Grace Enfield, Content Writer
@grace_enfield
You need a credit score of 660 or higher to consolidate your debt with a personal loan that has no origination fee and a low APR. In general, the higher your credit score is, the lower your interest rate will be on a debt consolidation loan or a balance transfer credit card.
Many lenders disclose a credit score requirement for debt consolidation loans. For your convenience, below is a list of credit score requirements from major lenders. You can check your credit score for free on WalletHub.
Credit Score Needed for a Debt Consolidation Loan by Lender
| Lender | Score Required |
| 600 | |
| 620 | |
| 640 | |
| 600 - 640 | |
| 640 | |
| 580 | |
| 620 | |
| 700 | |
| 640 VantageScore or 660 FICO score | |
| 680 | |
| 620 | |
| 580 |
Note: These requirements are directly from the lenders or according to multiple third-party sources.
To read more about the top-ranked offers, check out WalletHub’s picks for the best debt consolidation loans and the best balance transfer credit cards. If you think a debt consolidation loan is right for you, you can estimate your potential rates with our free pre-qualification tool.
People also ask
Which is better: a debt consolidation service or loan?
Debt consolidation loans are better than debt consolidation programs overall. Debt consolidation loans can help you save money, get out of debt sooner and simplify your finances, while trusting the wrong type of debt consolidation program can lead to significant credit-score damage.
Pros & cons of personal loans for debt consolidation
| Pros of Personal Loans | Cons of Personal Loans |
| No collateral... | Possibility of origination fees |
What is a debt consolidation loan?
A debt consolidation loan is a personal loan used to pay off more than one existing debt at the same time. The borrower receives a lump sum of money from the lender and uses that money to pay off their other debts. Those debts thus “consolidate” into one balance owed to the one new lender, with one monthly payment for the borrower. Ideally, the interest rate on the new loan will also be lower than...
read full answer by Adam McCann, Financial WriterWhy is it hard to get a consolidation loan?
It is hard to get a consolidation loan because you need a high credit score to get a loan with good terms, and you need to have a reasonable amount of debt to consolidate. Also, it’ll be hard to get a loan if you don’t meet the lender’s requirements, like being at least 18 years old and having a valid bank account.
Why It’s Hard to Get a Consolidation Loan
You need a...
read full answer by Grace Enfield, Content WriterDid we answer your question?
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