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Best debt consolidation loans in June 2025

Updated May 22, 2025

What to know first: The best debt consolidation loans allow borrowers to save money by combining several high-interest-rate debts into a new lower-rate loan with flexible terms and quick funding turn times. These loans typically have annual percentage rates (APRs) that range from around 7 percent to 36 percent, but the rate you qualify for depends on your credit history, annual income and debt-to-income (DTI) ratio.

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LightStream: High-dollar debt consolidation loans

4.5
Est. APR
6.49- 25.29%
* with AutoPay
Loan term
2-7 yrs*
Loan amount
$5k-$100K
Min credit score
695

PERSONAL LOANS

Upstart: Small bad credit loans

4.7
Est. APR
6.60- 35.99%
Loan term
3-5 yrs
Loan amount
$1k-$50K
Min credit score
300

LendingClub: Joint debt consolidation

4.7
Est. APR
7.90- 35.99%
Loan term
2-6 yrs
Loan amount
$1k-$50KUp to $50,000
Min credit score
600

PERSONAL LOANS

Happy Money: Credit card consolidation

4.5
Est. APR
8.95- 29.99%
Loan term
2-5 yrs
Loan amount
$5k-$40K
Min credit score
640

PERSONAL LOANS

Best Egg: Best for secured loan options

4.6
Est. APR
6.99- 35.99%
Loan term
3-5 yrs
Loan amount
$2k-$50K
Min credit score
600

Upgrade: Discounts for debt consolidation

4.6
Est. APR
7.99- 35.99%
with AutoPay
Loan term
2-7 yrs
Loan amount
$1k-$50K
Min credit score
580

Discover: Best for good credit borrowers

4.8
Est. APR
7.99- 24.99%
Loan term
3-7 yrs
Loan amount
$2.5k-$40K
Min credit score
660

PERSONAL LOANS

Avant: Payday loan alternative

4.5
Est. APR
9.95- 35.99%
Loan term
2-5 yrs
Loan amount
$2k-$35K
Min credit score
550

PERSONAL LOANS

Citi: Shortest available loan term

4.6
Est. APR
11.49- 20.49%
Loan term
1-5 yrs
Loan amount
$2k-$30K
Min credit score
Not disclosed

PERSONAL LOANS

Achieve: Lower maximum fees

4.5
Est. APR
8.99- 29.99%
Loan term
2-5 yrs
Loan amount
$5k-$50K
Min credit score
620
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A closer look at our top debt consolidation loan lenders

Check out our expert-vetted details highlighting how each lender stands out against competitors, who each is best for and why. 

LightStream: Best for high-dollar loans and longer repayment terms

Rating: 4.5 stars out of 5
4.5

Overview: LightStream, part of Truist Bank, is an online-only lender specializing in high loan amounts, long terms and low rates for those with good or excellent credit. Most Bankrate users who take out a loan with LightStream have an excellent credit score.

Est. APR
6.49%–25.29%
Loan amount
$5k–$100k
Min credit score
695

Upstart: Best for small bad credit loans

Rating: 4.7 stars out of 5
4.7

Overview: Upstart has helped more than three million customers with financing needs. It offers loans up to $50,000 and applicants can potentially qualify even without having enough credit history to generate a score. 

Est. APR
6.60%–35.99%
Loan amount
$1k–$50k
Min credit score
300

LendingClub: Best for consolidating debt with a co-borrower

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
7.90%–35.99%
Loan amount
Up to $50,000
Min credit score
600

Happy Money: Best for specialized credit card debt program

Rating: 4.5 stars out of 5
4.5

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. According to a 2022 Happy Money study, borrowers who consolidated at least $5,000 in credit card debt saw an average FICO increase of 49 points within four months of getting their loan.

