banking products.
- No origination fees
- Discounts for autopay
- Loans are limited to USAA members
- No option to prequalify without a hard credit check
BEST DEBT CONSOLIDATION LOAN FOR CUSTOMER EXPERIENCE
Rocket Loans
Minimum Credit Score
640
APR range
8.09% to 29.99%*
minimum rate includes autopay discount
Loan amounts
$2,000 to $45,000
640
8.09% to 29.99%*
minimum rate includes autopay discount
$2,000 to $45,000
Rocket Loans, under the Rocket Companies umbrella, offers personal loans that borrowers can use for various personal reasons, including debt consolidation.
Why We Like It
Rocket Loans receives high customer review ratings. What’s more, customer service is available on weekdays and Saturdays from 9 a.m. to 6 p.m. to answer loan questions.
What We Don’t Like
Rocket Loans only provides funding up to $45,000, which may not be enough to consolidate high balances. You also can’t apply with a co-applicant, making it a less viable option if you want to pay off joint debt you owe with someone else.
Who It’s Best For
Rocket Loans is best for borrowers with at least fair credit who value a high level of customer experience. The company receives positive customer feedback and has extended office hours on weekdays and weekends.
- Discounts for using autopay
- No prepayment penalty fees
- Strong customer feedback on review sites
- Origination fees
- Not available in all states
- Only two repayment terms
Lender details
Eligibility
- Minimum credit score: 640
- Co-signers/co-borrowers: Not disclosed
Funding Speed
Same-day funding may be available depending on what time of day your loan is approved and signed.
BEST FOR DEBT CONSOLIDATION LOAN FOR RATE DISCOUNTS
LendingClub
Minimum Credit Score
600
APR range
7.04% to 35.99%
Loan amounts
$1,000 to $60,000
600
7.04% to 35.99%
$1,000 to $60,000
LendingClub is a financial services company with a streamlined debt consolidation process. During the loan application, you specify the account information for the creditors you want to pay off with the loan funds. If approved, LendingClub sends the money directly to your creditors.
Why We Like It
LendingClub provides a discounted APR to customers who use loan funds to pay off existing debt. The minimum credit score requirement is 600.
What We Don’t Like
While borrowers with weak credit may qualify for LendingClub loans, be aware of potential high interest rates and the origination fee, which can reach up to 8%.
Who It’s Best For
LendingClub can be a good option for borrowers with below-average credit because you can apply with a co-applicant to strengthen your application, and rate discounts are available.
- Fair credit may be accepted
- Low minimum APR
- Funding available within 24 hours after approval
- Origination fees range from 0% to 8%
- No discount for automatic payments
- High maximum APR
Loan details
Co-signer/co-borrower: Allows co-borrowers
*For borrower or co-borrower
BEST CONSOLIDATION LOAN FROM A BRICK-AND-MORTAR BANK
Citi® Personal Loan
Minimum Credit Score
740
APR range
9.99% to 19.49%**
Loan amounts
$2,000 to $30,000
740
9.99% to 19.49%**
$2,000 to $30,000
Citi is a traditional brick-and-mortar bank that provides a fully digital loan shopping experience with online applications and the option to prequalify without a hard credit check.
Why We Like It
Citi loans have no origination fees, and a 0.50% interest rate reduction discount is available for customers who use autopay, lowest advertised rate includes automatic payment discount.
What We Don’t Like
Citi doesn’t allow co-applicants, so you can’t apply with a spouse or partner. Additionally, existing Citibank deposit or credit card customers who have been with the bank for less than 12 months are not eligible for a loan.
Who It’s Best For
Citi loans are ideal for long-time Citibank customers and individuals who prefer to borrow from a major financial institution.
