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How to Receive a Consolidation Loan for Debts with Bad Credit
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How to Get a Consolidation Loan for Debts with Bad Credit
A debt consolidation loan with bad credit may require building your credit or even a co-signer.
Updated on January 24, 2023
Many or all of the items featured on this page come from our partners, who pay us. This affects the products we write about as well as the place and way the product appears on a page. However, this doesn't influence our opinions. Our views are our own. Here's a list and .
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Finding a loan even if you have bad credit could require some searching around However, there are alternatives that include loans through credit unions and online lenders.
Some lenders even cater specifically to borrowers with bad credit (a credit score below 630) and take into account other factors that affect score, like the amount of education, income and work experience.
This article will help you determine if a debt consolidation loan is a good idea for tackling your debt and how to get one.
What exactly is a debt-consolidation loan?
The loan to consolidate debts loan is an individual loan you use to combine to pay down multiple loans at one time Think credit card balances, medical bills, or other unsecure personal loans and you only have one monthly payment.
Ideally, this installment comes with a lower interest rate than the debt you currently have and can help you save money and allow you to get out of debt faster.
Is a debt consolidation loan a good idea?
If you're having trouble paying off debt and qualify for a lower interest rate for a loan, debt consolidation is generally a good idea.
Here are some of the benefits:
It saves the cost of interest. Arguably the biggest benefits of debt consolidating is money you save on interest rates by consolidating debt under the lower interest rate. Just a few percentage points makes a big difference in overall interest saved. Utilize our tool to discover the savings you could make.
You may reduce debt more quickly. If you consolidate debt at a lower interest rate, you can reduce debt faster by putting the savings into the balance remaining. You can also select an early repayment period on the debt consolidation loan in the event that you are able to pay the monthly installments.
It simplifies the process. Instead of keeping the track of several debts, with the debt consolidation loan, you'll have only one installment to pay. The debt consolidation loans also come with fixed terms. This means you'll know when your loan is due that can help keep you on track.
It could help improve your credit. Although taking out a debt consolidation loan could temporarily knock a few points off your rating, but the overall impact should be positive when you start to dig out of the debt.
How do you get an debt consolidation loan even with bad credit
1. Review your credit report
Are mistakes in your credit report the reason behind your low credit score? Examine for mistakes like incorrect accounts, incorrectly reported payments or inaccurate credit limits.
You can access your credit report each week for free at any of the three major credit reporting bureaus-- Experian, Equifax and TransUnion -- with .
A small increase within your credit rating may for a debt consolidation loan. Moving from a low to a fair credit score (630 to 689) could also lead to an easier to afford loan with an interest rate that is lower.
>> MORE:
Another suggestion is to pay off any small debts. This reduces the credit utilization rate which is 30 percent of the credit score. This can improve your overall , which lenders use to evaluate your ability to pay back the loan. The lower your DTI ratio is, the more likely a lender may consider approving you for a loan application.
2. Take into consideration a secured, co-signed or joint loan
Certain loans are easier to obtain, such as co-signed, secured or joint loan.
When you take out a loan, you utilize collateral like a vehicle or even a savings account, to help ensure the loan, which means lenders are more likely to approve or offer an interest rate that is lower. However, if you fail to pay back the loan you forfeit the collateral.
With a higher credit score or a higher income can boost your chances of approval. Be aware that co-signers assume the same responsibility for the loan although they aren't able to access the funds. If you don't pay your loan on time or fail to repay the loan the co-signer's credit score may suffer.
They are similar to co-signed loans however the co-borrower is granted the same access to the funds.
>> COMPARE:
3. Do some research and get pre-qualified
To find the most affordable rate on the debt consolidation loan, you'll want to examine interest rates and terms from different lenders. The easiest method is to use . You can get pre-qualified with many lenders online to get estimates of rate and loan amounts. This is a gentle credit test, which won't affect your credit score.
Also look for consumer-friendly features like direct payment to creditors This means that the lender sends the loan money to your creditors making the process easierand also removing the temptation to use the money to purchase something else.
