Getting a debt consolidation loan with bad credit can be challenging, but you can improve your approval odds with online banks or credit unions with less stringent qualifications or by enlisting a cosigner with good credit.
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This offer is conditioned on final approval based on our consideration and verification of financial and non-financial information. Rate, loan amount, and loan terms are subject to change based upon information received in your full inquiry on our site. This offer may be accepted only by the person identified in this offer, who is old enough to legally enter into contract for the extension of credit, a US citizen or permanent resident, and a current resident of the US. Closing your loan is contingent on your meeting our eligibility requirements, our verification of your information, and your agreement to the terms and conditions on the Upstart.com website. Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000). The full range of available rates varies by state. A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 21.58% and a 9.84% origination fee of $984, for an APR of 26.82%. In this example, the borrower will receive $9016 and will make 60 monthly payments of $275. APR is calculated based on 5-year rates offered in December 2023. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
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Applications submitted on this website may be funded by one of several lenders, including: FinWise Bank, a Utah-chartered bank, Member FDIC; Coastal Community Bank, Member FDIC; Midland States Bank, Member FDIC; and LendingPoint, a licensed lender in certain states. Loan approval is not guaranteed. Actual loan offers and loan amounts, terms and annual percentage rates ("APR") may vary based upon LendingPoint's proprietary scoring and underwriting system's review of your credit, financial condition, other factors, and supporting documents or information you provide. Origination or other fees up to 10% may apply depending upon your state of residence. Upon final underwriting approval to fund a loan, said funds are often sent via ACH the next non-holiday business day. Loans are offered from $2,000 to $36,500, at rates ranging from 7.99% to 35.99% APR, with terms from 24 to 72 months. Minimum loan amounts apply in Georgia, $3,500; Colorado, $3,001; and Hawaii, $2,000. For a well-qualified customer, a requested loan of $10,000 serviced by LendingPoint over a period of 48 months that has an APR of 26.59% with an origination fee of 10% may have a payment of $340.52 per month. (Actual terms and rate depend on credit history, income, and other factors.) The total amount due under the loan terms provided is $16,345.12 and the disbursal amount is $10,000. In the example provided, the total financed amount is increased to receive the full requested loan amount after the origination fee is deducted. The total amount due is the total amount of the loan you will have paid after you have made all payments as scheduled.
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We’ve done the research so you don’t have to. Our technology works directly with financial institutions to match you to the offers from our partners that are right for you, which means you are more likely to qualify for the products that are Matched for You. Our list is more personalized than other sites because we review lender requirements before showing you offers. We find your best matches using things like your credit profile and your spending habits.
Fixed rates from 8.99% APR to 29.99% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 3/06/23 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors.
Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive.
Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.
Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you haveturned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.
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‡ Trustpilot TrustScore as of June 2024. Best Egg loans are personal loans made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender or Blue Ridge Bank, N.A., Member FDIC, Equal Housing Lender. The Best Egg Credit Card is issued exclusively by First Bank & Trust, Member FDIC, Brookings SD pursuant to a license by Visa International. Visa is a registered trademark, and the Visa logo design is a trademark of Visa International Incorporated. “Best Egg” is a trademark of Best Egg Technologies, LLC. Offers may be sent pursuant to a joint marketing agreement between Cross River Bank, Blue Ridge Bank, N.A. and/or First Bank & Trust and Marlette Marketing, LLC, a subsidiary of Best Egg, Inc. The term, amount, and APR of any loan we offer to you will depend on your credit score, income, debt payment obligations, loan amount, credit history and other factors. Your loan agreement will contain specific terms and conditions. About half of our customers get their money the next day. After successful verification, your money can be deposited in your bank account within 1-3 business days. The timing of available funds upon loan approval may vary depending upon your bank’s policies. Loan amounts range from $2,000– $50,000. Residents of Massachusetts have a minimum loan amount of $6,500 ; Ohio, $5,001; and Georgia, $3,001. For a second Best Egg loan, your total existing Best Egg loan balances cannot exceed $100,000. Annual Percentage Rates (APRs) range from 6.99%-35.99%. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0.99%-9.99% of your loan amount, which will be deducted from any loan proceeds you receive. The origination fee on a loan term 4-years or longer will be at least 4.99%. Your loan term will impact your APR, which may be higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest APR. For example: a 5‐year $10,000 loan with 9.99% APR has 60 scheduled monthly payments of $201.81, and a 3‐year $5,000 loan with 6.99% APR has 36 scheduled monthly payments of $152.83. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents. Best Egg products are not available if you live in Iowa, Vermont, West Virginia, the District of Columbia, or U.S. Territories. TO REPORT A PROBLEM OR COMPLAINT WITH THIS LENDER, YOU MAY WRITE OR CALL– Operations Manager, Email: crt-resolutions@bestegg.com, Address: P.O. Box 42912, Philadelphia, PA 19101, Phone: 1-855-282-6353. This lender is licensed and regulated by the New Mexico Regulation and Licensing Department, Financial Institutions Division, P.O. Box 25101, 2550 Cerrillos Road, Santa Fe, New Mexico 87504. To report any unresolved problems or complaints, contact the division by telephone at (505) 476-4885 or visit the website https://www.rld.nm.gov/financial-institutions/
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APRs presented are estimated and were created based upon information entered by the consumer and through analysis of information publicly available at Prosper.com. The estimated APR presented does not bind Prosper. The range of APRs available through Prosper is 8.99% to 35.99%. Only borrowers with excellent credit qualify for the lowest rate available. Your actual APR depends upon credit score, Prosper Rating, loan amount, loan term, credit usage and history. All loans are subject to credit review and approval. All personal loans made by WebBank. **You may receive your funds one business day after your acceptance of the loan offer, completion of all necessary verification steps and final approval. One business day funding is also dependent on your bank’s ability to quickly process the transaction.
