BEST OF

8 Excellent Debt Consolidation Personal Loans of 2023

Mar 1, 2023

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Debt consolidation loans help borrowers combine multiple high-interest debts into a single payment. If you’re like many Americans with high credit card balances, you may be looking for ways to get your debt under control. Debt consolidation loans are one option that can reduce your debt and help you pay it off sooner. When comparing debt consolidation loans, look for low rates, flexible terms and consumer-friendly features such as direct payment to creditors.

Lender	NerdWallet rating	Est. APR	Loan amount	Min. credit score	Learn more
SoFi Personal Loan See my rateson NerdWallet's secure website	4.5/5 Excellent for Personal loans for excellent credit	7.74-35.49%	$5,000-$100,000	None	See my rateson NerdWallet's secure website
Best Egg See my rateson NerdWallet's secure website	4.5/5 Excellent for Personal loans for fair or good credit	6.99-35.99%	$2,000-$50,000	600	See my rateson NerdWallet's secure website
LendingClub See my rateson NerdWallet's secure website	5.0/5 Excellent for Personal loans for fair-credit borrowers looking to consolidate debt or finance large purchase	6.53-35.99%	$1,000-$60,000	600	See my rateson NerdWallet's secure website
Upstart See my rateson NerdWallet's secure website	4.5/5 Excellent for Personal loans for bad credit + Personal loans for fast funding	6.70-35.99%	$1,000-$75,000	None	See my rateson NerdWallet's secure website
LightStream See my rateson NerdWallet's secure website	4.5/5 Excellent for Personal loans for good credit + Personal loans for home improvement + Personal loans for fast funding	6.49-24.89%	$5,000-$100,000	660	See my rateson NerdWallet's secure website
Upgrade See my rateson NerdWallet's secure website	5.0/5 Excellent for Personal loans for fair credit + Co-signed and joint loans	7.74-35.99%	$1,000-$50,000	600	See my rateson NerdWallet's secure website
Avant See my rateson NerdWallet's secure website	4.0/5 Excellent for Personal loans for fair- and bad-credit borrowers looking for fast funding.	9.95-35.99%	$2,000-$35,000	550	See my rateson NerdWallet's secure website

Best for

Personal loans for excellent credit

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SoFi Personal Loan

4.5

NerdWallet rating

Est. APR

7.74-35.49%

Loan amount

$5,000-$100,000

Min. credit score

None

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Min. credit scoreNone

Key factsSoFi offers large online personal loans with consumer-friendly features for good- and excellent-credit borrowers.

Pros

Multiple rate discounts.
Large loans available.
Has a joint loan option.
Hardship assistance or program for borrowers in need.

Cons

No option to choose initial payment date.
High minimum loan amount.

Qualifications

Must be at least 18 years old in most states.
Must be a U.S. citizen, permanent or non-permanent resident, including DACA recipients and asylum seekers.
Must be employed, have sufficient income from another source, or have an offer of employment to start within the next 90 days.

Available Term Lengths2 to 7 years

Fees

Origination fee: 0% to 7%.
Late fee: None.

DisclaimerWith autopay

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Best for

Personal loans for fair or good credit

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Best Egg

4.5

NerdWallet rating

Est. APR

6.99-35.99%

Loan amount

$2,000-$50,000

Min. credit score

600

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Min. credit score600

Key factsBest Egg is worth considering for borrowers looking for a secured loan or to consolidate debt.

Pros

Wide range of loan amounts.
Secured loan options.
Direct payment to creditors with debt consolidation loans.
Fast funding.
Free credit score monitoring.

Cons

Charges an origination fee.
No co-signed or joint loan options.

Qualifications

Minimum credit score: 600.
Maximum debt-to-income ratio: 70%, including mortgage payments.
Minimum credit history: 3 years and 1 open account.
Must provide a Social Security number, a valid U.S. bank account and proof of employment or income.
Must not have any previous bankruptcies.
Must be a U.S. citizen and at least 18 years of age.
Cannot live in Iowa, Vermont, West Virginia or Washington, D.C.