Do you want to consolidate debt? Find out if you qualify for a consolidating debt loan.
Answer a few simple questions and you'll receive a personalized report from our lending partners- with no impact to your credit score.
The amount of the loan
on NerdWallet
4. Request the consolidation loan
Once you've chosen a lender, you'll need to submit an application to get the loan. The process typically takes place online, and you'll be required to supply personal information, including your Social Security number, and documents to prove that you are who you say they are, as well as your earnings, and work.
The time to approve varies by lender. You'll usually receive the funds within a week, however many online lenders offer next-day and same-day financing.
>> MORE:
5. Reduce your debt and pay for loan payments
After you have received the funds you have in the account make use of them to pay off your outstanding debts. If the money is being given to your creditors in exchange for you, confirm to each of your creditors that the debt was successful in being paid.
The next step is to create a strategy to , which may include building an budget that prioritizes the new monthly payment, and keeping an eye out for the refinancing options.
Most lenders charge a late fee for payments that are not made and report them to credit bureaus. This can harm your credit score therefore, you should consider setting automated payments to prevent falling in debt.
Where can I get a debt consolidation loan for people with bad credit
Credit unions
They are non-profit financial institutions that can offer flexible terms and lower rates than online lenders.
Federal credit unions cap annual percentage rates on personal loans at 18%.
Certain credit unions do not allow you to be pre-qualified for an loan The application process for a loan requires a hard credit test that can lower your credit score, making it difficult to find a loan.
It is also required to become a members of the institution to apply for the loan and this could involve being in the area and paying a minimal annual membership fee. A local credit union can be a good place to start, though national credit unions like and also offer the debt-consolidation loans.
Online lender
are more convenient and often provide quick financing, but they may charge higher rates for borrowers with bad credit than credit unions .
The online lender may also charge to cover the cost of processing your loan. The cost is usually subtracted from the loan proceeds, so you might need to apply for more of a loan to receive the total amount you need.
is one of the best online lenders for a bad-credit loan. If you get an installment loan and Upgrade is able to transfer the money straight to the creditors you could qualify for an additional discount on rates of 1 to five percentage points.
Also, they accept applications from those with poor credit. They will look at other information in your application, such as academic majors and work experience which can increase your chances of getting approved and receiving a low interest.
>> COMPARE:
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4.5 NerdWallet's ratings are determined by our editorial staff. The scoring formula takes into account factors we consider to be a good choice for consumers, such as impact to credit score, rates and fees, customer experience and ethical lending practices.
4.5 NerdWallet's ratings are compiled by our editorial team. The scoring formula considers factors we consider to be friendly to consumers, such as the impact on credit score, rates and fees as well as the customer's experience and responsible lending practices.
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4.5 NerdWallet's ratings are determined by our editorial staff. The scoring algorithm takes into consideration factors we consider to be consumer-friendly, including impact to credit score, fees and rates, customer experience and responsible lending practices.
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Debt consolidation loan alternatives
If debt consolidation loans aren't the right choice for you Here are some alternatives.
Other debt payment methods
The debt snowball and debt Avalanche are two popular methods to pay off debt without consolidating.
The strategy uses early victories to help you stay on track towards becoming debt-free. With this approach, debts are arranged in order from the smallest balance to the highest. Once the smallest debt is repaid then the monthly payment for that debt is applied towards the next balance until it's paid off. Then, you continue to make payments towards each debt until you're debt-free.
The follows a similar strategy that starts with your highest-interest debt. Then when that's paid off, you tackle the second-highest-interest debt and so forth until all debts are paid. This method can help save time and money, but it may not provide the immediate wins as the snowball strategy.
Debt management plan
A debt management plan from an agency for credit counseling that is non-profit can help reduce the rate of interest and pay off debt faster. This is an option if are in debt from credit cards and you are able to stick to a payment schedule for several years while not making use of credit cards.
>> MORE:
Bankruptcy
The option of releasing your debts through bankruptcy could be an option in the event that you are overwhelmed by debt and need up to five years or more to repay it via consolidation. In bankruptcy, you can eliminate all kinds of unsecure debt, such as medical and credit card debts.
