Debt consolidation loans for borrowers with fair credit
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.
Easily compare real loan offers — not just ranges or estimates.
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 19.96% APR (with AutoPay). SoFi rate ranges are current as of May 14, 2020 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, income, and other factors. See APR examples and terms. 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.
Does not offer direct payment to creditors for debt consolidation loans.
Disclaimer
A $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. Minimum loan amounts may vary by state. If approved, the actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. An administration fee of up to 4.75% will be deducted from the loan proceeds. Avant branded credit products are issued by Webbank, member FDIC
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.
Offers joint loan option.
Cons
Charges origination fee.
Charges late fee of $15 or 5% of the unpaid loan amount.
Disclaimer
For example, a three-year $10,000 personal loan would have an interest rate of 11.74% and a 5.00% origination fee for an annual percentage rate (APR) of 15.34% APR. You would receive $9,500 and make 36 scheduled monthly payments of $330.90. A five-year $10,000 personal loan would have an interest rate of 11.99% and a 5.00% origination fee with a 14.27% APR. You would receive $9,500 and make 60 scheduled monthly payments of $222.39. Origination fees vary between 2.41%-5%. Personal loan APRs through Prosper range from 7.95% to 35.99%, with the lowest rates for the most creditworthy borrowers.
Eligibility for personal loans up to $40,000 depends on the information provided by the applicant in the application form. Eligibility for personal loans 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 personal loans made by WebBank, Member FDIC.
Offers direct payment to creditors with debt consolidation loans.
Offers online educational resources.
Cons
No co-sign or secured loan option.
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.
Minimum credit score: None, average is 600 to 650.
Minimum credit history: Not provided.
Minimum annual income: None, average is $49,000.
Pros
Fast funding.
Offers joint and secured loan options.
Free credit score access.
Cons
May charge origination fee.
High rates.
Disclaimer
Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $400. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes.
Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600.
Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: Florida: $8,000. Iowa: $8,500. Maine: $7,000. Mississippi: $7,500. North Carolina: $7,500. New York: $20,000. Texas: $8,000. West Virginia: $14,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.
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: Iowa 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 7.99%-35.97%. All personal loans have a 2.9% to 8% 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/.
Minimum credit score of 585; borrowers’ average is 670. LendingPoint uses the FICO 9 credit scoring model.
At least $20,000 in annual income; average customer earns $85,000.
Debt-to-income ratio of less than 40%; average customer is 15%.
LendingPoint is unavailable to borrowers in West Virginia.
Pros
Soft credit check with pre-qualification.
No prepayment fee.
Option to change your payment date.
Cons
May charge an origination fee.
No co-sign or secured loan options.
Disclaimer
Loan approval is not guaranteed. Actual loan offers and loan amounts, terms and annual percentage rates (“APR”) may vary based upon LendingPoint's proprietary scoring and underwriting system's review of your credit, financial condition, other factors, and supporting documents or information you provide. Origination or other fees from 0% to 6% may apply depending upon your state of residence. Upon LendingPoint's final underwriting approval to fund a loan, said funds are often sent via ACH the next non-holiday business day. LendingPoint makes loan offers from $2,000 to $25,000, at rates ranging from a low of 15.49% APR to a high of 34.99% APR, with terms from 24 to 48 months.
DIVE EVEN DEEPER IN PERSONAL LOANS
Learn more about personal loans
When you need money, whether to cover a large expense or to consolidate your debt , a personal loan can be a viable option. An unsecured personal loan is a fixed-rate loan that is not backed by collateral and repaid in monthly installments over a specific term, usually two to five years.
Interest rates on personal loans vary based on the type of lender and your creditworthiness. Lenders look at factors including your credit score, credit report and debt-to-income ratio. You can get a personal loan from some major banks, credit unions and online lenders.
Borrowers with excellent credit typically get the lowest rates and the largest loan amounts. They also have the widest options when it comes to shopping for a loan.
Those with fair to bad credit may have to look a little harder and pay a higher rate for a personal loan. Some online lenders target low-credit borrowers, offering loans with rates from 18% to 36% APR. Having steady income, low debt and a long credit history of on-time payments will improve your chances of being approved.
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:
Compare your options. Interest rates on personal loans for good credit start around 5% APR, but if you can qualify for 0% interest credit card — and pay off the balance within the promotional period — then you’re better off with the credit card.
Calculate loan payments at a range of interest rates and amounts so you’ll have an idea of what to expect as you shop.
If you have bad credit, find a co-signer. Having a co-signer with good credit allows you to piggyback on his or her creditworthiness and potentially get a better rate.
Consider a secured loan. Using a car, savings account or other asset as collateral may get you a lower rate.
If you have time, do what you can to build your credit. The higher your credit score, the better your chances of qualifying for a personal loan and getting a more affordable rate.
Assess your overall financial well-being. Personal loans work best as part of a balanced financial plan. Borrow money to consolidate debt if it means you’ll get out of debt more quickly. But don’t borrow if it only adds financial strain. If your current debt is overwhelming, investigate your debt-relief options.
Compare loan offers from multiple lenders
If you decide a personal loan is right for you, always compare rates from multiple lenders. The loan with the lowest APR is the least expensive — and therefore, usually the best choice. Most lenders allow you to see estimated rates without affecting your credit score, so it pays to shop around.
If you have good credit and an existing banking relationship, it’s worth checking out loan options from your current bank or credit union. Here are some top banks that offer personal loans.
To compare rates from online lenders, use NerdWallet’s lender marketplace above to easily compare several offers at once. If you qualify, you could receive your money as soon as the next day.
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.
