9 of the Best Debt Consolidation Companies

Reduce your total cost or monthly payment with better terms and rates. (iStock)

You may have debt on multiple credit cards or other forms of debt, such as unexpected medical bills or home improvement projects. As interest rates have fallen, now may be the time to take out a personal loan to consolidate your multiple forms of debt into one balance.

If you decide that debt consolidation is the right step, it is important to research the best type of personal loan, the best rates and conditions. Fortunately, Credible makes it easy to compare loan rates and companies.

By taking out a personal loan for debt consolidation, you could reduce your monthly payments and your total cost by avoiding multiple interest rates and late fees. In reality, recent data from the Federal Reserve found, in the first quarter of 2020, average credit card rates were 16.61% while the average interest rate for a 24-month personal loan was 9.63%.

You can take advantage of an online personal loan calculator to determine the costs. Below is a list of some of the best lenders to consider.

1. Axos Bank

If you have good or excellent credit, you might consider Axos Bank, which offers unsecured loans and a variety of terms. Axos has no prepayment penalty and funding is fast.

However, borrowers with a high amount of debt to refinance may need to keep looking. Axos limits loans to $35,000, which is lower than some other lenders. The lender also requires a minimum credit score of 740, which could exclude some borrowers.

Axos’ requires a flexible credit check. Terms can be up to five years with no prepayment penalty.

  • Amount of the loan: $5,000 to $35,000
  • Duration of the loan (years): 1, 2, 3, 4, 5
  • Discounts: Any
  • Time to obtain funds: Next business day

Compare loans from Axos and other online lenders through Credible today.

2. Flow of light

LightStream, SunTrust Bank’s online lending division, offers deep lending limits to qualified borrowers, which can be helpful if you have debt of up to $100,000. The lender does not charge fees and financing is fast.

However, LightStream does not disclose its minimum income requirement, which makes it difficult to know if you will qualify. Additionally, the loans are not available to residents of Rhode Island and Vermont.

LightStream requires a minimum credit score of 660. The lender does not require soft credit and does not charge fees. Terms can be up to seven years.

  • Amount of the loan: $5,000 to $100,000
  • Duration of the loan (years): 2, 3, 4, 5, 6, 7
  • Discounts: Automatic payment
  • Time to obtain funds: As soon as the same working day

Compare loans from LightStream and other online lenders through Credible today.

3. Marcus

Marcus vets potential borrowers with lots of information before you apply, which can help you determine if you’ll qualify. Borrowers need a minimum annual income of $30,000 and a credit score of 660. The lender does not charge fees and has relatively quick funding, compared to some other institutions. They also operate in all 50 states, as well as US territories, protectorates, and overseas armed forces.

If you wanted to consolidate your debt with another person, however, Marcus does not offer joint applications.

Terms are available for up to seven years. Marcus offers loans ranging from $3,500 to $40,000 with no fees.

  • Amount of the loan: $3,500 to $40,000
  • Duration of the loan (years): 3, 4, 5, 6, 7
  • Discounts: Automatic payment
  • Time to obtain funds: As little as five days

Compare loans from Marcus and other lenders online through Credible today.

4. Gain

If you have several types of debt, Payoff may be a good lender for you. They specialize in debt consolidation and their loans can only be used for this purpose. The lender offers competitive rates and no prepayment penalties.

If your debt totals more than $35,000, however, you will need to find another lender. Repayment is also slower to fund the loan than some other lenders, and they charge origination fees. Additionally, the loans are not available to residents of Massachusetts, Maryland, Mississippi, Nebraska, Nevada, Ohio, and West Virginia.

To qualify for a Payoff loan, you must have a minimum credit score of 640. Terms range from two to five years.

  • Amount of the loan: $5,000 to $35,000
  • Duration of the loan (years): 2, 3, 4, 5
  • Discounts: Any
  • Time to obtain funds: From 2 to 5 working days after verification

Compare loans from Payoff and other online lenders through Credible today.

5. Thrive

Prosper is a unique type of lender. The peer-to-peer platform connects borrowers with investors. Once your loan is listed, investors can commit to funding it. If you do not receive your full amount after 14 days, no loan is granted. One of the biggest advantages of Prosper is that it does not require a minimum income and the minimum credit score required is only 640.

