You can use an unsecured personal loan to consolidate debt or finance large purchases. Interest rates and terms can vary, based on your credit score and other factors. Compare loans from multiple lenders and learn more about personal loans.
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Minimum credit score: 680, but typically 700 or higher.
Minimum annual income: None; borrowers' average is over $100,000.
Pros
Low fixed and variable rates.
Flexible payment options.
Offers member perks.
Cons
Does not offer direct payment to creditors with debt consolidation loans.
Does not offer refinance options.
Disclaimer
Fixed rates from 5.99% APR to 17.88% APR (with AutoPay). Variable rates from 6.49% APR to 14.70% APR (with AutoPay). SoFi rate ranges are current as of November 13, 2019 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. 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, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 6.49% APR assumes current 1-month LIBOR rate of 1.81% plus 4.93% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.
Minimum annual income: Not specified, but average is $80,000.
Debt-to-income ratio: Not specified, but typically less than 35%.
Pros
Fast funding.
Low starting rates.
Pre-qualify with a soft credit check.
Cons
Origination and late fees.
Typical borrower has several years of credit history.
Disclaimer
Trustpilot TrustScore as of November 2019. Best Egg loans are unsecured personal loans made by Cross
River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC. “Best Egg” is a trademark of
Marlette Funding, LLC. All uses of “Best Egg” refer to “the Best Egg personal loan” and/or “Best Egg on
behalf of Cross River Bank, as originator of the Best Egg personal loan,” as applicable. 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. The timing of available funds upon loan approval may vary depending upon your bank’s
policies. Loan amounts range from $2,000–$35,000. Residents of Massachusetts have a minimum loan
amount of $6,500 ; New Mexico and Ohio, $5,000; and Georgia, $3,000. For a second Best Egg loan, your
total existing Best Egg loan balances cannot exceed $50,000. Annual Percentage Rates (APRs) range
from 5.99%–29.99%. The APR is the cost of credit as a yearly rate and reflects both your interest rate
and an origination fee of 0.99%–5.99% 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. 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. 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.
Does not offer direct payment to creditors for debt consolidation loans.
Disclaimer
$5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33.
The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Avant branded credit products are issued by WebBank, member FDIC
At least 18 years old (19 in Alabama; 21 in Mississippi and Puerto Rico).
Valid U.S. bank account, Social Security number or tax ID.
660+ credit score.
Pros
No fees.
Flexible payment options.
Directly pays creditors for debt consolidation loans.
Cons
Requires good credit.
No co-sign option.
Disclaimer
Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36-month loans are generally lower than rates for 72-month loans). Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs® is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions.
Minimum credit history: Two years, but average is 11.
Minimum annual income: None, but average is $89,000.
Maximum debt-to-income ratio: 50% (excluding mortgage).
No bankruptcies filed within the last year.
Fewer than five credit bureau inquiries in the last six months.
Pros
No prepayment fee.
Option to change your payment date.
Cons
Charges origination fee.
Charges late fee of $15 or 5% of the unpaid loan amount.
Disclaimer
For example, a three-year $10,000 loan with a Prosper Rating of AA would have an interest rate of 5.31% and a 2.41% origination fee for an annual percentage rate (APR) of 6.95% APR. You would receive $9,759 and make 36 scheduled monthly payments of $301.10. A five-year $10,000 loan with a Prosper Rating of A would have an interest rate of 8.39% and a 5.00% origination fee with a 10.59% APR. You would receive $9,500 and make 60 scheduled monthly payments of $204.64. Origination fees vary between 2.41%-5%. APRs through Prosper range from 6.95% (AA) to 35.99% (HR) for first-time borrowers, with the lowest rates for the most creditworthy borrowers. Eligibility for loans up to $40,000 depends on the information provided by the applicant in the application form. Eligibility is not guaranteed, and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. Refer to Borrower Registration Agreement for details and all terms and conditions. All loans made by WebBank, member FDIC.
