Best Debt Consolidation Loans of June 2024

Jackie Veling
Written by
Last updated on June 12, 2024
Edited by
✅ Fact checked and reviewed
Kim Lowe
Edited by
✅ Fact checked and reviewed

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Best Debt Consolidation Loans of June 2024

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SoFi
SoFi Personal Loan
+ 6,900recent visits
Best for Good credit
5.0
Rate discount
Est. APR
8.99-29.99%
Loan amount
$5K-$100K
Min. credit score
None
Visit Lender
on SoFi's website
on SoFi's website
Check Rate
on NerdWallet
on NerdWallet
View details
2024 Best Personal Loan for Debt Consolidation
+ 2,500recent visits
Upgrade
Upgrade
+ 2,500recent visits
Best for Best overall
Rate discount
Est. APR
8.49-35.99%
Loan amount
$1K-$50K
Min. credit score
560
Lightstream
LightStream
Best for Low rates
4.5
Rate discount
Est. APR
6.99-25.49%
Loan amount
$5K-$100K
Min. credit score
660
Happy Money
Happy Money
Best for Paying off credit card debt
Fast funding
Est. APR
11.72-17.99%
Loan amount
$5K-$40K
Min. credit score
640
Check Rate
on NerdWallet
on NerdWallet
Achieve
Achieve Personal Loans
Best for Rate discounts
Rate discount
Est. APR
8.99-35.99%
Loan amount
$5K-$50K
Min. credit score
620
BestEgg
Best Egg
Best for Secured loan option
Secured loans
Wide range of loan amounts
Est. APR
8.99-35.99%
Loan amount
$2K-$50K
Min. credit score
600
Universal Credit
Universal Credit
Best for Bad credit
Fast funding
Rate discount
Est. APR
11.69-35.99%
Loan amount
$1K-$50K
Min. credit score
560
Lending Club
LendingClub
Best for Joint loan option
Flexible payments
Est. APR
8.98-35.99%
Loan amount
$1K-$40K
Min. credit score
600
🏆 Top 3 most visited
Discover
Discover® Personal Loans
🏆 Top 3 most visited
Best for Fast funding
Fast funding
Est. APR
7.99-24.99%
Loan amount
$2.5K-$40K
Min. credit score
660
PNC Bank Personal Loan
PNC Bank Personal Loan
Best for Bank loans
Est. APR
7.49-30.49%
Loan amount
$1K-$35K
Min. credit score
None
SoFi
+ 6,900recent visits
SoFi Personal Loan
Visit Lender
on SoFi's website
on SoFi's website
Check Rate
on NerdWallet
on NerdWallet
Best for Good credit
+ 6,900recent visits
Est. APR
8.99-29.99%
Loan amount
$5K-$100K
Min. credit score
None
Best for Good credit
Rate discount
2024 Best Personal Loan for Debt Consolidation
Upgrade
+ 2,500recent visits
Upgrade
Best for Best overall
+ 2,500recent visits
Est. APR
8.49-35.99%
Loan amount
$1K-$50K
Min. credit score
560
Best for Best overall
Rate discount
LightStream
Best for Low rates
Est. APR
6.99-25.49%
Loan amount
$5K-$100K
Min. credit score
660
Best for Low rates
Rate discount
Happy Money
Check Rate
on NerdWallet
on NerdWallet
Best for Paying off credit card debt
Est. APR
11.72-17.99%
Loan amount
$5K-$40K
Min. credit score
640
Best for Paying off credit card debt
Fast funding
Achieve Personal Loans
Best for Rate discounts
Est. APR
8.99-35.99%
Loan amount
$5K-$50K
Min. credit score
620
Best for Rate discounts
Rate discount
Best Egg
Best for Secured loan option
Est. APR
8.99-35.99%
Loan amount
$2K-$50K
Min. credit score
600
Best for Secured loan option
Secured loans
Wide range of loan amounts
Universal Credit
Best for Bad credit
Est. APR
11.69-35.99%
Loan amount
$1K-$50K
Min. credit score
560
Best for Bad credit
Fast funding
Rate discount
LendingClub
Best for Joint loan option
Est. APR
8.98-35.99%
Loan amount
$1K-$40K
Min. credit score
600
Best for Joint loan option
Flexible payments
Discover
🏆 Top 3 most visited
Discover® Personal Loans
Best for Fast funding
🏆 Top 3 most visited
Est. APR
7.99-24.99%
Loan amount
$2.5K-$40K
Min. credit score
660
Best for Fast funding
Fast funding
PNC Bank Personal Loan
Best for Bank loans
Est. APR
7.49-30.49%
Loan amount
$1K-$35K
Min. credit score
None
Best for Bank loans

