Best Debt Consolidation Loans For Bad Credit Of April 2024 (2024)

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Best Debt Consolidation Loans for Bad Credit of 2024

  • Upgrade – Best Overall Bad Credit Debt Consolidation Loan
  • Universal Credit – Best for Comparing Multiple Offers
  • Achieve – Best for Paying Off Credit Card Debt
  • LendingClub – Best for Peer-To-Peer Lending

BEST OVERALL BAD CREDIT DEBT CONSOLIDATION LOAN

Upgrade

4.0

Best Debt Consolidation Loans For Bad Credit Of April 2024 (2)

Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.

Minimum Credit Score

580

APR range

8.49% to 35.99%

Loan amounts

$1,000 to $50,000

Compare Rates

Compare rates from participating lenders via Forbes Advisor

580

8.49% to 35.99%

$1,000 to $50,000

Editor's Take

Upgrade was launched in 2017 and provides accessible online and mobile credit and banking services. Since that time, the platform has made more than $3 billion in credit available to over 10 million applicants and continues to expand its online and mobile services. Although maximum APRs are on the high end compared to other online lenders, Upgrade makes loans available to those with poor credit history.

Loans amounts, which range from $1,000 to $50,000. Upgrade has two- to seven-year terms available. Upgrade charges an origination fee between 1.85% and 9.99% of the loan, and borrowers will encounter a $10 fee if their payment is more than 15 days late or if the payment does not go through; there are no discounts for autopay. That said, Upgrade borrowers are not subject to a prepayment penalty, so you can reduce the overall cost of the loan if you’re able to pay it off early.

Beyond offering accessible personal loans, Upgrade streamlines the lending process with a mobile app that lets borrowers view their balance, make payments and update personal information. Upgrade’s Credit Heath tool also makes it easy to track your credit score over the life of your loan.

Pros & Cons

  • Low minimum credit score requirement
  • Borrowers can use loans to cover business expenses
  • Offers direct lender payoff for debt consolidation loans
  • High APR range
  • Charges fees for origination, late payment and insufficient funds

Details

Overview: Upgrade was launched in 2017 and provides accessible online and mobile credit and banking services. Since that time, the platform has made more than $3 billion in credit available to over 10 million applicants and continues to expand its online and mobile services.

Upgrade charges an origination fee between 1.85% and 9.99% of the loan, and borrowers will encounter a $10 fee if their payment is more than 15 days late or if the payment does not go through; there are no discounts for autopay. That said, Upgrade borrowers are not subject to a prepayment penalty, so you can reduce the overall cost of the loan if you’re able to pay it off early.

Beyond offering accessible personal loans, Upgrade streamlines the lending process with a mobile app that lets borrowers view their balance, make payments and update personal information. Upgrade’s Credit Heath tool also makes it easy to track your credit score over the life of your loan.

Eligibility:

  • Minimum credit score: 580
  • No minimum income requirement
  • Allows co-applicants

Loan uses:

  • Debt consolidation
  • Home projects
  • Large expenses
  • Business expenses

BEST FOR COMPARING MULTIPLE OFFERS

Universal Credit

4.0

Best Debt Consolidation Loans For Bad Credit Of April 2024 (6)

Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.

Compare Rates

Compare rates from participating lenders via Forbes Advisor

580

11.69% to 35.99%

$1,000 to $50,000

Editor's Take

Universal Credit is an online lending platform that offers personal loans between $1,000 to $50,000 through its partners. Repayment terms range from three to seven years.

While Universal Credit makes finding a personal loan accessible even to those with damaged credit, it comes with a few tradeoffs. First, it charges high APRs, well above the most competitive rates seen on our list. Second, Universal Credit charges a 5.25% to 9.99% origination fee on all personal loans. Because this is deducted from your loan proceeds, you’ll need to factor this in when determining your loan amount to ensure you receive the necessary amount after the fact.

Pros & Cons

  • Flexible qualification requirements
  • Next-day funding
  • No prepayment penalty
  • High APRs
  • All personal loans charge a 5.25% to 9.99% origination fee

Details

Overview: Universal Credit is an online lender powered by Upgrade with loans originated by partners Cross River Bank and Blue Ridge Bank. The lender offers its loans in every state except Iowa, West Virginia and Washington, D.C.