Available Term Lengths3 to 5 years

Fees

Origination fee: 0.99% - 9.99%.

Disclaimer*Trustpilot TrustScore as of April 2025. Best Egg loans are personal loans made by Cross River Bank, a New Jersey Chartered Bank, Member FDIC, Equal Housing Lender, or Column N.A., Member FDIC, Equal Housing Lender. 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. Eligibility for the best available rate subject to creditworthiness. 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/

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Best for

Personal loans for fair-credit borrowers looking to consolidate debt or finance large purchase

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LendingClub

5.0

NerdWallet rating

Est. APR

6.53-35.99%

Loan amount

$1,000-$60,000

Min. credit score

600

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Min. credit score600

Key factsA LendingClub personal loan is a standout option for qualified borrowers who want to pay off debt with flexible terms.

Pros

Option to pre-qualify with a soft credit check.
Direct payment to creditors with debt consolidation loans.
Same- or next-day funding.
Has a joint loan option.
Options to choose and change your payment date.

Cons

Charges an origination fee.

Qualifications

Minimum credit score: 600
Maximum debt-to-income ratio: 40%.
Must be at least 18 (or the age of majority in AL, MS or NE).
Must be a U.S. citizen, provide a Social Security number and provide proof of residency.
Must have a valid U.S. bank account, government-issued photo ID and email address.
Must provide proof of employment or income.

Available Term Lengths2 to 7 years

Fees

Origination fee: 0% to 8%.
Late fee: $15 or 5% of the unpaid amount, whichever is greater.
Insufficient funds fee: $15.

DisclaimerBetween Jan 2025 to June 2025, 55% of LendingClub Personal Loans that were approved for funding (which is after your loan application is approved) on a given business day were disbursed within 24 hours. Actual availability of funds may vary and is dependent on multiple factors, including, but not limited to your receiving bank’s processing times and policies. A business day is defined as Monday through Friday and excludes the weekend and bank holidays. A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $24,046 for a term of 36 months, with an interest rate of 12.99% and a 6.00% origination fee of $1,443 for an APR of 17.37%. In this example, the borrower will receive $22,603 and will make 36 monthly payments of $810. Loan amounts range from $1,000 to $60,000 and loan term lengths range from 24 months to 84 months. Some amounts, rates, and term lengths may be unavailable in certain states. For Personal Loans, APR ranges from 6.53% to 35.99% and origination fee ranges from 0.00% to 8.00% of the loan amount. APRs and origination fees are determined at the time of application. The lowest APR may be available to borrowers with excellent credit subject to additional factors including, but not limited to, loan amount, loan term, and sufficient investor commitment. Advertised rates and fees are valid as of November 7, 2025 and are subject to change without notice. Loans are made by LendingClub Bank, N.A., Equal Housing Lender ("LendingClub Bank"), a wholly-owned subsidiary of LendingClub Corporation, NMLS ID 167439. LendingClub Bank is not an affiliate of this platform, which is an unrelated third party ("third party"), and is not responsible for any products and services provided by this third party, which may receive compensation if you visit the LendingClub Bank’s websites or use any of its products or services. Credit eligibility is not guaranteed. Loans are subject to credit approval and may be subject to sufficient investor commitment. Credit union membership may be required. Certain information that LendingClub Bank subsequently obtains 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. Loan closing is contingent on accepting all required agreements and disclosures. "LendingClub" and the "LC" symbol are trademarks of LendingClub Bank.

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Best for

Personal loans for bad credit + Personal loans for fast funding

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Upstart

4.5

NerdWallet rating

Est. APR

6.70-35.99%

Loan amount

$1,000-$75,000

Min. credit score

None

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Min. credit scoreNone

Key factsUpstart personal loans offer fast funding and may be an option for borrowers with low credit scores or thin credit histories. Upstart is a solid financing choice for large purchases.

