Best Debt Consolidation Loans for 2020

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Drowning in debt is exhausting, but you don’t have to let it define your life. Debt consolidation loans can offer a way out. These loans have the potential to save you a significant amount of money over time by lowering interest rates and reducing the number payments toward existing debts each month. The number of creditors you are indebted to decreases, and even the total amount you will pay to release you from debt can be significantly reduced as well.

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Debt consolidation companies are designed to offer those looking to get out of debt options to pay one interest rate on a single loan by buying your debt from your creditors and becoming the sole creditor you owe money to. Here are the top debt consolidation lenders:

Best Debt Consolidation Loan Companies of 2020

Best Debt Consolidation Loan Companies Reviews


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Debt consolidation loans through LendingClub offer interest rates as low as 6.95% and run as high as 35.89%. Borrows can take out loans ranging from $1,000 to $40,000 and agree to pay back their loans over a period of 36 to 60 months. LendingClub borrowers typically have a credit score above 600 and several years of credit history. Upon signing the loan contract, the majority of LendingClub users receive funds within four days.

While LendingClub is rated highly among its customers, it works slightly differently than traditional lenders. In fact, LendingClub is merely a marketplace, not a lender. LendingClub offers what is known as peer-to-peer or marketplace lending. Once you submit an online loan application, LendingClub shares that information with its network of financers. At this point, lenders compete to service your loan, and you are provided with important information about groups willing to approve your loan, such as interest rates and loan terms. Since LendingClub does not actually service loans, it’s important that you research the actual lender you choose before signing a contract.

Although LendingClub may be a well liked service, it’s not for everyone. LendingClub only offers unsecured loans. However, this also means that if you don’t have a cosigner, you don’t have to put up personal assets to back your loan, like you would with a payday loan. Unlike some other debt consolidation loan services, LendingClub does charge administrative and late fees. provides loans from $1,000 to $35,000 with interest rates starting at 5.99%. Repayment term options are vast, beginning at 90 days and lasting as long as 6 years.

Unlike many lenders that require high credit scores in order for applicants to earn approval, is known for giving people with less than stellar credit a chance., another peer-to-peer lender, does not charge its customers any fees for connecting them with lenders, and individuals who borrow through a lender usually receive funds within one day.


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Boasting the ability to get users funding as soon as the next business day after approval, Avant also tends to be more open to applicants who lack perfect credit scores, with a minimum credit score of 580.

Avant loans start at $2,000 and max out at $35,000, with interest rates ranging from 9.95% to 35.99%. Loan term lengths run from 2 to 5 years, and administrative fees may reach as high as 4.75%. Unfortunately for those with poor credit scores, Avant does not allow co-signers.

Although Avant has received high ratings across a bevy of websites, its Consumer Affairs rating remains below 2 out of 5 stars, with many complaints about poor customer service and an overall lack of organization.


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Founded by former Google employees, Upstart stresses that you are more than a credit score, and emphasizes that the company considers your job experiences and education in determining loan approval and rates. At Upstart, loans range from $1,000 to $50,000 and offer interest rates from 5.67% to 35.99%.

Although Upstart does charge fees for loan origination and late payments, it has an A+ Better Business Bureau rating, and is rated higher than many other similar companies of the organization’s customer reviews. On average, Upstart customers save an estimated 24% interest compared to credit card rates.

OneMain Financial

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Although Upstart does charge fees for loan origination and late payments, it has an A+ Better Business Bureau rating, and is rated higher than many other similar companies of the organization’s customer reviews. On average, Upstart customers save an estimated 24% interest compared to credit card rates.

OneMain’s debt consolidation loans begin at $1,500 and extend up to $20,000. With higher than average APRs, interest rates with OneMain Financial begin at 18% and reach up to 35.99%. Applicants are usually offered loan terms lasting between 2 and 5 years.

OneMain Financial has been servicing loans for more than 100 years, and offers both unsecured and secured loans, depending on credit and income history. Although it has the highest interest rate among the debt consolidation loan companies we reviewed, it does provide a means for those with bad credit and low income to obtain much needed loans.

