Best Debt Consolidation Loans for Bad Credit

First Tech Federal Credit Union
First Tech FCU offers the best debt consolidation loans for bad credit. You can borrow $500 - $50,000 from this credit union without paying an origination fee. Plus, there’s a relatively low APR range: 6.99% - 18%.

Splash
Splash has the best large debt consolidation loans for bad credit, offering $1,000 - $100,000 with a repayment period of 24 - 84 months. Splash also has a relatively high APR and origination fee, however. Its APRs range from 8.99% - 35.99%, and the origination fee is 0% - 15%. Splash requires a credit score of at least 580 to qualify.

Upstart
Applying for a debt consolidation loan through Upstart is best if you want the chance to get a low minimum APR. Loans through Upstart can have APRs as low as 6.2%, depending on your overall creditworthiness, and the overall range of possible rates typically is 6.2% - 35.99%. Plus, you could borrow $1,000 - $75,000, even if you have limited or no credit history. There is no minimum credit score requirement.

Achieve Personal Loans
Achieve has the best debt consolidation loans for bad credit with a quick funding timeline. You may get approved the same day you apply and then get your loan as soon as the next day after approval. Achieve offers loans of $5,000 - $50,000 and an APR range of 6.25% - 35.99%. It also has a relatively low origination fee of 1.99% - 9.99%. To qualify for a loan from Achieve, you must have a credit score of at least 640.

Anyone who works for one of 900+ partner companies or belongs to either the Computer History Museum or the Financial Fitness Association can become a member.

Lake Michigan Credit Union
LMCU offers the best small loans for bad credit, funding loans of $250 - $25,000 with an APR range of 9.99% - 18%. Plus, there is no origination fee.

Anyone can join Lake Michigan Credit Union by contributing $5 to the ALS Foundation.

Upgrade
Upgrade offers the best debt consolidation loans with long repayment periods, giving you 24-84 months to repay loan amounts of $1,000 - $75,000. Upgrade also offers a competitive APR range: 7.74% - 35.99%, depending on your overall creditworthiness.

You need a credit score of 580 to qualify. Like other options for bad credit, Upgrade has an origination fee: 1.85% - 9.99%.

U.S. Bank
U.S. Bank offers the best debt consolidation loans that you can apply for jointly with a co-applicant. If you know someone who is an existing U.S. Bank customer, has at least fair credit and is willing to apply jointly with you, a loan from U.S. Bank could get you better terms.

U.S. Bank offers loans of $1,000 - $50,000 with a repayment period of 12 - 84 months . The APR is 8.74% - 24.99%, and there is no origination fee.

 

Best Debt Consolidation Loans for Bad Credit Comparison

Tips for Getting a Debt Consolidation Loan With Bad Credit

• Consolidate debts with the highest interest rates. With bad credit, you’re unlikely to get a great APR on a personal loan. In fact, you should expect to get a rate as high as 36%. As a result, you’ll want to use your loan to consolidate things like payday loans, which charge fees equivalent to as much as a 400% APR. But it probably won’t make sense to consolidate things like credit card debt, which is likely to have a lower rate than your personal loan.
• Get pre-qualified. Lots of lenders let you pre-qualify before submitting an application to see your approval odds and potential rates. You can check with multiple lenders at once, without impacting your credit score, by using WalletHub’s free pre-qualification tool.
• Raise your income. While this is easier said than done, getting a little extra money by working longer hours, switching to a higher-paying job, getting a raise or starting a business on the side can help to offset your low credit score. You still won’t get the best rates on the market, but you’ll have a better chance of not being charged the lender’s highest APR.
• Consider credit unions. Credit unions are often more willing than banks or online lenders to offer loans to people with bad credit. You can check out credit unions in your area or apply with one that lets anyone join.
• Use the loan to improve your credit. Once you get a debt consolidation loan, make sure to pay on time every month, and pay more than the minimum if possible to get debt-free sooner. The positive information reported to the credit bureaus each month will help improve your credit score so that you can qualify for better terms on future financial products. It’s also a good idea to take a look at why you got into debt in the first place and adjust your spending habits if spending excessively was the main reason.

Methodology for Selecting the Best Debt Consolidation Loans for Bad Credit

To identify the best debt consolidation loans for bad credit, WalletHub's editors compared offers from 80+ lenders. The best picks are based on the core WalletHub Rating components: APRs, fees, loan requirements, the application process, loan sizes, loan terms, and transparency. Each of these categories is made up of several smaller metrics. Factors that impact the loan experience more- such as APRs, loan sizes and approval requirements- received higher weights than others.

Disclosure for Upstart: Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($1,500), MA ($7,000). Maximum loan amounts may vary by state.

The full range of available rates varies by state. The lowest rates are only available to the most qualified applicants. A representative example of payment terms for an unsecured Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 18.60% and a 7.82% origination fee of $782, for an APR of 22.69%. In this example, the borrower will receive $9218 and will make 60 monthly payments of $259. APR is calculated based on 5-year rates offered in December 2025. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.

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