Pros

Accepts borrowers from across the credit spectrum.
Same- or next-day funding.
Has a secured loan option.
Wide range of loan amounts.

Cons

Origination fee.
Only two repayment term options.
No joint or co-signed loans.
No direct payment to creditors on debt consolidation loans.

Qualifications

Must be at least 18 years old in most states.
Must have a valid U.S. bank account, U.S. residential address and email address.
Must provide valid Social Security number.
Must provide verifiable source of income.
Minimum credit score: None.
Minimum annual income: None.
Maximum debt-to-income ratio: 50%, not including rent or mortgage, in most states.

Available Term Lengths3 to 5 years

Fees

Origination: 0% to 12%.
Late fee: 5% of the unpaid amount or $15, whichever is greater.
Insufficient funds fee: $15.

DisclaimerThe full range of available rates varies by state. A representative example of payment terms for an unsecured Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 18.60% and a 8.51% origination fee of $851, for an APR of 23.07%. In this example, the borrower will receive $9149 and will make 60 monthly payments of $258. APR is calculated based on 5-year rates offered in December 2024. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.

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Best for

Personal loans for good credit + Personal loans for home improvement + Personal loans for fast funding

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LightStream

4.5

NerdWallet rating

Est. APR

6.49-24.89%

Loan amount

$5,000-$100,000

Min. credit score

660

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Min. credit score660

Key factsLightStream is a solid option for good- and excellent-credit borrowers, with no fees and a promise to beat competitors’ rates.

Pros

Competitive APRs.
Rate discounts available.
No fees.
Large loans available with long repayment terms.
·Same-day funding.

Cons

Limited ability to pre-qualify with a soft credit check.
High minimum loan amount.
No direct payment to creditors with debt consolidation loans.
No mobile app to manage loan.

Qualifications

Minimum credit score: 660.
Maximum debt-to-income ratio: 55%.
Must provide a Social Security number.
Must have a valid email address and U.S. bank account.

Available Term Lengths2 to 7 years

Fees

Origination fee: None.
Late fee: None.

DisclaimerRates quoted are with AutoPay. Your loan terms are not guaranteed and may vary based on loan purpose, length of loan, loan amount, credit history and payment method (AutoPay or Invoice). AutoPay discount is only available when selected prior to loan funding. Rates without AutoPay are 0.50% points higher. To obtain a loan, you must complete an application on LightStream.com which may affect your credit score. You may be required to verify income, identity and other stated application information. Payment example: Monthly payments for a $10,000 loan at 7.99% APR with a term of 5 years would result in 60 monthly payments of $202.72. Some additional conditions and limitations apply. Advertised rates and terms are subject to change without notice. Truist Bank is an Equal Housing Lender. © 2024 Truist Financial Corporation. Truist, LightStream, and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.

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Best for

Personal loans for fair credit + Co-signed and joint loans

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Upgrade

5.0

NerdWallet rating

Est. APR

7.74-35.99%

Loan amount

$1,000-$50,000

Min. credit score

600

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Min. credit score600

Key factsUpgrade accepts lower credit scores than similar lenders, and it offers multiple rate discounts for its personal loans.

Pros

Multiple rate discounts.
Allows secured and co-signed loans.
Fast funding.
Wide variety of repayment term options.

Cons

Origination fee.
No option to choose your payment date.

Qualifications

Minimum credit score: 600.
Minimum annual income: None.
Maximum debt-to-income ratio: 75%, including mortgage payments.
Minimum credit history: 3 years and 1 account.
Must be a U.S. citizen and provide a valid Social Security number, email address, proof of residency and U.S. bank account.

Available Term Lengths2 to 7 years

Fees

Origination: 1.85% to 9.99%.
Late fee: Undisclosed.