Eligibility:

  • Minimum credit score: 580
  • Minimum income requirement: Does not disclose
  • Doesn’t allow co-signers or co-borrowers

Loan uses:

  • Debt consolidation
  • Large expense
  • Home project

Best for Paying Off Credit Card Debt

Achieve

Best Debt Consolidation Loans For Bad Credit Of April 2024 (9)

4.0

Best Debt Consolidation Loans For Bad Credit Of April 2024 (10)

Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.

Minimum credit score

620

APR range

8.99% to 35.99%

Loan amounts

$7,500 to $40,000

Best Debt Consolidation Loans For Bad Credit Of April 2024 (11)

Compare Rates Best Debt Consolidation Loans For Bad Credit Of April 2024 (12)

Via Fiona.com's Website

620

8.99% to 35.99%

Editor's Take

Achieve is an indirect lending platform that offers personal loans underwritten by Cross River Bank or MetaBank. Founded in 2014, the lender is one of our top picks for debt consolidation loans because of the flexible loan terms (two to five years) and loan amounts ($7,500 to $40,000). These characteristics make it easier to consolidate a large amount of debt while spreading payments out over a lengthy period of time and reducing monthly payments.

Like some of our other top picks, Achieve also offers direct payment to creditors. In fact, borrowers who put 85% of the total loan amount toward debt consolidation via direct payment are more likely to qualify for a loan.

That said, depending on the interest rates on your current debts, the potentially high APR Achieve charges may make it more difficult to save money by consolidating. Likewise, the origination fee from 1.99% to 6.99% of the loan amount can make the loan more expensive. If you’re considering Achieve for debt consolidation, it’s important to do the math before you sign on the dotted line.

Pros & Cons

  • Funds available within 48 hours
  • Flexible repayment terms
  • Allows co-borrowers
  • Application is not entirely online
  • Imposes a minimum income requirement
  • High minimum loan amount

Details

Overview: Achieve is an indirect lending platform that offers personal loans underwritten by Cross River Bank or MetaBank. Like some of our other top picks, Achieve also offers direct payment to creditors. In fact, borrowers who put 85% of the total loan amount toward debt consolidation via direct payment are more likely to qualify for a loan.

That said, depending on the interest rates on your current debts, the potentially high APR Achieve charges may make it more difficult to save money by consolidating. Likewise, the origination fee from 1.99% to 6.99% of the loan amount can make the loan more expensive. If you’re considering Achieve for debt consolidation, it’s important to do the math before you sign on the dotted line.

Eligibility:

  • Minimum credit score: 620
  • Minimum annual income: $21,500
  • Allows co-signers and co-applicants

Loan uses:

  • Debt consolidation
  • Home projects
  • Medical expenses
  • Travel costs

Best for Peer-to-peer Lending

LendingClub

3.5

Best Debt Consolidation Loans For Bad Credit Of April 2024 (14)

Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.

Minimum credit score

600

APR range

9.57% to 35.99%

Loan amounts

$1,000 to $40,000

Compare Rates

Via Credible.com’s Website

600

9.57% to 35.99%

$1,000 to $40,000

Editor's Take

LendingClub is a peer-to-peer—or marketplace—lender founded in 2007. As the largest online lending platform for personal loans, LendingClub has worked with over 3 million customers and funded more than $55 billion in loans. It’s also one of the most geographically widespread options, with lending capabilities in every state except Iowa and the U.S. territories.

While LendingClub imposes high APRs and no autopay discount, applicants can choose to borrow between $1,000 to $40,000. This is a higher maximum loan cap than some other lenders. That said, LendingClub’s loan terms are limited to two to five years, which is less flexible than other lenders on our list. Borrowers also are charged an origination fee between 2% and 6% of the total loan amount, which is taken from the loan proceeds at funding.

LendingClub also makes debt consolidation easier by offering a balance transfer loan. With this type of loan, LendingClub offers direct payment to third-party lenders, including over 1,700 creditors. Not only does the platform take care of payments for you, you can choose exactly how much of your new loan amount you want LendingClub to pay toward each creditor.

