Skip to content
Advertiser disclosure

Best Debt Consolidation Loans of October 2025

Jackie Veling
Kim Lowe
Jackie Veling
+1
Written by 

Jackie Veling

Edited by 

Kim Lowe

Written by 

Jackie Veling

 and 
Last updated 10/01/2025
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.

Compare the best debt consolidation loans for you, in one place

Best for overall debt consolidation loan

2025 NerdWallet award winner

Est. APR

7.90 - 35.99%

Loan amount

$1K - $60K

Min. credit score

600

Loan term

2 to 7 years

Get My Rate

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

Est. APR

8.99 - 35.49%

Loan amount

$5K - $100K

Min. credit score

None

Loan term

2 to 7 years

Get My Rate

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

Est. APR

7.99 - 35.99%

Loan amount

$1K - $50K

Min. credit score

600

Loan term

2 to 7 years

Get My Rate

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

Est. APR

6.99 - 35.99%

Loan amount

$2K - $50K

Min. credit score

600

Loan term

3 to 5 years

Get My Rate

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

Est. APR

7.99 - 24.99%

Loan amount

$2.5K - $40K

Min. credit score

660

Loan term

3 to 7 years

Read review

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

Est. APR

7.95 - 29.99%

Loan amount

$5K - $40K

Min. credit score

640

Loan term

2 to 5 years

Get My Rate

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

Est. APR

8.99 - 29.99%

Loan amount

$5K - $50K

Min. credit score

640

Loan term

2 to 5 years

Get My Rate

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

Est. APR

11.69 - 35.99%

Loan amount

$1K - $50K

Min. credit score

560

Loan term

3 to 5 years

Get My Rate

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

How we chose the best personal loans

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.

Star rating categories

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.
Show more

Debt consolidation calculator

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.

Total interest saved$2,459.92

Who can qualify for a debt consolidation 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 hird 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%).

How to get a debt consolidation loan with NerdWallet

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.

Are debt consolidation loans a good idea?

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.
Pros
  • You pay less in interest.
  • You may get out of debt faster.
  • You have only one payment.
  • You have a clear finish line.
Cons
  • You may not qualify for a low enough rate.
  • You still have debt you need to manage.
  • Consolidation won't fix core spending issues.

Pros of debt consolidation loans

  • Less interest: By consolidating debt under a lower-rate debt consolidation loan, you’ll pay less in interest, so more money goes toward the principal debt
  • Faster payoff: Because you’re saving on interest, you can use that savings to make larger payments on the loan, speeding up your debt payoff timeline.
  • Fixed payments: Unlike juggling multiple credit card bills or other debt repayments, you’ll have only one monthly payment with a consolidation loan.
  • 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 payments.

Cons of debt consolidation loans

  • Higher rates for some: Not all consolidation loans come with low interest rates, and if you have bad credit, you may not qualify for a lower rate than your current debts.
  • Payments to manage: Consolidation doesn’t erase debt, it just moves it somewhere else. You’ll still need to commit to paying down debt via regular monthly loan payments. 
  • Root issues: If you’re in debt because you struggle to control spending, a debt consolidation loan won’t fix that.

How to choose the best debt consolidation loan

To narrow down your debt consolidation loan options, ask yourself these five questions:
  • Does the lender’s loan amounts and terms match my debt? Debt consolidation loans come in a wide range of amounts ($1,000 to $50,000) and repayment terms (two to seven years). Make sure the lender offers the loan amount you need and enough time to pay it off.
  • Does the lender offer an APR lower than my existing debts? The loan's annual percentage rate, or APR, represents its true annual cost and includes interest and any fees. The most affordable loan is the one with the lowest APR.
  • Do I meet the lender’s qualification criteria? Some lenders openly disclose their borrower requirements, including minimum credit score, credit history and income. You can check the lender’s website for this information or call and ask to speak to a loan officer.
  • Does this lender charge an origination fee? An origination fee ranges from 1% to 10% of the loan amount and is deducted from the loan proceeds or added to the loan balance. Avoid loans with this fee, unless the APR (which includes the origination fee) is still lower than loans with no origination fee.
  • Does this lender offer special debt consolidation features? Some lenders offer extra perks, like sending the loan funds directly to your creditors or free credit score monitoring. Consider these features, but always prioritize an affordable loan you can repay on-time.

Frequently asked questions
  • How will a debt consolidation loan save me money?

    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.
  • Can I pay off my credit cards with a debt consolidation loan?

    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.
  • Is now a good time to consolidate my debt?

    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.
  • Will a debt consolidation loan hurt my credit score?

    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 until I’m debt-free?

    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.
Learn more about personal loans