DisclaimerPersonal loans made through Upgrade feature Annual Percentage Rates (APRs) of 7.74%-35.99% and a 1.85%-9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For certain discounts, collateral may be required. Repayment terms from 24 to 84 months. For example, if you receive a $10,000 unsecured 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 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 and other terms of your loan may vary and you may not be presented with multiple offers. If offered, your loan terms, including your rate, will depend on credit score, credit usage history, loan amount, and other factors. Late payments or other fees, as noted in your Borrower Agreement, may increase the cost of your fixed rate loan. Certain loan offers may not be available in all states. Upgrade is a financial technology company, not a bank. Personal loans issued by Upgrade's bank partners: https://www.upgrade.com/bank-partners/ .

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Best for

Personal loans for fair- and bad-credit borrowers looking for fast funding.

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Avant

4.0

NerdWallet rating

Est. APR

9.95-35.99%

Loan amount

$2,000-$35,000

Min. credit score

550

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Min. credit score550

Key factsAvant personal loans are a solid option for fair- and bad-credit borrowers who need fast funding, but their rates and origination fees can be high.

Pros

Accepts borrowers across the credit spectrum.
Low income requirement.
Fast approval and funding.
Hardship program for borrowers in need.
Seven-day customer service availability.

Cons

Charges an origination fee.
No co-signed, joint or secured loan options.
No rate discount.
Does not offer large loans.
No direct payment to creditors with debt consolidation loans.

Qualifications

Minimum credit score: 550.
Minimum monthly net income: $1,200.
Must have a Social Security number, valid U.S. bank account and email address.
Must not be in active bankruptcy.
Must not live in CO, HI, IA, ME, MA, NY, VT, WA or WV.

Available Term Lengths2 to 5 years

Fees

Origination fee: Up to 9.99%.
Late fee: $25.
Nonsufficient funds fee: $15.

DisclaimerLoan amounts range from $2,000 to $35,000. APR ranges from 9.95% to 35.99%. Loan lengths range from 24 to 60 months. Administration fee up to 9.99%. If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state. Administration fee is deducted from the loan proceeds and paid to the Lender. Any administration fee of 5% or less of the initial loan amount is not refundable. Administration fee amount in excess of 5% of the initial loan amount is refundable on a prorated basis over the remaining term of the loan when and if the loan is paid in full prior to its original maturity date. A partial prepayment does not trigger a refund of any administration fee amount. Borrower recognizes that the Administration fee is deemed part of the loan principal and is subject to the accrual of interest. Example: A $5,700 loan with an administration fee of 9.99% and an amount financed of $5,130.57, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $217.66. Personal loan funds are generally deposited via ACH for delivery next business day if approved by 4:30 pm CT Monday-Friday. New Mexico consumer brochure (https://assets.ctfassets.net/vrxttq978is8/1eS8eJhH54ycK7fhPa7hUk/bd189960ce122598d8c7551d2fb96fad/NM_Consumer_Information_Brochure_and_Loan_Rate_and_Fee_Disclosure.pdf) for common terms and definitions and regulations around rates and fees. Avant branded credit products are issued by WebBank.

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What is a debt consolidation loan?

A debt consolidation loan combines multiple unsecured debts — such as credit cards, medical bills and payday loans — into one fixed monthly payment.

A debt consolidation loan is usually a good idea if the interest rate on the loan is lower than the combined rates on your existing debts. With this lower rate, you’ll save money on interest and potentially pay off your debt faster.

You can use a debt consolidation calculator to estimate your interest savings and new monthly payment, and to compare various loan options.

How to choose the best debt consolidation loan

When deciding between debt consolidation loans, compare these factors.

Annual percentage rates: The loan's APR represents its true annual cost, as it includes all fees and interest charges. Rates vary based on your credit scores, income and debt-to-income ratio. Use APRs to compare multiple loans. Choose a low rate with monthly payments that fit your budget.

Origination fees: Some lenders charge origination fees to cover the cost of processing your loan. The one-time fee typically ranges from 1% to 10% of the loan amount and is either deducted from your loan proceeds or added to the loan balance. If the fee is deducted from your loan proceeds, you’ll need to request more than the sum of your debts in order to cover the fee and still have enough to pay your creditors.