A closer look at the best debt consolidation loans

NerdWallet has reviewed more than 35 financial institutions to find the best personal loans for consolidating debt. These are our top picks.

Best for debt consolidation loans overall

Upgrade
Read full review
Est. APR8.49-35.99%
Est. APR8.49-35.99%
Loan amount$1K-$50K
Loan amount$1K-$50K
Min. credit score560
Min. credit score560
Repayment terms:3 to 7 years
Repayment terms:3 to 7 years
on Upgrade's website
on NerdWallet
Est. APR8.49-35.99%
Est. APR8.49-35.99%
Loan amount$1K-$50K
Loan amount$1K-$50K
Min. credit score560
Min. credit score560
Repayment terms:3 to 7 years
Repayment terms:3 to 7 years
on Upgrade's website
on NerdWallet
Pros
  • Secured and joint loans.
  • Multiple rate discounts.
  • Mobile app to manage loan payments.
  • Direct payment to creditors with debt consolidation loans.
  • Long repayment terms on home improvement loans.
Cons
  • Origination fee.
  • No option to choose your payment date.
Upgrade personal loans offer multiple rate discounts and direct payment to creditors. A low minimum credit score requirement makes the perks stand out even more.
  • Rate discount for debt consolidation loans.
  • Can send loan funds to creditors in one business day.

Best for debt consolidation loans for good credit

Est. APR8.99-29.99%
Est. APR8.99-29.99%
Loan amount$5K-$100K
Loan amount$5K-$100K
Min. credit scoreNone
Min. credit scoreNone
Repayment terms:2 to 7 years
Repayment terms:2 to 7 years
on SoFi's website
on NerdWallet
Est. APR8.99-29.99%
Est. APR8.99-29.99%
Loan amount$5K-$100K
Loan amount$5K-$100K
Min. credit scoreNone
Min. credit scoreNone
Repayment terms:2 to 7 years
Repayment terms:2 to 7 years
on SoFi's website
on NerdWallet
Pros
  • Joint loan option.
  • Multiple rate discounts.
  • Mobile app to manage loan.
Cons
  • No option to choose initial payment date.
  • High minimum loan amount.
SoFi offers online personal loans with consumer-friendly features for good- and excellent-credit borrowers.
  • Rate discount for debt consolidation loans.
  • Offers same-day funding.
  • Hardship assistance available.

Best for credit card consolidation loans

Est. APR11.72-17.99%
Est. APR11.72-17.99%
Loan amount$5K-$40K
Loan amount$5K-$40K
Min. credit score640
Min. credit score640
Repayment terms:2 to 5 years
Repayment terms:2 to 5 years
on NerdWallet
Est. APR11.72-17.99%
Est. APR11.72-17.99%
Loan amount$5K-$40K
Loan amount$5K-$40K
Min. credit score640
Min. credit score640
Repayment terms:2 to 5 years
Repayment terms:2 to 5 years
on NerdWallet
Pros
  • Pre-qualify with soft credit check.
  • Direct payment to creditors with debt consolidation loans.
  • Fast funding.
  • Hardship program.
Cons
  • Origination fee.
  • No rate discount.
  • No joint, co-sign or secured loan options.
  • No option to choose initial payment date.
Happy Money offers loans and ongoing support to help fair- and good-credit borrowers consolidate credit card debt.
  • Rolls high-interest credit cards into one monthly payment.
  • Borrowers may receive instant approval decision.

