Best Personal Loans for Debt Consolidation

Debt happens. When it does, there are multiple ways to handle it. You could borrow money from a friend or family member, but this can get sticky or uncomfortable with repayments. You can also try to cover one credit card debt using another credit card, but this can turn into a vicious cycle that leaves you crushed under major, insurmountable debt. A better option is to take out a personal loan that will cover your entire debt at the same time.

A personal loan can be easy to manage, and it's not so hard to find a provider. Here’s how debt consolidation is taken care of with this type of loan.

Getting a Loan for Debt Consolidation: What You Should Consider

Before we get into how to find the right loan, what characteristics make up the best loan for you, and what taking out a loan in general means, let's explain some terms. Generally speaking, when a person seeks a solution to their debt issues it's because the amount, variety, and depth of debt have become unmanageable or more stressful than they'd like to deal with. In this case, getting a cash advance from a relative probably won't be enough to resolve the debt, and the problem will resurface the next month. That's why debt consolidation can be a good solution.

How Personal Loan Debt Consolidation Works

Debt consolidation is a term used for a financial plan that combines all your loans into a single one. This is helpful because one monthly payment can be easier to manage and keep track of than several monthly payments. Let’s review an example:

• You have $5,000 worth of credit card debt on your Visa card
• You have $3,000 worth of credit card debt on your American Express card
• You also pay $1,000 each month for a medical procedure you had done a year back
• Finally, you’ve got a $1,200 monthly auto loan payment to make

That means you are making 4 different payments each month to cover the various forms of debt outstanding on your account. Between the different amounts for each payment, different payment due dates, and varying interest rates, it's easy to get things confused. When this happens, payments are missed, and you end up paying more unnecessarily. Debt consolidation loans can help you pay off all of your combined debt at once and give you a single monthly payment to focus on. That's one payment date, one APR, and one amount to think about. Much simpler.

How to Choose the Best Loan Provider for Debt Consolidation

Everyone claims to be the absolute best, but how do you know which loan provider is really going to do the most for your debt consolidation purposes? Some of important features to look for in this type of service are:

APR

This is a very important factor because it'll tell you how much you'll pay overall for your debt consolidation loan. The higher the interest rate is, the more you will pay over time. It's always recommended to try to get the lowest rate possible. We suggest using a comparison tool to compare various offers.

Repayment Terms

Sometimes all you need is a little cut on your monthly payments. If that’s the case, taking out a personal loan that can be paid off over a longer period of time can help you minimize your monthly payments. See how long each loan provider will allow you to stretch repayments, and use this information to make an informed decision.

Reputation

Online lenders are a dime a dozen, but not all are as reputable as others. Read online reviews, check out their BBB ratings, and browse their websites to get an idea of how reliable each service is before you sign on the dotted line.

How to Apply for a Loan When You're in Debt

Once you are ready to clear your slate, it may be time to apply. When applying for a debt consolidation loan, we recommend going through a few steps which include:
Step 1: Calculate how much you need to be debt-free, and then take out a loan for that amount. It's typically a good idea to give yourself some wiggle room too for legal fees, transaction fees, and other unforeseen charges that might come up during the process. You may need to work with your credit card company, your bank, and even your boss to get all the numbers crunched, so get organized before you sit down to apply.
Step 2: Check your credit report. The better your credit looks, the better the terms you'll qualify for. Check your personal credit report to make sure there are no errors that could hurt your chances of approval.
Step 3: Apply for the loan. This can generally be done online and takes only a minute or two.
Step 4: Wait to hear from the loan provider about terms and rates. Sometimes if your credit is poor, you may have to apply to several providers before you find one that is willing to work with you. Don’t give up though, because there are definitely lenders that specifically work with poor credit borrowers, like Monevo and Fiona.

What is an APR?

APR is an acronym for annual percentage rate. It combines the charges, fees, and payments to tell you the grand total of what your loan will cost you per year. The lower the APR, the less you typically pay in the long run.

The APR calculation on personal loans may vary depending on your lender, but, on average it tends to be  lower than what you would receive from a payday or short-term loan – usually starting at 10% and capping at 35.99%. It is not ideal to owe any money, but if you require a loan, then a personal loan could certainly be a viable option.

APR rates mentioned include associated fees.

Full repayment for the loans displayed may range between 61 days to 180 months.

Representative example: assuming a loan of $10,000 over 60 months at a fixed rate of 3.1% per annum and fees of $60.00. This would result in a representative rate of 3.3% APR, with monthly repayments of $180.80, for a total amount paid of $10,848.00.

† Credible Terms and Conditions:

Close with a better rate than you prequalify for on Credible and get a $200 gift card. Terms Apply.