Although your credit score could initially suffer a dip however, it will improve within one year of filing for bankruptcy.
>> MORE:
Most frequently asked questions: Can I qualify for debt consolidation with bad credit?
You can apply for debt consolidation loan even if you have bad credit, and certain debt consolidation lenders are geared towards borrowers with poor credit scores.
How can I consolidate all my debt with poor credit?
A debt consolidation loan combines several unsecured debts -- like credit cards, medical bills and payday loans -- into one monthly installment. Getting a consolidating debt loan with poor credit might be a bit difficult however it is feasible.
Where can I get an installment loan with poor credit?
tend to give more consideration for bad credit loan applicants. They also provide debt consolidation loans specifically targeted at borrowers who have bad credit.
Can I apply for debt consolidation with bad credit?
You may be eligible for a debt consolidation loan even when you're not a credit score holder as some lenders for debt consolidation specifically are geared towards borrowers with poor credit scores.
How do I consolidate my debts with poor credit?
A debt consolidation loan combines several unsecured debts , such as credit cards, medical bills and payday loans -- into one monthly installment. The process of obtaining a debt consolidation loan with bad credit may be a bit difficult but it's feasible.
Where can I find an installment loan with bad credit?
tend to look more favorably on bad-credit loan applicants. Also, they offer debt consolidation loans specifically targeted at borrowers with bad credit.
Author bio Jackie Veling covers personal loans for NerdWallet.
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How to Get a Consolidation Loan for Debts with Bad Credit
A debt consolidation loan with bad credit may require building your credit or even a co-signer.
Updated on January 24, 2023
Many or all of the items featured on this page come from our partners, who pay us. This affects the products we write about as well as the place and way the product appears on a page. However, this doesn't influence our opinions. Our views are our own. Here's a list and .
Table of Contents
Table of Contents
Finding a loan even if you have bad credit could require some searching around However, there are alternatives that include loans through credit unions and online lenders.
Some lenders even cater specifically to borrowers with bad credit (a credit score below 630) and take into account other factors that affect score, like the amount of education, income and work experience.
This article will help you determine if a debt consolidation loan is a good idea for tackling your debt and how to get one.
What exactly is a debt-consolidation loan?
The loan to consolidate debts loan is an individual loan you use to combine to pay down multiple loans at one time Think credit card balances, medical bills, or other unsecure personal loans and you only have one monthly payment.
Ideally, this installment comes with a lower interest rate than the debt you currently have and can help you save money and allow you to get out of debt faster.
Is a debt consolidation loan a good idea?
If you're having trouble paying off debt and qualify for a lower interest rate for a loan, debt consolidation is generally a good idea.
Here are some of the benefits:
It saves the cost of interest. Arguably the biggest benefits of debt consolidating is money you save on interest rates by consolidating debt under the lower interest rate. Just a few percentage points makes a big difference in overall interest saved. Utilize our tool to discover the savings you could make.
You may reduce debt more quickly. If you consolidate debt at a lower interest rate, you can reduce debt faster by putting the savings into the balance remaining. You can also select an early repayment period on the debt consolidation loan in the event that you are able to pay the monthly installments.
It simplifies the process. Instead of keeping the track of several debts, with the debt consolidation loan, you'll have only one installment to pay. The debt consolidation loans also come with fixed terms. This means you'll know when your loan is due that can help keep you on track.
It could help improve your credit. Although taking out a debt consolidation loan could temporarily knock a few points off your rating, but the overall impact should be positive when you start to dig out of the debt.
How do you get an debt consolidation loan even with bad credit
1. Review your credit report
Are mistakes in your credit report the reason behind your low credit score? Examine for mistakes like incorrect accounts, incorrectly reported payments or inaccurate credit limits.
You can access your credit report each week for free at any of the three major credit reporting bureaus-- Experian, Equifax and TransUnion -- with .
A small increase within your credit rating may for a debt consolidation loan. Moving from a low to a fair credit score (630 to 689) could also lead to an easier to afford loan with an interest rate that is lower.
