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Best Personal Loans for Debt Consolidation

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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 to 14.69 24 to 84 months $5,000 to $100,000 None As soon as same day as application Learn More
SoFi 5.49 to 14.24 3 to 7 years $5,000 to $100,000 None Within a few days Learn More
Upgrade 5.66 to 35.97 36 or 60 months $1,000 to $50,000 Origination fee: 1% to 5% Within four business days Learn More
PersonalLoans.com 5.99 to 35.99 6 to 72 months $1,000 to $35,000 Origination fee for peer-to-peer: 1 to 5% As soon as the next business day after signing loan agreement Learn More
LendingClub 5.99 to 35.89 3 or 5 years $1,000 to $40,000 Origination fee: 1 to 6% 7+ days Learn More
Best Egg 5.99 to 29.99 3 or 5 years $2,000 to $50,000 Origination fee: 0.99% to 5.99% 1+ days Learn More
Marcus by Goldman Sachs 6.99 to 23.99 36 to 72 months $3,500 to $30,000 None 2+ days Learn More
Payoff 8.00 to 25.00 2 to 5 years $5,000 to $35,000 Origination fee: 2% to 5% 3-6 business days Learn More
Upstart 9.56 to 29.99 3 or 5 years $1,000 to $50,000 Origination fee: 0% to 8% 1+ days Learn More
Avant 9.95 to 35.99 24 to 60 months $2,000 to $35,000 Administration fees: 1.50% to 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

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.

Pros

Cons

Read More: What Are ‘No Credit Check’ Personal Loans?

SoFi

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.

Pros

Cons

Upgrade

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.

Pros

Cons

PersonalLoans.com

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.

Pros

Cons

LendingClub

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.

Pros

Cons

Best Egg

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.

Pros

Cons

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.

Pros

Cons

Payoff

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.

Pros

Cons

Upstart

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.

Pros

Cons

Must-Read: This Personal Loan Has No Origination Fees

Avant

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.

Pros

Cons

Up Next: 10 Common Personal Loans — and Options for When You Can’t Qualify