Best Debt Consolidation Loans of 2024

By John V

January 12, 2024   •   Fact checked by Dumb Little Man

best consolidation loans

Debt consolidation is the replacement of multiple debts to a single debt. You can use this to consolidate credit card debt, bills payment, etc., into one.

Personal loans are key for debt consolidation, so you’ll need a personal loan if you want to consolidate your debt. So, you don’t have to pay all your debts, including credit card debt, separately.

With your personal loan, it becomes easy for you to consolidate debt, including credit card debt. So, you wouldn’t need to contend with multiple debts as you would be consolidating debt into one.

In this post, we have researched, and we will be providing a list of companies that offer the best debt consolidation loans. Read on to find out about these companies that provide the best debt consolidation loans.

Overview: Best Debt Consolidation Loans

LenderAPR RangeLoan TermMinimum Loan AmountMaximum Loan Amount
Best Egg5.99% – 29.99%3yrs - 5yrs$2,000$50,000
LightStream2.49% - 19.99%2yrs - 12yrs$5,000$100,000
Payoff5.99% – 24.99%2yrs - 5yrs$5,000$40,000
OneMain Financial 18% - 35.99%2yrs - 5yrs$1,500$20,000
PenFedStarts at 5.99%1yr - 5yrs$600$20,000
Discover6.99% - 24.99%3yrs - 7yrs$2,500$35,000
Marcus by Goldman Sachs6.99% – 19.99%3yrs - 6yrs$3,500$40,000
Upstart4.37% – 35.99%3yrs - 5yrs$1,000$50,000

Best Debt Consolidation Loan: Detailed Insight 

Best Egg: Most Advanced Platform

APRTermLoan AmountMore Details
5.99% – 29.99%3yrs - 5yrs$2,000 - $50,000
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Best Egg is a leading online lending platform founded in 2014 and backed by Marlette Funding which will offer you personal loans which you can use to consolidate debt. Best Egg is on this list of company that offers personal loans for best debt consolidation loans because you can apply and get your loan the same day.

One of the most interesting things about this company is that it is relatively new and has grown to become quite accessible through its use of technology. Being a relatively new lending platform means the company understands what modern customer wants and, as such, offer personal loans from $2,000.

However, the maximum amount of personal loans it offers is $35,000 to qualified customers, although it can bump it up to $50,000. In addition, its fixed-rate loans begin from a low 5.99% which means repayment can be easy, and repayment can be 3 or 5 years.

This best debt consolidation loan company collects an origination fee which is between 0.99% and 5.99% of the loan. However, you can pay off your loans early without extra cost as this best consolidation loan company doesn’t collect prepayment penalties.

↳ Best Feature?

Best Egg offers personal loans which you can use for many purposes including debt consolidation which includes credit card debt. With a minimum credit score of 640, you can access bank account loans starting from $2,000 to $35,000, although it can be boosted to $50,000.

Best Egg has a quick response time, and this is one of the reasons many customers enjoy doing business with them. They have funded above 630,000 loans, and you can get your loan the same day that you apply with a minimum credit score of 640.

↳ Who is it Best For?

If you are tech-savvy, Best Egg is best for you to obtain personal loans, which you can use for debt consolidation at favorable debt consolidation rates. Best Egg is listed as one of the best debt consolidation loan companies as you don’t need a minimum income, but you need a 640 minimum credit score.

Also, if you need urgent personal loans for debt consolidation of existing debt and high-interest debts, Best Egg is your best bet. This is because you will get the personal loans you need almost immediately without the need for prepayment penalties for early debt repayment.

Click Here to Know More About Best Egg Debt Consolidation Loan.


LightStream: Best Loan Terms

APRTermLoan AmountMore Details
2.49% - 19.99%2yrs - 12yrs$5,000 - $100,000
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Let there be LightStream; LightStream is also a digital lending platform for personal loans for debt consolidation. The company doesn’t collect origination fees or prepayment penalties on its debt consolidation loan, making it one of the best debt consolidation loans.

LightStream is a consumer favorite as its debt consolidation loan is cheaper than what is mostly obtainable in the debt consolidation loan market. Its low APR rate starts from 5.93% and with auto-pay discount, its no origination fee, prepayment penalty, etc., makes it one of the best debt consolidation loans.