For example, a three-year $10,000 personal loan would have an interest rate of 9.38% and a 9.99% origination fee for an annual percentage rate (APR) of 16.74% APR. You would receive $9,001.00 and make 36 scheduled monthly payments of $319.77. A five-year $10,000 personal loan would have an interest rate of 11.14% and a 9.99% origination fee with a 15.84% APR. You would receive $9,001.00 and make 60 scheduled monthly payments of $218.12. Origination fees vary between 1% and 9.99%. Personal loan APRs through Prosper range from 8.99% to 35.99%, with the lowest rates for the most creditworthy borrowers. Eligibility for personal loans up to $50,000 depends on the information provided by the applicant in the application form. Eligibility for personal loans is not guaranteed, and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. Refer to Borrower Registration Agreement for details and all terms and conditions. All personal loans made by WebBank.
Debt consolidation loans allow you to pay off one or more high-interest debts, preferably with a lower interest rate or other favorable terms. While debt consolidation can be a challenge if your credit is less than ideal, it is possible.
Here are some of the steps you can take to get a debt consolidation loan with less-than-stellar credit, including evaluating your situation, shopping around with the right lenders and working to improve your creditworthiness.
How to Get a Debt Consolidation Loan if You Have Bad Credit
Getting approved for a personal loan to help consolidate your debt can be difficult with a low credit score, but it isn't out of the question. If you think it's possible to get better terms than what you're currently paying, here are some steps you can take.
1. Review Your Credit
A poor credit score ranges from 300 to 579, according to FICO. Finding out where you fall can make it easier to assess your situation and options.
You can start by registering with Experian to get free access to your FICO® Score☉ and Experian credit report, and also get free weekly copies of your credit reports with Equifax and TransUnion through AnnualCreditReport.com.
Doing this can help you get a full picture of your overall credit health. You can also look out for errors and other negative items that could be hurting your score. Depending on how urgent your situation is, you may be able to make some improvements to your credit score before you apply to improve your standing.
Not all lenders are willing to work with borrowers who have bad credit, so it's important to do your research.
Focus on lenders that say they accept lower credit scores, and, when possible, go through the prequalification process with each to get an idea of your approval odds and possible loan terms.
In addition to interest rates, it's also important to compare fees, monthly payments, repayment terms and any other features that are important to you.
3. Consider Ways to Boost Your Approval Odds
Before you submit an application with a lender, think about some ways you can increase your chances of getting loan terms that can help you save money. Options include:
Get a cosigner. Some personal lenders allow you to add a cosigner to your application or open a joint loan. With this option, the lender will review both credit histories to make a decision, so if you have a loved one with stellar credit and a strong income, it could make it easier to get approved for favorable terms you can't on your own.
Consider a secured loan. Some lenders also offer secured personal loans that allow you to use an asset, such as a vehicle or investment account, as collateral. This arrangement can make it easier to get approved and also to secure better terms compared to an unsecured loan.
4. Submit Your Application and Accept the Loan
Once you've decided on a lender, you can typically submit your application online. The lender may provide you with a decision the same day or even in minutes.
If you're approved, carefully review the loan agreement to ensure you know what you're getting. Then, accept the loan by signing the contract. Depending on the lender, you may choose to have them pay off your debt directly or send the money to your bank account, so you can pay off the balances you want to consolidate.
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Where to Get a Debt Consolidation Loan With Poor Credit
There are several types of lenders that can help you get the money you need to consolidate your debt. That said, each lender has its own criteria for determining eligibility and loan terms, so you'll want to cast a wide net as you shop around.