Does not offer direct payment to creditors with debt consolidation loans.
Charges origination fee.
Disclaimer
This does not constitute an actual commitment to
lend or an offer to extend credit. Upon submitting a loan
application, you may be asked to provide additional documents to
enable us to verify your income, assets, and financial condition.
Your interest rate and terms for which you are approved will be
shown to you as part of the online application process. Most
applicants will receive a variety of loan offerings to choose from,
with varying loan amounts and interest rates. Borrower subject to a
loan origination fee, which is deducted from the loan proceeds.
Refer to full borrower agreement for all terms, conditions and
requirements.
Debt-to-income ratio of less than 40% for single applications, 35% combined for joint applicants.
Pros
May offer direct payment to creditors with debt consolidation loans.
Joint loan option.
Cons
Charges origination fee.
Charges late fee.
Disclaimer
*All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage and history. The APR ranges from 6.95% to 35.89%. The origination fee ranges from 1% to 6% of the original principal balance and is deducted from your loan proceeds. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at the time of application. The average origination fee is 5.49% as of Q1 2017. In Georgia, the minimum loan amount is $3,025. In Massachusetts, the minimum loan amount is $6,025 if your APR is greater than 12%. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months. Borrower must be a U.S. citizen, permanent resident or be in the United States on a valid long-term visa and at least 18 years old. Valid bank account and Social Security number are required. Equal Housing Lender. All loans are subject to credit approval. LendingClub’s physical address is: 595 Market St suite 200 San Francisco Ca 94105.
**Based on approximately 60% of borrowers who received offers through LendingClub’s marketing partners between Jan. 1, 2018, and July 20, 2018. The time it will take to fund your loan may vary.
Minimum annual income: None, but most applicants earn more than $30,000.
Minimum monthly free cash flow: $800.
Maximum debt-to-income ratio: 60%.
Unavailable to borrowers in: Colorado, Iowa, Maryland, Vermont or West Virginia.
Pros
Credit health tools.
Hardship plans.
Directly pays creditors for debt consolidation loans used to pay off credit cards.
Cons
Origination and late fees.
Disclaimer
Personal loans made through Upgrade feature APRs of 6.98%-35.89%. All personal loans have a 1.5% to 6% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (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 required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. 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 lending partners. Information on Upgrade's lending partners can be found at https://www.upgrade.com/lending-partners/. Please refer to Upgrade's Terms of Use and Borrower Agreement for all terms, conditions and requirements.
Minimum credit history: Two years, but average is 18 years.
Minimum annual income: $24,000, but average is $87,000.
Debt-to-income ratio: 40%, but average is 14%.
Pros
Fast funding.
Soft credit check with application.
Low starting rates.
Cons
Origination and late fees.
Does not offer direct payment to creditors for debt consolidation loans.
No co-sign or secured loan option.
Disclaimer
All personal loans are made by Cross River Bank, a New Jersey state chartered commercial bank, Member FDIC, Equal Housing Lender. All loans are unsecured, fully amortizing personal loans. Eligibility for a loan is not guaranteed. Please refer to our Disclosures and Licenses page for state required disclosures, licenses, and lending restrictions. Borrower must be a U.S. citizen or permanent U.S. resident alien at least 18 years of age (in Nebraska and Alabama a borrower must be at least 19 years of age). All loan applications are subject to credit review and approval. Offered loan terms depend upon your credit profile, requested amount, requested loan term, credit usage, credit history and other factors. Not all borrowers receive the lowest interest rate. To qualify for the lowest rate, you must have excellent credit, meet certain conditions, and select autopay. Rates and Terms are subject to change at any time without notice. Please refer to RocketLoans.com and our Terms of Use for additional terms and conditions.
Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Loans are not available in West Virginia or Iowa. The minimum loan amount in MA is $7,000. The minimum loan amount in Ohio is $6,000. The minimum loan amount in NM is $5,001. The minimum loan amount in GA is $3,100.
