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Best Debt Consolidation Loans

High-interest debt can be expensive and time-consuming to pay off, but personal loans for debt consolidation can help. Debt consolidation loans give borrowers the opportunity to pay off several accounts while wrapping up multiple monthly payments into one, typically at a lower APR. This can help you save a significant amount of money.

Debt consolidation loans are usually available at lower interest rates than other types of debt, like credit cards and payday loans. The best personal lenders for debt consolidation can help you pay off debt faster, with a chance to lower your payments and get relief from unmanageable monthly expenses.

Best Personal Loans for Debt Consolidation of 2022

Discover

Rating4.3


Discover
  • Starting interest rate: 5.99%
  • Minimum credit score: Not disclosed
  • Loan terms: 36–84 months

Why We Chose It

Discover Bank offers debt consolidation loans with APRs starting as low as 5.99%. Loans can be received as quickly as one business day, and payments can be made directly to creditors.Pros and Cons

Pros

  • No origination fee
  • Pre-approval does not impact credit
  • Same-day loan decisions

Cons

  • Credit requirement is not disclosed
  • $39 late payment fee
  • No joint applications or co-signers

Overview

Discover launched its first financial product in 1985 and is now one of the largest credit card issuers in the U.S. But the company also offers personal loans for debt consolidation in all 50 states.

Discover’s personal loan stands out with APRs that range up to 24.99% but start as low as 5.99%. Loan amounts start low too, from $2,500 up to $35,000, and come with no origination fee, which can make Discover a much cheaper option than some other lenders. 

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Additional benefits include a rate quote with no hard credit pull. Borrowers can get same-day loan approval and receive funds in as little as one business day.

Drawbacks include a $39 fee for late payments. Discover does not disclose credit requirements upfront, but applicants are required to have a household income of at least $25,000 to qualify. Loans can’t be used to pay off secured debt or to pay off a Discover credit card. 

Discover has poor customer ratings on Trustpilot, with customers citing a variety of challenges related to being approved for financial products and managing their accounts, although this isn’t unusual for lenders.

Discover accepts applications for debt consolidation loans online or by phone, at 1-866-248-1255.

Read our full Discover personal loans review.

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Avant

Rating4.1


Avant
  • Starting interest rate: 9.95%
  • Minimum credit score: 580
  • Loan terms: 24–60 months

Why We Chose It

Avant works with borrowers who have poor credit. While the starting APR is high, and some may have to pay an administration fee, terms may still beat what other lenders offer to applicants with low credit scores.

Pros

  • Available to people with low credit scores
  • Pre-qualification does not impact credit
  • Funds available in one business day

Cons

  • Administration fee up to 4.75%
  • APR starts at 9.95%
  • Minimum loan amounts vary by state

Overview

Avant, a company founded in 2012, services loans from WebBank.

Borrowers give Avant high ratings for its quick and easy process, from loan application to funding. The lender offers pre-qualification with no hard inquiry, and funds are available in as little as one business day. 

Unique features of this debt consolidation loan include an exceptionally low credit score requirement of just 580. Avant also offers loan modification plans to help borrowers who struggle with repayment.

The downside is that APRs range up to 35.99%, and while Avant’s debt consolidation loans are available in amounts ranging from $2,000 to $35,000, minimum loan amounts vary by state. Late payments fees vary by state as well. Joint applications and co-signers are not allowed.

Applications can be submitted online, and Avant can be reached at 1-800-712-5407 for assistance. 

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Read our full Avant personal loans review.

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First Tech Federal Credit Union

Rating4.2


First Tech Federal Credit Union Logo
  • Starting interest rate: 6.70%
  • Minimum credit score: Not disclosed
  • Loan terms: 24–84 months

Why We Chose It

First Tech Credit Union stands out for its wide range of loan amounts and low maximum APR. Borrowers can go from application to funding in as little as one business day, and payments can be sent directly to your creditors. 

Pros

  • Low maximum APR of 18%
  • First payment can be deferred for 45 days
  • Same-day funding available

Cons

  • Must be a credit union member to apply
  • Lowest rates only available for 24-month term
  • Credit score requirement not disclosed

Overview

First Tech Federal Credit Union was founded in 1952 and has physical branches in eight U.S. states. The credit union offers personal loans for debt consolidation across all 50 states, with terms that can be attractive for borrowers with a variety of needs. 

Personal loans from First Tech range from as little as $500 up to as high as $50,000, and borrowers can choose from a 24- to an 84-month repayment period. The credit union also allows joint applications and co-signers.

It only takes a few minutes to complete an online application for a personal loan from First Tech Credit Union. From there, applicants who are approved can expect to receive funds in as little as one business day.