>> MORE:
Another suggestion is to pay off any small debts. This reduces the credit utilization rate which is 30 percent of the credit score. This can improve your overall , which lenders use to evaluate your ability to pay back the loan. The lower your DTI ratio is, the more likely a lender may consider approving you for a loan application.
2. Take into consideration a secured, co-signed or joint loan
Certain loans are easier to obtain, such as co-signed, secured or joint loan.
When you take out a loan, you utilize collateral like a vehicle or even a savings account, to help ensure the loan, which means lenders are more likely to approve or offer an interest rate that is lower. However, if you fail to pay back the loan you forfeit the collateral.
With a higher credit score or a higher income can boost your chances of approval. Be aware that co-signers assume the same responsibility for the loan although they aren't able to access the funds. If you don't pay your loan on time or fail to repay the loan the co-signer's credit score may suffer.
They are similar to co-signed loans however the co-borrower is granted the same access to the funds.
>> COMPARE:
3. Do some research and get pre-qualified
To find the most affordable rate on the debt consolidation loan, you'll want to examine interest rates and terms from different lenders. The easiest method is to use . You can get pre-qualified with many lenders online to get estimates of rate and loan amounts. This is a gentle credit test, which won't affect your credit score.
Also look for consumer-friendly features like direct payment to creditors This means that the lender sends the loan money to your creditors making the process easierand also removing the temptation to use the money to purchase something else.
Do you want to consolidate debt? Find out if you qualify for a consolidating debt loan.
Answer a few simple questions and you'll receive a personalized report from our lending partners- with no impact to your credit score.
The amount of the loan
on NerdWallet
4. Request the consolidation loan
Once you've chosen a lender, you'll need to submit an application to get the loan. The process typically takes place online, and you'll be required to supply personal information, including your Social Security number, and documents to prove that you are who you say they are, as well as your earnings, and work.
The time to approve varies by lender. You'll usually receive the funds within a week, however many online lenders offer next-day and same-day financing.
>> MORE:
5. Reduce your debt and pay for loan payments
After you have received the funds you have in the account make use of them to pay off your outstanding debts. If the money is being given to your creditors in exchange for you, confirm to each of your creditors that the debt was successful in being paid.
The next step is to create a strategy to , which may include building an budget that prioritizes the new monthly payment, and keeping an eye out for the refinancing options.
Most lenders charge a late fee for payments that are not made and report them to credit bureaus. This can harm your credit score therefore, you should consider setting automated payments to prevent falling in debt.
Where can I get a debt consolidation loan for people with bad credit
Credit unions
They are non-profit financial institutions that can offer flexible terms and lower rates than online lenders.
Federal credit unions cap annual percentage rates on personal loans at 18%.
Certain credit unions do not allow you to be pre-qualified for an loan The application process for a loan requires a hard credit test that can lower your credit score, making it difficult to find a loan.
It is also required to become a members of the institution to apply for the loan and this could involve being in the area and paying a minimal annual membership fee. A local credit union can be a good place to start, though national credit unions like and also offer the debt-consolidation loans.
Online lender
are more convenient and often provide quick financing, but they may charge higher rates for borrowers with bad credit than credit unions .
The online lender may also charge to cover the cost of processing your loan. The cost is usually subtracted from the loan proceeds, so you might need to apply for more of a loan to receive the total amount you need.
is one of the best online lenders for a bad-credit loan. If you get an installment loan and Upgrade is able to transfer the money straight to the creditors you could qualify for an additional discount on rates of 1 to five percentage points.
Also, they accept applications from those with poor credit. They will look at other information in your application, such as academic majors and work experience which can increase your chances of getting approved and receiving a low interest.
>> COMPARE:
Individual loans through our partner companies
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LendingClub
5.0 NerdWallet's ratings are compiled by our editorial staff. The scoring formula takes into account aspects we consider to be beneficial to consumers, including impact to credit score, fees and rates as well as the customer's experience and responsible lending practices.