Applying for a LightStream debt consolidation loan is easy as it is done online without the need to visit any physical branch or get any form. As soon as you are done applying, your debt consolidation loan is funded into your account almost immediately.

To qualify for this one of the best consolidation loans in the market, you must have a minimum credit score of 670. This credit score will qualify you for one of the best debt consolidation loans within the range of $5,000 to $100,000

↳ Best Feature?

Notwithstanding the quick funding for your debt consolidation loan and the amounts, LightStream has a rate beat program. This program ensures that LightStream will reduce your by .10 points percent if you have an unsecured loan with a competing lender.

However, the competitive lender for these unsecured personal loans must approve you before your qualify for this program. In addition, you will be able to enjoy longer loan terms of debt payments of about 12 years which is longer than what most companies offer, and there is no prepayment penalty.

↳ Who is it Best For?

LightStream is your best bet if you are looking for debt consolidation loans that won’t hurt you as there are easy debt payments. There are no originating fees, no prepayment penalty, and you will get a soft credit pull that won’t affect your credit score.

Also, if you are looking for a debt consolidation loan that you can take your time paying, LightStream is your best option. LightStream offers personal loans for debt consolidation with a maximum loan term of up to 12 years and a maximum amount of $100,000.

Click Here to Know More About LightStream Debt Consolidation Loan.


Payoff: Best Designed Debt Consolidation

APRTermLoan AmountMore Details
5.99% – 24.99%2yrs - 5yrs$5,000 - $40,000
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Payoff is a financial wellness company whose motto is to help you pay off for your loans, credit card debt, etc. Like the lending platforms we have analyzed above, Payoff is also an online lending platform with a twist as it works with lending partners that loan.

Payoff isn’t a normal lending platform as it coordinates with lenders to help you get the best debt consolidation loans. Payoff debt consolidation loans are within what people call the fair credit range as you only need a minimum credit score of 640 with favorable interest.

In addition, the California-based personal loan for consolidation loan firm provides loans up to the amount of $40,000 with a minimum loan amount of $5,000. However, you have to pay an origination fee between 2.41% and 0.99% depending on your credit score, income to debt ratio, and term of repayment.

This personal loan for debt consolidation company offers its personal loan terms of a minimum of 2 years and a maximum of 5. Although its minimum credit score is 640, you stand a better chance of securing this one of the best personal loans with a 705 credit score.

↳ Best Feature?

Customers enjoy Payoff as one of the best debt consolidation loan companies because of its customer-friendly terms. These friendly terms show in the way Payoff’s personal loans are designed for high interest and credit card debt.

Also, this personal loan company is not a bank in the real sense, it has a network of lenders ready to provide the loans you need for you. This financial institution has the purpose of helping you get rid of your high-interest debt and helping you improve your personal finance.

↳ Who is it Best For?

With a credit score of 640, these lending institutions will help you with a personal loan for debt consolidation, even if you have poor credit scores. Ordinarily, only people with credit scores of over 700 usually get loans, but this financial institution will give you a chance with your poor credit scores.

Notwithstanding your bad credit scores, you must have at least a credit history of 3 years and less than 50% debt to income ratio. Meeting these requirements with your bad credit could most likely qualify you for a personal loan with this one of the best debt consolidation loan companies.

Click Here to Know More About PayOff Debt Consolidation Loan.


OneMain Financial: Best Credit Score Minimum Requirement

APRTermLoan AmountMore Details
18% - 35.99%2yrs - 5yrs$1,500 - $20,000
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OneMain should be your main choice if you are looking for a bank that will offer you a minimum personal loan amount of $1,500. Although the maximum loan amount is low at $20,000 when considered with the other institutions on this list, the no credit score requirement evens things.

OneMain is popular among people because it offers unsecured personal loans that have no collateral and you can use. You can use their loans for multiple purposes, such as debt consolidation but not for your student loans.

OneMain does not have a credit score requirement, so you qualify even if you have bad credit scores, fair credit scores, or outrightly poor credit scores. Although, you might not be able to take advantage of the bank’s fair interest rate as low credit scores mean more interest.

This lending platform has favorable terms with a minimum of 2 years and a maximum of 5, and you don’t have to pay prepayment penalties. Also, you would access your loans in your bank account the same day you apply for them only if you choose to get the loan through a deposit

↳ Best Feature?

