When random purchases, necessary expenses or extravagant splurges catch up with you, the best way to consolidate credit card debt can be through debt consolidation. Debt consolidation is a way to refinance existing debt by taking out a new loan, which can help you secure lower interest rates and payments to get rid of your debt more quickly.
Although the best loans have low personal loan rates and fees, personal loan interest rates will be higher for people with bad credit rather than good credit. Find out what you need to know about personal loans to consolidate your debt.
|Top 10 Personal Loans for Debt Consolidation|
|Personal Loan Debt Consolidation Option||APR (%)||Loan Terms||Loan Amounts||Fees||Funding Time||How to Apply|
|LightStream||5.49 – 14.69||24 – 84 months||$5,000 – $100,000||None||As soon as same day as application||Learn More|
|SoFi||5.49 – 14.24||3 – 7 years||$5,000 – $100,000||None||Within a few days||Learn More|
|Upgrade||5.66 – 35.97||36 or 60 months||$1,000 – $50,000||Origination fee: 1% – 5%||Within four business days||Learn More|
|PersonalLoans.com||5.99 – 35.99||6 – 72 months||$1,000 – $35,000||Origination fee for peer-to-peer: 1 – 5%||As soon as the next business day after signing loan agreement||Learn More|
|LendingClub||5.99 – 35.89||3 or 5 years||$1,000 – $40,000||Origination fee: 1-6%||7+ days||Learn More|
|Best Egg||5.99 – 29.99||3 or 5 years||$2,000 – $50,000||Origination fee: 0.99% – 5.99%||1+ days||Learn More|
|Marcus by Goldman Sachs||6.99 – 23.99||36 – 72 months||$3,500 – $30,000||None||2+ days||Learn More|
|Payoff||8.00 – 25.00||2 – 5 years||$5,000 – $35,000||Origination fee: 2% – 5%||3-6 business days||Learn More|
|Upstart||9.56 – 29.99||3 or 5 years||$1,000 – $50,000||Origination fee: 0% – 8%||1+ days||Learn More|
|Avant||9.95 – 35.99||24 – 60 months||$2,000 – $35,000||Administration fees: 1.50% – 4.75%||1+ days||Learn More|
|Rates accurate as of Dec. 26, 2017|
Top 10 Personal Loans for Debt Consolidation
It only makes sense to refinance your credit card debt if you can find a lower rate than your credit card is charging. The field is so competitive, however, that you should look for personal loans with additional features and benefits. When researching how to pay off debt, consider the following lenders. Here are the top debt consolidation loan options:
Learn About: 10 Best Debt Consolidation Companies
LightStream is a division of SunTrust Bank and offers a host of benefits for debt consolidation loans, including $0 fees, same-day funding, loan terms up to 84 months and loan limits up to $100,000. Borrowers who aren’t satisfied with their lending experience can contact LightStream, fill out a questionnaire within 30 days of loan disbursement and receive $100.
Rates are reasonable, starting at 5.49 percent on a $10,000 or greater loan maturing in 24-36 months for borrowers with excellent credit. The company also offers a Rate Beat Program that promises to beat any comparable rate from a competitor by 0.10 percent.
- Low rates on the low and high end, from 5.49 percent to 14.69 percent
- Satisfaction guarantee
- Rate Beat program
- High loan limits of $100,000
- 24 to 84-month term loan range
- No fees
- Fast funding
- Excellent credit needed for lowest rates
- Loans required to be identical to qualify for Rate Beat Program
Read More: What Are ‘No Credit Check’ Personal Loans?
SoFi offers many of the top features of LightStream, including $0 fees, refinancing rates as low as 5.49 percent, loan limits up to $100,000 and terms as long as seven years. Funding is fast, and you can receive your money within a few days of signing your application. SoFi only offers debt consolidation loans for unsecured debt, such as credit card debt — not secured debt.
- $0 fees
- Low debt consolidation rates
- High loan limits
- Long loan terms available
- Rapid funding
- Best interest rates on the list, at 5.49 percent on the low end and 14.24 percent on the high end
- For unsecured debts only
- Must meet state eligibility qualifications for approval
Upgrade has a quick, one-page application you can complete online to check your rate and get a loan decision within seconds. Fixed-rate loans are offered between $1,000 and $50,000, and you can pay it back over either 36 or 60 months.
