Best Debt Consolidation Loans

SoFi tops our list of the best debt consolidation loans thanks to its high loan amounts, flexible repayment terms, and fast funding. What’s more, SoFi doesn’t charge origination fees, late fees, or prepayment penalties, allowing you to borrow without having to worry about hidden fees. 

This online lender gives borrowers the option to pre-qualify online with no impact to their credit score. If you qualify for a loan, SoFi can disburse the funds the same day you sign your loan agreement, although your bank’s processing time will determine when you can actually access the money. 

You can also qualify for a variety of interest rate discounts, including a 0.25% discount for setting up autopay, 0.25% for direct pay, 0.125% for being an existing SoFi member, and special pricing if you previously borrowed a SoFi loan and paid it off in full. 

SoFi also offers a number of benefits to its customers, including unemployment protection and a career strategy program for job seekers. 

• Eligibility: To borrow a debt consolidation loan from SoFi, you must be at least the age of majority in your state and a U.S. citizen, eligible permanent resident, or non-permanent resident alien. 
• Minimum credit score and income: While SoFi doesn’t disclose its minimum credit score or income to qualify for a loan, it does state that you must be employed, have sufficient income, or have an offer of employment for a job that starts within the next 90 days. 
• Loan uses: You can use a SoFi personal loan for any lawful purpose, whether that’s for personal, family, or household use. You can’t use a SoFi debt consolidation loan for post-secondary education or business expenses. 
• Availability: SoFi debt consolidation loans are available in all 50 states and Washington, D.C.

If you’re looking for a trusted bank for your debt consolidation loan, U.S. Bank is worth a look. It came in second place in J.D. Power’s 2022 Consumer Lending Satisfaction Study, and came in above the industry average in the same company’s 2022 U.S. National Banking Satisfaction Study.

Loan APRs start relatively low, and you could qualify for a couple of rate discounts: 0.50% for setting up autopay and 1% if you have a credit score of 800 or higher (this is higher than most rate discounts). U.S. Bank doesn’t charge origination or application fees, though it does levy a $29 fee if you make late payments on your loan. 

If you borrow from U.S. Bank the lender will pay off your creditors for you, so you won’t have to put in the time and effort to complete this step. You also have the option of submitting a joint application with a co-applicant. 

U.S. Bank’s debt consolidation loans have limited availability, however, as the lender is only available in 26 states, and non-customers have higher credit score requirements. But if you’re already a customer or you live in an eligible state and can meet the requirements, U.S. Bank is definitely worth considering.

• Eligibility: Must provide a home address, Social Security number, and employment information when you apply. 
• Minimum credit score: 660 for current customers (higher for non-customers)
• Minimum income: Not disclosed 
• Loan uses: Loans between $35,000 and $45,000 are limited to debt consolidation, major purchases, and home improvement. U.S. Bank personal loans cannot be used for education expenses. 
• Availability: 26 states

PenFed Credit Union offers help with debt consolidation in all 50 states and Washington, D.C. Anyone can apply for a loan, but you’ll need to become a member if you decide to borrow. Joining is easy, however—anyone is eligible (no military affiliation required), and you simply need to open an account and maintain a balance of $5, which you can do during the loan application. 

PenFed borrowers can also enjoy unemployment protection and natural disaster support, both of which could be helpful if you run into financial hardship and can’t afford your loan payments. 

PenFed doesn’t charge origination fees or prepayment penalties, but it does levy a fee of $29 for late payments. You can borrow between $600 and $50,000, but the credit union won’t pay off your creditors directly—it will be up to you to take this step after you receive your loan. 

• Eligibility: You may need to provide pay stubs, tax returns, and a government ID when you apply. 
• Minimum credit score: 620
• Minimum income: Not disclosed 
• Loan uses: PenFed does not state any restrictions on loan use, though personal loans typically can’t be used to pay for post-secondary education expenses. 
• Availability: All 50 states and Washington, D.C.

Regions is another good choice for debt consolidation, especially if you have strong enough credit to qualify for its lowest rates. Regions allows you to apply with a co-signer, which could strengthen your application and help you score the best rates. 

While Regions doesn’t charge origination fees or prepayment penalties, it does impose a late fee of 5% or $100, one of the highest late fees among personal loan lenders. Regions loans are also only available in 15 states, so this lender may or may not be an option depending on where you live. 

If you can qualify, though, you may appreciate the lender’s opportunities for rate discounts, the option to change your payment due date, and flexibility if you experience unemployment or a natural disaster. 

According to the lender, it doesn’t impose any restrictions on personal loan use and will pay off your creditors directly if requested. 