One of OneMain’s best is that it offers you a minimum personal loan amount of $1,500 with a maximum amount of $20,000, which is low. However, OneMain redeems itself with a no credit score requirement which evens things.

This lending platform has favorable terms with a minimum of 2 years and a maximum of 5, and you don’t have to pay prepayment penalties. Also, you would access your loans the same day you apply for them only if you choose to get the loan through a mail deposit

↳ Who is it Best For?

If you have bad credit, fair credit, or poor credit, you might want to consider getting your debt consolidation loans from OneMain. OneMain doesn’t have a minimum credit requirement but notes that the lower your credit score, the higher your rate.

Also, if you don’t have collateral for your loan, no problem, just do your business with OneMain as they have an unsecured loan option. Their unsecured loans have competitive rates of 18% to 35.99% which are not at all exploitative.

Click Here to Know More About OneMain Financial Debt Consolidation Loan.


PenFed: Best Small Loans

APRTermLoan AmountMore Details
Starts at 5.99%1yr - 5yrs$600 - $20,000
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PenFed is one of the few lending platforms that have loans as low as $600, which makes it easier for people who need a small loan. So, when you have debt below $600 and you’d like to consolidate that debt, PenFed is one of the best debt consolidation loan companies for you.

PenFed credit union has members mostly in the U.S military, both active and retired, along with their families, department of defense staff, and their families. However, membership is not limited to having ties with the military, as you can join with a minimum deposit of $5.

PenFund has a mobile app, DTI calculator, and fixed interest rates which are quite competitive. You can get their app on your app store, and with the app, you can check your loan funds, access repayment terms, etc.

Speaking of rates, your credit history, creditworthiness, and time as a PenFed member determine your interest rate. Unlike some of the best debt consolidation loan companies on this list, here, your loan funds come after 1 to 2 business days

↳ Best Feature?

Without mincing words, the best feature of this best consolidation loan is its loan amount. Rarely that a platform for lending go so low as to have a loan funding of $600, which makes it easier for people to get small loans.

Also, PenFed has an app that allows you to track your debt consolidation loan, repayment terms, loan funding, etc.

↳ Who is it Best For?

If you are in the military, department of defense, whether active or retired, and are a family member, PenFed is for you. As a military personnel or DoD personnel or a family member of people in any of the two, you can be a member of PenFed.

Also, if you only need a small loan, PenFed is the best choice for you as it provides small loans you need to fulfill a financial obligation immediately. In addition to its $600 small loan, you can access a maximum loan funding of $50,000 if your qualify

Click Here to Know More About PenFed Debt Consolidation Loan.


Discover: Best Zero Fees

APRTermLoan AmountMore Details
6.99% - 24.99%3yrs - 7yrs$2,500 - $35,000
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Discover loans, like most of the other best consolidation loan institutions we have in this post, are cheaper than most lending companies. The reason for this is that they don’t charge origination fees or prepayment penalties.

When it comes to personal loans for the purposes of debt consolidation, Discover is the firm you are looking for. Discover offers multiple debt consolidation options such as balance transfer credit cards, home equity loans, personal loans, all at competitive interests.

Discover has a friendly interest rate of 6.99% to 24.99%, and its minimum credit score is 660, which makes its loans open. In addition, you can make repayments for a period of up to 7 yearswhich means you can pay your loan back conveniently in a long while.

In addition, discover has a mobile app that provides a series of information which makes needing a physical branch redundant. Through the mobile app, you can check on your loan and the progress you are making at repayment along with other banking functions.

↳ Best Feature?

Discover is a worthy financial institution to do business with because they are not looking to milk you of every cash you have. They don’t collect origination fees and prepayment penalties from customers, but they do charge late fees when you default on monthly payments.

Apart from the late fee for not making a prompt monthly payment, there are no fees Discover asks you to pay. Instead, you will be able to enjoy longer monthly payments of debt consolidation loan sums ranging from $2,500 to $35,000.

↳ Who is it Best For?

If you are the tech-savvy type who knows their way around the internet, then this best debt consolidation loan institution is right for you. All you have to do to apply for your loan is to get an online application and get their mobile banking app.

Also, if you are looking for a debt consolidation loan that you can conveniently make monthly payments, then this financial institution is for you. The reason is you can make your monthly payment over a period of 7 years.