5.0 NerdWallet's ratings are determined by our editorial staff. The scoring formula takes into account factors we consider to be beneficial to consumers, including impact on credit score, fees and rates, customer experience and ethical lending practices.
APR 8.3-36.0%
Amount of loan: $1,000 - $40,000
on LendingClub
on Happy Money
Happy Money
4.5 NerdWallet's ratings are compiled by our editorial team. The scoring algorithm takes into consideration the factors we believe to be consumer-friendly, including impact to credit score, fees and rates customers' experience, and ethical lending practices.
4.5 NerdWallet's ratings were determined by our editorial staff. The scoring formula considers factors we consider to be consumer-friendly, including impact to credit score, rates and fees, customer experience and responsible lending practices.
APR 7.99-29.99%
Loan amount $5,000 - $40,000
on Happy Money
on PenFed Credit Union
PenFed Credit Union
5.0 NerdWallet's ratings are compiled by our editorial team. The scoring algorithm takes into consideration aspects we consider to be beneficial to consumers, including impact on credit score, rates and fees as well as the customer's experience and responsible lending practices.
5.0 NerdWallet's ratings are compiled by our editorial team. The scoring algorithm takes into consideration factors we consider to be consumer-friendly, including impact to credit score, rates and fees, the customer experience and ethical lending practices.
APR 7.74-17.99%
The loan amount is $600-$50,000.
on PenFed Credit Union
on the Upgrade
Upgrade
5.0 NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account factors we consider to be beneficial to the consumer, including the impact on credit score, rates and fees, customer experience and responsible lending practices.
5.0 NerdWallet's ratings are determined by our editorial staff. The scoring algorithm takes into consideration factors we consider to be a good choice for consumers, such as the impact on credit score rate and fees as well as the customer's experience and ethical lending practices.
APR 8.49-35.97%
Loan amount $1,000 - $50,000
on Upgrade
on Upstart
Upstart
4.5 NerdWallet's ratings are compiled by our editorial team. The scoring formula considers aspects we consider to be consumer-friendly, including the impact on credit score rate and fees, the customer experience and responsible lending practices.
4.5 NerdWallet's ratings are compiled by our editorial team. The scoring formula takes into account aspects we consider to be beneficial to consumers, including the impact on credit score rate and fees, customer experience and ethical lending practices.
APR 6.5-35.99 Percent
The amount of the loan is $1,000.
on Upstart
on LightStream
LightStream
5.0 NerdWallet's rating is determined by our editorial staff. The scoring formula is based on aspects we consider to be consumer-friendly, including the impact on credit scores rate and fees, the customer experience and responsible lending practices.
5.0 NerdWallet's ratings are determined by our editorial staff. The scoring formula takes into account factors we consider to be friendly to consumers, such as the impact on credit score, fees and rates, customer experience and ethical lending practices.
APR Rates mentioned are for AutoPay. 6.99-23.99%
The loan amount is $5,000 to $100,000.
on LightStream
on LightStream
LightStream
5.0 NerdWallet's ratings are determined by our editorial staff. The scoring algorithm takes into consideration factors we consider to be beneficial to the consumer, including the impact on credit score, rates and fees as well as the customer's experience and ethical lending practices.
5.0 NerdWallet's ratings are determined by our editorial team. The scoring formula is based on the factors we believe to be consumer-friendly, including impact to credit score, fees and rates as well as the customer's experience and responsible lending practices.
APR Rates mentioned are for AutoPay. 6.99-23.99%
Loan amount $5,000 - $100,000
on LightStream
on Axos
Axos
4.0 NerdWallet's ratings are determined by the editorial staff. The scoring formula takes into account factors we consider to be beneficial to consumers, including the impact on credit scores, rates and fees, customer experience and ethical lending practices.
4.0 NerdWallet's rating is determined by our editorial team. The scoring formula takes into account the factors we believe to be consumer-friendly, including impact to credit score, rates and fees as well as the customer's experience and responsible lending practices.
APR 7.99-14.99%
Loan amount $5,000 - $50,000
on Axos
On Upgrading
Upgrade
5.0 NerdWallet's ratings are compiled by our editorial team. The scoring algorithm takes into consideration aspects we consider to be beneficial to consumers, including the impact on credit score rates and fees, the customer experience and responsible lending practices.