The maximum APR of 18% is relatively low (credit unions are capped at this rate). First Tech charges no origination fee or administration fee, and it has a fairly unique loan feature: You have the option to delay the first payment for 45 days. Borrowers should note that loans may accrue interest during that time.

First Tech doesn’t disclose its credit requirements upfront, but applicants can get pre-qualified and see a rate quote without a negative impact on their credit scores. Applications can be submitted online.1

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Read our full First Tech Federal Credit Union personal loans review.

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BEST FOR NO FEES

First Midwest Bank

Investopedia’s Rating4.2


First Midwest Bank
  • Starting interest rate: 5.23%
  • Minimum credit score: Not disclosed
  • Loan terms: 12–84 months

LEARN MOREWhy We Chose It

First Midwest loans have an exceptionally low APR range and relatively few fees. Even with the $150 documentation fee rolled in, rates can be as low as 5.23% and won’t exceed 12.99%.1819Pros and ConsPros

  • Low APR range
  • No origination fee or late fee
  • Co-applicants are allowed

Cons

  • Credit requirement is not disclosed
  • Only available in 24 states
  • $150 documentation fee

Overview

As of early 2022, First Midwest Bank is in the final stages of a merger with Old National Bank, which is headquartered in Indiana. First Midwest currently has branches in four states with over 250 physical bank locations.2021

The bank is outstanding when it comes to interest and fees—or the lack thereof —with an APR range starting at 5.23% and maxing out at 12.99%. There’s no origination fee or late payment fee. Borrowers should be aware of the $150 documentation fee, however, which will be rolled into the loan’s APR. 

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A wide range of loan amounts is available from First Midwest, from $5,000 to $35,000, with repayment terms up to seven years. Funds can be received in as little as 24 hours.1922

First Midwest is also a certified personal loan lender through LendingTree, where it’s received 4.9/5 stars based on more than 4,000 reviews. It gets excellent ratings for its fees, closing costs, and customer service.23

Some borrowers may not be qualified. First Midwest does not disclose a credit requirement, but says applicants should have “at least five years of credit history that is free of bankruptcies, foreclosures, repossessions, and other major credit issues.” Eligible borrowers can apply online or visit a physical branch.

Read our full First Midwest Bank personal loans review.

BEST FOR CO-SIGNERS

Upgrade

Rating4.3


Upgrade
  • Starting interest rate: 5.94%
  • Minimum credit score: 550
  • Loan terms: 24–84 months

LEARN MOREWhy We Chose It

Unlike many other lenders, Upgrade allows co-signers and joint applicants. That means borrowers with poor credit can get help qualifying for debt consolidation loans.Pros and ConsPros

  • Co-signers and joint applicants allowed
  • Low minimum credit score requirement
  • Rate quote does not impact credit

Cons

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  • 2.9% to 8% origination fee
  • APRs as high as 35.97%
  • Not available in all 50 states

Overview

Upgrade is a San Francisco-based fintech company that services loans from its banking partners, Cross River Bank and Blue Ridge Bank.2425 Upgrade’s all-online process includes a rate quote that won’t impact your credit, an application that can be completed within minutes, and funding that’s available within one business day of approval. Funds can also be sent directly to creditors.

While Upgrade allows co-signers and joint applicants, borrowers with credit scores as low as 550 may qualify on their own. The downside is that you may be charged a hefty origination fee, up to 8%, which is deducted from loan proceeds. That means you’ll need to apply for as much as 8% more than you want to borrow.26

APRs start low, at 5.94%, but range up to a steep 35.97%, with the lowest rates requiring borrowers to use autopay and set up direct payments to some of their creditors.26

Some other positive notes to consider include loans that start as low as $1,000 and range as high as $50,000, no prepayment fee, and the option to change your payment due date.27 Upgrade also has excellent reviews on Trustpilot, with many customers noting an easy application process and quick funding.28

Borrowers in Georgia should note that loans start at $3,005 minimum, and the minimum is $6,400 in Massachusetts. Upgrade loans are not available to residents of Washington, DC, Connecticut, Colorado, Iowa, Maryland, Massachusetts, Vermont, or West Virginia.2930

Read our full Upgrade personal loans review.

Final Verdict

Many lenders offer personal loans for debt consolidation, but our choices stand out from the pack. The best loan for you is one that will bring down your overall cost through a lower APR and minimal fees. Discover and First Midwest Bank are great choices, both offering loans starting below 6% APR with no origination fees.

Your debt consolidation loan should also work for your situation, whether you need low monthly payments or you have poor credit. Borrowers with credit scores below 600 can consider applying through Upgrade or Avant, which allow you to get help qualifying with a co-signer or joint applicant.

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