Click Here to Know More About Discover Debt Consolidation Loan.


Marcus by Goldman Sachs: Best for Any Credit Score

APRTermLoan AmountMore Details
6.99% – 19.99%3yrs - 6yrs$3,500 - $40,000
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Marcus is on our list as one of the places you can get loans for debt consolidation because it pre-qualifies you with a soft credit pull. What this means is that you can browse through their debt consolidation rate without harming your credit score.

This institution is affiliated with the Goldman Sachs investment bank, and it is in fact, the online consumer bank of Goldman Sachs. Thus, this institution has a huge pedigree and experience in the finance market, which informs its decision to offer APR of 6.99%–19.99%.

In addition, you don’t have to pay any form of fees, including origination fees and prepayment penalties. So, you can get debt consolidation without incurring crippling expenses that can make repayment difficult.

When you approach Marcus for debt consolidation, you can get a loan within the range of $3,500 to $40,000. Also, you will have a period of 3 to 6 years to repay the loan, which will give you ample time to quickly repay

↳ Best Feature?

The best part about this loan is accessibility in the sense that you don’t need to visit a physical branch of this institution to get a loan. You can start and complete all the loan process online or you could do it the old-fashioned way by requesting a paper form.

Also, you don’t have to pay any form of fees including origination fees and prepayment penalties, or other fees that can complicate repayment. So, you can get debt consolidation without incurring crippling expenses that can make repayment difficult.

↳ Who is it Best For?

This firm is best for those who don’t want to pay any form of fees, including origination fees and prepayment penalties. With their loan, you can get debt consolidation without incurring crippling expenses that can make repayment difficult.

It is also excellent for persons who would like to bank easily as they have a mobile app and website, which makes getting loans easy. All you need to do is visit their website and register your intention to get a loan.

Click Here to Know More About Marcus by Goldman Sachs Debt Consolidation Loan.


Upstart: Best Financial Technology

upstart reviews
APRTermLoan AmountMore Details
4.37% – 35.99%3yrs - 5yrs$1,000 - $50,000
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Upstart will give you the loan proceeds you want if you have the min credit score of 600 you need have to get loan approval. Your loan proceeds will easily get to your account the following day from the day you registered for the loan.

Upstart is a blend of technology and finance and it uses AI and ML to boost your access to credit which will shoot you. Also, as one of the best online lenders which will benefit from risk, this one of the best personal loan lenders uses AI to reduce lending risks.

In addition, this one of the best personal lenders offers unsecured loans ranging from $1,000 to $50,000. Unlike some personal loan lenders, this institution loan funds range makes it easier to borrow the exact loans for debt consolidation.

With the use of AI and ML, this lender has a better approval rate for a personal loan than most other institutions. Thus, this financial institution will become one of the few financial institutions which will set the pace for the future of finance

↳ Best Feature?

Upstart is a blend of technology and finance and it uses AI and ML to boost your access to credit. Also, this one of the best personal loan lenders uses AI to reduce lending risks which makes it identify true lending risks, giving people a better chance at debt consolidation.

You don’t need to have an excellent credit score to access this loan, unlike what is obtainable with other lenders. What you need in place of an excellent credit score is a fair, bad or poor credit of 600, depending on what you ask

↳ Who is it Best For?

This lending institution is best for people who want to increase their chances of getting a loan as you have a 27% more chance of getting a personal loan. So, through the use of AI and ML, this lending becomes able more organized and precise.

Interestingly, even with its demand for a minimum credit score of 600, you don’t truly need a credit history before getting a loan. Your credit history, whether good or bad, wouldn’t preclude you from getting a personal loan you so need for debt consolidation.

Click Here to Know More About Upstart Debt Consolidation Loan.



What is Debt consolidation?

As players in the United States financial system, there is no way we can avoid taking loans every now and then, which can become hectic when your debts become multiple. Managing several loans can be a chore no matter your expertise in managing your personal finance which means you need an easier and tidier way of managing your finances.

Debt consolidation is the way you can manage multiple debts as it is the conversion of several debts into a single debt. This conversion of several debts into a single debt is possible through taking a new loan to pay off those debts and roll up your debt into one.