Online Lenders
You're more likely to find online lenders that are willing to work with bad-credit borrowers, particularly if you don't have the necessary assets for a secured loan. This is largely because online lenders don't have physical branches, so they don't have the same overhead costs as banks and credit unions and can afford to take on more risk.
Keep in mind, though, that some online lenders charge higher annual percentage rates (APRs), which can make a consolidation loan difficult to justify.
Credit Unions and Banks
Some credit unions and banks may also be willing to lend to you if you have a lower credit score, particularly if you have an established relationship with a smaller financial institution. Credit unions and banks are more likely to offer secured loans, which can be a good way to get better terms if you can come up with the collateral.
Pros and Cons of Debt Consolidation Loans
Pros
Cons
Streamlines your monthly payments
Favorable terms are typically reserved for borrowers with great credit
Can save you money with a lower interest rate
Can result in a higher monthly payment, especially when consolidating credit card debt
Can help you pay off your debt more quickly
Doesn't solve the core problem that created your debt
When Is a Debt Consolidation Loan a Good Idea?
The decision of whether or not to get a consolidation loan ultimately depends on your financial situation and goals. Here are some situations where it can make sense, even if you have bad credit:
You're prequalified for a lower interest rate than what you're currently paying.
You have a plan to avoid adding new debt.
Your budget will benefit from a single monthly payment rather than multiple.
The new loan can help you pay down your debt faster.
You have a cosigner or collateral that you can use to get better terms.
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†The information provided is for educational purposes only and should not be construed as financial advice. Experian cannot guarantee the accuracy of the results provided. Your lender may charge other fees which have not been factored in this calculation. These results, based on the information provided by you, represent an estimate and you should consult your own financial advisor regarding your particular needs.
While a debt consolidation loan can be a good choice in some situations, it's important to research and compare other options to ensure you find the best one for you. Here are some to keep in mind.
New Budget
Making a budget and tracking your expenses is crucial to determining how much you can afford to pay toward existing debt each month. With a workable budget, you can set aside a given amount for your debt payments and inch toward your goal of eliminating your debt.
If you don't have a budget or your current one doesn't allow you to put more toward your debts, create a new one. If you're not sure where to start, a budgeting app could help
Home equity loans offer a lump-sum payment you must repay over five to 30 years at a fixed interest rate. By contrast, a HELOC gives you an open line of credit you can draw from multiple times as needed up to your credit limit.
Note, however, that these loans can come with hefty closing costs, and if you fail to repay, you could face losing your home.
A good debt reduction plan can provide a roadmap to eliminating debt and help you track your progress. The most common repayment strategies are the debt avalanche and debt snowball methods.
In both cases, the idea is to make minimum payments on all your debts but prioritize one account by making higher payments on that one. The debt avalanche method has you focus on paying off the account with the highest interest rate first and repeating the process until your debts are paid off. This strategy can help you save money on interest charges over time.
Conversely, the debt snowball method prioritizes paying off your accounts with the lowest balances to create quick wins and build momentum.
Credit Counseling
If you are overwhelmed with debt and need help finding a way to pay it off, credit counseling may help. A nonprofit credit counselor can work with you to strategize debt payoff and may recommend a debt management plan (DMP).
With a DMP, your credit counselor helps you determine how much you can put toward your debt each month and attempts to negotiate reduced interest rates, fees and monthly payments with your creditors. You make one payment to the credit counselor, who then distributes it to your lenders until your debts are paid off.
DMPs typically last three to five years and come with modest setup and monthly fees.
Debt consolidation involves using a loan or credit card to pay off other debts. Depending on the lender, you may receive the funds to pay off the debt on your own or request that the lender pay your existing lenders directly.
Debt consolidation can impact your credit in both positive and negative ways. However, any negative effects are typically temporary in nature, especially if you practice responsible credit habits.
To use a consolidation loan to build your credit, avoid adding more debt as you work to pay down your balance, and also make it a priority to pay on time every month.
There's no universal minimum credit score requirement to get approved for a consolidation loan. Some lenders are even willing to work with bad-credit borrowers. That said, a lower credit score typically translates to higher interest rates and fees, which can make debt consolidation less viable.
Improve Your Credit—and Your Options
While you may qualify for a debt consolidation loan with bad credit, you'll likely pay more in interest rates. By taking a few months to improve your credit, you could boost your odds of approval for debt consolidation loans and other types of credit and with lower interest rates. Even a slightly lower interest rate could save you hundreds or even thousands of dollars over the life of the loan.
By checking your credit report, you can keep an eye on the total amount of debt owed to all your creditors that report to Experian and receive recommendations on how to save money and improve your credit score over time.
Learn More About Debt Consolidation With Bad Credit
How to Consolidate Debt There's more than one way to consolidate debt. Learn how various debt consolidation methods work to see if it's the right solution for you.
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