Pros & Cons

  • Will directly pay off third-party creditors as part of balance transfer loan
  • Co-applicants permitted
  • Available to borrowers with fair to excellent credit
  • Origination and late fees
  • Limited loan term availability
  • High APR range

Details

Overview: LendingClub is a peer-to-peer—or marketplace—lender founded in 2007. As the largest online lending platform for personal loans, LendingClub has worked with over 3 million customers and funded more than $55 billion in loans. It’s also one of the most geographically widespread options, with lending capabilities in every state except Iowa and the U.S. territories.

LendingClub also makes debt consolidation easier by offering a balance transfer loan. With this type of loan, LendingClub offers direct payment to third-party lenders, including over 1,700 creditors. Not only does the platform take care of payments for you, you can choose exactly how much of your new loan amount you want LendingClub to pay toward each creditor.

Eligibility:

  • Minimum credit score: 600
  • Minimum credit history: Three years
  • Allows co-applicants

Loan uses:

  • Debt consolidation
  • Home projects
  • Medical expenses

Summary: Best Debt Consolidation Loans for Bad Credit Of April 2024

CompanyCompany - LogoForbes Advisor RatingForbes Advisor RatingsMinimum credit scoreAPR rangeLoan amountsLearn More CTA textLearn more CTA below textVIEW MORE
UpgradeBest Debt Consolidation Loans For Bad Credit Of April 2024 (17)4.0Best Debt Consolidation Loans For Bad Credit Of April 2024 (18)5808.49% to 35.99%$1,000 to $50,000Compare RatesVia Credible.com's Website
Universal CreditBest Debt Consolidation Loans For Bad Credit Of April 2024 (19)4.0Best Debt Consolidation Loans For Bad Credit Of April 2024 (20)58011.69% to 35.99%$1,000 to $50,000Compare RatesVia Credible.com's Website
AchieveBest Debt Consolidation Loans For Bad Credit Of April 2024 (21)4.0Best Debt Consolidation Loans For Bad Credit Of April 2024 (22)6208.99% to 35.99%$7,500 to $40,000Compare RatesVia Fiona.com’s Website
LendingClubBest Debt Consolidation Loans For Bad Credit Of April 2024 (23)3.5Best Debt Consolidation Loans For Bad Credit Of April 2024 (24)6008.98% to 35.99%$1,000 to $40,000Compare RatesVia Credible.com's Website

Tips for Comparing Bad Credit Debt Consolidation Loans

Below are three tips that can help you compare bad credit debt consolidation loans and find an offer that may work well for your situation.

  • Get multiple quotes. It’s wise to shop around and compare offers from multiple lenders any time you’re searching for financing. Doing so could save you hundreds (maybe even thousands) of dollars on a debt consolidation loan. If you can find lenders that offer personal loan pre-qualification, you won’t risk any potential credit score damage from rate shopping.
  • Don’t skip over the fine print. Getting a lower interest rate can be one of your biggest challenges if you’re shopping for apersonal loan with bad credit. But many people overlook the fact that loan origination fees can also make borrowing money more expensive. Be sure to review the fine print for any additional fees or costs associated with a potential loan so you can determine whether consolidating your debt with a particular lender makes sense.
  • Do the math. If you can qualify for a debt consolidation loan with a lower interest rate than you’re paying on your existing debts, it could make sense to move forward. But it’s important to verify the savings potential before you make anything official. A personal loan calculatorcan help you compare how much you’re paying on your current debts to the potential costs of a new loan—both on a monthly basis and in terms of overall interest and fees.

Pro Tip

When comparing lenders that offer bad credit debt consolidation loans, be sure to review how the consolidation process works. Sometimes lenders ask for creditor information, and the lender uses funds to pay off creditors directly so you don’t have to worry about making payments. In other cases, you get the cash from the loan in a lump sum, and you have to distribute the cash to pay off your credit balances.

The Complete Guide To Bad Credit Debt Consolidation Loans

  • What Is a Debt Consolidation Loan?
  • How Does Debt Consolidation Work?
  • Pros and Cons of Debt Consolidation
  • Where to Get a Debt Consolidation Loan with Bad Credit?
  • How to Qualify for a Debt Consolidation Loan with Bad Credit?
  • How to Get a Debt Consolidation Loan With Bad Credit
  • 3 Alternatives to Debt Consolidation Loans for Bad Credit
  • Methodology
  • Frequently Asked Questions (FAQs)

What Is a Debt Consolidation Loan?

