4 Best Debt Consolidation Loans for Bad Credit [April 2024] (2024)

LendingPoint

The best debt consolidation loans for bad credit are from LendingPoint. The company requires a credit score of 600+ to qualify, offers loan amounts of$2,000 - $36,500 and has an APR range of7.99% - 35.99%.

Upstart

Debt consolidation loans through Upstart are the best if you need a large loan. These loans have dollar amounts of $1,000 - $50,000 with typical APRs of6.4% - 35.99%. You do not need a credit score to qualify.**

Upgrade

Upgrade has the best debt consolidation loans for bad credit with a quick funding timeline. The company offers funding as soon as two business days after getting approved, dollar amounts of$1,000 - $50,000 and an APR range of8.49% - 35.99%. To qualify for an Upgrade loan, borrowers must have a credit score of 620+.

Universal Credit

Universal Credit offers the best debt consolidation loans for bad credit with no origination fee. To qualify for a Universal Credit debt consolidation loan, borrowers must have a credit score of 580 or higher. The company also has loan amounts of$1,000 - $50,000 and an APR range of11.69% - 35.99%.

OneMain Financial

OneMain Financial offers the best debt consolidation loans with long repayment periods. The company has repayment periods of24, 36, 48 or 60 months, loan amounts of$1,500 - $20,000 and an APR range of18% - 35.99%. OneMain Financial requires a credit score of 600 - 650, according to multiple third-party sources.

Best Debt Consolidation Loans for Bad Credit Comparison

*According to multiple third-party sources

Tips for Getting a Debt Consolidation Loan With Bad Credit

• Consolidate debts with the highest interest rates. With bad credit, you’re unlikely to get a great APR on a personal loan. In fact, you should expect to get a rate as high as 36%. As a result, you’ll want to use your loan to consolidate things like payday loans, which charge fees equivalent to as much as a 400% APR. But it probably won’t make sense to consolidate things like credit card debt, which is likely to have a lower rate than your personal loan.
• Get pre-qualified. Lots of lenders let you pre-qualify before submitting an application to see your approval odds and potential rates. You can check with multiple lenders at once, without impacting your credit score, by using WalletHub’s free pre-qualification tool.
• Raise your income. While this is easier said than done, getting a little extra money by working longer hours, switching to a higher-paying job, getting a raise or starting a business on the side can help to offset your low credit score. You still won’t get the best rates on the market, but you’ll have a better chance of not being charged the lender’s highest APR.
• Consider credit unions. Credit unions are often more willing than banks or online lenders to offer loans to people with bad credit. You can check out credit unions in your area or apply with one that lets anyone join.
• Use the loan to improve your credit. Once you get a debt consolidation loan, make sure to pay on time every month, and pay more than the minimum if possible to get debt-free sooner. The positive information reported to the credit bureaus each month will help improve your credit score so that you can qualify for better terms on future financial products. It’s also a good idea to take a look at why you got into debt in the first place and adjust your spending habits if spending excessively was the main reason.

**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.

12

Upvotes

22

Upvotes

17

Upvotes

16

Upvotes

26

Upvotes