With local branches across the nation, OneMain Financial encourages borrowers to meet one-on-one with an advisor to discuss loan options. Funds are also accessible as soon as the same day if loan approval is granted by noon.


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LightStream positions itself as an eager lender for those with good credit who have earned a lower interest rate and no-fee loans. The company’s loans range from $5,000 to $100,000, with interest rates as low as 5.95%. Repayment terms range from 2 to 7 years, and there are no origination fees.

LightStream is so confident you’ll love its service that it offers to send $100 to any customer who is not completely satisfied.This might be because of unique options it offers customers, such as same-day funding and planting a tree with every loan serviced. While this is not the company for anyone with low or no credit, the interest rates available to those with a great credit score are the lowest among our reviewed companies for debt consolidation loans.

Lightstream is the national online consumer lending division of SunTrust Bank.


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As America’s first peer-to-peer lending marketplace, Prosper has funded more than $6 billion in loans. Because Prosper is not a bank, people invest in each other. Also different from a traditional lender, Prosper’s users list their loan requests online and individual lenders choose how much to invest in the requested loan.

Prosper borrowers can receive loans from $2,000 to $35,000, with a best possible APR of 6.38% and repayment options between 3 and 5 years. While a significant credit history is not required to be granted a Prosper loan, most customers have more than 10 years of credit. To have a good chance of approval, potential customers should hold a mid to high credit score. Loan recipients generally receive their funds as soon as 3 days after agreeing to an offer.


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With no initial fee requirements and no late fees, Sofi makes getting a loan simpler for people who don’t have money to spare. Allowing some people to borrow as much as $100,000, SoFi provides long terms lasting 2 to 7 years and offers interest rates as low as 5.99%. SoFi also provides unemployment protection, so that users can temporarily pause their payments while unemployed. Additionally, SoFi offers access to live customer support 24/7.

Approved borrowers with SoFi rate the company highly. However, this is not the company for those with low credit scores, as the minimum credit score for SoFi is nearly 700. Despite the requirement for good credit, SoFi members increase their FICO scores an average of 22 points after consolidating. Prospective borrows should also consider they may have to wait a while for their money to come in since in many cases, it has taken up to seven days for borrows to gain access to funds, far more than many other lenders.

Best Debt Consolidation Loan Companies: Summed Up

Best APR Loan Term Minimum Loan Maximum Loan
LendingClub 6.95% 36 or 60 months $1,000 $40,000 5.99% 90 days to 7 years $1,000 $35,000
Avant 9.95% 2-5 years $2,000 $35,000
Upstart 5.67% 3-5 years $1,000 $50,000
OneMain Financial 18.00% 2-5 years $1,500 $20,000
LightStream 5.95% 2-12 years $5,000 $100,000
Prosper 6.38% 3-5 years $2,000 $35,000
SoFi 5.99% 2-7 years $5,000 $100,000

What is a Debt Consolidation Loan?

A debt consolidation loan is a new line of financing you use to pay off multiple other debts at once.The goal of this loan is usually to save money over the long term, lower monthly payments or streamline your debt repayment by minimizing the number of creditors you owe. Debt consolidation loans can be secured through banks, credit unions and other online lenders.

When Should I Get a Debt Consolidation Loan?

Having debt doesn’t always mean a debt consolidation loan is right for you, even if you have a significant amount that you owe. For instance, if you have fair to poor credit, a bad credit loan may the be right option. You should only accept a debt consolidation loan if you can find financing that will help you save in the long run and can pay off your debt within five years. Additionally, you must be willing to make changes to your budget and spending if you want to consolidate your debt. If you are not, you will likely end up incurring additional debt over time.

When determining whether you should pursue debt consolidation, consider the following list. If you answer yes to one or more of the following situations, you might want to see what debt consolidation loan companies will offer you.

Do you:

  • Have several high-interest loans?
  • Struggle to pay multiple debt installments each month?
  • Need a lower monthly payment?

The Bottom Line

Debt consolidation loans simplify debt repayment by minimizing the number of creditors you owe money to. Consolidation loans often also provide lower interest rates than your original high-interest loans. However, a lower interest rate doesn’t always translate to less money paid in the long run, so it’s important to consider interest rates, monthly payments and repayment length when deciding on a loan.

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