A debt consolidation loan is a type of personal loan that can combine several existing debts in a single account. Once consolidated, you’ll have a single monthly payment to a new lender rather than multiple loan and credit card payments as before.

Debt consolidation might also save you money and could be good for your credit score in some situations. With credit card debt, in particular, using an installment loan to pay off revolving balances could lower your credit utilization rate and might improve your credit score as a bonus.

How Does Debt Consolidation Work?

When you take out a debt consolidation loan, you use the new loan to pay off one or more of your existing loans or credit cards. You then only have one payment to manage.

If you can’t make all of your debt payments, a debt consolidation loan can help you get a lower interest rate, making it easier to repay your balance. Along with a potentially lower interest rate, you can also choose a shorter term length, which will help you pay off your debt sooner. Alternatively, you may choose to take out a longer term loan. This makes each monthly payment smaller, but it can increase the total interest you pay over the life of the loan.

When choosing which route to go, it’s always recommended to select terms that you can afford monthly.

Pros and Cons of Debt Consolidation

Debt consolidation loans aren’t for everyone. Before accepting this financing, consider the pros and cons of debt consolidation:

Pros Of Debt Consolidation

  • Simplify your debt. Rather than managing multiple debts, you’ll consolidate your payments into one monthly payment.
  • Increase your credit score. Paying off credit card debt with an installment loan can help you increase your credit score, especially if you can avoid racking up a new balance on your credit card.
  • Pay off debt sooner.If you get a lower rate and/or a shorter term length, you can pay off your debt ahead of schedule.
  • Shrink your debt payments.A lower rate and/or a longer term length can help you shrink your monthly payments to a manageable level.

Cons Of Debt Consolidation

  • Can reinforce bad habits.Once you pay off your credit cards, your full credit limit is available to spend again. Some people can’t resist the temptation to keep spending, and in this case, you can end up with twice the amount of debt you had before.
  • Lower rates aren’t guaranteed. Interest rates are typically determined by what the lender currently offers and your creditworthiness, so it’s not guaranteed that you’ll get a lower rate on your new loan.
  • Can interfere with financing large purchases. Taking on any new debt right before you apply for a big loan, like for a house or a car, can be a red flag to lenders and make it more difficult to get approved for other credit.

Where To Get a Debt Consolidation Loan With Bad Credit

Lenders use credit scores to predict risk. Unfortunately, traditional lenders like banks may not be comfortable issuing you a loan to consolidate your debt when you have bad credit. There are, however, some lenders that might work with you even if you have damaged credit.

Related: Debt Consolidation Loan vs. Balance Transfer Credit Card

1. Online Lenders

Online lenders may offer debt consolidation loans with more lenient credit score requirements. However, debt consolidation loans for bad credit tend to feature higher interest rates and sometimes fees to offset the added risk. If the interest rate you qualify for isn’t low enough, debt consolidation might not save you money.

2. Credit Unions

Credit unions are another resource to consider if you want to consolidate debt with a bad credit score. Compared with traditional banks, credit unions are often more willing to approve borrowers with less-than-perfect credit; however, they require membership. Nonetheless, you may have to shop around to find a local credit union or an online credit union that is willing to work with your situation.

How To Qualify for a Debt Consolidation Loan With Bad Credit

Consolidating higher-interest debt at a lower rate can be an effective way to pay off your debt faster and save money on interest. However, finding a personal loan with a lower rate than your current loan can be difficult.

If you’re looking to consolidate credit card debt, you may be able to find a lower APR than what you’re currently paying on your credit card. As of February 2024, the average credit card interest rate was 21.59% APR, according to the Federal Reserve. This rate is similar to what lenders offer personal loan applicants with bad credit.

As you prepare your application, there are ways to improve your chances of qualifying for an affordable debt consolidation loan:

  1. Check your budget. Develop a comprehensive budget to determine the maximum monthly payment amount you can afford.
  2. Review your credit report. Review your credit report and contact the credit bureaus if there are any errors. Correcting those mistakes can improve your credit.
  3. Research different lenders. Research your options and find different lender recommendations for bad credit. Pre-qualifying for a loan can show you the rates and terms you may qualify for without impacting your credit score, and a debt consolidation loan calculator can help you compare costs.

How To Get a Debt Consolidation Loan With Bad Credit

Whether you have bad credit or good credit, the basic loan shopping process is similar to get a consolidation loan.