5.0 NerdWallet's rating is determined by our editorial team. The scoring formula is based on aspects we consider to be a good choice for consumers, such as impact on credit score, fees and rates, customer experience and responsible lending practices.
APR 8.49-35.97%
Amount of loan: $1,000 - $50,000
on the Upgrade
on SoFi
SoFi
5.0 NerdWallet's ratings are compiled by our editorial staff. The scoring formula takes into account the factors we believe to be beneficial to the consumer, such as impact on credit score, fees and rates customers' experience, and ethical lending practices.
5.0 NerdWallet's rating is determined by our editorial team. The scoring formula takes into account factors we consider to be beneficial to consumers, including impact on credit score, rates and fees, customer experience and responsible lending practices.
APR 7.99-23.43%
Amount of loan: $5,000 - $100,000
on SoFi
on the Best Egg
Best Egg!
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4.5 NerdWallet's ratings are compiled by our editorial team. The scoring formula considers factors we consider to be consumer-friendly, including impact to credit score, fees and rates customers' experience, and responsible lending practices.
APR 8.99-35.99%
Loan amount $2,000 - $50,000
on the Best Egg
on Achieving
Reach your goals
5.0 NerdWallet's ratings are compiled by our editorial staff. The scoring formula takes into account the factors we believe to be consumer-friendly, including impact to credit score, fees and rates customers' experience, and responsible lending practices.
5.0 NerdWallet's ratings are determined by our editorial team. The scoring algorithm takes into consideration aspects we believe are consumer-friendly, including impact to credit score, rates and fees customers' experience, and ethical lending practices.
APR 7.99-29.99%
The loan amount is $5,000 to $50,000.
On Achieving
on OneMain Financial
OneMain Financial
4.0 NerdWallet's ratings are determined by the editorial staff. The scoring formula takes into account aspects we consider to be consumer-friendly, including the impact on credit scores fees and rates, customer experience and responsible lending practices.
4.0 NerdWallet's rating is determined by our editorial team. The scoring formula is based on factors we consider to be beneficial to consumers, including the impact on credit score, rates and fees, customer service and responsible lending practices.
APR 18.0-35.99 percent
Loan amount $1,500 - $20,000
on OneMain Financial
on Upstart
Upstart
4.5 NerdWallet's ratings were determined by our editorial team. The scoring formula takes into account factors we consider to be consumer-friendly, including impact to credit score, fees and rates customers' experience, and responsible lending practices.
4.5 NerdWallet's ratings are compiled by our editorial team. The scoring formula takes into account the factors we believe to be beneficial to consumers, including impact to credit score, fees and rates as well as the customer's experience and ethical lending practices.
APR 6.5-35.99%
Loan amount $1,000 - $50,000
on Upstart
on Best Egg
Best Egg
4.5 NerdWallet's ratings were determined by our editorial staff. The scoring formula takes into account aspects we believe are friendly to consumers, such as the impact on credit score, rates and fees customers' experience, and ethical lending practices.
4.5 NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account factors we consider to be beneficial to the consumer, including the impact on credit score, fees and rates, customer experience and responsible lending practices.
APR 8.99-35.99%
Loan amount $2,000 - $50,000
on Best Egg
on Discover
Discover
5.0 NerdWallet's ratings are determined by our editorial staff. The scoring formula is based on factors we consider to be beneficial to consumers, including the impact on credit scores rate and fees customers' experience, and ethical lending practices.
5.0 NerdWallet's ratings are compiled by our editorial team. The scoring formula is based on the factors we believe to be consumer-friendly, including impact to credit score, fees and rates customers' experience, and responsible lending practices.
APR 6.99-24.99%
Amount of loan $2,500 - $35,000
on Discover
On Achieving
Attain
5.0 NerdWallet's ratings are determined by our editorial team. The scoring formula is based on aspects we consider to be a good choice for consumers, such as impact on credit score, fees and rates as well as the customer's experience and responsible lending practices.
