Compare top debt consolidation loans and find the best rate. Combine multiple debts into one lower monthly payment and save on interest.
Compare Consolidation Loans →Debt consolidation combines multiple debts — typically credit cards, personal loans, and medical bills — into a single new loan or credit account, ideally at a lower interest rate. Instead of juggling five minimum payments at 20–29% APR, you make one fixed monthly payment at 8–15% APR, saving money on interest and simplifying your finances.
Unlike debt settlement, consolidation does not reduce the amount you owe — you repay the full balance, just more efficiently. This is both its key advantage (no credit damage, no tax consequences) and its limitation (only works if you can qualify for a meaningfully lower rate than your current debts carry).
| Method | Best Credit Score | APR Range | Best For |
|---|---|---|---|
| Personal Loan | 580+ | 7–36% | Most people — fixed rate, fixed term |
| 0% Balance Transfer Card | 670+ | 0% intro (15–21 mo), then 20–29% | Card debt you can pay off quickly |
| Home Equity Loan/HELOC | 620+ | 7–10% | Homeowners, larger balances |
| Debt Management Plan | No minimum | 0–9% (negotiated) | Cannot qualify for a loan |
| Credit Union Loan | Varies | 8–20% | Members with flexible underwriting |
| Lender | APR Range | Loan Amount | Min Credit | Best For |
|---|---|---|---|---|
| LightStream | 6.49–25.49% | $5K–$100K | 660+ | Excellent credit, lowest rates |
| SoFi | 8.99–29.49% | $5K–$100K | 650+ | No fees, unemployment protection |
| Marcus by Goldman Sachs | 6.99–29.99% | $3.5K–$40K | 660+ | Simple terms, no fees |
| Achieve | 7.99–35.99% | $5K–$50K | 580+ | Fair credit borrowers |
| Upstart | 7.80–35.99% | $1K–$50K | 580+ | Limited credit history |
The savings depend on the interest rate difference and your repayment timeline. A realistic example:
The key variable is the rate you qualify for. With excellent credit (750+), rates as low as 6–8% are available, making consolidation extremely efficient. With fair credit (580–650), rates of 25–35% may not provide enough savings to justify the process — a debt management plan may be a better fit.
Short-term: yes, slightly — a formal loan application causes a hard inquiry (5–10 point dip, temporary). Long-term: debt consolidation typically improves your credit score by reducing credit utilization (the ratio of balance to limit across all cards) and establishing a record of on-time payments. The critical rule: don't run up new balances on the cards you just paid off. Consolidation works when the underlying spending behavior changes alongside it.
Everything you need to make a confident decision
Compare top debt consolidation loans and find the best rate. Combine multiple debts into one lower monthly payment and save on interest.
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