Personal Loans
Best Personal Loans for Debt Consolidation
If you are carrying balances on three different credit cards at 22%+ APR, a consolidation loan can turn that into one fixed payment at a lower rate. These are the lenders we rank highest for paying off debt faster.
Top matches
#1 PickLightStream Personal Loan
- ✓Among the lowest APRs for strong credit
- ✓No origination, prepayment, or late fees
- ✓Same-day funding available; co-borrowers allowed
- ✗Requires good to excellent credit
SoFi Personal Loan
- ✓6.99% - 35.49% APR with autopay and member discounts (July 2026)
- ✓No required fees; loans up to $100,000
- ✓Unemployment protection and co-borrower option
#3 PickUpgrade Personal Loan
- ✓Can pay your creditors directly
- ✓Accepts fair credit; low minimum score
- ✗Origination fee applies
#4 PickDiscover Personal Loan
- ✓7.99% - 24.99% APR fixed (July 2026)
- ✓No origination, prepayment, or late fees
- ✓Pays creditors directly for consolidation; 30-day money-back guarantee
Best Egg Personal Loan
- ✓Quick funding after approval
- ✓Secured loan option for lower rates
- ✗Origination fee applies
Prosper Personal Loan
- ✓8.99% - 35.99% APR fixed (July 2026)
- ✓Accepts fair credit; joint loan option
- ✗1% - 9.99% origination fee based on Prosper Rating
How we ranked these: We ranked every consolidation-tagged lender in our database by our overall methodology score, which weighs rates and fees, loan flexibility, and approachability.
Last updated June 2026
Questions, answered
When does a consolidation loan actually save money?
When the loan's APR is meaningfully below the average rate on the debts you are consolidating, and you do not stretch the term so long that total interest grows. Consolidating 24% credit card debt into a 12% loan saves real money. Consolidating 10% debt into a 12% loan does not.
What is direct creditor payoff and why does it matter?
Some lenders send the loan money straight to your credit card companies instead of depositing cash in your account. That guarantees the consolidation actually happens and removes the temptation to spend the lump sum on something else.
Will consolidating debt hurt my credit score?
Expect a small short-term dip from the hard inquiry and the new account. Most people recover within months, and scores often end up higher because credit card utilization drops once the cards are paid off. The catch: do not run the balances back up. That is the lender's bet.
Should I close my credit cards after consolidating?
Usually no. Closing cards reduces your available credit and can raise your utilization ratio. Keep them open with zero balances unless an annual fee or your own spending habits argue otherwise.