If you’re stuck in a no-win situation with credit card bills or other debts, a debt consolidation loan can streamline multiple payments into a single monthly bill at a lower interest rate.
Many lenders will even submit funds directly to your creditors.
CNBC Select has chosen the best debt consolidation loans based on rates, fees, credit score requirements, repayment options and more. For more on how we made our picks, read our methodology.
Best debt consolidation loans
Best for no credit: Upstart
Who’s this for? When reviewing applications, Upstart considers factors beyond your credit, including your education history and work experience.
Standout benefits: Funds are available as soon as the next business day and you can pay off your loan early with no penalty.
Loan amounts: $1,000 to $75,000
Loan terms: 3 to 5 years
Upstart offers accessible personal loans for people with fair or average credit.
- Accept applicants with low or no credit
- No early payoff fees
- Most loans funded the next business day
- High late fees
- Origination fee of 0% to 10% of the target amount
- $10 fee for paper copies of loan agreement
Best for flexible repayment terms: Upgrade
Who’s this for? Upgrade is ideal if you want to customize your debt consolidation loan. With multiple loan options, you can select a monthly payment and term length that fits your budget.
Standout benefits: Funds are available one business day after you accept the loan offer and can be sent straight to your creditors. There are no early payoff penalties.
Loan amounts: $1,000 to $50,000
Loan terms: 2 to 7 years
Accepts applicants with fair credit
- Accepts applicants with fair credit
- Approves loans of up to $50,000
- Creditors can be paid directly
- Autopay discount available
- Funding in as little as one day*
- High maximum interest rate
- Origination fee of up to 9.99%
- No physical branches
Why Upgrade is the best for financial literacy:
- Free credit score simulator to help you visualize how different scenarios and actions may impact your credit
- Charts that track your trends and credit health over time, helping you understand how certain financial choices affect your credit score
- Ability to sign up for free credit monitoring and weekly VantageScore updates
Best for joint applicants: Prosper
Who’s this for? Prosper allows you to apply with a co-borrower who has stronger credit, which can improve your odds of approval and help you qualify for better terms.
Standout benefits: Borrowers choose the length of their loan and funds can be available as early as one business day. Prosper doesn’t charge prepayment penalties.
Loan amounts: $2,000 to $50,000
Loan terms: 2 to 5 years
You can sign with collateral or a co-borrower to better your approval odds and secure a lower rate. Funding can be quick.
- Approves loans of up to $50,000
- Repeat borrowers may qualify for an APR discount
- Borrowers can choose their payment date
- Co-borrowers permitted
- Higher maximum APR than other lenders
- Funding may take several days
- No direct payment to creditors
- Numerous fees
Best for bad credit: Achieve
Who’s this for? Achieve approves debt consolidation loans for borrowers with a FICO score of 620, lower than many competitors.
Standout benefits: Achieve offers several rate discounts, as well as flexible terms and payment dates.
Loan amounts: $5,000 to $50,000
Loan terms: 2 to 5 years
- Flexible term lengths
- Rate discounts available
- Works with borrowers with fair credit
- Loans may not be available in all states
- The lender charges origination fees
Best for student loan consolidation: SoFi
Who’s this for? SoFi allows borrowers to consolidate and refinance up to $100,000 in federal or private student loans.
Standout benefits: SoFi doesn’t charge origination fees, prepayment penalties or late fees. Plus, membership comes with referral bonuses, rate discounts, financial planning tools, access to travel offers and an unemployment protection program that allows you to temporarily modify your loan payments.
Loan amounts: $5,000 to $100,000
Loan terms: 2 to 7 years (up to 20 years with student loan refinancing)
No origination fees required, no early payoff fees, no late fees
- No origination fees required, no early payoff fees, no late fees
- Unemployment protection if you lose your job
- DACA recipients can apply with a creditworthy co-borrower who is a U.S. citizen/permanent resident by calling 877-936-2269
- Can have more than one SoFi loan at a time (state-permitting)
- May accept offer of employment (to start within the next 90 days) as proof of income
- Co-applicants may apply
- Applicants who are U.S. visa holders must have more than two years remaining on visa to be eligible
- No co-signers allowed (co-applicants only)
Fixed rates from 8.74% APR to 35.49% APR. APR reflect the 0.25% autopay interest rate discount and a 0.25% SoFi Plus interest rate discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or, Cross River Bank, a New Jersey State Chartered Commercial Bank, operating from its Delaware branch, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 02/23/26 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors.
Best for helping you stay motivated: Happy Money
Who’s this for? If you need help staying on track, Happy Money’s member portal and mobile app let you monitor payments, track your progress and contact the support team for assistance.
Standout benefits: Happy Money’s straightforward application process lets you choose your terms, monthly payment and pay-off date. You can also decide whether you want the money deposited into your account or sent directly to your creditors.
