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Top 5 Personal Loans for Debt Consolidation

December 05, 2019
Sarah PritzkerBySarah PritzkerDec. 05, 2019
If you need to consolidate debt, a personal loan is a solid option
If you need a personal loan to consolidate credit card debt, there are plenty of lenders who can help you pay off your debt faster and more efficiently.

When to Consolidate Your Debt with a Personal Loan

Consolidating your debt via a personal loan can be a good idea in the following situations:

  • You want to pay a lower interest rate

The best way to alleviate debt is to pay it off responsibly one month at a time. Unfortunately, too many people are struggling with massive interest rates that don't let them get ahead of their debt. Lowering your interest rate can help you put more money towards your actual debt and eventually see the light at the end of the tunnel.

  • You have several debt payments to make each month

Paying off multiple credit cards each month can be a game of Jenga, one wrong move and the entire structure crumbles. Combining your debt into one simple payment makes it much easier to manage your monthly debt expenses and stay on top of your finances in general.

  • You’re working with lousy terms

If you are digging yourself deeper into debt because of high monthly payments that you can’t meet, a personal loan can help you pay less each month. It might take longer to pay off the debt, but at least you’ll be making consistent monthly payments, instead of racking up more debt.

Do the Math First

The most important question for you to ask is, will this loan save you money? Pay attention to the fees and rates that are being offered, so you don't get stuck with a bigger problem even than you started with. Here's an example of how a personal loan can help with your debt consolidation:

Let’s say you have a combined credit card debt of $10,000. You are currently paying 15% interest on that debt. Over approximately 4 and a half years, you’ll pay $3,750 in interest! Now, let's say you lower your interest to 10% for a 2-year loan. By the end of this loan term, you'll have paid out $1,075. That's a $2,675 savings in interest payments for the same $10,000 debt that you’ve now paid off.

Top Loan Providers for Debt Consolidation

If a personal loan is the right idea for you, then get the best rates, repayment terms, and benefits from the leading lenders in the industry. Here are the top picks for personal loans in 2019:

credibleMinimum credit score: 680

Loan amount: $1,000 to $100,000

Loan term: 18 - 84 months

APR range: 4.99% - 35.99%

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lendingtreeMinimum credit score: none

Loan amount: $1,000 to $50,000

Loan term: 3 - 180 months

APR range: 3.99% - 35.99%

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LendingClubMinimum credit score: 600

Loan amount: $1,000 - $40,000

Loan term: 3 or 5-year terms

APR range: 6.95% - 35.89% *** 

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amoneMinimum credit score: none

Loan amount: $1,000 to $40,000

Loan term: 24 - 84 months

APR range: 4.99% - 35.99%

Get Started
upgradeMinimum credit score: 620

Loan amount: $1,000 to $50,000

Loan term:  2 or 5 years

APR range: 5.99% - 35.89%

Get Started

1. Credible

  • Minimum credit score: 680
  • Loan amount: $1,000 to $100,000
  • Loan term: 18-84 months
  • APR range: 4.99% - 35.99%

Why go with Credible? Credible is an entirely free loan brokerage service designed with borrowers with good to high credit in mind. If you’re looking to consolidate debt, Credible has great terms and rates that can save you tons of money, pairing you with the right lender for your situation. You’ll get up to 6 preliminary offers after a soft credit check, allowing you to choose which lender you’d like to apply to. Responses are super-speedy, which means the ball is always in your court. There’s a large range of loan amounts and only one application for multiple lenders, making it easy to get what you’re looking for without too much paperwork or hassle. Final details will vary by lender, but with Credible’s range, you are sure to get a loan that works for your debt consolidation. 

Credible Credible Check Credible Rates

2. LendingTree

  • Minimum credit score: None
  • Loan amount: $1,000 to $50,000
  • Loan term: 3-180 months
  • APR range: 3.99% - 35.99%

Why go with LendingTree? This leading loan comparison brand has been making borrowing easier across almost every loan type since 1996. There are options for borrowers with nearly any credit history and a variety of options for loan terms and amounts. There’s an extensive collection of articles, guides and calculators, so you can understand the loan you’re taking out, how it fits into your personal budget, and what you can truly afford. Customer support is available to all borrowers, but you will eventually need to be in touch with the direct lender. LendingTree places control in borrower’s hands, allowing you to choose the loan with the best terms for you. There are no fees for using LendingTree’s service, though you may receive lots of emails and some phone calls as lenders compete for your loan. There are no firm requirements for how you must use your LendingTree personal loan, making this a great choice for medical debt, credit card debt, or any other kind of debt consolidation or large project. 