Rates for personal loans provided by lenders on the Credible platform range between 6.49% - 35.99% APR with terms from 12 to 120 months. Credible also works with network Partners like MoneyLion and AmONE, who offer loan and other products with different rates and terms than described here. Rates presented include lender discounts for enrolling in autopay and loyalty programs, where applicable. Actual rates may be different from the rates advertised and/or shown and will be based on the lender’s eligibility criteria, which include factors such as credit score, loan amount, loan term, credit usage and history, and vary based on loan purpose. The lowest rates available typically require excellent credit, and for some lenders, may be reserved for specific loan purposes and/or shorter loan terms. The origination fee charged by the lenders on our platform ranges from 0% to 12%. Each lender has their own qualification criteria with respect to their autopay and loyalty discounts (e.g., some lenders require the borrower to elect autopay prior to loan funding in order to qualify for the autopay discount). All rates are determined by the lender and must be agreed upon between the borrower and the borrower’s chosen lender.

For a loan of $10,000 with a three year repayment period, an interest rate of 7.99%, a $350 origination fee and an APR of 10.43%, the borrower will receive $9,650 at the time of loan funding and will make 36 monthly payments of $313.32, assuming your lender deducts the origination fee from the offered loan amount. Assuming all on-time payments, and full performance of all terms and conditions of the loan contract and any discount programs enrolled in included in the APR/interest rate throughout the life of the loan, the borrower will pay a total of $11,279.43.

As of March 3, 2022, none of the lenders on our platform require a down payment nor do they charge any prepayment penalties.

* LightStream Terms and Conditions:

*Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay may be higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice.

Payment example: Monthly payments for a $10,000 loan at 4.99% APR with a term of 3 years would result in 36 monthly payments of $299.66.

SunTrust now Truist is an Equal Housing Lender. © 2020 Truist Financial Corporation. SunTrust®, Truist, LightStream®, the LightStream logo, and the SunTrust logo are service marks of Trust Financial Corporation. All rights reserved. All other trademarks are the property of their respective owners. Lending services provided by SunTrust now Truist Bank.

You can fund your loan today if today is a banking business day, your application is approved, and you complete the following steps by 2:30 p.m. Eastern time: (1) review and electronically sign your loan agreement; (2) provide us with your funding preferences and relevant banking information; and (3) complete the final verification process.

After receiving your loan from us, if you are not completely satisfied with your experience, please contact us. We will email you a questionnaire so we can improve our services. When we receive your completed questionnaire, we will send you $100. Our guarantee expires 30 days after you receive your loan. We reserve the right to change or discontinue our guarantee at any time. Limited to one $100 payment per funded loan. Truist teammates do not qualify for the Loan Experience Guarantee.

* LendingClub Terms and Conditions:

A representative example of loan payment terms is as follows: you receive a loan of $13,411 for a term of 36 months, with an interest rate of 12.16% and a 5.30% origination fee of $711, for an APR of 15.99%. In this example, you will receive $12,700 and will make 36 monthly payments of $446.46. Loan amounts range from $1,000 to $40,000 and loan term lengths are 36 months or 60 months. Some amounts and term lengths may be unavailable in certain states. APR ranges from 8.05% to 35.89% and is determined at the time of application. Origination fee ranges from 3% to 6% of the loan amount. Lowest APR is available to borrowers with excellent credit. Advertised rates are subject to change without notice.

Loans are made by LendingClub Bank, N.A., Member FDIC (“LendingClub Bank”), a wholly-owned subsidiary of LendingClub Corporation, NMLS ID 167439. Loans are subject to credit approval and sufficient investor commitment before they can be funded or issued. Certain information that we subsequently obtain as part of the application process (including but not limited to information in your consumer report, your income, the loan amount that your request, the purpose of your loan, and qualifying debt) will be considered and could affect your ability to obtain a loan from us. Loan closing is contingent on accepting all required agreements and disclosures at Lendingclub.com. “LendingClub” is a trademark of LendingClub Bank.

* One Main Financial Terms and Conditions:

You must complete a loan application and continue to meet any criteria used to select you for a loan offer. Not all applicants are approved. Loan approval and actual loan terms depend on applicant’s state of residence and ability to meet OneMain Financial credit standards such as a responsible credit history, sufficient income after monthly expenses, and if applicable, availability of eligible collateral. 

Not all approved applicants qualify for larger loan amounts, lower APRs, or the most favorable loan terms. For example, larger loan amounts typically require a first lien on a motor vehicle that is no more than ten years old, meets our value requirements, and is titled in applicant’s name with valid insurance. APRs are generally higher on loans not secured by a vehicle. Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07.

OneMain charges origination fees allowed by law. Depending on the state where the loan is opened, the origination fee may be either a flat amount or a percentage of the loan amount. Flat fees vary by state, ranging from $25 to $500. Percentage-based fees vary by state, ranging from 1% to 10% of the loan amount subject to certain state limits on the fee amount. For information about these fees and minimum and maximum loan sizes available in certain states, visit omf.com/loanfees.