Best for debt consolidation loans with low rates

Est. APR6.99-25.49%
Est. APR6.99-25.49%
Loan amount$5K-$100K
Loan amount$5K-$100K
Min. credit score660
Min. credit score660
Repayment terms:2 to 7 years
Repayment terms:2 to 7 years
on LightStream's website
on NerdWallet
Est. APR6.99-25.49%
Est. APR6.99-25.49%
Loan amount$5K-$100K
Loan amount$5K-$100K
Min. credit score660
Min. credit score660
Repayment terms:2 to 7 years
Repayment terms:2 to 7 years
on LightStream's website
on NerdWallet
Pros
  • No fees.
  • Rate discount for autopay.
  • Long repayment terms on home improvement loans.
  • Rate Beat program and Experience Guarantee.
Cons
  • No option to pre-qualify with a soft credit check on its website.
  • No direct payment to creditors with debt consolidation loans.
  • High minimum loan amount.
LightStream targets strong-credit borrowers with no fees and low rates that vary based on loan purpose.
  • Offers same-day funding.
  • Wide range of repayment terms available.

Best for debt consolidation loans for bad credit

Est. APR11.69-35.99%
Est. APR11.69-35.99%
Loan amount$1K-$50K
Loan amount$1K-$50K
Min. credit score560
Min. credit score560
Repayment terms:3 to 5 years
Repayment terms:3 to 5 years
on Universal Credit's website
on NerdWallet
Est. APR11.69-35.99%
Est. APR11.69-35.99%
Loan amount$1K-$50K
Loan amount$1K-$50K
Min. credit score560
Min. credit score560
Repayment terms:3 to 5 years
Repayment terms:3 to 5 years
on Universal Credit's website
on NerdWallet
Pros
  • Offers direct payment to creditors with debt consolidation loans.
  • Fast funding.
  • Offers multiple rate discounts.
  • Offers free credit score access.
Cons
  • Charges origination fee.
  • Borrowers can choose from only two repayment term options.
A Universal Credit loan is a sound option for bad-credit borrowers looking to build credit, but rates are high compared to similar lenders.
  • No minimum income requirement.
  • Borrowers can change their payment due date many times during repayment.
  • Loan funds can be sent within one business day.

Best for secured debt consolidation loans

Est. APR8.99-35.99%
Est. APR8.99-35.99%
Loan amount$2K-$50K
Loan amount$2K-$50K
Min. credit score600
Min. credit score600
Repayment terms:3 to 5 years
Repayment terms:3 to 5 years
on Best Egg's website
on NerdWallet
Est. APR8.99-35.99%
Est. APR8.99-35.99%
Loan amount$2K-$50K
Loan amount$2K-$50K
Min. credit score600
Min. credit score600
Repayment terms:3 to 5 years
Repayment terms:3 to 5 years
on Best Egg's website
on NerdWallet
Pros
  • Option to pre-qualify with a soft credit check.
  • Wide range of loan amounts.
  • Unsecured and secured loan options.
  • Direct payment to creditors with debt consolidation loans.
  • No late fees.
Cons
  • Origination fee.
  • No rate discounts.
  • No option to choose initial payment date.
  • No mobile app to manage loan.
Best Egg offers personal loans for borrowers who want to consolidate debt and need cash fast.
  • Can send loan funds directly to up to 10 creditors.
  • Can fund loans in one business day.

Best for debt consolidation loans with fast funding

Est. APR7.99-24.99%
Est. APR7.99-24.99%
Loan amount$2.5K-$40K
Loan amount$2.5K-$40K
Min. credit score660
Min. credit score660
Repayment terms:3 to 7 years
Repayment terms:3 to 7 years
on Discover's website
on NerdWallet
Est. APR7.99-24.99%
Est. APR7.99-24.99%
Loan amount$2.5K-$40K
Loan amount$2.5K-$40K
Min. credit score660
Min. credit score660
Repayment terms:3 to 7 years
Repayment terms:3 to 7 years
on Discover's website
on NerdWallet
Pros
  • No origination fee.
  • Option to pre-qualify with a soft credit check.
  • Fast funding.
  • Mobile app to manage loan.
Cons
  • May charge late fee.
  • No co-sign or joint loan option.
  • No rate discount.
With competitive rates and no orgination fees, Discover personal loans are good options for borrowers with good and excellent credit.
  • Can send loan funds directly to creditors within one business day.
  • Can be used to refinance existing personal loan.

