Best Debt Consolidation Loans 2026
Combine multiple debts into one lower monthly payment
Debt consolidation loans let you pay off multiple high-interest debts — credit cards, medical bills, store cards — and replace them with a single fixed monthly payment, often at a lower APR. Best suited for borrowers with good credit (680+) who have steady income.
Avg APR
11% – 18%
Loan Amount
$5,000 – $40,000
Term
36 – 60 months
Advertisement
Top Lenders for Debt Consolidation Loans
LightStream
Excellent credit borrowers
APR Range
7.49% – 25.49%
Loan Range
$5,000 – $100,000
Min Score
660
Funding
Same day
SoFi
Large loan amounts
APR Range
8.99% – 29.49%
Loan Range
$5,000 – $100,000
Min Score
650
Funding
1–3 days
Marcus by Goldman Sachs
No fees
APR Range
6.99% – 24.99%
Loan Range
$3,500 – $40,000
Min Score
660
Funding
1–4 days
Discover Personal Loans
Existing Discover customers
APR Range
7.99% – 24.99%
Loan Range
$2,500 – $40,000
Min Score
660
Funding
1–2 days
Happy Money
Credit card payoff focus
APR Range
11.72% – 17.99%
Loan Range
$5,000 – $40,000
Min Score
640
Funding
3–5 days
Advertisement
Pros
- Single monthly payment replaces multiple bills
- Fixed interest rate eliminates variable card rate risk
- Can reduce total interest paid significantly
- Boosts credit score by reducing credit utilization
Cons
- Requires good credit score for best rates
- Origination fees can offset savings (0–8%)
- Secured collateral may be needed for large amounts
- Does not address root spending habits
Key Facts
Frequently Asked Questions
Does debt consolidation hurt my credit score?
Initially, a hard inquiry may lower your score 5–10 points. Long-term, reducing credit card utilization typically boosts your score.
What credit score do I need for a debt consolidation loan?
Most lenders require 620+, though the best rates go to borrowers above 700. Some bad-credit lenders accept 550+.
Is debt consolidation the same as debt settlement?
No — consolidation combines debts into a new loan you fully repay. Settlement negotiates to pay less than owed, severely damaging credit.
Advertisement