What credit score is needed for debt consolidation? This question is about Debt Consolidation Loan Offers

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 Payoff 600 FreedomPlus 620 Best Egg 640 LendingClub 600 - 640 Prosper 640 Avant 580 LendingPoint 620 Axos Bank 700 Marcus 640 VantageScore or 660 FICO score Sofi 680 Upgrade 620 Upstart 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.

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What credit score is needed for debt consolidation?

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This question is about Debt Consolidation Loan Offers

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Grace Enfield, Content Writer

@grace_enfield • 12/08/22 This answer was first published on 10/09/21 and it was last updated on 12/08/22.For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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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
Payoff	600
FreedomPlus	620
Best Egg	640
LendingClub	600 - 640
Prosper	640
Avant	580
LendingPoint	620
Axos Bank	700
Marcus	640 VantageScore or 660 FICO score
Sofi	680
Upgrade	620
Upstart	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.

Answer Question

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

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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...

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Why 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...

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