The full range of available rates varies by state. The average 3-year loan on Upstart will have an APR of 20% and 36 monthly payments of $35 per $1,000 borrowed. There is no down payment and no prepayment penalty. The average APR on Upstart is calculated based on 3-year rates offered in the last 1 month. 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.
DIVE EVEN DEEPER IN PERSONAL LOANS
Learn more about debt consolidation loans
With a debt consolidation loan, a lender issues a single personal loan that you use to pay off other debts, such as balances on high-interest credit cards. You’ll pay fixed, monthly installments to the lender for a set time period, typically two to five years. The interest rate depends on your credit profile, and it usually doesn’t change during the life of the loan.
Debt consolidation is only one of several strategies for paying off debt. Debt consolidation won’t work if you have too much debt or haven’t fixed underlying spending issues.
What rate should I expect?
Rates vary from lender to lender and depend heavily on your credit history and ability to repay, but here is what interest rates on personal loans look like, on average:
Almost all lenders require you to be 18 years or older and a legal U.S. resident with a verifiable bank account and not in bankruptcy or foreclosure.
Borrowers with excellent credit and low debt-to-income ratios may qualify for interest rates at the low end of lenders’ ranges. Someone with bad or fair credit may be able to get an unsecured personal loan on the strength of a steady income and low debt levels, but should expect rates toward the higher end of the range — up to 36%. Other options for borrowers with bad credit include secured or co-sign personal loans.
Some lenders say they have no minimum credit score requirements, but that does not mean they don’t check your credit report. Knowing your credit profile before you apply can help set expectations. Several personal finance websites, including NerdWallet, offer free access to your credit score and credit report . Look for a site that offers educational tools such as a credit score simulator or guidance on how to build credit.
If you can’t qualify for a loan through a reputable lender, don’t head for a payday lender. Consider these options first.
Debt consolidation vs. balance transfer card
For borrowers with good credit, a balance transfer credit card is an alternative to a debt consolidation loan. Such cards have an introductory 0% interest rate, which increases after a promotional period, usually no more than 21 months.
The amount of credit card debt you can transfer is typically up to $15,000. Once the introductory period expires, the rate on a balance transfer card is usually higher than on a personal loan. In addition to paying off your balance before the rate increases, you’ll want to avoid making further charges.
A personal loan offers some advantages over balance transfer cards. Fixed payments ensure you’ll pay off debt on a set schedule. Borrowing limits are typically higher; some lenders offer loans of $50,000 or more.
In addition, a personal loan may improve your credit if it means your credit card balances shrink relative to the credit limits. Your credit scores can take a hit if you use all or most of the available credit on your cards. A personal loan balance is reported as installment debt, which is treated differently in credit scoring formulas than revolving debt such as credit cards.
Which lender is right for me?
NerdWallet has reviewed more than 25 lenders to help you compare and choose one that’s right for you. Below is a list of some of our most popular reviews. See our picks for best debt consolidation loans.
If you’re borrowing money to pay off debt, a personal loan works best if you have a plan to tackle your debts. Creating a budget and starting a savings habit are small steps that could help you build a stronger financial future.
If you don’t have an immediate need for cash, work on building your credit . A higher credit score will qualify you for more loan opportunities, lower interest rates and better loan terms in the future.
Don’t know your credit score? Several personal finance websites, including NerdWallet, offer a free credit score. Look for a site the offers educational tools such as a credit score simulator plus access to your credit report.
Disclaimers
Annual Percentage Rates (APR), loan term and monthly payments are estimated based on analysis of information provided by you, data provided by lenders, and publicly available information. All loan information is presented without warranty, and the estimated APR and other terms are not binding in any way. Lenders provide loans with a range of APRs depending on borrowers' credit and other factors. Keep in mind that only borrowers with excellent credit will qualify for the lowest rate available. Your actual APR will depend on factors like credit score, requested loan amount, loan term, and credit history. All loans are subject to credit review and approval.
