Best Debt Consolidation Loans of 2022
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.
Table of Contents
Overview: Best Debt Consolidation Loans
Best Debt Consolidation Loan: Detailed Insight
Best Egg: Most Advanced Platform
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
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
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
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
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
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
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