So, instead of making multiple payments at the end of each month, you make a single payment, and you will be able to save money. You will be able to save money when you consolidate loans as the interest on your debt consolidation loan is usually significantly lower.

Oftentimes, the loan you get for the purposes of debt consolidation is unsecured, and as such, it is not tied to any collateral. Even though it is not tied to any collateral, the APR is usually competitive and allows you to save money in the repayment of your new single loan.

There are a few kinds of debt consolidation choices. They are;

Personal loan: Personal loan is an unsecured loan that you can use to pay for your current debts, fund a big purchase, pay hospital bills, use for financing home renovations

Balance transfer: This option is for when credit card debt is transferred from one credit card to another credit card that has a lower interest rate.

Home equity loans: Home equity loan helps you to be able to get a loan against its home equity

Why consolidate your debt?

Now that you know debt consolidation is, we are confident you have a bit of an idea of why you need debt consolidation. We will elaborate on why debt consolidation is for you and provide you with reasons.

These reasons are.

To Streamline your Finances

Recall that we said you have the option of managing multiple loans, but that could be hectic. The financial system will have you get necessary loans that could be a chore to keep up with.

If you aren’t careful, you could hurt your personal finances if you don’t make payments regularly and go on to have a bad credit history. So, debt consolidation allows you to join different existing debts into a single one to reduce paying monthly debts multiple times with high interest.

Thus, you will be able to keep track of your single debt, make early payments, and improve your history. It will allow you to know when you will clear all your debts and work to see if you can even pay off early.

Possibility of Early Payment.

Earlier, we mentioned the possibility of early payment of your loan because you have a clearer picture of your loan. Also, the possibility of paying off your loan early improves when you consider the fact your new loan has lower interest.

Your loan having lower interest means that you wouldn’t spend so much on interest and would be able to discharge of the principal loan. This means you would be able to save money and easily pay off the loan way before the due date.

Most debt consolidating companies have no prepayment penalty, so you wouldn’t be charged for trying to be debt-free. Plus, most debt consolidation gives you longer loan terms which can help you pay your loans without pressure or pay off as soon as you are able.

Reduce your Interest Rate.

You can reduce your interest rate by consolidating your debts, and the how is quite straightforward, but it depends on you. If you have managed your other loans well, it means that your credit scores will improve, and this is good.

Improved credit scores are good because it will make you qualify for lower interest. Recall that the higher your credit score, the lower your interest will be and vice versa.

So, you can save more money with your higher credit scores while also improving your history. Also, instead of letting consolidated debts hurt your credit score and history, you can use companies that allow a soft credit check

This could also work with debt that notoriously has high interest, such as debt from credit cards. With this, your credit cards debt will be tamed.

Could Reduce Monthly loan Payment

Remember what we discussed about longer terms for your loan. A longer loan term translates to less monthly loan repayment as the lender will be spread your payment over a longer period.

Although, it could mean having to pay more on the loan even when the interest is low. However, it will help you make a budget that will help you successfully meet up with monthly loan funding payments.

Boosting your Credit Score.

The mentality is that debt consolidation loans hurt your credit score as some companies perform a hard credit inquiry. However, this hurt could be temporary as you can boost your credit score in different ways.

One of these ways is to pay off certain debts like debts on your credit cards, as this could reduce your credit usage in your credit report. Also, your credit usage rate on your credit cards should be less than 30%, and consolidation can help with this.

Also, don’t underestimate the power of making prompt payments on your loan. When you do this, it boosts your credit score, credit report, and overall credit history.

How does debt consolidation work?

Consolidating debt works in a pretty straightforward manner as it involves you taking a personal loan, credit cards balance transfer, etc. These personal loans you take, etc., are then used to pay off your other existing loans, with the new loan being your only loan.

This process also works for credit cards as it involves consolidating your existing credit cards. Whether card debt or not, the process of consolidating debt works the same way as replacing multiple loans with a single loan.

So, when you get your loan from your new lender and use it to offset the debts you currently owe, your new lender becomes your only one. In addition, your new loan is going to be a loan with a lower interest than all your previously existing loans which makes repayment easier than it usually is.

With lower interests and a longer term with which you can repay your loans, you will pay less while paying off your loans. Also, there is the chance that you can easily pay off the debt that you owe.

Before you get a consolidation, you have to consider the following.


