Many of us feel stuck under a mountain of credit card debt. We watch interest rates climb, we fear our credit score will drop. Debt Consolidation Loans That Can Save You Thousands can act as a light at the end of the tunnel.
You can cut up to $3,000 off a $10,000 balance with the right personal loan. This guide lists ten top options, like Upgrade, Upstart, Best Egg, LightStream, Discover, Happy Money, PenFed Credit Union, SoFi, Prosper, and Achieve.
We cover fees, annual percentage rate, calculator tool checks, report pulls, and autopay discount perks. Ready to save money?
Key Takeaways
- You can save up to $3,000 on a $10,000 balance by choosing one of 10 top debt-consolidation loans: Upgrade, Upstart, Best Egg, LightStream, Discover, Happy Money, PenFed, SoFi, Prosper, and Achieve.
- Loan amounts run from $600 to $100,000 with terms of 12 to 84 months. APRs span 6.6% to 35.99%. Many lenders waive origination fees and offer 0.25%–0.50% autopay or direct-deposit discounts.
- You prequalify with a soft credit pull and can use online calculators to compare monthly payments, total interest, and effects on your debt-to-income ratio and credit score.
- Options fit all FICO ranges: Upstart accepts scores as low as 300, Prosper needs 560+, Achieve 640+, Best Egg 580+, and Discover 720+ for its best rates.
Upgrade: Best for Overall Debt Consolidation
Upgrade has 2,295 user ratings. It offers personal loans from $1,000 to $50,000 to borrowers with a 580 FICO score or higher. APR ranges from 7.99% to 35.99% and can drop with direct deposit or an autopay discount.
Collateral options cut simple interest. The online loan calculator shows how lower rates slice debt like a chef cutting veggies.
Terms span 24 to 84 months. A small origination fee applies, but linking a checking account can waive that cost. Lender uses a soft pull for prequalification and a hard credit inquiry at loan approval.
Debt-to-income (DTI) ratio and credit history affect loan terms. This plan beats juggling multiple credit cards.
Upstart: Best for Borrowers with Bad Credit
Upstart welcomes borrowers with scores as low as 300. It issues unsecured loans from $1,000 to $50,000. APR ranges from 6.60% to 35.99%. You can pick 36 or 60 month terms. The origination fee can run from 0% to 12%.
Many use this debt consolidation loan to merge credit card debt. A loan calculator helps estimate monthly payment and total interest. Autopay discount can cut the APR by 0.25%. You will see a hard credit inquiry.
Over 17,171 customers give Upstart high marks on user ratings.
Best Egg: Best for Borrowers with Excellent Credit
Best Egg serves borrowers with excellent credit. It posts annual percentage rates from 6.99% to 35.99%. You can pick a debt consolidation loan from $2,000 to $50,000. Its origination fee runs from 0.99% to 9.99%.
Borrowers need at least a 580 credit score.
A soft credit check lets applicants avoid a hard credit inquiry. Customers see loan approval in days. Online lending platform provides a loan calculator for debt relief planning. A member FDIC lender funds loans with 36 to 60 month terms.
The lender offers an autopay discount on your monthly payment.
LightStream: Best for Beating Competitors’ Rates
LightStream offers aprs as low as 7.49% with an autopay discount. It demands no origination fee and no prepayment penalties. You can refinance high-interest debt into one simple monthly payment.
Loan amounts range from $5,000 to $100,000. Repayment plans span 24 to 84 months. The Rate Beat program matches a lower loan quote from any online lending platform.
A hard credit inquiry supports loan approval. Sign documents by 2:30 PM EST to get same-day funding. A loan calculator shows fixed interest and monthly payment. It can estimate effects on your FICO credit score.
This debt consolidation loan works like a personal loan or line of credit to tame revolving debt. Borrowers control credit utilization and debt-to-income ratio.
Discover: Best for Easy Borrowing Experience
This lender shines in user feedback. It holds 1,594 ratings on major sites. APR ranges run from 7.99% to 24.99%. Loan amounts sit between $2,500 and $40,000. Your credit score must hit at least 720.
Clients see direct payment sent to creditors. A seven-day support desk answers calls. The mobile app supplies loan management tools.
Applicants enjoy fast loan approval on its web portal. It uses a soft pull on your credit report first. That step guards your credit score. You test rates with a rate checker. A built-in autopay discount can trim your APR.
Fixed monthly payments curb high-interest debt. Lenders view debt consolidation loans as low risk. No fuss, no extra fees on setup.
Happy Money: Best for Credit Card Debt Consolidation
Happy Money gives rates from 8.95% to 29.99% APR. Debt consolidation loans range from $5,000 to $40,000. Applicants need a 640 credit score minimum. Origination fees start at 1.5% and go up to 5.5%.
Their loan calculator tool shows monthly payment estimates. Web lender staff answer questions like a credit counselor. Borrowers slash credit card debt fast. They enjoy simple payment schedules over 24 to 60 months.
