Best debt consolidation loans for bad credit or no credit of November 2023

If you have bad credit, a debt consolidation loan can help combine your debt into a single monthly payment. Borrowers can reduce their monthly payments by keeping costs low and opting for longer repayment terms.

The best debt consolidation loans for bad credit offer borrowers enough financing to combine their loans with low interest rates and flexible loan terms. We compared personal loan lenders based on whether each allows co-signers and whether direct lender payoff is available. Here are the best lenders who offer debt consolidation loans.

Upgrade
: Best overall
LendingPoint
: Best for quick approval decisions
Prosper
: Best for large loans
LendingClub
: Best for co-borrowers
Oportun
: Best for small loans
Upstart
: Best for limited credit
Avant
: Best for customer support
Compare the best debt consolidation loans for bad credit
Methodology
How do debt consolidation loans work?
Pros and cons of consolidating debt
Other ways to consolidate debt
Frequently asked questions(FAQs)

Why trust our personal loan experts

Our team of experts evaluated hundreds of personal loan products and analyzed thousands of data points to help you find the best fit for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.

27 personal loan lenders reviewed.
270 data points analyzed.
6-stage fact-checking process.

Best debt consolidation loans for bad credit

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What you should know

Upgrade borrowers receive access to free credit monitoring tools as well as personalized recommendations to improve their credit health, which can be helpful if you’re looking to build your credit.

With Upgrade, you can borrow $1,000 to $50,000 with repayment terms from two to seven years.

Pros and cons

Pros

Free credit health tools.
Fast funding.
Can borrow as little as $1,000.

Cons

Charges an origination fee.
Charges fees for late and returned payments.
Doesn’t allow direct payment to creditors.
Doesn’t disclose information about rate discounts unless you have a registered account.

More details

Interest rates: 8.49% to 35.99%.
Loan amounts: $1,000 to $50,000.
Repayment terms: 2 to 7 years.
Fees: Origination fee (1.85% to 8.99%), late fee ($10) and returned payment fee ($10).
Min. credit score: 580.
Accepts co-signers? No (but can apply with a joint applicant).
Direct payment to third-party creditors? No.

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What you should know

If you’re on a tight timeline for debt consolidation, LendingPoint might be a good option. Depending on your application information and credit profile, you could receive a loan offer within just seconds. If you receive final approval after submitting any requested documentation, you can get your funds as soon as the next business day.

With LendingPoint, you can borrow $2,000 to $36,500 with terms from two to six years, and you could get approved with a credit score as low as 600.

Note that this lender charges an origination fee that can increase your loan costs, and it doesn’t operate in Nevada and West Virginia. LendingPoint also doesn’t permit co-signers or joint applicants, meaning you’ll have to qualify on your own.

Pros and cons

Pros

Quick approval decisions.
Fast funding.
No prepayment penalty.

Cons

Charges an origination fee.
Doesn’t permit co-signers or joint applicants.
Not available in all states.

More details

Interest rates: 7.99% to 35.99%.
Loan amounts: $2,000 to $36,500.
Repayment terms: 2 to 6 years.
Fees: Origination fee (0% to 8%).
Min. credit score: 600.
Accepts co-signers? No.
Direct payment to third-party creditors? Does not disclose.

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If you have poor credit, you might have a hard time getting approved for a large personal loan. But with Prosper, you could get approved for a personal loan ranging from $2,000 to $50,000 with a credit score as low as 600. Repayment terms extend from two to five years.

Additionally, if you’re struggling to qualify on your own, you can apply for a Prosper personal loan with a joint applicant.

Pros and cons

Pros

Loan amounts up to $50,000.
Fast funding.
Accepts joint applicants.

Cons

Doesn’t allow direct payment to creditors.
Charges an origination fee.
Charges fees for check payments, late payments and insufficient funds.

More details

Interest rates: 6.99% to 35.99%.
Loan amounts: $2,000 to $50,000.
Repayment terms: 2 to 5 years.
Fees: Origination fee (1% to 5%), check payment fee (5% of your payment amount or $5, whichever is less), late payment fee ($15 or 5% of the unpaid amount, whichever is greater) and insufficient funds fee ($15).
Min. credit score: 600.
Accepts co-signers? No (but can apply with a joint applicant).
Direct payment to third-party creditors? No.

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Originally founded as a peer-to-peer (P2P) lender, LendingClub offers consumers personal loans from. LendingClub makes debt consolidation with bad credit more accessible by letting applicants qualify with co-borrowers. The platform also makes it easier to consolidate multiple debts by offering direct payments to third-party creditors.

LendingClub lets consumers apply with co-borrowers to increase their approval odds and access more competitive rates than they would otherwise qualify for. Borrowers can also utilize the lender’s fast funding speeds to expedite the consolidation process. However, borrowers should prepare to pay higher APRs than with some other lenders.

Pros and cons

Pros

Fast funding.
Co-borrowers are permitted.
Offers prequalification with a soft credit check.