5.0 NerdWallet's ratings are compiled by our editorial staff. The scoring algorithm takes into consideration the factors we believe to be friendly to consumers, such as the impact on credit score, rates and fees, customer experience and responsible lending practices.
APR 7.99-29.99%
Loan amount $5,000 - $50,000
On Achieving
on SoFi
SoFi
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5.0 NerdWallet's rating is determined by our editorial staff. The scoring formula is based on the factors we believe to be consumer-friendly, including impact to credit score, rates and fees as well as the customer's experience and responsible lending practices.
APR 7.99-23.43%
The loan amount is $5,000 to $100,000.
on SoFi
on Universal Credit
Universal Credit
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4.5 NerdWallet's ratings are determined by our editorial staff. The scoring formula takes into account the factors we believe to be beneficial to consumers, including the impact on credit score, rates and fees, customer service and responsible lending practices.
APR 11.69-35.93%
The amount of the loan is $1,000.
on Universal Credit
on Discover
Discover
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5.0 NerdWallet's ratings are determined by our editorial team. The scoring algorithm takes into consideration the factors we believe to be beneficial to consumers, including impact to credit score, fees and rates, customer experience and ethical lending practices.
APR 6.99-24.99%
The loan amount is $2,500 to $35,000
on Discover
on Upstart
Upstart
4.5 NerdWallet's ratings were determined by our editorial team. The scoring formula takes into account factors we consider to be consumer-friendly, including impact to credit score, rates and fees, customer experience and ethical lending practices.
4.5 NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account aspects we consider to be beneficial to consumers, such as the impact on credit score, rates and fees as well as the customer's experience and ethical lending practices.
APR 6.5-35.99 Percent
The amount of the loan is $1,000.
on Upstart
on Achieving
Achieve
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5.0 NerdWallet's ratings are compiled by our editorial staff. The scoring formula takes into account factors we consider to be consumer-friendly, including impact to credit score, fees and rates as well as the customer's experience and responsible lending practices.
APR 7.99-29.99%
Loan amount $5,000 - $50,000
on Achieving
on SoFi
SoFi
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5.0 NerdWallet's ratings are compiled by our editorial team. The scoring algorithm takes into consideration the factors we believe to be beneficial to consumers, including impact to credit score, rates and fees, customer experience and ethical lending practices.
APR 7.99-23.43%
The loan amount is $5,000 to $100,000.
on SoFi
on the Best Egg
Best Egg!
4.5 NerdWallet's ratings are determined by our editorial staff. The scoring formula considers the factors we believe to be beneficial to the consumer, such as impact on credit score, rates and fees customers' experience, and responsible lending practices.
4.5 NerdWallet's ratings are compiled by our editorial staff. The scoring formula considers the factors we believe to be a good choice for consumers, such as the impact on credit score, fees and rates customers' experience, and responsible lending practices.
APR 8.99-35.99%
Loan amount $2,000 - $50,000
on the Best Egg
on LightStream
LightStream
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5.0 NerdWallet's rating is determined by our editorial staff. The scoring formula takes into account the factors we believe to be consumer-friendly, including impact on credit score, fees and rates, customer experience and responsible lending practices.
APR Rates are based on AutoPay. 6.99-23.99%
The loan amount is $5,000 to $100,000.
on LightStream
on SoFi
SoFi
5.0 NerdWallet's ratings are determined by our editorial staff. The scoring formula is based on the factors we believe to be consumer-friendly, including impact to credit score, fees and rates, customer experience and responsible lending practices.
5.0 NerdWallet's ratings are compiled by our editorial staff. The scoring formula is based on aspects we consider to be beneficial to consumers, including impact to credit score rate and fees, customer experience and ethical lending practices.
APR 7.99-23.43%
Amount of loan: $5,000 - $100,000
on SoFi
on Universal Credit
Universal Credit
4.5 NerdWallet's ratings are determined by our editorial staff. The scoring formula takes into account factors we consider to be a good choice for consumers, such as impact to credit score, rates and fees, customer experience and ethical lending practices.