Loan amounts: $5,000 to $40,000
Loan terms: 2 to 5 years
Peer-to-peer lending platform makes it easy to check multiple offers
- Peer-to-peer lending platform makes it easy to check multiple offers
- Loan approval comes with Happy Money membership and customer support
- No early payoff fees
- Fast and easy application
- U.S.-based customer service
- Higher loan minimums ($5,000)
- Must submit soft inquiry to see origination fees and other details
Best for fast funding: LightStream
Who’s this for? LightStream can approve and fund loans the same day you apply, making it a good choice if you need financing fast.
Standout benefits: Borrowers can choose their funding date and repayment terms and there are no pre-payment penalties. LightStream’s Rate Beat Program means the online lender will beat any competitor’s offer on an unsecured loan by 0.10 percentage points if you have good to excellent credit and submit the request by 2 p.m. ET two business days before the loan funds.
Loan amounts: $5,000 to $100,000
Loan terms: 2 to 12 years
LightStream Personal Loans offer low APRs, no fees and the ability to apply online. Its terms are as long as 20 years, or 240 months.
- Same-day funding available through ACH or wire transfer (conditions apply)
- Loan amounts up to $100,000
- No origination fees, no early payoff fees, no late fees
- LightStream plants a tree for every loan
- Requires several years of credit history
- No option to pay your creditors directly
- Not available for student loans or business loans
- No option for pre-approval on website (but pre-qualification is available on some third-party lending platforms)
Compare loan options
How to apply for a debt consolidation loan
To apply for a debt consolidation loan, add up the balances you want to consolidate and make sure any lender you’re considering has a minimum loan amount that meets that threshold. (If you need $1,000 but someone’s minimum is $3,000, you won’t be approved.)
Find out what the minimum credit score requirements are so you’ll avoid applying for loans you won’t get approved for. Some lenders will let you prequalify and compare rates without damaging your credit score.
Be aware of any fees, including application fees, a late payment fee and prepayment penalties.
Once you decide which lender you want, you’ll submit an application with personal details, including an approved government ID, proof of income, bank statements and any outstanding debts. If you’re approved for the loan, you can typically request that the lender make a direct payment to each of your creditors.
How to manage loan payments
Before you submit an application, make sure you have a plan to pay off the loan. Consider the amount, interest rate and the length of the loan term. Do they fit in your budget? Getting buried deeper in debt is the last thing you want to do. If you can, automate loan payments so you have one less thing to think about.
FAQs
What’s a debt consolidation loan?
A debt consolidation loan is a personal loan that’s used to pay off existing debt across other accounts, including credit cards, student loans and other installment loans.
How does debt consolidation work?
Debt consolidation loans deliver cash directly to your creditor or your bank account, which you then use to pay off your existing debt. Within 30 days, you’ll start making a fixed monthly payment on the new loan until all of the debt is paid off.
What are the benefits of consolidating debt?
With a lower APR, debt consolidation loans can shave off some interest charges and save on high-interest debt. People who use them successfully can save money when they stick to their new, simplified payoff plan and stop using their old credit cards to rack up new debt.
Do you have to close credit cards after debt consolidation?
You can keep your credit cards open after you take out a debt consolation loan, but it’s best to use them only to pay for what you know you can afford to pay off at the end of each month.
Does debt consolidation hurt your credit score?
Consolidating your debt into a personal loan can have a positive impact on your credit score and overall finances, but it’s important to understand the process so you can ensure the greatest benefit.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed financial decisions. Every debt consolidation loan list is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of personal loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best personal loans for consolidating debt.
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Our methodology
To determine which personal loans are the best for consolidating debt, CNBC Select analyzed dozens of U.S. personal loans offered by both online and brick-and-mortar banks, including large credit unions. When possible we chose loans with no origination or sign-up fees, but we also included options for borrowers with lower credit scores on this list. Some of those options have origination fees.
When narrowing down and ranking the best personal loans, we focused on the following features:
- Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you lock in an interest rate for the duration of the loan’s term, which means your monthly payment won’t vary, making your budget easier to plan.
- Flexible minimum and maximum loan amounts/terms: Each lender provides more than one financing option that you can customize based on your monthly budget and how long you need to pay back your loan.
- No early payoff penalties: The lenders on our list do not charge borrowers for paying off loans early.
- Streamlined application process: We considered whether lenders offered same-day approval decisions and a fast online application process.
- Customer support: Every loan on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
- Fund disbursement: The loans on our list deliver funds promptly through either electronic wire transfer to your checking account or in the form of a paper check. Some lenders (which we noted) offer the ability to pay your creditors directly.
- Autopay discounts: We noted the lenders that reward you for enrolling in autopay by lowering your APR by 0.25% to 0.5%.
- Creditor payment limits and loan sizes: The above lenders provide loans in an array of sizes, from $1,000 to $100,000. Each lender advertises its respective payment limits and loan sizes, and completing a preapproval process can give you an idea of what your interest rate and monthly payment would be for such an amount.
*Your LightStream loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points 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 7.99% APR with a term of three years would result in 36 monthly payments of $313.32.
Fixed rates from 8.74% APR to 35.49% APR. APR reflect the 0.25% autopay interest rate discount and a 0.25% SoFi Plus interest rate discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or, Cross River Bank, a New Jersey State Chartered Commercial Bank, operating from its Delaware branch, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 02/23/26 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.