Avoid loans that include this fee to keep costs down, unless the APR is lower than other no-fee loans.

Lender features: Some lenders offer consumer-friendly features like direct payment to creditors, which means the lender pays off your old debts once your loan closes, saving you that task.

Other features to shop for include free credit score monitoring and hardship programs that temporarily reduce or suspend monthly payments if you face a financial setback, such as a job loss.

» MORE: Best credit card consolidation loans

How to qualify for a debt consolidation loan

Build your credit: Loan approval is based mainly on your credit score and ability to repay. It may be possible to get a debt consolidation loan with bad credit, but borrowers with excellent credit (720 to 850 FICO) have more loan options and may qualify for lower rates. If you have fair or bad credit (below 690 FICO), it can pay to build your credit before seeking a consolidation loan.

Add a co-signer: Adding a co-signer can help you qualify for a debt consolidation loan that you wouldn’t be able to on your own due to poor credit or low income. There are risks to your co-signer, though, so that person will need to weigh their decision carefully.

Shop around: Compare rates and terms at multiple lenders before applying for a debt consolidation loan. Most online lenders let you pre-qualify with a soft credit inquiry, which has no impact on your credit scores.

Preparing for a debt consolidation loan

Plan ahead: Before your loan is funded, create a budget that allocates a percentage of your income toward debt repayment and track your progress with a budgeting and saving app.

Curb spending: Avoid big expenditures on your credit cards as you pay off debt, but don’t close any of the cards. Canceling credit accounts can hurt your credit score.

Commit to the long-haul: 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.

Will debt consolidation hurt my credit score?

Consolidating your debt with a personal loan can help — and hurt — your credit score. When you use the loan to pay off your credit cards, you lower your credit utilization, which measures how much of your credit limit is tied up. Lowering your credit utilization can help your credit.

On the other hand, applying for a loan requires a hard credit check, which can temporarily ding your credit score. And if you turn around and rack up new credit card debt, your credit score will suffer.

» MORE: Pros and cons of debt consolidation loans

How to pre-qualify for a debt consolidation loan

Pre-qualifying for an online loan can get you access to potential loan terms, including the loan’s interest rate. You can pre-qualify with multiple lenders on NerdWallet to compare offers and find the lowest rate.

Other ways to tackle debt

A debt consolidation loan isn’t your only option for getting debt under control.

0% balance transfer credit card: For borrowers with good to excellent credit (690 FICO or higher), transferring debts to a 0% balance transfer card may be a good option, as long as you can pay it off during the introductory period.

» MORE: Personal loans or balance transfer cards: Which is right for you?

Credit counseling: Nonprofit organizations offer credit counseling, which includes helping you create a debt management plan. Similar to other consolidation products, these plans roll your debts into one manageable payment at a reduced interest rate.

» MORE: Find the right debt management plan

Debt payoff strategies: If you’re not sure how to tackle debt, you may not need to consolidate. The debt snowball and debt avalanche methods are two common strategies for paying off debt. The snowball method focuses on paying off your smallest debt first, building momentum as you go. The avalanche focuses on paying off the debt with the highest interest rate first, then applying the savings elsewhere. Both can boost your payoff speed.

Last updated on March 1, 2023

To recap our selections...

NerdWallet's Excellent Debt Consolidation Personal Loans of 2023

SoFi Personal Loan: Excellent for Personal loans for excellent credit
Best Egg: Excellent for Personal loans for fair or good credit
LendingClub: Excellent for Personal loans for fair-credit borrowers looking to consolidate debt or finance large purchase
Upstart: Excellent for Personal loans for bad credit + Personal loans for fast funding
LightStream: Excellent for Personal loans for good credit + Personal loans for home improvement + Personal loans for fast funding
Upgrade: Excellent for Personal loans for fair credit + Co-signed and joint loans
Avant: Excellent for Personal loans for fair- and bad-credit borrowers looking for fast funding.