PenFed Credit Union: Best for Short-Term Repayment Savings
PenFed Credit Union issues debt consolidation loans from $600 to $50,000 with APRs from 8.99% to 17.99%. Borrowers select 12 to 60 month repayment terms to tackle credit card debt fast.
Members net a direct deposit discount and lower origination fees when they enroll in autopay.
It holds 14 user ratings for easy loan approval and fast savings on interest. You must join PenFed before applying, which adds a quick sign up step. Use the loan calculator on its website to preview monthly payment.
Live customer service teams stand ready to help with credit counseling or loan origination questions.
SoFi: Best for Free Financial Planning Tools
Members use a free budget planner on SoFi’s site. They also get a loan calculator and debt to income ratio tool. This service links credit score checks to debt consolidation loan amounts.
Ranges run from $5,000 to $100,000. APR spans 8.99% to 35.49%, and applicants need a 680 score. Many plans have no origination fee.
Borrowers set up automatic payments on debt consolidation loans for terms from 24 to 84 months. Users tap free career coaching and financial advisor chats. SoFi rewards direct deposit use with lower APRs.
Chat tools let users tweak plans as goals change.
Prosper: Best for Borrowers with Fair Credit
Prosper boasts 3,655 user ratings. It issues personal loans from $2,000 to $50,000. Borrowers need a 560 credit score or higher. APR spans 8.99% to 35.99%. Terms run 24 to 60 months.
It charges a 1% to 9.99% origination fee. A calculator tool shows monthly payments.
Many use it for debt consolidation. It helps curb credit utilization fast. An autopay discount cuts your costs. You can factor your debt-to-income ratio in your plan. A simple debt avalanche method fits here.
The platform guides each loan approval step.
Achieve: Best for Interest Rate Discounts
Achieve posts APR rates from 8.99% to 29.99% for personal loans aimed at debt consolidation. Lenders let borrowers choose a 24- to 60-month term and loan amounts from $5,000 to $50,000.
Applicants need a credit score of 640 or higher. Origination fees range 1.99% to 8.99%. A loan calculator shows estimated monthly payments.
Autopay discount trims APR by up to 0.50%. Direct deposit discount cuts another 0.25%. Soft credit checks keep your credit history safe. User ratings top 5,634, which signals solid service.
Borrowers use low APR to beat credit card interest fast.
Key Benefits of Debt Consolidation Loans
Debt consolidation loans slash high interest costs, and they turn a pile of bills, like a credit card avalanche, into one easy payment. Run numbers in a loan calculator, or lock in an automatic payment perk to trim your credit utilization and protect your credit score.
Lower Interest Rates
Lenders cut annual percentage rates on personal loans to undercut high revolving debt. Many debt consolidation loans come with an autopay discount and no origination fee. A loan calculator can show you a lower monthly payment and total cost.
Refinancing $10,000 of high-interest balances into one new loan can shave up to $3,000 off your interest. Credit unions and online lending platforms use your FICO score to set that rate.
A higher score often earns a cheaper APR.
Simplified Monthly Payments
A debt consolidation loan turns many payments into one simple monthly payment. It may lower your APR and cut high-interest balances. You save time and stress. You might snag an autopay discount and a direct deposit discount too.
Adding one due date helps you track loan terms and watch your DTI ratio. A repayment estimator shows how changes in loan amount or payoff term affect your bill. You pay an upfront fee once, not every month.
This setup helps avoid missed payments.
How to Choose the Right Debt Consolidation Loan
Check your FICO score and DTI ratio first to narrow the field. Run a payment estimator to see how different rates and terms affect your budget.
Consider Your Credit Score
Your credit score drives the APR and loan terms. Lenders scan your FICO score on a scale from 300 to 850. A score over 700 often draws offers near 6 percent APR, while a score under 640 may trigger rates above 15 percent.
Top scores can help you skip the origination fee or earn an autopay discount. Good credit also shrinks your monthly payment.
You can use a loan calculator to compare debt consolidation offers. The calculator shows how different APRs or loan amounts change your total cost. Keep your credit utilization low and watch your DTI ratio.
This moves your score higher over time, and saves you thousands.
Compare Interest Rates and Terms
Lenders set APR by credit score and loan amount. Rates can jump from 6% to 36% per year. Some offer an autopay discount or checking account perk to lower that rate. Loan terms often span 12 to 84 months.
Pick a longer term to drop monthly pay, or go short to avoid extra interest.
Try a loan calculator to view real costs. Add startup fee and other charges. Credit unions may charge lower fees on unsecured loans. A hard credit inquiry can shave a few points off a score.
Compare all offers side by side to find the lowest total cost.
Steps to Apply for a Debt Consolidation Loan
Grab your FICO score, debt-to-income ratio and a recent statement—these are your launch pad. Then, fire up a payment planner, compare APRs and origination fees, and send off your application when you spot the right match.