The downside is that the process can take longer than other lenders. Additionally, Prosper charges an origination fee of up to 5%, and residents of Iowa, North Dakota, and West Virginia cannot apply.

Prosper offers terms of three and five years. Qualification requires a soft credit check.

  • Amount of the loan: $2,000 to $40,000
  • Duration of the loan (years): 3, 5
  • Discounts: Any
  • Time to obtain funds: Five days on average after acceptance of your offer

Compare loans from Prosper and other online lenders through Credible today.

6. SoFi

SoFi is another option if you have significant debt. It offers loans of up to $100,000 to people with good or excellent credit. SoFi also offers benefits to its customers, including career coaching and member-only events. And the lender does not charge any fees on its loans.

However, it can be more difficult to qualify for a loan from SoFi than from some other lenders because the company does not disclose its minimum credit score or income requirements.

Terms are available for up to seven years, which can be a useful repayment period for large loans. Additionally, SoFi requires a soft credit check.

  • Amount of the loan: $5,000 to $100,000
  • Duration of the loan (years): 2, 3, 4, 5, 6, 7
  • Discounts: Automatic payment
  • Time to obtain funds: 3 working days

Compare loans from SoFi and other online lenders through Credible today.

7. Upgrade

Borrowers with fair credit might consider upgrading. The online lending platform requires a credit score of 600, which is lower than some other lenders. Upgrade offers tools that can help protect or improve your score, such as free credit monitoring, alerts, and financial education.

One downside to upgrading, however, is that it charges an assembly fee of up to 6%. Also, customer service is only available via email. Additionally, residents of Connecticut, Colorado, Iowa, Maryland, Vermont, and West Virginia are not eligible.

Upgrade offers terms of three or five years. Upgrading requires a soft credit check.

  • Amount of the loan: $1,000 to $35,000 ($3,005 minimum in GA; $6,005 minimum in MA)
  • Duration of the loan (years): 3, 5
  • Discounts: Automatic payment
  • Time to obtain funds: Within one day after completing the necessary checks

Compare loans from Upgrade and other online lenders through Credible today.

8. Before

If you’re just starting out in your career, Avant is an online lending platform that has modest requirements. To qualify, borrowers must have a minimum credit score of 580 and an annual income of $24,000. The lender also offers fast financing and no prepayment penalties.

One of the downsides of Avant is that it charges setup fees of up to 4.75%. And its services aren’t available everywhere: Residents of Colorado, Connecticut, Hawaii, Louisiana, Nevada, New York, South Carolina, Vermont, and West Virginia aren’t eligible. .

Avant offers terms ranging from two to five years. The rates here are among the highest. You can get a discount if you use autopay.

  • Amount of the loan: $2,000 to $35,000
  • Duration of the loan (years): 2, 3, 4, 5
  • Discounts: Automatic payment
  • Time to obtain funds: From the next working day

Compare loans from Avant and other online lenders through Credible today.

9. Achieved

Upstart is an online lending platform that secures loans through lending partners. The assessment process includes a gentle check of your credit score. The lender also looks at your education, major, and work history, which could be helpful for college students and graduates.

Upstart has high setup fees, up to 8%. In addition, the lender does not offer any discounts to borrowers, for example for setting up automatic payment.

The terms offered range from three to five years. The upgrade does not charge a prepayment penalty.

  • Amount of the loan: $1,000 to $50,000
  • Duration of the loan (years): 3 to 5 years
  • Discounts: Any
  • Time to obtain funds: From 1 to 3 working days

Compare loans from Upstart and other online lenders through Credible today.

Other personal lenders to consider

In addition to these lenders, you can consider nine others to consolidate your debt. These lenders aren’t offered by Credible, which means you can’t easily compare their rates like you can with Credible’s partner lenders.

  1. Citizens Bank
  2. Discover
  3. Serious
  4. HSBC
  5. Road of laurels
  6. A main financier
  7. PenFed Credit Union
  8. ANC
  9. Rocket Loans

At the end of the line

Be sure to review rates, terms, and details such as fees and benefits before signing on the dotted line for a new personal loan.

Doing your homework takes time, but Credible makes it easy to check rates from multiple lenders. Complete one form to request quotes from multiple lenders. The process won’t affect your credit score, and you can compare offers to find the best lender. With the best rate and the best conditions, you can strive to eliminate your debts as quickly as possible.

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