- No origination fees or late fees
- Relationship banking discounts and autopay discounts
- Must have a Citi bank account to get same-day funding
- Citi deposit account and credit card customers with an account less than a year old don’t qualify
- Co-applicants are not accepted
Details
Details:
- Apply for a personal loan online for up to $30,000
- Rates as low as 9.99% APR, which includes a 0.5% discount for enrolling in automatic payments**
- Zero fees – no origination fees, no late fees, no prepayment penalty, and no hidden fees
- Up to 60 month repayment terms
- Fast funding – same business day for most customers when deposited directly to a Citi® bank account or within 2 business days when deposited directly to a non-Citi® bank account
Disclosure
**Terms, conditions, and fees for accounts, products, programs and services are subject to change at any time.
You must be at least 18 years of age (21 years of age in Puerto Rico). Co-applicants are not permitted. Existing Citi credit card customers who have been a Citi customer for less than 12 months and do not have a Citi deposit account are not eligible for a Citi® Personal Loan.
If you apply online, you must agree to receive the loan note and all other account disclosures provided with your loan origination in an electronic format and provide your signature electronically.
Rates as of 09-30-2025. Your APR may be as low as 9.99% or as high as 19.49% for the term of your loan. The lowest rate quoted assumes excellent credit, a loan term of 36 or 48 months, and includes a 0.5% APR discount for enrollment in automatic payments at the time of loan origination. Your APR will depend on a variety of factors including your creditworthiness, term of loan, and existing relationship with Citi. Citi offers personal loans with a period of repayment between 12 and 60-month terms. For example, if you borrow $10,000 for 36 months at 15.99% APR, to repay your loan you will have to make 36 monthly payments of approximately $351.52.
Existing Citi banking Relationship Tier customers will receive an additional 0.25% discount to the APR. If you are in default, your APR may increase by 2.00%. Rates subject to change without notice.
To check for offers you may qualify for, Citi conducts a soft credit inquiry. If you are presented with an offer and choose to proceed with the application process, Citi will conduct a hard credit inquiry which may have an impact on your credit score.
Citi® Personal Loan proceeds cannot be used to pay for post-secondary education expenses or for business purposes. Credit cards issued by Citibank, N.A. or its affiliates, as well as Checking Plus and Ready Credit accounts, are not eligible for debt consolidation, and Citibank will not issue payoff checks for these accounts. If you are unsure of the issuer on the account, please visit https://www.citi.com/affiliatesproducts for a list of Citi products and affiliates.
Once approved, Citibank can deposit funds directly into an existing Citibank account the same business day, or within 2 business days when deposited to an external bank account, provided the bank account has not been recently opened. In such instances, Citi reserves the right to reject the bank account as the disbursing account for personal loan funds, and you can select another bank account or select to receive a check by mail, which is delivered generally within 5 business days.
Personal loans are made available by Citibank, N.A., Equal Housing lender
Most Popular is calculated from the number of times each affiliate product was selected by Forbes users over a six month time period.
When Is Debt Consolidation the Right Option?
A debt consolidation may be right for you if:
- You have a consistent income
- You have good credit or recently improved credit
- You have high-interest debt owed to multiple creditors
- You want a fixed debt payment and a preset debt payoff schedule
There are several ways you can consolidate debt; one is taking out a loan to pay off debt to other creditors. Using a loan to combine balances can simplify repayment, lower your rate and help you pay off debt faster. You can get debt consolidation loans from banks or online lenders.
However, consolidation loans are not a “get out of debt” shortcut, especially for borrowers with bad credit. Generally, lenders give the lowest interest rates and best personal loans to borrowers with strong credit scores (740 or higher).
Some lenders offer consolidation loans for borrowers with bad credit, but these loans tend to have higher fees and interest rates, so borrowing costs could actually exceed interest savings.
Average Debt Consolidation Interest Rates By Credit Score
You can use a personal loan for debt consolidation. The table below provides an idea of the interest rates you may qualify for if you use a personal loan to consolidate your debt.