4.5 NerdWallet's ratings are compiled by our editorial team. The scoring formula considers factors we consider to be friendly to consumers, such as the impact on credit score, rates and fees as well as the customer's experience and responsible lending practices.
APR 11.69-35.93%
The amount of the loan is $1,000.
on Universal Credit
on LendingClub
LendingClub
5.0 NerdWallet's ratings are compiled by our editorial staff. The scoring algorithm takes into consideration aspects we believe are beneficial to the consumer, including the impact on credit score, fees and rates, customer experience and responsible lending practices.
5.0 NerdWallet's ratings are compiled by our editorial team. The scoring formula takes into account the factors we believe to be beneficial to the consumer, including impact on credit score, fees and rates, customer experience and ethical lending practices.
APR 8.3-36.0%
Amount of loan: $1,000 - $40,000
on LendingClub
on Upstart
Upstart
4.5 NerdWallet's ratings are compiled by our editorial staff. The scoring formula takes into account the factors we believe to be beneficial to consumers, including impact to credit score, fees and rates, customer experience and responsible lending practices.
4.5 NerdWallet's ratings are determined by our editorial staff. The scoring algorithm takes into consideration factors we consider to be consumer-friendly, including impact to credit score, fees and rates, customer experience and responsible lending practices.
APR 6.5-35.99 Percent
Amount of loan: $1,000 - $50,000
on Upstart
Debt consolidation loan alternatives
If debt consolidation loans aren't the right choice for you Here are some alternatives.
Other debt payment methods
The debt snowball and debt Avalanche are two popular methods to pay off debt without consolidating.
The strategy uses early victories to help you stay on track towards becoming debt-free. With this approach, debts are arranged in order from the smallest balance to the highest. Once the smallest debt is repaid then the monthly payment for that debt is applied towards the next balance until it's paid off. Then, you continue to make payments towards each debt until you're debt-free.
The follows a similar strategy that starts with your highest-interest debt. Then when that's paid off, you tackle the second-highest-interest debt and so forth until all debts are paid. This method can help save time and money, but it may not provide the immediate wins as the snowball strategy.
Debt management plan
A debt management plan from an agency for credit counseling that is non-profit can help reduce the rate of interest and pay off debt faster. This is an option if are in debt from credit cards and you are able to stick to a payment schedule for several years while not making use of credit cards.
>> MORE:
Bankruptcy
The option of releasing your debts through bankruptcy could be an option in the event that you are overwhelmed by debt and need up to five years or more to repay it via consolidation. In bankruptcy, you can eliminate all kinds of unsecure debt, such as medical and credit card debts.
Although your credit score could initially suffer a dip however, it will improve within one year of filing for bankruptcy.
>> MORE:
Most frequently asked questions: Can I qualify for debt consolidation with bad credit?
You can apply for debt consolidation loan even if you have bad credit, and certain debt consolidation lenders are geared towards borrowers with poor credit scores.
How can I consolidate all my debt with poor credit?
A debt consolidation loan combines several unsecured debts -- like credit cards, medical bills and payday loans -- into one monthly installment. Getting a consolidating debt loan with poor credit might be a bit difficult however it is feasible.
Where can I get an installment loan with poor credit?
tend to give more consideration for bad credit loan applicants. They also provide debt consolidation loans specifically targeted at borrowers who have bad credit.
Can I apply for debt consolidation with bad credit?
You may be eligible for a debt consolidation loan even when you're not a credit score holder as some lenders for debt consolidation specifically are geared towards borrowers with poor credit scores.
How do I consolidate my debts with poor credit?
A debt consolidation loan combines several unsecured debts , such as credit cards, medical bills and payday loans -- into one monthly installment. The process of obtaining a debt consolidation loan with bad credit may be a bit difficult but it's feasible.
Where can I find an installment loan with bad credit?
tend to look more favorably on bad-credit loan applicants. Also, they offer debt consolidation loans specifically targeted at borrowers with bad credit.
Author bio Jackie Veling covers personal loans for NerdWallet.
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