Est. APR
8.95%–29.99%
Loan amount
$5k–$40k
Min credit score
640

Best Egg: Best for secured loan options

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
6.99%–35.99%
Loan amount
$2k–$50k
Min credit score
600

Upgrade: Best for debt consolidation discounts

Rating: 4.6 stars out of 5
4.6

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
7.99%–35.99%
Loan amount
$1k–$50k
Min credit score
580

Discover: Best overall debt consolidation lender

Rating: 4.8 stars out of 5
4.8

Overview: Discover provides a one-of-a-kind prequalification calculator that allows you to see how your rate and payment change with different loan amounts, credit score or repayment terms. You don't pay any fees, which means all of your funds go toward clearing out other debt.

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

Avant: Best as a payday loan alternative

Rating: 4.5 stars out of 5
4.5

Overview: Founded in 2012 and headquartered in Chicago, Avant is one of the few lenders that accept borrowers with a credit score under 600. It's a competitive option for those who have bad credit. 

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

Citi: Best for short repayment terms

Rating: 4.6 stars out of 5
4.6

Overview: New York-based Citi is well known for its extensive banking products. Its personal loans come with zero application, origination, late payment or prepayment fees. This, along with its multiple discounts and a low maximum APR, makes for potentially low-cost loans. But you must have the credit to qualify.

Est. APR
11.49%–20.49%
Loan amount
$2k–$30k
Min credit score
Not specified

Achieve: Best for lower maximum fees

Rating: 4.5 stars out of 5
4.5

Overview: Not only will you pay less in total fees than with many other debt consolidation lenders, but you may be eligible for rate-saving discounts for adding a co-borrower or retirement savings account. 

Est. APR
8.99%–29.99%
Loan amount
$5k–$50k
Min credit score
620

Calculate what you could save by consolidating

A debt consolidation calculator can help you choose a consolidation loan with the best terms. It can also help you determine whether a consolidation loan is even the best option for your situation.

To use Bankrate's debt consolidation calculator, enter your total outstanding debt and the average interest rate of the loans you wish to consolidate. After receiving your estimated terms and monthly payment structure, adjust the details to find the most ideal consolidation loan for your budget.

Debt Consolidation Calculator

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Calculate
New Monthly Payment
$544
With an excellent credit score, you're likely to receive a personal loan with an APR of 11% and average term of 5 years.
Current monthly payment
$1,000
Overall interest saved
$3,069.12
Current monthly payment
New monthly payment
Find personalized rates

How to get the best debt consolidation loan with Bankrate

All you need is a few pieces of information and a few minutes to start getting debt consolidation loan offers from the partners on our platform. To get the best debt consolidation loans with Bankrate, consider taking these extra steps.

  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 for your debt consolidation loan to be funded. It’s easier to reduce your loan amount and 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. Also check the loan amount ranges each lender offers to make sure you borrow as much — or as little — as you need to accomplish your debt consolidation plans. 

    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.

  2. Check your credit scores and the lender's requirements

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

    Lenders consider your credit score, income and debt-to-income ratio — among other factors — deciding whether you qualify for a debt consolidation loan. Some specialize in bad credit debt consolidation loans but typically have higher rates and fees, while excellent credit lenders tend to offer low rates for high credit scores.

  3. Compare loan options and payments by prequalifying with Bankrate

    You don't have to worry about a credit-damaging inquiry if you apply for a debt consolidation loan through Bankrate's platform, since our partners make pre-qualified offers with no credit check. If you click "See offers" or "Get started" on this page and fill out a short form, you'll get a ballpark of the terms and the annual percentage rate (APR) you may be eligible for and can compare offers side by side.

    The APR is the annual cost expressed as a percentage. It combines the interest rate and any fees. Different lenders advertise different annual percentage rates. You’ll typically find lower rates offered for shorter terms. However, a longer term will come with a significantly lower payment. Use a personal loan calculator to find the right term and payment for your budget. 

    While some lenders do not charge any additional fees, be on the lookout for late fees and origination fees. Origination fees are deducted from the amount you borrow. Make sure you adjust your loan amount to cover them to avoid coming up short on the amount needed to pay your creditors off.