Check Your Credit Score
Fetch a free FICO score from Equifax or Experian, like pulling a report card. A soft pull keeps your credit history safe, so you won’t face a hard credit inquiry.
Checking scores and rates on an APR estimator never hurts your credit. Spotting a 650 rating warns you of higher APR on debt consolidation loans. No credit boogeyman hides in those soft pulls.
A 780 score might unlock better APR offers. Those insights guide your debt-to-income ratio and credit utilization before you apply.
Prequalify with Multiple Lenders
Prequalify with at least three lenders to see real rate quotes in minutes. A soft inquiry never hits your credit score. You can sign up or log in at LendingTree. It shows APR, origination fee, and loan amounts side by side.
A calculator tool can display monthly payments.
You may compare debt consolidation rates, loan terms, and debt-to-income ratio before applying. No hard credit inquiry occurs until you accept an offer. Check autopay discounts and loan application fees.
You see which personal loan fits your budget.
Alternatives to Debt Consolidation Loans
Transfer cards let you shift high-rate debt into a low-rate promo, so you can cut your APR fast. Property loans tap your home’s equity to slash rates, though lenders check your credit score closely.
Balance Transfer Credit Cards
Major issuers often offer 0% APR for 12 to 18 months. Cardholders shift high-interest debt onto these cards. This tactic cuts interest costs, and it lowers credit utilization. Consolidating balances on one card simplifies monthly bills.
Transfer fees may apply, but they cost less than sky-high APRs on old cards. You can use a loan calculator to weigh transfer fees against interest savings.
Maria moved a $5,000 balance onto a card with 0% APR for 15 months. She set up autopay, to avoid missed payments, and protect her rate. Her plan cut interest by about $400 in one year.
Many savers clear balances before the promo ends, to dodge high rates. Simple tracking can keep you ahead of fees.
Home Equity Loans
Home equity loans let homeowners borrow against their property value. You use your house equity as collateral. They offer a lower APR than unsecured debt like credit card balances, so they outshine many debt consolidation loans on rate.
A loan calculator can show the cost of a $50,000 loan at 4.5% APR.
Many banks and credit unions waive origination fees to attract borrowers. You can earn an autopay discount when funds hit your checking account. Lenders often review your credit score and debt-to-income ratio before approval.
Such terms can cut your payment and curb credit utilization.
Tips to Maximize Savings with Debt Consolidation Loans
Think of interest as budget fat, and use a rate tool to trim it. Add an auto-pay perk to dodge extra fees, then watch your balance shrink.
Avoid Accumulating New Debt
Lock credit cards away after you pay off high-interest balances. Each new swipe drags your debt-to-income ratio higher, and it can block loan approval. Lenders check credit scores and credit utilization when you apply for debt consolidation loans.
You want a low APR and an origination fee that won’t eat into your savings.
Treat your debt consolidation loan like a sealed envelope. Use a loan calculator on an online lending platform to map out payoff dates and amounts. Sign up for an autopay discount to shave off 0.25% APR.
This habit leads to financial stability faster.
Pay More Than the Minimum Payment
Adding extra to your payment on a debt consolidation loan slashes your balance faster. You also lower total interest by thousands over time. A loan calculator maps out your APR savings.
Enroll in autopay and claim a small rate discount on a personal loan or credit card consolidation. One borrower saved $1,200 in interest by adding fifty dollars extra each month. That simple trick speeds up payoff and shrinks your fees.
Takeaways
Use a loan calculator to sort through APR and origination fees. Check credit score before you apply. Compare personal loan offers on each lender website. Catch autopay discount or direct deposit discount to push rates down.
Grab a no collateral loan to bundle your high interest bills. Start today and watch your payments shrink.
FAQs on Debt Consolidation Loans That Can Save You Thousands
1. What is a debt consolidation loan?
A debt consolidation loan mixes all your balances into one lump sum loan. You pay it off with a set apr and a fixed monthly payment. It helps tame the debt monster by cutting rates on high-interest debt like credit card debt or payday loans.
2. How do I pick the right loan terms?
Look at apr, origination fee and autopay discount. Use a loan calculator, compare offers from credit unions, online lending platforms or a big bank. Then pick the best deal for your budget.
3. Will a debt consolidation loan affect my credit score?
Your credit score and fico score shape your loan eligibility and apr. A hard credit inquiry may dip your score. But on-time payments can lift your credit utilization and credit worthiness over time.
4. How do I find my monthly payment?
Fill out loan applications to see your loan amount and loan approval range. That tells you your monthly payment. You choose a secured loan or unsecured loan based on your needs.
5. What fees should I watch for?
Ask customer service about origination fees. Check for a rate beat program or direct deposit discount. Don’t forget to watch your debt-to-income (dti) ratio and your loan repayment terms.
