| Lender | APR Range | Loan Term | Loan Amount | Min Credit Score | Origination Fee | Time to Fund | Best For |
|---|---|---|---|---|---|---|---|
| Lightstream | 6.49% - 25.29% | 2 - 7 years | Up to $100,000 | 700 | None | Same day | Overall Best Personal Loan |
| Best Egg | 6.99% - 35.99% | 2 - 5 years | Up to $50,000 | 600 | 0.99% - 9.99% | 1 - 3 business days | Secured Loans |
| Upstart | 7.80% - 35.99% | 3 or 5 years | Up to $50,000 | 620 | 0% - 12% | 1 - 3 business days | All Credit Types |
| LendingClub | 7.90% - 35.99% | 2 - 6 years | Up to $40,000 | 660 | 0% - 8% | 22 hours | Online Experience |
| Splash Financial | 7.99% - 17.97% | 3 - 6 years | Up to $35,000 | 700 | 3.99% - 7.49% | 1 business day | Quick Loans for Good Credit |
| SoFi | 8.99% - 35.49% | 2 - 7 years | $5,000 - $100,000 | Not Disclosed | 0% - 7% | Few days | Excellent Credit |
| Avant | 9.95% - 35.99% | 2 - 5 years | Up to $35,000 | 550 | 0.95% - 9.99% | Next business day | All Credit Types |
| BHG | 9.96% - 23.48% | 3 - 10 years | Up to $200,000 | 660 | 3% - 4% | 5 - 14 days | Large Loan Amounts |
Annual percentage rates (APRs) vary from one lender to the next. Lenders consider several variables in deciding interest rates and terms, including your financial situation, and the size and type of loan you’re seeking.
One way lenders evaluate your financial qualifications is by looking at your credit — both your credit report, which shows how you’ve handled credit in the past, and your credit score, which lenders use to assess how likely you are to repay your loan in the future.
Debt consolidation involves combining two or more existing debts into one loan, ideally with a lower interest rate than you’re currently paying. Consolidation leaves you with just one payment to make each month.
A debt consolidation loan can be a type of installment loan, like a personal loan or a home equity loan. You could also use a low or 0% APR credit card balance transfer offer to consolidate and refinance credit card debt, but you would have to pay off the entire balance during the low- or no-interest period to avoid interest charges.
With a debt consolidation loan, you receive a lump sum to pay off your debts and then repay the consolidation loan in monthly installments. Some personal loan lenders pay out the lump sum directly to you, while others may pay your creditors directly if you provide your existing debt balances and payment information.
Remember, paying off your credit card balances through debt consolidation doesn’t erase debt. You still have to repay the lender that gave you the debt consolidation loan.
The key elements of a debt consolidation loan include:
Repayment terms: Most lenders offer terms of two to seven years. Prepayment penalties for personal loans are rare, so you might be able to repay the loan early if you manage your finances well.
Loan amounts: Debt consolidation lenders usually require you to borrow at least $1,000, and some let you borrow up to $50,000. But some lenders offer loans up to $100,000 or more.
Interest rates: The APR (annual percentage rate) for a debt consolidation loan can start as low as 7% and go as high as 36%. Several factors influence your rate, including your credit score, credit history, income, and employment status. Personal loans usually have fixed interest rates, so your rate and payment should stay the same for the life of the loan.
Fees: Lenders may charge fees for issuing a loan. An origination fee is a common one, and may be between 1% and 10% of the amount you borrow. The lender may deduct the origination fee from your loan amount and discloses the fee(s) on a statement required by the Truth in Lending Act. You’ll receive the statement after the lender approves your application. You’ll also see upfront fees reflected in the APR, which represents the total annual cost of your loan.