Current OneMain Customers: Loan offers presented to a consumer assume the individual has no active loan with OneMain or one of its affiliates. If a customer applies for a new loan offer, a OneMain representative will discuss available options.

Active-duty military, their spouse or dependents covered by the Military Lending Act (MLA) may not pledge any vehicle as collateral. If you are covered by the MLA, you are not eligible for secured loans.

Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; or for gambling or illegal purposes.

Time to Fund Loans: Funding within one hour after loan closing through SpeedFunds® must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after closing.

* Splash Terms and Conditions:

Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are subject to change at any point prior to application submission. The information you provide is an inquiry to determine whether Splash’s lending partners can make you a loan offer.

*Splash marketplace loans offer fixed rates between 10.95% to 24.51% APR as of April 7, 2024. Personal loans have an origination fee of 3.99% to 7.49% which may be deducted from the loan proceeds. Lowest rates are reserved for the highest qualified borrowers. Lowest rates may require autopay and may require paying off a portion of existing debt directly. The autopay reduction will not be applied if autopay is not in effect. Not all rates and amounts available in all states. Not all applicants will qualify for the full amount. Residents of Massachusetts have a minimum loan amount of $6,000.

To qualify, a borrower must be a U.S. citizen or other eligible status and meet lender underwriting requirements. Splash does not guarantee that you will receive any loan offers or that your loan application will be approved. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, creditworthiness, income and other factors.

¹ To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

² Loans feature repayment terms of 36 to 60 months depending on the lender and your qualifications. For example, if you are approved for a $10,000 loan with a 36-month term and a fixed APR of 17.98% (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a monthly payment of $343.33.

³ While funding may be as soon as one to two business days, at times it could take up to two weeks.

Splash Financial, Inc. (NMLS #1630038), NMLS Consumer Access. Equal Housing Lender. Splash Financial, Inc. is licensed by the Department of Financial Protection & Innovation under the California Financing Law, license number 60DBO-102545. Splash® is a registered trademark of Splash Financial, Inc.

‡ Upgrade Terms and Conditions:

Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 7.99%-35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade's bank partners. Information on Upgrade's bank partners can be found at https://www.upgrade.com/bank-partners/.

* Achieve Terms and Conditions:  

1. Home Equity loans are available through Achieve Loans (NMLS ID #227977), Equal Housing Lender. All loan requests are subject to eligibility requirements, application review, loan amount, loan term, and lender approval. Product terms are subject to change at any time. Home loans are a line of credit.

Loans are not available to residents of all states and available loan terms/fees may vary by state where offered. Line amounts are between $15,000 and $300,000 and are assigned based on debt-to-income ratio and loan-to-value ratio. Minimum 640 credit score applies for debt consolidation requests, minimum 670 applies for cash out requests.

Fixed rate APRs range from 8.75% - 14.75% and are assigned based on underwriting requirements and offer APRs include a .50% discount for automatic payment enrollment (autopay enrollment is not a condition of loan approval).

Example: average HELOC is $57,150 with an APR of 12.75% and estimated monthly payment of $951 for a 15-year loan. 10-year and 15-year terms available. Both terms have a 5-year draw period with the remaining term being a no draw period. Payments are fully amortized during each period and determined on the outstanding principal balance each month. Closing fees range from $750 to $6,685, depending on line amount and state law requirements and typically include origination (2.5% of line amount) and underwriting ($725) fees if allowed by law.

Property must be owner-occupied and combined loan-to-value ratio may not exceed 80%, including the new loan request. Property insurance is required and flood insurance may be required if the subject property is located in a flood zone. You must pledge your home as collateral.

Average funding time is between 15 to 18 days from submitted application and documentation and includes rescission. Contact Achieve Loans for further details.

* Reach Financial Terms and Conditions: 

All loans are subject to eligibility criteria and review of creditworthiness and history. Terms and conditions apply. All loans advertised are unsecured personal loans issued by either Metabank® National association, member FDIC, or FinWise Bank, a Utah chartered commercial bank, member FDIC, as creditor, on the Liberty Lending platform. If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, and the loan term you select. Fixed Annual Percentage Rates (APR) range from 5.99% to 35.99%. You could receive a loan of $10,000 with an interest rate of 8.93%, an origination fee of $200, for an APR of 9.80%, which would result in total payment of $12,435 with 60 monthly payments of $207.20. Your actual rate may differ and depends on your credit history, loan amount, and term. Total approved loan amount reflects origination fee, which ranges from 0% to 5%. *Within 24 hours of your loan approval, loan proceeds will be available to pay the creditors named on your Truth-In-Lending Disclosure.