Although total funding time can be up to four business days, Upgrade sends your funds within one day of verifying your identity and your financial information. Loans have an origination fee of 1 percent to 5 percent.
- Easy to apply
- Loans up to $50,000
- Interest rates as low as 5.66 percent
- Rapid funding after verification
- Rates can go as high as 35.97 percent
- Origination fee of 1 to 5 percent
- Limited loan terms of either 36 or 60 months
PersonalLoans.com serves as a connector between borrowers and lenders. After completing an online application, lenders in the PersonalLoans.com network will review your information and decide whether or not to extend credit.
You can receive funding in as little as one business day after your application, after which you’ll have between six and 72 months to pay off your loan, at rates between 5.99 and 35.99 percent. And loan amounts range from $1,000 to $35,000. For peer-to-peer loans, you should have a credit score of 600+ and income of at least $2,000 per month.
- Network of lenders
- Rapid funding
- Lowest rates are competitive
- Wide range of loan terms
- Highest rate of 35.99 percent
- Origination fee of 1 to 5 percent for peer-to-peer loans
- Relatively low maximum funding amount
LendingClub works somewhat like its competitor PersonalLoans.com in that it doesn’t originate loans itself, but rather, connects investors and borrowers. LendingClub provides access to loans of between $1,000 and $40,000, with interest rates as low as 5.99 percent. Loan terms are either three or five years, and origination fees cost between 1 and 6 percent.
- Peer-to-peer lender offering access to numerous funding sources
- Low rates of 5.99 percent available
- High customer satisfaction
- Highest rates reach 35.89 percent
- Loan terms of three or five years only
- High origination fees
- Can take seven or more days to receive funds
With Best Egg, you can apply online and have your funding in as little as one business day. The company offers loans of either three or five year, which contain no hidden fees or prepayment penalties. Rates as low as 5.99 percent make the lender competitive with peers, and loan maximums reach as high as $50,000.
- Rates as low as 5.99 percent
- Quick access to funds
- No prepayment penalties
- High maximum funding level of $50,000
- Rates top out at 29.99 percent
- Only two options for loan terms: three years or five years
- Origination fees of 0.99 percent to 5.99 percent
Marcus by Goldman Sachs
Marcus is backed by Goldman Sachs, a top-tier financial services firm. There are no fees to originate a loan via Marcus, which offers funding of between $3,500 and $30,000 in two or more business days. The firm’s personal loan rates range from 6.99 percent to 23.99 percent and have terms of 36 to 72 months.
- Solid financial backing from Goldman Sachs
- No fees to originate loans
- Flexible terms of between three and six years
- Midlevel interest rates
- No late fees
- Relatively low maximum of $30,000
- Relatively high minimum of $3,500
Payoff is one of the few lenders that specifies a minimum credit score to qualify for a loan: 640. You also must have a debt-to-income ratio of less than 50 percent, at least three years of good credit history, no current credit delinquencies, and at least two open and satisfactory trade lines. The company offers loans from $5,000 to $35,000 for terms of two to five years, with rates ranging from 8 percent to 25 percent.
- Clearly articulated minimum standards
- No late payment fees
- Fixed payments and interest
- High minimum interest rates of 8 percent
- High minimum loan requirement of $5,000
- Origination fees of 2 to 5 percent
Upstart offers loans to fit nearly any need, from $1,000 to $50,000. Unlike many other lenders, Upstart offers consolidation loans for both secured and unsecured loans. Additionally, your education, area of study and job history are considered to qualify you for a lower rate.
You can check your rate with an easy one-page online application. Rates vary from 9.56 percent to 29.99 percent, and you can receive your money in as little as one business day.
- Flexible funding levels available
- Consolidates both secured and unsecured loans
- Easy application process
- Rapid funding
- Lowest available interest rate is 9.56 percent
- Origination fees range from 0 percent to 8 percent
- Loan terms limited to either three or five years
Flexible loan terms of 24 to 60 months are one of Avant’s highlights. The company can also provide funding by the next business day. Loan amounts range from $2,000 to $35,000, with rates of 9.95 percent to 35.99 percent. Administration fees cost anywhere between 1.50 percent and 4.75 percent.
- Good range of loan maturities
- Rapid financing of loans
- Lowest available rates are high, at 9.95 percent
- Top rates of 35.99 percent are high
- Administration fees of 1.50 to 4.75 percent