Cons

Loans max out at $40,000.
Origination fees range from 2% to 6%.
Minimum APRs higher than competitors.

More details

Interest rates: 9.57% to 35.99%.
Loan amounts: $1,000 to $40,000.
Repayment terms: 3 to 5 years.
Fees: Origination fee (2% to 6%), late payment fee (5% of outstanding payment amount or $15, whichever is greater) and insufficient funds fee ($15).
Min. credit score: 600.
Accepts co-signers? No (but can apply with a joint applicant).
Direct payment to third-party creditors? Yes.

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Oportun’s personal loans start at just $300, making it an excellent choice for borrowers who want to consolidate a small amount of debt without meeting rigorous credit score requirements — and co-signers are permitted under certain circumstances.

Lending decisions are based on the applicant’s annual income, monthly debt, credit history and credit score. Loans are even available to borrowers who have little to no credit as well as applicants who have gone through bankruptcy. However, Oportun’s website does not indicate whether institutions in its network of lenders offer direct payment to creditors. and its loans can come with higher annual percentage rates (APRs) compared to some lenders.

Pros and cons

Pros

Loans start at just $300.
Could qualify with little to no credit.
Allows co-signers in some situations.

Cons

Higher APRs compared to some lenders.
Unsecured loans max out at $12,000.
Higher loan amounts require collateral.

More details

Interest rates: 28.99% to 35.99% (depending on your state and loan type).
Loan amounts: $300 to $18,500 (depending on your state; larger loan amounts require collateral).
Repayment terms: 1 to 4.08 years for unsecured loans or 2 to 5.33 years for secured loans (term options will depend on your location).
Fees: Origination fee, late payment fee and returned payment fee (fee amounts will depend on your location).
Min. credit score: No minimum.
Accepts co-signers? Yes (in some cases).
Direct payment to third-party creditors? Does not disclose.

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Younger borrowers with limited credit history may want to consider Upstart because of its more flexible lending criteria. Upstart uses artificial intelligence to match borrowers with the best personal loans available from a network of banks and credit unions. Borrowers who apply through Upstart are evaluated based on several factors, including credit score and credit history. However, borrowers can also qualify based on education, employment and general financial circumstances.

Unlike some lenders, though, Upstart does not permit co-borrowers or co-signers for personal loans. Loan amounts start at $1,000 and go up to $50,000, with terms ranging from three to five years.

Pros and cons

Pros

Offers prequalification with a soft credit check.
Considers alternative eligibility requirements.
Funds available in one business day after signing.

Cons

No rate discounts.
Only offers two repayment terms.
Loans max out at $50,000.
Doesn’t allow direct payment to creditors.

More details

Interest rates: 5.2% to 35.99%.
Loan amounts: $1,000 to $50,000.
Repayment terms: 3 to 5 years.
Fees: Origination fee may apply.
Min. credit score: 300.
Accepts co-signers? No.
Direct payment to third-party creditors? No.

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While many lenders have limited support hours that could be inconvenient depending on where you’re located, Avant’s customer support team is available Monday through Friday from 7 a.m. to 10 p.m. Central Standard Time (CST) as well as Saturday and Sunday from 7 a.m. to 8 p.m. CST. So no matter where you live in the U.S., you’ll likely be able to get help at a convenient time.

With Avant, you can borrow $2,000 to $35,000 with terms from one to five years, and you could qualify with a credit score as low as 580. When possible, Avant will provide an approval decision within just minutes, and if you’re approved, your loan could be funded as soon as the next business day, which can help you consolidate your debts quickly.

Keep in mind that Avant’s minimum APR is higher compared to some lenders. Additionally, this lender charges an origination fee as well as fees for late and dishonored payments, and it doesn’t permit co-signers or joint applicants. Avant personal loans also aren’t available in Massachusetts, Michigan, Montana, Vermont, Virginia and West Virginia.

Pros and cons

Pros

Accessible customer support.
Quick approval decisions.
Fast funding.

Cons

Minimum APR is higher compared to some lenders.
Charges an origination fee as well as fees for late and dishonored payments.
Doesn’t permit co-signers or joint applicants.

More details

Interest rates: 9.95% to 35.99%.
Loan amounts: $2,000 to $35,000.
Repayment terms: 1 to 5 years.
Fees: Origination fee (up to 4.75%), late payment fee ($25) and dishonored payment fee ($15).
Min. credit score: 580.
Accepts co-signers? No.
Direct payment to third-party creditors? Does not disclose.

Compare the best debt consolidation loans for bad credit

	Interest rates	Loan amounts	Min. credit score	Accepts co-signers?
Upgrade	8.49% to 35.99%	$1,000 to $50,000	560	No (but can apply with a joint applicant)
LendingPoint	7.99% to 35.99%	$2,000 to $36,500	600	No
Prosper	6.99% to 35.99%	$2,000 to $50,000	600	No
LendingClub	9.57% to 35.99%	$1,000 to $40,000	600	No (but co-borrowers are permitted)
Oportun	28.99% to 35.99% (depending on your state and loan type)	$300 to $18,500 (depending on your state; larger loan amounts require collateral)	No minimum	Yes (in some situations)
Upstart	5.2% to 35.99%	$1,000 to $50,000	300	No
Avant	9.95% to 35.99%	$2,000 to $35,000	580	No
All rates include autopay discounts where noted by the lender and are accurate as of November 6, 2023.