* Universal Credit Financial Terms and Conditions: 

Personal loans made through Universal Credit feature Annual Percentage Rates (APRs) of 11.69%-35.99%. All personal loans have a 5.25% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 36 to 60 months. For example, if you receive a $10,000 loan with a 36-month term and a 28.47% APR (which includes a 22.99% yearly interest rate and a 7% one-time origination fee), you would receive $9,300 in your account and would have a required monthly payment of $387.05. Over the life of the loan, your payments would total $13,933.62. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Universal Credit's bank partners. Information on Universal Credit's bank partners can be found at https://www.universal-credit.com/bank-partners/.

* Best Egg Terms and Conditions:  

*Trustpilot TrustScore as of December 2022. Best Egg loans are personal loans made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender or Blue Ridge Bank, N.A., Member FDIC, Equal Housing Lender. The Best Egg Credit Card is issued exclusively by First Bank & Trust, Member FDIC, Brookings SD pursuant to a license by Visa International. Visa is a registered trademark, and the Visa logo design is a trademark of Visa International Incorporated. “Best Egg” is a trademark of Best Egg Technologies, LLC. Offers may be sent pursuant to a joint marketing agreement between Cross River Bank, Blue Ridge Bank, N.A. and/or First Bank & Trust and Marlette Marketing, LLC, a subsidiary of Best Egg, Inc.

The term, amount, and APR of any loan we offer to you will depend on your credit score, income, debt payment obligations, loan amount, credit history and other factors. Your loan agreement will contain specific terms and conditions. About half of our customers get their money the next day. After successful verification, your money can be deposited in your bank account within 1-3 business days. The timing of available funds upon loan approval may vary depending upon your bank’s policies. Loan amounts range from $2,000– $50,000. Residents of Massachusetts have a minimum loan amount of $6,500 ; Ohio, $5,001; and Georgia, $3,001. For a second Best Egg loan, your total existing Best Egg loan balances cannot exceed $100,000. Annual Percentage Rates (APRs) range from 6.99%–35.99%. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0.99%– 9.99% of your loan amount, which will be deducted from any loan proceeds you receive. The origination fee on a loan term 4-years or longer will be at least 4.99%. Your loan term will impact your APR, which may be higher than our lowest advertised rate.

You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest APR. For example: a 5‐year $10,000 loan with 9.99% APR has 60 scheduled monthly payments of $201.81, and a 3‐year $5,000 loan with 7.99% APR has 36 scheduled monthly payments of $155.12. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents. Best Egg products are not available if you live in Iowa, Vermont, West Virginia, the District of Columbia, or U.S. Territories.

TO REPORT A PROBLEM OR COMPLAINT WITH THIS LENDER, YOU MAY WRITE OR CALL– Operations Manager, Email: crt-resolutions@bestegg.com, Address: P.O. Box 42912, Philadelphia, PA 19101, Phone: 1-855-282-6353. This lender is licensed and regulated by the New Mexico Regulation and Licensing Department, Financial Institutions Division, P.O. Box 25101, 2550 Cerrillos Road, Santa Fe, New Mexico 87504. To report any unresolved problems or complaints, contact the division by telephone at (505) 476-4885 or visit the website https://www.rld.nm.gov/financial-institutions/

* Santander Bank Terms and Conditions

Personal Loans are subject to individual approval and meeting our credit standards. Your primary residence must be located in AZ, CA, CT, CO, DC, DE, FL, GA, IL, IN, MA, MD, ME, MI, MN, MO, NC, NJ, NH, NY, OH, OR, PA, RI, TN, TX, VA, VT, or WA. The fixed loan Annual Percentage Rate (APR) will depend on your creditworthiness and use of automatic payments (ePay) from any deposit account. The APR on a Personal Loan will increase by 0.25 percentage points and the payment will increase, if ePay is not elected or is discontinued. Fixed loan APRs (with ePay) range from 7.99% to 24.99% and are subject to change without notice. Loan amounts range from $5,000 to $50,000. Loan repayment terms range from 36 months to 84 months. All terms are subject to change without notice. Personal Loans cannot be used to finance post-secondary educational expenses.

Personal Loan Monthly Payment Example: For a personal loan of $20,000 with a 60-month term at 15.49% APR, the monthly payment amount is approximately $480.96 to repay your loan in 60 payments. This example is an estimate only and assumes all payments are made on time.

Based on the time your application is received, same-day funding is available in many cases, depending on your creditworthiness and the funding instructions you provide.

Santander Bank, N.A. is a Member FDIC and a wholly owned subsidiary of Banco Santander, S.A. ©2024

Santander Bank, N.A. All rights reserved. Santander, Santander Bank and the Flame logo are trademarks of Banco Santander, S.A. or its subsidiaries in the United States or other countries. All other trademarks are the property of their owners.