Jackie Veling
Kim Lowe
A debt consolidation loan can save thousands in interest. Compare the best loans, then pre-qualify and get offers in minutes.
This service is free and will not affect your credit score.
Best for overall debt consolidation loan
2025 NerdWallet award winner
7.90 - 35.99%
$1K - $60K
600
2 to 7 years
Our take on LendingClub
A LendingClub personal loan is a standout option for qualified borrowers who want to pay off debt with flexible terms. Read our review of LendingClub
Best for borrowers with good credit
2025 NerdWallet award winner
8.99 - 35.49%
$5K - $100K
None
2 to 7 years
Our take on SoFi Personal Loan
SoFi offers large online personal loans with consumer-friendly features for good- and excellent-credit borrowers. Read our review of SoFi Personal Loan
Best for multiple rate discounts
2025 NerdWallet award winner
7.74 - 35.99%
$1K - $50K
600
2 to 7 years
Our take on Upgrade
Upgrade accepts lower credit scores than similar lenders, and it offers multiple rate discounts for its personal loans. Read our review of Upgrade
Best for secured debt consolidation loans
6.99 - 35.99%
$2K - $50K
600
3 to 5 years
Our take on Best Egg
Best Egg is worth considering for borrowers looking for a secured loan or to consolidate debt. Read our review of Best Egg
Best for fast approval and funding
2025 NerdWallet award winner
7.99 - 24.99%
$2.5K - $40K
660
3 to 7 years
Our take on Discover® Personal Loans
With competitive rates and no origination fees, Discover personal loans are good options for borrowers with good and excellent credit. Read our review of Discover® Personal Loans
Best for instant pre-qualification
7.95 - 29.99%
$5K - $40K
640
2 to 5 years
Our take on Happy Money
Happy Money offers loans and ongoing support to help fair- and good-credit borrowers consolidate credit card debt. Read our review of Happy Money
Best for joint debt consolidation loans
8.99 - 29.99%
$5K - $50K
640
2 to 5 years
Our take on Achieve Personal Loans
Achieve personal loans can be a good debt consolidation option for borrowers with fair credit or better who qualify for a rate discount. Read our review of Achieve Personal Loans
Best for borrowers with bad credit
11.69 - 35.99%
$1K - $50K
560
3 to 5 years
Our take on Universal Credit
A Universal Credit personal loan may be a smart choice for borrowers with lower credit scores who want to consolidate debt. Read our review of Universal Credit
Our team of consumer lending experts follows an objective and robust methodology to rate lenders and pick the best.
30+
Lenders reviewed
We review over 35 lenders, including major banks, top credit unions, leading digital platforms, and high interest installment lenders operating across multiple states.
25+
Categories assessed
Each lender is evaluated across five weighted categories and 27 subcategories, covering affordability, eligibility, consumer experience, flexibility, and application process.
60+
Data points analyzed
Our team tracks and reassesses hundreds of data points annually, including APR ranges, fees, credit requirements, and borrower tools, ensuring up to date, accurate comparisons.
We evaluate more categories than competitors and carefully weigh how each factor impacts your experience.
NerdWallet’s review process evaluates and rates personal loan products from more than 30 financial technology companies and financial institutions. We collect over 60 data points and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
See if debt consolidation is for you by estimating how much you can save
Current monthly payment$1,000
Current monthly payment
New monthly payment$554
New monthly payment
With an excellent credit score, we estimate a 11.81% APR for a 5-year personal loan.
Debt consolidation loans are available to borrowers across the credit spectrum, so you can still get a debt consolidation loan even if you have fair or bad credit (a score below the mid-600s).
Lenders weigh multiple factors in your loan application, including credit score, credit history, any existing debt and income.
Some lenders allow you to add a co-signer or co-borrower to your loan application, or secure the loan with collateral, like your car, all of which can boost your chances of qualifying for a debt consolidation loan.
Did you know? According to NerdWallet’s midyear check-in report, conducted online by The Harris Poll, more than a third of Americans (35%) set a financial goal to pay off or pay down debt in 2025. A quarter of Americans (25%) want to pay off/down credit cards. The top barriers cited by those with debt payoff goals are increased expenses (43%), decreased income (24%) and high interest rates (26%).
1. Know your credit score before applying
A quick check to your credit score gives you an idea of where you stand in terms of the credit brackets — excellent, good, fair or bad — and which lenders may be the best fit based on their minimum credit score requirement. You can check your credit score for free on NerdWallet.
2. Pre-qualify and compare multiple loan offers
To get the best deal on a debt consolidation loan, you’ll want to pre-qualify with lenders to compare rates and terms before you apply. Pre-qualification won’t hurt your credit score.
Though you can pre-qualify with each lender individually, NerdWallet lets you pre-qualify with multiple lenders at once, so you can more easily compare loan options.
3. Submit your application
Once you’ve decided on a lender, it’s time to formally apply. Loan applications ask for personal information like your Social Security number, address and other contact details. You also may be asked to provide proof of identity, employment and income.
Some online lenders can approve applications the same day and send loan funds in one business day.
4. Pay off your creditors
After receiving the loan funds, use the money to pay off all your debts. Some lenders may offer to send the loan funds to your creditors for you, so you’ll need to provide the correct account information. Check the accounts later to make sure they’re paid off.
5. Start making payments on your new loan
Personal loan payments are due monthly, though there’s no prepayment fee for paying off a loan early. As you make progress on your debt consolidation loan, try to keep credit card balances at or near zero, but avoid closing the accounts, which can lower your credit score.
Debt consolidation loans are a good idea if you can get a lower annual percentage rate than what you're currently paying across your other debts. Here’s a closer look at the pros and cons.
To narrow down your debt consolidation loan options, ask yourself these five questions:
A debt consolidation loan can save you money by rolling multiple unsecured debts into one payment, ideally with a lower interest rate. You can then apply the savings in interest toward your principal debt and pay it off even faster.
Yes, you can use a debt consolidation loan to pay off many types of unsecured debts, including credit cards (it’s sometimes called a “credit card consolidation loan”). Credit cards are particularly good to consolidate, since they often have higher interest rates than consolidation loans.
APRs are currently high for debt consolidation loans, but they’re likely lower than debts such as credit cards and payday loans. Instead of waiting for rates to drop, it’s better to tackle your debt ASAP by paying it off at a more reasonable rate.
Applying for a debt consolidation loan triggers a hard credit pull, which temporarily knocks a few points off your credit score. But if you use the loan to successfully pay off your debts — and limit future debt — the overall effect should be positive.
How long it takes to cross the debt-free finish line depends on how much debt you have, the interest rate on your debt and the repayment term. Terms on debt consolidation loans are typically two to seven years.
» MORE: Calculate your savings with a debt consolidation loan