How To Qualify for the Best Loan Consolidation
Applying for a debt consolidation loan is essentially applying for a personal loan to pay off other debt. Below are steps to take to qualify for the top debt consolidation loans:
Review credit criteria.
Check debt-to-income (DTI) ratio requirements.
Compare interest rates.
Look at the fees.
Review term options.
Prequalify if you can.
When approved for a consolidation loan, make sure that the old credit balance is fully paid off with funds from your loan before you stop making payments. Paying late on your old credit accounts before the balance is paid off can result in late fees and a credit score hit.
Pros and Cons of Debt Consolidation
The advantages of debt consolidation loans include the convenience of combining multiple payments and the potential for savings by securing a lower interest rate and monthly payment.
The downside to debt consolidation is that not everyone will qualify for an interest rate that makes it financially beneficial. Furthermore, using a loan to pay off balances on credit cards can free up more available credit on your cards, potentially leading to increased spending.
When you consolidate credit card balances, it’s important to change spending habits to avoid getting deeper into debt.
Also, note that some debt consolidation companies don’t offer the same service as a lender providing loans for debt consolidation. The strategy of debt consolidation companies may be negotiating debt settlements for a fee, which can be harmful to your credit, so explore your options.
The best debt consolidation companies are transparent with fees and outline the potential repercussions of going forward with the settlement plan. To find the best debt consolidation programs for you, be sure to read the fine print, ask questions about the process and compare fees.
Featured Debt Consolidation Offer
1
Accredited Debt Relief
15% to 25%
A+
Alternative Debt Payoff Strategies
Before choosing a debt consolidation loan to manage your debt, consider the following alternatives.
- Try a credit card balance transfer. Some credit cards offer low-interest or 0% interest deals to borrowers for a specified period, typically 12 to 18 months. Opening a new card and paying off your balance during this period is essentially a free debt consolidation.
- Enroll in a debt management plan (DMP). For a small fee, DMPs through credit counseling agencies offer a money plan that includes a debt repayment strategy. For the plan, counselors may negotiate a reduction of your interest rates and fees.
- Negotiate a payment agreement. In some cases, creditors may agree to a pause in payments or a temporary reduction in interest to help you pay off a balance. Consider contacting your creditors to explore the available options.
- Consider a debt settlement. A creditor may be open to settling your debt for a lesser amount than what you owe if you’re delinquent on the debt. Be sure to speak with a financial professional before settling debt to understand the implications, since this can impact your credit.
Methodology
We reviewed 35 popular lenders in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the best lenders based on the weighting assigned to each category:
- Loan cost. 32%
- Loan details. 20%
- Eligibility and accessibility. 21%
- Customer experience. 16%
- Application process. 11%
- Debt consolidation tools. 15%
Within each category, we also considered several characteristics, including available loan amounts, repayment terms, APR ranges and applicable fees. We also looked at minimum credit score requirements, whether each lender accepts joint applications and the geographic availability of the lender. Finally, we evaluated the availability of each provider’s customer support team.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.
Find the Best Balance Transfer Credit Cards Of 2025
Frequently Asked Questions (FAQs)
Do consolidation loans hurt your credit score?
A debt consolidation loan could temporarily reduce your credit score due to the hard credit inquiry involved at application.
However, it could also be beneficial for your credit if paying off revolving debt (e.g., credit cards) reduces your credit utilization, since credit usage is a key factor in determining your credit score.
How can I pay off $60,000 in debt in two years?
A debt consolidation loan is one way to pay off $60,000 in two years. To illustrate, with a 10% APR, payments for a two-year loan would be $2,768.70 per month, totaling $6,448.69 in interest. However, consider consulting with a financial advisor or debt counselor to receive guidance on managing your unique debt situation.
Is there a downside to consolidating loans?
A consolidation loan only puts a Band-Aid on a debt problem unless you change your spending habits. Also, a consolidation loan might not always lower your interest rate or monthly payment, depending on the loan terms and the lender’s credit requirements.