  • Start with a credit review. A lender will most likely review one of your credit reports and credit scores when you apply for a debt consolidation loan. So, you should check your credit from all three credit bureaus—Equifax, Experian and TransUnion—to ensure you meet the credit score requirements for a personal loan.
  • Search for lenders that are a good fit. Let’s say your FICO credit score is 580. In this scenario, a lender that requires a credit score of 660 won’t work for you. But a lender with a minimum credit score requirement of 560 could make it onto your list of borrowing possibilities.
  • Compare loan options. Some lenders allow you to pre-qualify and discover the personal loan interest rate they might offer you with a soft credit inquiry. Once you find loan options that might work for you, you can compare loans and narrow them down to the best deal.
  • Submit an application. The final step to getting a debt consolidation loan is to fill out a lender’s official loan application. Provide the lender with any documents or information it requests right away to avoid potential problems.

3 Alternatives to Debt Consolidation Loans for Bad Credit

A debt consolidation loan for bad credit may not be the best choice for everyone. If your credit prevents you from qualifying for a lower interest rate than you’re paying now, you may want to consider the following alternatives to debt consolidation.

1. Improve Your Credit First

Good credit comes with many perks, including the ability to qualify for better financing. If you’re not in a position to lock in an attractive interest rate on a debt consolidation loan right now, working to improve your credit might give you more options in the future.

When creating your credit improvement plan, remember: You may want to adjust your approach depending on whether you’re building credit from scratch or working to rebuild damaged credit. Either process can take time, but the payoff from earning better credit can make your hard work worthwhile in the long run.

2. Use a Debt Payoff Strategy

If you have some wiggle room in your monthly budget, a debt payoff strategy might work well for you. Do-it-yourself strategies like the debt snowball or debt avalanche method cause you to restructure the way you pay down your debt each month. In the end, each approach has the potential to save you time and money in the debt elimination process.

3. Get Professional Help

Credit card debt and other high-interest debt can sometimes get out of hand. If you’re struggling to keep up with even the minimum payments on your monthly credit obligations, it might be time to talk to a financial professional about your situation.

A nonprofit credit counseling company may have solutions that could help you, including a debt management plan. In extreme cases, you may even want to seek advice from a bankruptcy attorney regarding plans that can provide you with protection from your creditors.

Find the Best Balance Transfer Credit Cards Of 2024

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Methodology

We reviewed 15 popular lenders based on 11 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the best lenders based on the weighting assigned to each category:

  • Loan cost: 30%
  • Eligibility and accessibility: 25%
  • Loan details: 20%
  • Direct payment to creditors: 15%
  • Customer experience: 10%

Within each category, we also considered several characteristics, including available loan amounts, repayment terms, APR ranges and applicable fees. We also looked at minimum credit score requirements, whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated the availability of each provider’s customer support team.

Where appropriate, we awarded partial points depending on how well a lender met each criterion.

To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our .

Frequently Asked Questions (FAQs)

What credit score is needed for a debt consolidation loan?

Every lender sets its own guidelines when it comes to minimum credit score requirements for debt consolidation loans. However, it’s likely lenders will require a minimum score between 580 and 680.

Credit score requirements can vary widely from one lender to the next. Therefore, it’s wise to find out each lender’s criteria before you apply for financing.

Does a debt consolidation loan hurt your credit?

Consolidating your debt has the potential to impact your credit score in positive and negative ways. Applying for a loan and adding a new tradeline to your credit report are both actions with the potential to damage your credit score.

On the other hand, debt consolidation should help you pay down your debt faster, reducing the number of accounts with balances on your credit report. This could give your credit score a boost.

How do I get out of debt with no money and bad credit?

Getting out of debt when you have limited resources and bad credit can be difficult. If you want to manage the process on your own, your best bet is to try to find ways to cut your expenses, increase your income or both.

However, if you’re in a financial position that feels hopeless or overwhelming, it might be time to consider more extreme measures. Credit counseling or even bankruptcy can provide alternative debt solutions that could deal with an unmanageable financial situation.

Is a debt consolidation loan a good idea?

If you find the right loan with favorable terms, debt consolidation can improve your finances. For example, if your new loan has a lower interest rate than your current loans and/or credit cards, you can reduce the overall cost of your debt. However, if your new loan has terms you can’t afford, such as larger monthly payments, it may not be the best choice for you.