Methodology

Our expert writers and editors have reviewed and researched 27 popular lenders to help you find the best debt consolidation loan. Out of all the lenders considered, the seven that made our list excelled in areas across the following categories (with weightings): loan cost (25%), loan details (15%), eligibility and accessibility (35%), customer service (15%) and direct creditor payment (10%).

Within each major category, we considered several characteristics, including APR ranges, prepayment penalties, maximum loan amounts and terms, minimum credit score requirements and co-signer acceptance. We also evaluated each provider’s customer support options and customer reviews.

Why some lenders didn’t make the cut

Of the 27 personal loan lenders that we reviewed, only a fraction made the cut. The lenders that didn’t have high enough scores to be included, received lower ratings due to having stricter credit score requirements, limited customer service options and bad customer reviews as well as not allowing co-signers.

How do debt consolidation loans work?

A debt consolidation loan is a type of personal loan used to pay off existing debts, such as high-interest credit card debt. This leaves you with just one loan and a single payment to manage, which can help to simplify repayment. Personal loans also typically come with fixed interest rates, meaning your payments will stay the same throughout your repayment term.

Depending on your credit, you might also qualify for a better interest rate on a debt consolidation loan compared to what you’ve been paying. This could save you money on interest and possibly help you pay off your debt faster. You could also opt to extend your repayment term if you want to reduce your monthly payments — though keep in mind that this means you’ll pay more interest over time.

Pros and cons of consolidating debt

Pros

Leaves you with just a single loan and payment to manage.
Might get you a lower interest rate or reduced monthly payment.
Could help you pay off debt faster.

Cons

Might come with fees, depending on the lender.
Could end up paying more in interest.
Doesn’t solve the financial habits that might have resulted in excessive debt.

Other ways to consolidate debt

If a personal loan doesn’t seem right for you, there are also other ways to consolidate debt. Here are a few options to consider:

Balance transfer credit card: With a balance transfer, you’ll simply move your balance from another credit card to a new one — preferably with better terms. Many credit cards offer an 0% APR introductory period, which typically also covers balance transfers though might still come with a fee of 3% to 5% of the consolidated amount. Just keep in mind that if you don’t pay off the card before this promotional period ends, you could be stuck paying hefty interest charges.
Home equity loan: If you’re a homeowner, you could tap into your equity with a home equity loan. Similar to a personal loan, you’ll receive a lump sum to use how you’d like, such as to consolidate debt. Because a home equity loan is secured by your house and is therefore less risky to the lender, you’ll likely get a lower interest rate compared to what you’d get on a personal loan. However, you also risk losing your home if you don’t keep up with your payments.
Home equity line of credit: Another way to access your home equity is with a home equity line of credit (HELOC). Unlike a home equity loan, a HELOC provides you with a revolving credit line that you can repeatedly draw on and pay off. Just remember that you’ll be using your home as collateral, which could lead to foreclosure if you can’t make your payments.

Frequently asked questions(FAQs)

The exact credit score needed for debt consolidation depends on the specific lender. In general, however, lenders prefer borrowers who have a good or excellent credit score (typically 670 or higher). If you have a lower-than-average credit score, you may need to provide additional documentation to qualify.

Some lenders offer debt consolidation options to those with low or bad credit scores; however, these loans usually come with higher interest rates. Ultimately, shopping around and comparing offers from different lenders is best before deciding.

You can apply for a personal loan with bad credit. Many lenders offer debt consolidation loans to borrowers with less-than-perfect credit. Remember, however, that you’ll likely pay higher interest rates and may pay more in fees than with traditional loans.

Consider applying for secured loans or seeking the help of a creditworthy co-signer to increase your chances of approval. If you can wait to consolidate your debt, work on improving your credit score before applying.

When you apply for a debt consolidation loan, the lender will perform a hard credit check to determine whether to approve you. This could cause a slight, temporary drop in your credit score — usually by five points or less.

Additionally, consolidating your debt could end up helping your credit score in the long run. For example, if you make all of your payments on time or are able to diversify your credit mix, you see a boost in your credit score. Your score might also improve if paying down revolving your credit lines (such as credit cards and lines of credit) reduces your credit utilization, which compares the amount of available credit you’ve used to your total credit limits.

There’s no specific amount of debt that you need to have to qualify for a debt consolidation loan. Personal loans typically range from $600 to $100,000, depending on the lender. So whether you have a small or large amount of debt, you could still opt to consolidate it with a personal loan.

Keep in mind that you’ll likely need good to excellent credit to qualify for the largest loan amounts available.