Remember, you don’t want to needlessly hurt your credit score when you don’t need to, so consider companies with pre-qualification. Pre-qualification allows you to render some information about yourself, such as you income, DTI, reason for loan, housing, etc.

When you get companies with pre-qualification, you are able to shop for rates that suit you without compromising your credit score. Pre-qualification only requires a soft credit inquiry, and this is why you wouldn’t be hurting your credit score when you shop for rates.

So, when searching for a consolidating debt company, search for lenders that have Pre-qualification that won’t hurt your scores.

Loan Purpose

You should also consider the purpose of your loan before you engage a lender for a loan that you want to use for consolidating debt. Most times, lenders permit their personal loans for consolidating debt, home renovation, medical expenses, purchases, etc.

These lending institutions don’t permit their loans to be used to offset student loans. So, if your purpose for consolidating debt includes student loans, you are going to be denied.

In addition, if your loan purpose requires the consolidating debt of illegal purchases, your loan won’t be approved. So, you must know if consolidating debt is part of what the lenders permit their loans for.

Additional fees.

Most of the lenders we have covered in this post have zero-fee loans, no origination fees, no prepayment penalty, etc. Some don’t even have late payment fees, which is quite enticing for someone trying to consolidate loans.

These fees should they exist, could complicate your speeding in repaying your loan and can also affect your budget. Although, if there are fees, it doesn’t mean it will be costlier than what it affordable as you can still investigate those fees.

By investigation, we mean you can find out the cost of those fees and the conditions they are tied into. For instance, origination fees could be calculated as part of the lender’s APYor deducted from your loan funding.

Customer Service

Customer service is a necessary part of every organization. So, you have to do business with a lender that has a very cooperative customer service.

Worry not, the lenders on this list have customer service representatives that are available almost all the time. They will help you out if you face any issues.

Who is debt consolidation best for?

Generally, consolidation is the best for those who want to consolidate their multiple loans into one. Consolidating debts into one makes it easy for repayment and removes the untidiness that comes with running multiple loans.

Also, consolidation is the best for the following;

Those with good credit scores: There are some lenders on this list that don’t even require that a credit score. However, the average min credit score appears to be 670, and this will give you a great chance at securing your loan.

Those who want a single payment each month: If you want a single payment of your debt each month, then consolidation is for you.

Those with a budget: When you have a budget that you intend to run your consolidation by, then consolidation is for you.

Loan Categories base on Credit Rating

Photo: Unsplash

Excellent Credit Loan

When you get a loan based on a credit score of 800, then you have gotten an excellent credit loan.

Good-Credit Loan

A loan that is based on a credit score of 670 to 739 is a good credit loan.

Fair-credit loans

A loan that is based on a credit score of 586 to 669 is a fair credit loan.

Bad-credit loans

Any loan based on a credit score of 630 is a bad credit loan

>> Related Topic: Best Personal Loan of 2024

Final Verdict

LightStream is our choice of the lenders on this list, and we base our decision on the maximum amount of personal loans you can get. The maximum amount of money you can get, you also get a fee as low as 5.93%.

We admit that the competition among the lenders on this list is quite stiff as you have the PenFed, which has a minimum amount as low as $600. However, you might need loans for so much more than the usual $20,000, $40,000, and $50,000 maximum loan could turn out to be not enough.

Since the essence of your getting a loan is to help you boost your financial well-being, LightStream is just right for you. Apart from its maximum loan sum, it also offers you a 12-year loan term for you to repay your loan.


Do debt consolidation loans affect your credit score?

Whether or not your consolidation will affect your credit score or not depends on you. Ordinarily, consolidation offers you a way to improve your credit score and not to reduce it.

You can increase your credit score through prompt payment of your consolidated debt. However, when you begin to default in payment, it will affect your credit score

What is the interest rate on debt consolidation loans?

The interest rate on consolidation is different from one another. However, they are usually lower than the interests on your multiple debts.

What is credit card debt related to your debt consolidation loans?

Consolidating debt also works for credit card debts. You can even consolidate your credit card debts into a single credit card.

John V

John is a digital marketing master's student who enjoys writing articles on business, finance, health, and relationships in his free time. His diverse interests and ability to convey complex ideas in a clear, engaging manner make him a valuable contributor to these fields.

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