• Eligibility: When you apply, you’ll need to provide your contact information, Social Security number, date of birth, employer details, home address, and income documentation. 
• Minimum credit score and income: Not disclosed 
• Loan uses: No stated restrictions  
• Availability: 15 states

Discover offers debt consolidation loans starting at $2,500 with repayment terms ranging from three to seven years. This online lender doesn’t charge origination fees or prepayment penalties, though it may charge a $39 fee for late payments. 

While rates are competitive for Discover’s personal loans, the lender doesn’t offer opportunities for rate discounts. It also doesn’t accept joint applications, and there’s no option to borrow a secured personal loan backed by collateral. 

If you can meet this lender’s underwriting requirements for credit and income, however, Discover offers the option of direct payment to your creditors. It also allows you to change your payment due date twice over the life of your loan so it better fits your schedule. 

Discover can disburse your loan as fast as one business day after your application is approved. You can manage your loan online or with Discover’s mobile app and contact its team over the phone with any questions. 

• Eligibility: To borrow a Discover debt consolidation loan, you must be at least 18 years old and a U.S. citizen or permanent resident. 
• Minimum credit score: 660
• Minimum income: $25,000
• Loan uses: You can’t use a Discover personal loan to pay for post-secondary education, to pay off a secured loan, or to directly pay off a Discover credit card. 
• Availability: All 50 states and Washington, D.C.

While some lenders have stringent credit score requirements, Best Egg will work with borrowers who have credit scores as low as 600. Depending on your financial credentials, you’ll have to pay an origination fee between 0.99% and 8.99% of the loan amount. However, Best Egg does not charge late fees or prepayment penalties. 

This online lender can disburse your loan in as little as one day, and it will pay your creditors directly if requested. Best Egg does not offer interest rate discounts or the option to apply with a co-signer, but it does fund both unsecured loans and secured loans backed by collateral. 

Repayment options are fairly flexible — you can choose loan terms between three and five years and are permitted to change your payment due date.

• Eligibility: To borrow a Best Egg debt consolidation loan, you must be of legal age in your state, be a U.S. citizen or permanent resident, and have a valid email, physical address, and verifiable personal checking account with a routing number. 
• Minimum credit score: 600
• Minimum income: Not disclosed 
• Loan uses: You can’t use a Best Egg loan for education or business purposes. 
• Availability: 47 states

If your credit score is making it difficult to qualify for a debt consolidation loan, Upgrade might be an option. This online lender will work with borrowers who have credit scores as low as 550. The APR range is quite wide, and if you apply with poor credit on your own you’ll likely get the higher end of the range; loan terms can stretch as long as seven years. 

You also have the option of lowering your interest rate by setting up autopay, opening a rewards checking account with Upgrade, or securing your loan with a vehicle title. Adding a co-signer to your application could also lead to a better interest rate, an option that Upgrade allows. 

Upgrade allows you to check your rates with a soft credit check that won’t impact your credit. If the lender approves your application, you could receive your loan funds in as little as one day. Upgrade can also send the proceeds directly to your creditors if you prefer. 

Keep in mind that Upgrade loans come with an origination fee of 1.85% to 8.99% of your loan amount; this is fairly typical with loans for bad credit. Late payments may also lead to a $10 late fee. 

• Eligibility: To borrow from Upgrade, you must be a U.S. citizen or permanent resident, or live in the U.S. and hold a valid visa. You also must be at least 18 years old (age requirement varies by state) and have a valid email address and verifiable bank account. 
• Minimum credit score: 550
• Minimum income: Not disclosed
• Loan uses: You can’t use an Upgrade loan for gambling, investing, or college expenses, including tuition, room, and board. 
• Availability: 50 states

LightStream offers competitive interest rates and high loan amounts up to $100,000. Plus, you can stretch out repayment over 12 years. LightStream will accept credit scores starting at 680, though borrowers with higher credit scores will qualify for the best rates. 

Rates start quite low already, but LightStream also has a Rate Beat program—if you’re approved for an unsecured loan with a lower rate than the one LightStream offers you, with the same loan terms, LightStream will offer a rate 0.10 percentage points lower.

If you’re using a LightStream loan for debt consolidation, it will be up to you to pay off your creditors, as LightStream won’t do this on your behalf. 

While this lender can give you general rate estimates based on how much you want to borrow, it doesn’t offer a pre-qualification tool on its website. To get your customized loan offers, you’ll need to submit a full loan application, which can impact your credit. 

• Minimum credit score: 680
• Minimum income: Not disclosed 
• Loan uses: LightStream doesn’t state any specific loan restrictions, but it says you must use the loan proceeds for the purpose you were approved for. 
• Availability: All 50 states and Washington, D.C.