Best for debt consolidation loans with rate discounts

Est. APR8.99-35.99%
Est. APR8.99-35.99%
Loan amount$5K-$50K
Loan amount$5K-$50K
Min. credit score620
Min. credit score620
Repayment terms:2 to 5 years
Repayment terms:2 to 5 years
on Achieve's website
on NerdWallet
Est. APR8.99-35.99%
Est. APR8.99-35.99%
Loan amount$5K-$50K
Loan amount$5K-$50K
Min. credit score620
Min. credit score620
Repayment terms:2 to 5 years
Repayment terms:2 to 5 years
on Achieve's website
on NerdWallet
Pros
  • Option to pre-qualify with a soft credit check.
  • Multiple rate discounts.
  • Direct payment to creditors with debt consolidation loans.
  • Joint loan options.
Cons
  • Charges origination fee.
  • Not available in all states.
  • No mobile app to manage loan.
  • High minimum loan amount.
Achieve is a strong option for debt consolidation loans. Borrowers can have funds paid directly to creditors and benefit from multiple rate discounts.
  • Rate discount for debt consolidation loans.
  • Borrowers may receive same-day approval.

Best for joint debt consolidation loans

Est. APR8.98-35.99%
Est. APR8.98-35.99%
Loan amount$1K-$40K
Loan amount$1K-$40K
Min. credit score600
Min. credit score600
Repayment terms:2 to 5 years
Repayment terms:2 to 5 years
on NerdWallet
Est. APR8.98-35.99%
Est. APR8.98-35.99%
Loan amount$1K-$40K
Loan amount$1K-$40K
Min. credit score600
Min. credit score600
Repayment terms:2 to 5 years
Repayment terms:2 to 5 years
on NerdWallet
Pros
  • Joint loan option.
  • Direct payment to creditors with debt consolidation loans.
  • Option to pre-qualify with a soft credit check.
  • Option to change your payment date.
  • Fast funding.
Cons
  • Origination fee.
  • No mobile app to manage loan.
  • Limited term lengths.
LendingClub personal loans are a solid option for good-credit borrowers looking to consolidate debt and build their credit.
  • Can send loan funds directly to up to 12 creditors.
  • Rate discount for debt consolidation loans.
  • Member Center to help customers manage money and credit.

Best for bank loans for debt consolidation

Est. APR7.49-30.49%
Est. APR7.49-30.49%
Loan amount$1K-$35K
Loan amount$1K-$35K
Min. credit scoreNone
Min. credit scoreNone
Repayment terms:6 months to 5 years
Repayment terms:6 months to 5 years
on NerdWallet
Est. APR7.49-30.49%
Est. APR7.49-30.49%
Loan amount$1K-$35K
Loan amount$1K-$35K
Min. credit scoreNone
Min. credit scoreNone
Repayment terms:6 months to 5 years
Repayment terms:6 months to 5 years
on NerdWallet
Pros
  • Rate discount for autopay.
  • Joint loan option.
  • Direct payment to creditors with debt consolidation loans.
  • Wide variety of repayment term options.
Cons
  • Product varies by location.
  • May require in-person visit.
  • No large loan amounts.
For borrowers who want flexibility, PNC delivers with a wide range of repayment terms and a joint loan option, but non-customers may need to visit a branch to close the loan.
  • Same-day funding for existing online banking customers.
  • Pre-qualification available in some states.

NerdWallet’s guide to debt consolidation loans

Learn how debt consolidation loans work, the pros and cons of consolidating your debt and how to get approved for a debt consolidation loan.

