FreedomPlus offers the best debt consolidation loans for fair credit: $7,500 to $40,000 for 24 to 60 months, with an APR of 5.99% to 29.99%. This online lender requires a credit score of just 620, which is 20 points below the start of the fair credit range (640 - 699). That means most people with fair credit stand a decent chance of approval for a competitively-priced loan that allows them to consolidate large amounts of debt and gives them up to 5 years to pay it off.
FreedomPlus is also especially good for debt consolidation because they will send the money directly to your existing creditors, rather than making you pay off the old debts yourself. But FreedomPlus isn't the only lender that offers good debt consolidation loans for fair credit.
Best Debt Consolidation Loans for Fair Credit:
- FreedomPlus: Offers loans of $7,500 to $40,000 for 24 to 60 months. Has APRs ranging from 5.99% to 29.99% and origination fees of 0% to 5%. Will send funds directly to existing creditors to consolidate debt. Requires a 620+ credit score.
- Payoff: Offers loans of $5,000 to $35,000 for 24 to 60 months. Has APRs ranging from 5.99% to 24.99% and origination fees of 0% to 5%. Will send funds directly to existing creditors to consolidate debt. Can only be used to consolidate credit card debt. Requires a 640 to 660 credit score, reportedly.
- Marcus by Goldman Sachs: Offers loans of $3,500 - $40,000 for 36 to 72 months. Has APRs ranging from 6.99% to 28.99% and a 0% origination fee. Will send funds directly to existing creditors to consolidate debt. Best for people with scores close to the good credit range. Requires a 680+ credit score.
- Best Egg: Offers loans of $2,000 to $50,000 for 36 or 60 months. Has APRs ranging from 5.99% to 29.99% and origination fees of 0.99% to 5.99%. Will not send funds directly to existing creditors. Requires a 640+ credit score, reportedly.
Personal loans are usually the best way to consolidate debt because they offer large amounts of funds while still remaining unsecured (having no collateral). However, you might also want to consider home equity loans or home equity lines of credit, which offer far lower APR ranges than personal loans but use your house as collateral.
It may be difficult to get one of these loans with fair credit, though. According to Experian, home equity loans and HELOCs usually require a credit score of 670+. However, that is not a hard requirement. You may be able to get approved with a lower score depending on your debt-to-income ratio and the amount of equity your home has.
Unfortunately, you won't be able to qualify for any useful balance transfer credit cards with introductory 0% APRs if you have a fair credit score, unless you're a student.
Debt Consolidation Loans for Fair Credit vs. Bad Credit
If you have bad credit, your debt consolidation loan options are even slimmer. And any loan you qualify for will likely have an APR close to the lender's maximum (often above 30%). Plus, you probably won't be able to qualify for high loan amounts. You'll more likely qualify for the lender's minimum of $1,000 - $5,000.
FreedomPlus is one lender that is good for both fair credit and bad credit, as its minimum score is right at the top of the bad credit range. But other good options for bad credit include Avant (minimum 600 score, reportedly) and LendingPoint (minimum 585 score).