Different debt consolidation loans will be best for different people, though. To help you get your search started, we’ll summarize WalletHub’s picks for the best debt consolidation loans below.
Compare the Best Debt Consolidation Loans
|Lender||APR Range||Loan Amounts|
|LightStream||2.49% - 19.99%||$5,000 - $100,000|
|Marcus by Goldman Sachs||6.99% - 19.99%||$3,500 - $40,000|
|Discover||6.99% - 24.99%||$2,500 - $35,000|
|SoFi||4.99% - 19.63%||$5,000 - $100,000|
|Upgrade||5.94% - 35.97%||$1,000 - $50,000|
|Payoff||5.99% - 24.99%||$5,000 - $35,000|
|Best Egg||4.99% - 35.99%||$2,000 - $50,000|
|LendingPoint||9.99% - 35.99%||$2,000 - $36,500|
|FreedomPlus||7.99% - 29.99%||$7,500 - $40,000|
Tips for Getting the Best Debt Consolidation Loan
Learn what makes a debt consolidation loan good.
The best debt consolidation loans have low APRs, charge no origination fees, offer large amounts and long payoff periods, and make direct payments to creditors.
Get pre-qualified first.
Getting pre-qualified for a debt consolidation loan will not only show you your chances of approval, but it will also give you an estimate of the rates you might get if approved. This will help you determine whether applying for a certain loan will save you money.
Check if your lender makes direct payments.
It can be a pain to send payments off to all of your original creditors once you receive the money from a debt consolidation loan. In some cases, the company that provides the debt consolidation loan will do it for you, as long as you give them the information about where it needs to go.
Make sure the loan is better than a credit card.
One of the other major ways to consolidate debt is to use a balance transfer credit card. These cards give 0% introductory APRs for up to 20 months. So if you can pay off the entire balance within that period, it may be better to go with a credit card. But after the intro period expires, any remaining balance will accrue interest at the account’s regular APR, which isn’t likely to be cheap. You’ll need good or excellent credit to qualify, in most cases, too.
Methodology for Selecting the Best Debt Consolidation Loans
To identify the best debt consolidation loans, WalletHub’s editors compared nearly two dozen of the largest providers on the market based on six major categories: APRs, fees, loan requirements, the application process, loan sizes and transparency. Each of these categories was made up of several smaller metrics. Factors that impacted the loan experience more, such as APRs, received higher weights than others.
In addition to the best overall debt consolidation loans, which usually require a 660+ credit score, WalletHub also picked out the best debt consolidation loans for people with lower credit scores. Additionally, our editors chose the best loans in other categories such as large loan amounts, direct payments to creditors and more.