On this page

What are debt consolidation loans and how do they work?

Debt consolidation loans are a type of personal loan that combine multiple unsecured debts — such as credit cards, medical bills and payday loans — into one fixed monthly payment, making it easier to get out of debt.

As long as the interest rate on the debt consolidation loan is lower than the average rate of your existing debts, you’ll save money on interest and potentially pay off your debt faster.

Video preview image

Online lenders, banks and credit unions offer debt consolidation loans. Once you’re approved, the lender deposits the loan into your bank account, and you use that money to pay off your debts, so you’re left with only the new loan. Some lenders even pay off your creditors for you.

You then make monthly payments toward the debt consolidation loan until all your debt is paid off. Payments are fixed for the life of the loan, typically two to seven years.

» MORE: How do debt consolidation loans work?

Ask NerdWallet: Should I use a debt consolidation loan to pay off my credit card debt?

“Consolidating credit card debt is usually a smart move, because credit cards have really high interest rates, and when you carry a balance, you end up paying interest on interest. A debt consolidation loan has a fixed interest rate, so it stops the cycle of compounding interest, and rates tend to be lower.

It also gives you a plan. If you’ve only been able to make the minimum payments on your credit cards each month, you probably aren’t making much progress on your debt. A consolidation loan has a clear endpoint, as long as you make the monthly payments on time.”

Jackie Veling, Lead Writer on Debt Consolidation

Credit card refinancing vs. consolidation loans

Refinancing credit card debt is similar to consolidation, but instead of getting a debt consolidation loan to pay off your credit cards, you get a low-interest credit card and transfer the balance from one or more of your existing credit cards onto the new card.

This is called a balance transfer, and many balance transfer credit cards offer a 0% introductory APR for a period of 15 to 21 months, which means you can pay off debt interest-free during that period. You'll likely need good or excellent credit to qualify (690 score or higher).

🤓

Nerdy Tip

Balance transfers work best if you can qualify for a card that covers the amount of your debt, and the savings in interest outweigh the balance transfer fee, which is typically 3% to 5% of the total amount transferred. Aim to pay off the balance in full before the zero-interest promotion expires and the APR resets to its normal, higher rate.

Are debt consolidation loans a good idea?

A debt consolidation loan is a good idea if you can get a lower annual percentage rate than what you're currently paying on your other debts. The best debt consolidation loan interest rates are reserved for borrowers with good or excellent credit (690 or higher credit score).

Like with all financial decisions, you should carefully weigh the pros and cons of consolidating your debts before you apply for a loan. Here are the main benefits and drawbacks of debt consolidation loans to help you make an informed decision.

Pros of debt consolidation loans

  • You pay less in interest: By getting a debt consolidation loan at a lower rate than your current debts, you’ll save money on interest, which can make your debt more manageable.

  • You may get out of debt faster: Because you’re saving money on interest, you can use that savings to make larger payments on your loan and get out of debt even faster.

  • You have only one payment: Unlike juggling multiple credit card bills, you’ll have only one monthly payment if you combine your debts under a consolidation loan.

  • You have a clear finish line: A debt consolidation loan gives you an exact date you’ll be debt-free, which can help you stay motivated as you make the payments.

Cons of debt consolidation loans

  • You may not qualify for a low enough rate: Not all consolidation loans come with low interest rates, and if you have bad credit (a score below 630), you may not get a rate that’s lower than your current debts.

  • You still have debt you need to manage: Consolidating debt is a smart choice for many, but it’s important to remember the debt doesn’t disappear — it goes somewhere else. Most debt consolidation loans offer terms of two to seven years, so be prepared to stick to your monthly payments over that time period.

  • Consolidation won’t fix core spending issues: If you’re in debt because you struggle to stick to your monthly budget, a debt consolidation loan won’t fix that. It may even make things worse if you use your newly freed credit cards to rack up additional debt.

See your savings with a debt consolidation loan

Use this debt consolidation calculator to plug in your debts and get an idea of how much money you can save by consolidating under a debt consolidation loan.

Frequently asked questions about debt consolidation