How long does it take to get approved for a consolidation loan?

Approval for a debt consolidation loan is similar in duration to any other personal loan. Some lenders—especially online lenders—offer same-day funding, but it can still take a couple of days for your bank to process the deposit. However, most lenders take a few days to a week to make a loan decision, plus a few extra days to disburse your funds if you’re approved.

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Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circ*mstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.

Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.

Best Debt Consolidation Loans For Bad Credit Of April 2024 (2024)

FAQs

What is the lowest credit score to get a consolidation loan? ›

Every lender sets its own guidelines when it comes to minimum credit score requirements for debt consolidation loans. However, it's likely lenders will require a minimum score between 580 and 680.

Can I get debt consolidation with bad credit? ›

This may be possible even if you have a less-than-perfect history, as some lenders specialize in bad credit. Aside from lower rates, consolidating can also help you reduce the number of debt payments you make each month.

How to get a loan when no one will approve you? ›

Apply for a secured loan

If you have something of value to offer as collateral, you might consider getting a secured loan that isn't a car title or pawn loan. There may be a credit check involved, but if your collateral is sufficient, it could help you to get approved.

Why am I not getting approved for a debt consolidation loan? ›

Insufficient credit history or poor payment history can also lead to a denial of a debt consolidation loan. Remember, your payment history is the most important factor in your credit score, comprising 35% of your FICO® Score. Even one missed payment can damage your score.

Can you get a debt consolidation loan with a 500 credit score? ›

You need a minimum credit score between 580 and 680 to get a debt consolidation loan that offers reasonable rates with most lenders. The higher your credit score is, the lower your APR is likely to be - and the main purpose of a debt consolidation loan is to get a lower APR for your debt.

Can I get a government loan to pay off debt? ›

While there are no government debt relief grants, there is free money to pay other bills, which should lead to paying off debt because it frees up funds. The biggest grant the government offers may be housing vouchers for those who qualify.

Does everyone get approved for debt consolidation loan? ›

You'll typically need a credit score of at least 700 to qualify for a debt consolidation loan with a competitive interest rate. Although a lower credit score doesn't automatically equal a denial, as some lenders offer loans for bad credit, the borrowing costs will likely be higher.

What is a hardship loan? ›

What Is A Hardship Loan? A hardship loan is a type of financing that helps people dealing with a financial crisis caused by an emergency expense or an income shortfall. You can use a hardship loan to cover everything from a surprise medical or car repair bill to necessities like food and rent.

What is the easiest loan to get immediately? ›

The easiest types of loans to get approved for don't require a credit check and include payday loans, car title loans and pawnshop loans — but they're also highly predatory due to outrageously high interest rates and fees.

What loans Cannot consolidate? ›

Private education loans are not eligible for consolidation. Direct PLUS Loans received by parents to help pay for a dependent student's education cannot be consolidated together with federal student loans that the student received.

Do banks give debt consolidation loans? ›

Banks, credit unions, and installment loan lenders may offer debt consolidation loans. These loans convert many of your debts into one loan payment, simplifying how many payments you have to make. These offers also might be for lower interest rates than what you're currently paying.

What score do you need to consolidate debt? ›

Generally, borrowers with scores of 740 or higher will receive the best interest rates, followed by those in the 739 to 670 range. If your credit score is lower than 670, debt consolidation may not be a good option for you.

Do you need a good credit score for a consolidation loan? ›

Getting a debt consolidation loan if you have bad credit (a credit score below 630) may require some shopping around, but there are options, including loans from credit unions and online lenders.

Can I borrow money with a 600 credit score? ›

Yes, you can get a personal loan with a 600 credit score — there are even lenders that specialize in offering fair credit personal loans. But keep in mind that if you have a credit score between 580 and 669, you'll generally be considered a “subprime” borrower — meaning lenders might see you as a more risky investment.

How big of a loan can I get with a 600 credit score? ›

With FICO, fair or good credit scores fall within the ranges of 580 to 739, and with VantageScore, fair or good ranges between 601 to 780. Many personal loan lenders offer amounts starting around $3,000 to $5,000, but with Upgrade, you can apply for as little as $1,000 (and as much as $50,000).

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