LendingTree LendingTree Check LendingTree Rates

3. LendingClub

  • Minimum credit score: 600
  • Loan amount: $1,000 - $40,000
  • Loan term: 3- or 5-year terms
  • APR range: 6.95% - 35.89% ***

Why go with LendingClub? You only need a credit score of 600 and there is no prepayment fee. LendingClub has some of the most flexible terms around. You can get a loan for anywhere from $1,000 - $40,000 with repayment terms of 3 or 5 years. APRs are pretty average, ranging from 6.95% - 35.89% *** depending on creditworthiness. Best of all, though, LendingClub works with credit scores as low as 600, making it a worthwhile choice for debt consolidation if your credit record has seen better days. Various fees such as origination fees and prepayment penalties will vary based on the specific lender you go with, but you can expect a 1% - 6% origination fee, $15 unsuccessful payment fee, and late payment fee of 5%.

LendingClub LendingClub Check LendingClub Rates

4. AmOne

  • Minimum credit score: None
  • Loan amount: $1,000 to $40,000
  • Loan term: 24 to 84 months
  • APR range: 4.99% - 35.99%

Why go with AmOne? AmOne is another established marketplace lender with a huge range of loan terms and amounts, making it a great option for anyone seeking to compare various loan offers. There’s a simple application that connects you to a broad network of well-respected lenders, letting you choose the best match for you. It’s a great network if you’re looking to consolidate debt quickly, because the approval process is smooth and fee-free. You can complete the loan application without any commitment to borrow funds. There is a really strong array of educational resources, articles and flexible loan purposes, so you can make confident, knowledgeable decisions for almost any kind of debt consolidation. AmOne doesn’t share personal data with unauthorized third parties, and everything you share is encrypted with industry-standard methods and protocols. 

AmOne AmOne Check AmOne Rates

5. Upgrade

  • Minimum credit score: 620
  • Loan amount: $1,000 to $50,000
  • Loan term: 2 or 5 years
  • APR range: 5.99% - 35.89%

Why go with Upgrade? This direct lender offers personal loans for a variety of loan purposes, such as debt consolidation, financing a home improvement project, or making a large purchase. The online application is quick, with pre-approval in only minutes. There are some added advantages too, like free credit monitoring and financial-education resources. If you’re tech-savvy and ready to fund your debt consolidation online, this BBB A+ rated company can give you the loan support you’re looking for, all from your living room couch. You won’t be able to borrow any secured loans through Upgrade though, so expect strictly unsecured personal loans from this lender. Not sure you’ll get approved? Upgrade has a credit-health tracker completely for free with no commitments, so you can use it any time to know what kind of rate quote you can expect. 

Upgrade Upgrade Check Upgrade Rates

What Now?

Going with a reputable lender is the first step in the right direction towards paying off your debt responsibly. Here are a few more tips for debt consolidation ease:

1. Make your payments every month and on time. The worst thing you can do after taking out a loan to consolidate debt is to be delinquent with the payments. Pay on time, and watch your debt shrink and your credit score rise.

2. Read online reviews. By reading reviews of the top loan companies, you'll to get a better feel for the type of lender you’re getting into bed with. Advertisements can be hyped up, but real user testimonials tell you the true story.

3. Make sure you find a lender that will give you a lower APR than you are currently paying. Otherwise, it doesn’t pay to consolidate your debt. Since there is competition in the industry, this shouldn't be too hard. What’s more, you can usually get other benefits thrown into the deal.

4. Look for lenders that won’t hurt your credit with a hard pull. Many top name lenders will only do a soft credit pull when you apply and this helps because it means your credit score won’t be affected and you’ll have more options when consolidating your debt.

About The Author

Sarah PritzkerBySarah PritzkerDec. 05, 2019
Sarah Pritzker is a content writer with years of experience and a keen interest in the vast world of online consumer products. She enjoys helping readers make sense of the options on the market in financial industries including credit reports, business loans and car loans.
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