  4. Apply with the debt consolidation lender you choose

    Once you've reviewed your pre-qualified offers, narrow it down to the one that has the best rates, terms and speed of funding. Then click "Continue" to complete a full application.

    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. 

    If your credit 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 both. Find out whether you'll be responsible for paying your creditors off or if the lender takes care of that.

    If you cannot get approved, you may want to consider other ways to consolidate debt.

  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.

    You should always check the balances on the accounts you consolidated to make sure the payments are applied correctly. You're still responsible for any regular payments on them until your account is officially closed.

Is now a good time to consolidate debt?

The right time for debt consolidation all depends on your current rate, financial goals, creditworthiness and how stable your income is. These four scenarios cover most people's needs, but you will need to review your financial goals to be sure debt consolidation is the right choice.

If you're able to consolidate debt at a lower interest rate and get it paid off sooner, that is an opportunity not to be passed up. Even with the Federal Reserve keeping interest rates on hold, you may score a much lower rate if your credit has improved or you've paid off some other debt.
Bankrate logo Greg McBride, CFA

Personal loans have one of the widest APR ranges of any available loan product — currently between 6.5 percent and 35.99 percent. The difference between a bad credit rate and an excellent credit rate can be more than 25 percent. However, you could save 5 to 10 percent if your score improved from bad to fair credit. The point: You may want to replace your bad credit consolidation loan with a new fair, good or excellent credit loan if your scores improve significantly after you consolidate a bunch of credit card debt. 

Financial wellness health check

A debt consolidation loan can help get you on track to a healthier wallet. One way they can do so is by helping repair low credit scores caused by taking on too much credit card debt. The key to keeping your score high after a debt consolidation loan is to plan your spending ahead of time. Budgeting is money meal planning, and the more you do it, the sooner you’ll build a financially well future.

Pros and cons of debt consolidation loans

Green circle with a checkmark inside

Pros

  • Possibly the biggest pro of a debt consolidation loan is that your rate should be lower than the average rates of the credit cards you're paying off.
  • You won't have as many due dates and monthly payments to keep track of — just one from your new debt consolidation loan.
  • No collateral is required. You could even pay off a small car loan balance to get a free and clear vehicle as part of your consolidation.
  • Funding is available in as little as one business day — much faster than any type of home equity or mortgage consolidation loan.
  • Paying off multiple credit card balances reduces your credit utilization ratio — which could give a big boost to your credit scores if you don't reuse your cards.
Red circle with an X inside

Cons

  • No minimum payment flexibility like you have with credit cards.
  • Funds can't be reused as you pay them off like revolving credit card accounts.
  • Origination fees may be as high as 12 percent of the amount you borrow.
  • Choosing a shorter term may strain your budget if you have a variable income or a sudden loss of income.
  • Rates may be higher than credit cards for bad credit borrowers.
  • Won't solve poor spending habits or the overuse of credit cards.
Bankrate logo
BANKRATE EXPERT FAQ

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


Bankrate Expert Contributor, Student Loans

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 writer, Loans

Nearly half (48%) of credit card holders carry a balance, according to Bankrate’s 2025 Credit Card Debt Report, and 71 percent think they’ll pay off their balance within five years. The main advantage of consolidating debt with a personal loan is that it gives you a definite payoff date — you don’t have to guess. If you can't pay off a balance transfer credit card within the short introductory period, you'll be left with another revolving credit card balance and no clear end date.

Frequently asked questions about debt consolidation loans

How we chose the best debt consolidation loan lenders

Bankrate's trusted debt consolidation loans industry expertise

48

years in business

45

lenders reviewed

20

loan features weighed

900

data points collected

To select the best personal loans, Bankrate’s team of experts evaluated over 40 lenders. Each lender was ranked using a meticulous 20-point system, focusing on four categories: