Best Debt Consolidation Loans of 2022

Manage debt with a debt consolidation loan to lower your interest and save on monthly payments.

Advertising Disclosure: Some of the loan offers on this site are from companies who are advertising clients of U.S. News. Advertising considerations may impact where offers appear on the site but do not affect our editorial independence.

Paying off your debt with a low-interest debt consolidation loan is easier and faster than making minimum payments on credit cards. One of these loans could come in handy if you need to consolidate credit card debt or other bills accumulated during the coronavirus crisis.

This guide to the best loans for debt consolidation explains the borrowing process and how to pick the right personal loan for your needs.


PenFed Credit Union

4.7

4.99% to 17.99% APR
$50,000 Max. Loan Amount
650 Min. Credit Score

Alliant Credit Union

4.7

6.24% to 10.24% APR
$50,000 Max. Loan Amount
Not disclosed Min. Credit Score

SoFi

4.6

4.74% to 20.28% APR
$100,000 Max. Loan Amount
Not disclosed Min. Credit Score

LightStream

4.5

2.49% to 19.99% APR
$100,000 Max. Loan Amount
670 Min. Credit Score

Discover

4.5

5.99 to 24.99% APR
$35,000 Max. Loan Amount
660 Min. Credit Score

Happy Money

4.4

5.99% to 24.99% APR
$40,000 Max. Loan Amount
550 Min. Credit Score

Upstart

4.3

Not disclosed APR
$50,000 Max. Loan Amount
300 (or insufficient history) Min. Credit Score

Wells Fargo

4.3

5.74% to 19.99% APR
$100,000 Max. Loan Amount
Not disclosed Min. Credit Score

Marcus by Goldman Sachs

4.3

6.99% to 19.99% APR
$40,000 Max. Loan Amount
670 Min. Credit Score

U.S. Bank

4.2

5.99% to 19.49% APR
$50,000 Max. Loan Amount
660 Min. Credit Score
Lender
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4.99% to 17.99% APR
$50,000 Max. Loan Amount
650 Min. Credit Score
Lender
Learn More
6.24% to 10.24% APR
$50,000 Max. Loan Amount
Not disclosed Min. Credit Score

SoFi

4.6

Lender
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4.74% to 20.28% APR
$100,000 Max. Loan Amount
Not disclosed Min. Credit Score
Lender
Learn More
2.49% to 19.99% APR
$100,000 Max. Loan Amount
670 Min. Credit Score
Lender
Learn More
5.99 to 24.99% APR
$35,000 Max. Loan Amount
660 Min. Credit Score
Lender
Learn More
5.99% to 24.99% APR
$40,000 Max. Loan Amount
550 Min. Credit Score
Lender
Learn More
Not disclosed APR
$50,000 Max. Loan Amount
300 (or insufficient history) Min. Credit Score
Lender
Learn More
5.74% to 19.99% APR
$100,000 Max. Loan Amount
Not disclosed Min. Credit Score
Lender
Learn More
6.99% to 19.99% APR
$40,000 Max. Loan Amount
670 Min. Credit Score
Lender
Learn More
5.99% to 19.49% APR
$50,000 Max. Loan Amount
660 Min. Credit Score

Lender

Learn More

APR

Max. Loan Amount

Min. Credit Score

4.99% to 17.99%$50,000 650
6.24% to 10.24%$50,000 Not disclosed

SoFi

4.6

4.74% to 20.28%$100,000 Not disclosed
2.49% to 19.99%$100,000 670
5.99 to 24.99%$35,000660
5.99% to 24.99%$40,000 550
Not disclosed $50,000 300 (or insufficient history)
5.74% to 19.99%$100,000 Not disclosed
6.99% to 19.99%$40,000 670
5.99% to 19.49%$50,000 660

U.S. News selects the Best Loan Companies by evaluating affordability, borrower eligibility criteria and customer service. Those with the highest overall scores are considered the best lenders.

To calculate each score, we use data about the lender and its loan offerings, giving greater weight to factors that matter most to borrowers. Personal loan companies are evaluated based on customer service ratings, interest rates, maximum loan term, minimum and maximum loan amounts, minimum FICO score, online features, and origination fees. The weight each scoring factor receives is based on a nationwide survey on what borrowers look for in a lender.

To receive a rating, lenders must offer qualifying loans nationwide and have a good reputation within the industry. Read more about our methodology.

PenFed Credit Union

4.7

U.S. News Star Rating

Although PenFed Credit Union – officially Pentagon Federal Credit Union – serves members of the armed forces, military associations, veterans and retirees, and their families, a military connection is not required to become a member. The credit union offers personal loans for eligible members and eligible co-borrowers in all 50 states, as well as in Guam, Puerto Rico and Okinawa, Japan.

Alliant Credit Union

4.7

U.S. News Star Rating

If you need money fast, Alliant Credit Union typically makes same-day online personal loans between $1,000 and $50,000. The $14 billion Chicago-based credit union, founded in 1935, is one of the biggest in the nation, with 600,000 members.

SoFi

4.6

U.S. News Star Rating

SoFi, short for Social Finance, offers personal loans of up to $100,000 to borrowers with very good to excellent credit. The nationwide lender was founded in 2011 and is known for offering loans with no fees. In addition to personal loans, SoFi offers student loans, auto and student loan refinancing, home loans, and small-business financing.

LightStream

4.5

U.S. News Star Rating

LightStream is the online consumer lending division of Truist, which formed in 2019 from the merger of BB&T and SunTrust. SunTrust acquired the assets of online lender FirstAgain in 2012 and relaunched the business as LightStream.

Discover

4.5

U.S. News Star Rating

Discover is a digital bank and payment services company known for its credit cards. But Discover also offers other products, including fixed-rate personal loans of up to $35,000 to borrowers nationwide. The lender charges no fees as long as you pay on time.

Happy Money

4.4

U.S. News Star Rating

Happy Money offers the Payoff Loan, which is designed to consolidate credit card debt. Loans of up to $40,000 are available everywhere except Massachusetts and Nevada.

Upstart

4.3

U.S. News Star Rating

Upstart is a lending platform that uses artificial intelligence to improve access to affordable credit. Based in California and founded by former Google employees in 2012, Upstart also applies AI to reduce lending risks and costs for its bank partners. The lending intermediary provides unsecured personal loans from $1,000 to $50,000 to borrowers anywhere in the U.S. except West Virginia or Iowa.

Wells Fargo

4.3

U.S. News Star Rating

Wells Fargo was established in 1852 and is one of the largest banks in the country, servicing 1 in 3 U.S. households. The financial services company makes customizable personal loans of up to $100,000 with flexible terms from 12 to 84 months.

Marcus by Goldman Sachs

4.3

U.S. News Star Rating

Marcus by Goldman Sachs provides online personal loans and other consumer finance products. Established in 2016 by Goldman Sachs, the lender offers loans of up to $40,000.

U.S. Bank

4.2

U.S. News Star Rating

U.S. Bank has physical locations in more than 25 states and offers both short- and long-term personal loans with fixed annual percentage rates starting at 5.99%. Current customers may qualify to borrow up to $50,000 with a credit score of 660 or above, and options are available for noncustomers willing to open a checking or savings account.


When you shop around for the best personal loan interest rate, you can save. Compare your personal loan offers with national average trends for personal loans to know if you've found a good deal.

The average personal loan rate is 9.54%. Last week's average rate was 9.54%.*

*Rate as of Mar. 16, 2022

U.S. News Survey

U.S. News Survey: Living Paycheck to Paycheck May Be the Norm if You Have Unsecured Debt

According to a new U.S. News survey, pPeople with unsecured debt are struggling, according to an August 2021 survey by U.S. News. More than 42% of respondents say living paycheck to paycheck is what the thing they want to change most about their financial situation. Almost two-thirds of respondents have at least $10,000 in debt, and a significant 7.3% hold $50,000 or more of debt.

People with unsecured debt are seeing the amount level grow, too. Compared with a year ago, 41.7% of respondents have more unsecured debt, even though 38.9% of respondents have decreased their spending.

Unsecured debt is debt that isn't backed by collateral, such as like a house or car. For mMore than half of respondents,say their main source of unsecured debt is credit cards,. For and 20.5% of respondents,say it is personal loans are their main source of unsecured debt.

Additional Survey Insights

To deal with their debt, 25.1% of respondents would consider taking out a debt consolidation loan. Only 5.2% of respondents would consider getting a second mortgage.

Fortunately, few respondents appear to be paying extremely high interest rates. Only 3.5% of respondents say they have debt with an interest rate higher than 30%.

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  • To deal with their debt, 25.1% of respondents would consider taking out a debt consolidation loan. Only 5.2% of respondents would consider getting a second mortgage.

  • Fortunately, few respondents appear to be paying extremely high interest rates. Only 3.5% of respondents say they have debt with an interest rate higher than 30%.

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U.S. News Survey Methodology

  • U.S. News ran a nationwide survey through PureSpectrum Insights in August 2021 with a sample size of 1,202 people.
  • The survey was configured to be representative of the general American population.
  • The survey was screened to only include people who held unsecured debt.
  • The survey asked nine questions relating to unsecured debt.

Survey Results

A debt consolidation loan is a type of personal loan that combines high-interest debts and allows for one low-interest monthly payment. Debt consolidation loans can be used to pay unsecured debts, which may include:

Interest on debt consolidation loans, unlike credit cards, isn't compounded – compound interest is interest charged on interest. The rate typically stays the same for the life of the loan.
Unsecured personal loans for debt consolidation are widely available through banks, credit unions and online lenders. Some debt consolidation companies offer instant prequalification and approval online. Prequalifying can make comparing loan offers and closing costs easy, as lenders estimate your terms using a soft credit check that doesn't affect your credit score.

Because collateral is not required for these loans, you must meet the lender's credit and debt-to-income ratio requirements. Your actual rate when you apply depends on your creditworthiness, and the better your credit score, the more likely that you will get a low interest rate.

Debt consolidation loans can be a good idea if they help you save money on interest, lower your monthly payments or potentially increase your credit score. These are some of the ways debt consolidation can help:

  • Interest savings. If you have high-interest debt, a debt consolidation loan can help you save money with a lower interest rate. You will save money on interest, for example, if you combine two credit card balances with annual percentage rates of 16.24% and 23.99% into a debt consolidation loan with a 15% APR. "Rates can be considerably lower than credit card rates," says John Ulzheimer, a credit expert who has worked at Equifax and Experian. Also, loans have to be paid off in a designated period of time, which gives you an end date for your debt. "You can't say the same about credit cards," he adds.
  • Lower monthly payment. A debt consolidation loan may make it easier to achieve on-time payments by spreading out your debt payments over several years. A history of on-time payments can help your credit score.
  • Improved credit score. By taking out a new loan and leaving consolidated accounts open but unused, you will have more total available credit. This results in a lower credit utilization ratio, which can increase your credit score.

Consider these dangers of debt consolidation loans:

  • You may end up paying more interest. There's no guarantee that your debt consolidation loan will have a lower interest rate than your credit card rates or other types of debt. And if you extend the repayment term length, you might pay more interest in the long run.
  • You may end up adding more debt. Consolidating credit card debt leaves cards free to use again and add to your debt.
  • Other options may offer better savings. A 0% balance transfer credit card or home equity loan could offer a lower interest rate option.

Debt consolidation loans generally offer a boost to your credit score as long as you make your payments on time. But that's only if you use them as intended: to pay off your debt and not to add to it.

"You'll be converting score-damaging revolving debt into practically benign installment debt. As long as you don't charge up your cards again, you'll be happy with your new scores," Ulzheimer says.

Before you shop around for a debt consolidation loan, consider whether you're likely to be approved. Most lenders look at:

  • Your credit score. Debt consolidation loan companies typically have a minimum credit score requirement of at least fair or good credit. To get a low interest rate, you'll need a higher credit score. Someone with a fair credit score will be quoted a higher interest rate than another customer with good credit. With very good or excellent credit, you could qualify for a lender's lowest consolidation loan rate. You might not meet a lender's minimum credit score to qualify for a debt consolidation loan with bad credit.
  • Your income. Lenders may require a minimum annual income and will consider your debt-to-income ratio. A debt-to-income ratio is the percentage of your gross monthly income that goes toward paying your debts. A lower ratio is better because it shows that you don't spend too much of your income paying debts. Some debt consolidation loan companies allow debt-to-income ratios as high as 50%, meaning your monthly debt obligations should add up to no more than half of your gross monthly income.
  • Your credit history. Most lenders look for a credit history free of bankruptcies, tax liens, repossessions or foreclosures. Some lenders allow co-signed or joint applications because they can reduce the risk of lending. But if you use a co-signer, proceed with caution – if you default, you may damage your relationship as well as your co-signer's creditworthiness.

The best debt consolidation loan company for you is one that will approve your loan at a low interest rate, with terms and services that meet your needs.

Evaluate debt consolidation loan companies based on these features to find the best fit:

  • Interest rates. A lower interest rate should be the primary factor when comparing debt consolidation loan companies. Most lenders offer fixed-rate personal loans, while others offer both fixed- and variable-rate loans. Use prequalification or rate-check tools from debt consolidation loan companies to compare rates and terms to expect based on your creditworthiness. Because prequalification should trigger just a soft credit check, you can shop around for consolidation loan rates without hurting your credit score.
  • Loan terms. Loan terms include loan amount, repayment term length and details on disbursement. Lenders may place restrictions on how you can use the loan.
  • Fees and penalties. Fees and penalties can increase the cost of your loan. You may pay origination, prepayment and late payment fees. Origination fees are charged by many, but not all, lenders for loan processing. Sometimes, lenders allow grace periods before they charge fees for late or returned payments, if they charge them at all.
  • Repayment options. Look for a lender that offers flexible payment options that work for you, whether that's payment by phone, mail, wire transfer, app or online. Some lenders have flexible repayment options that allow you to change your due date or offer discounts if you sign up to make automatic payments each month from your bank account.
  • Customer satisfaction ratings. Good customer service is important when you need help. Read personal loan reviews to find out what other consumers think of a lender you're considering. Check the Better Business Bureau for lender ratings, reviews and complaints.

Getting a debt consolidation loan requires a few steps: prequalifying, choosing your loan terms, finalizing your application and closing.

1. Prequalify. Prequalifying uses a soft credit check to produce a rate quote, which will estimate the minimum loan amount you're approved for and the interest rate.

2. Choose your loan terms. Your loan terms set the repayment schedule, loan amount and other features. Typical loan amounts range from $1,000 to $40,000, depending on your creditworthiness.

Most borrowers have between two and five years to repay their loans. You will confirm your interest rate and any origination fees – typically 1% to 5% of your loan.

3. Finalize your application. You'll confirm the details of the loan and verify your identity, annual income and other qualifying information. Some lenders allow you to apply on a secure website.

The lender will pull your credit report to verify creditworthiness, which will result in a hard inquiry on your credit. Be certain of your choice when you apply because too many hard inquiries in a short period of time could pull down your credit score.

4. Get approved and close. Once approved, the loan will go through the closing process, and you will receive funds. Most debt consolidation loans provide wire transfers, but some offer direct payment to creditors or send a check to you for deposit. You may receive funds as soon as the next business day.

Debt consolidation loans are a good option for many people with debt, but they aren't the only option. Debt consolidation comes in many forms. If you can't qualify for the best personal loan with good repayment terms, alternatives include:

They generally have better interest rates than unsecured personal loans because using your home as collateral makes these loans less risky for lenders. And you can get lower monthly payments, as loan repayment terms can be 10 years or longer.

But you could lose your home to foreclosure if you can't make your payments, and if you face bankruptcy, discharging a home equity loan compared with unsecured debt is much harder.

Balance transfer credit cards.

You can move credit card debt to a card with a 0% balance transfer APR and make interest-free payments on the new balance for up to 21 months, though you'll likely pay a fee of 3% to 5% of the balance you transfer.

By comparison, personal loans for debt consolidation could offer term lengths as long as 60 months, though you'll have to pay interest.

Learn more about 0% APR balance transfer credit cards with the U.S. News Best Balance Transfer Credit Cards Guide.

Debt relief services.

Certified nonprofit credit counselors can help you strategize how to pay off your debt and negotiate with creditors to lower your interest rates and fees. A counselor may recommend a debt management plan to pay your creditors. The plan may require fees, such as a setup fee and a monthly fee.

Debt settlement.

Usually, for-profit debt settlement companies negotiate with creditors to settle your debt. But debt settlement companies charge high fees and penalties and even higher interest rates. And you can damage your credit history if you stop paying your bills.

Consider debt settlement companies as alternatives to bankruptcy because the damaging effects to your credit report can be long-lasting.

Bankruptcy.

Declaring bankruptcy is a last resort if you can't pay your debts.

Bankruptcy will hurt your credit and may remain on your credit report for up to 10 years. You will lose all of your credit cards, some or all of your luxury possessions – such as designer clothes or multiple vehicles – and any property that is not exempt from sale.

But if you have serious debt and are being sued by creditors or have a pending foreclosure or repossession, bankruptcy can be a lifeline.

Getting a debt consolidation loan is a financial decision not to be taken lightly. Before you apply, do a little homework to avoid missteps and find the best deal.

These five moves can help:

1. Consider alternatives. You may pay less in interest with debt consolidation loan alternatives, such as a credit card balance transfer.

2. Establish a repayment plan and budget. Planning how you will make the new loan payments is essential, especially if you've struggled to keep up in the past. You can:

  • Assess your total debt by tallying up your credit card balances, student loans, car loans and other accounts.
  • Track your spending to see where your money goes each month, identifying areas to cut back.
  • Compare your debts with your expenses to determine how much to allot to paying down debt each month and to create a budget.

Once you know how much you can put toward your debt, make sure your loan terms work with your budget.

3. Shop around for the best quote. Compare options from a few debt consolidation loan companies to ensure that you're getting the best loan rates and repayment terms you can afford.

4. Avoid scams. Red flags include aggressive sales representatives, "guaranteed" approvals and quick-fix promises, as well as requirements such as upfront payments before loan approval.

"No lender should charge you upfront before you get the loan ... and you certainly shouldn't send money with a wire transfer or prepaid card," cautions Gerri Detweiler, education director of business credit website Nav.

5. Make a plan to avoid new debt. A debt consolidation loan can wipe the slate clean and allow you to start fresh with no credit card balances or other credit commitments. Although it may be tempting, avoid using your newly cleared accounts to shop or manage household expenses unless you can easily pay off the balances each month. You don't want to create new debt to manage on top of your debt consolidation loan.


Best Egg

4.2

U.S. News Star Rating

Best Egg is an online lender founded in 2014 that is owned and administered by from Marlette Funding, a financial services company with banking and technology experience. Best Egg offers personal loans starting at $2,000 that can be used to cover medical bills, home remodeling and a variety of other expenses. Cross River Bank in New Jersey issues Best Egg loans, which can be funded in as little as one business day.

Rocket Loans

4.2

U.S. News Star Rating

RocketLoans offers personal loans to qualified borrowers in all states except Iowa, Nevada and West Virginia. These loans are designed for people with fair to excellent credit who need to borrow up to $45,000 for debt consolidation, home improvements, medical expenses and business or other expenses.

Axos Bank

4.1

U.S. News Star Rating

Axos Bank launched in 2000 and is owned by San Diego-based Axos Financial. You won’t find any brick-and-mortar branches, but the bank has offices throughout the country. Axos Bank not only offers personal loans but also CDs and checking, money market, retirement, and savings accounts.

LendingUSA

4.1

U.S. News Star Rating

LendingUSA was founded in 2015 as a lending solution for borrowers and merchants. The company provides point-of-sale customer financing through more than 10,000 merchant partners in various sectors, including medical, pet, funeral and other consumer services.

Upgrade

4.1

U.S. News Star Rating

Upgrade offers access to personal loans, the Upgrade card with a personal line of credit, rewards checking, and credit monitoring and educational tools. Founded in 2017 in San Francisco, the firm also has operations offices in Phoenix and Montreal.

PNC Bank

4

U.S. News Star Rating

PNC Bank can trace its history back to 1852 and the Pittsburgh Trust and Savings Co. Today, PNC Bank is the seventh-largest bank in the U.S., and it features a wide range of consumer and business banking services. Among its suite of products, PNC offers personal, unsecured installment loans up to $35,000. Applicants are considered based on satisfactory credit history, ability to repay and income.

Oportun

3.9

U.S. News Star Rating

Founded in 2005 and based in San Carlos, California, Oportun originates unsecured personal loans of up to $10,000 in 12 states. Loans are available in 27 additional states through Oportun’s partnership with MetaBank.

Avant

3.9

U.S. News Star Rating

Chicago-based Avant has lent more than $6.5 billion to borrowers since its 2012 founding. In partnership with WebBank, Avant offers secured and unsecured personal loans and a credit card. Most borrowers have credit scores between 600 and 700, according to Avant.

LendingPoint

3.8

U.S. News Star Rating

LendingPoint is an online lender specializing in unsecured personal loans from $2,000 to $36,500 for borrowers with fair credit. The Georgia-based lender issues loans with annual percentage rates of 9.99% to 35.99% and repayment terms of two to five years to people in every state but Nevada or West Virginia. Funds may be available as soon as the next business day after the lender approves the loan and receives all documents.

FreedomPlus

3.8

U.S. News Star Rating

FreedomPlus is an online lender offering personal loans from $7,500 to $50,000 to meet a range of needs and promising quick approval and disbursal. A prospective borrower begins by applying online and then talks with a loan consultant.

Advertising Disclosure: Some of the loan offers on this site are from companies who are advertising clients of U.S. News. Advertising considerations may impact where offers appear on the site but do not affect any editorial decisions, such as which loan products we write about and how we evaluate them. This site does not include all loan companies or all loan offers available in the marketplace.