If you’re able to keep up with your loan payments, debt consolidation loans may actually help with your credit score. As you pay off your debt, you’ll reduce your debt-to-income ratio and demonstrate to creditors that you can make timely payments. Over time, this can boost your credit score.
Debt Consolidation Loans for Bad Credit in August 2025
Consolidate high-interest debt even if you have poor credit
Updated on:
July 28, 2025
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Upstart: Best overall debt consolidation loans for bad credit
300
6.60% - 35.99%
36 or 60 months
$1,000 to $75,000
0.00% - 12.00%
Pros
- One of the lowest credit score requirements on the market
- Can get your money one day after you're approved
- Sends money directly to your current creditors
Cons
- Only two repayment terms to choose from (36 or 60 months)
- Although you may be approved with bad credit, your rate will probably be high
- Can't take out a loan with a second person
Why we like it
At just 300, Upstart has lowest credit threshold of all the lenders on our list. In fact, Upstart may approve you even if you don’t have any credit. Aside from that, LendingTree users rated it five out of five stars.
What to know
If you have bad (or no) credit, lending platform Upstart is worth exploring. It requires a minimum score of 300, one of the lowest credit floors around. Also, unlike other traditional lenders, Upgrade approves some borrowers who don’t have a credit history.
However, if you have bad credit, you’ll likely be on the hook for a hefty origination fee and pay rates as high as 35.99%. You’ll also only have the option to choose between two repayment terms, whereas other lenders have multiple terms you can choose from.
How to qualify
Upstart has transparent eligibility requirements, including:
- Age: Be 18 or older
- Administrative: Have a U.S. address, personal banking account, email address and Social Security number
- Income: Have a valid source of income, including a job, job offer or another regular income source
- Credit-related factors: No bankruptcies within the last three years, reasonable number of recent inquiries on your credit report and no current delinquencies
- Credit score: 300+ (unless you’re an eligible college student or graduate, in which case Upstart could approve you with no credit)
Avant: Best for fast approval decisions
550
9.95% - 35.99%
24 to 60 months
$2,000 to $35,000
Up to 9.99%
Pros
- May get your money as soon as the day after you're approved
- Easily manage application and payments through mobile app
- Reports to all three credit bureaus
Cons
- Might not offer enough money if you have a large amount of debt to consolidate
- Potential for high origination fee
- $25 late payment fee
Why we like it
If you need money quickly, Avant can let you know if you’re approved within minutes and can fund your loan as soon as the next day.
What to know
Since Avant reports to all three credit bureaus — Equifax, Experian and TransUnion — consolidating through Avant can help you improve your creditworthiness. Avant also funds your loan as quickly as the next business day.
You can only borrow up to $35,000 with Avant, so you’ll need to consider other lenders if you’re consolidating more debt. You’ll also need to budget for a potentially high origination fee that Avant will take out of your loan before sending it to you.
How to qualify
To get a loan with Avant, you’ll need to meet the following minimum requirements:
- Residency: Not available to residents of Hawaii, Iowa, Maine, Massachusetts, New York, Vermont, Washington and West Virginia.
- Administrative: Must have a bank account. May need to submit bank statements, pay stubs or tax documents to prove your income. Avant may also call your employer to verify your employment.
- Credit score: 550+
Upgrade: Best for stretching out your payments
580
7.99% - 35.99% (with discounts)
24 to 84 months
$1,000 to $50,000
1.85% - 9.99%
Pros
- Offers long repayment terms (24 to 84 months)
- May get funds within a day of accepting loan offer
- Use your car as collateral to improve your approval chances
- Get better odds of approval by adding a second person with good credit to your loan
Cons
- Keeps between 1.85% - 9.99% out of every loan as an origination fee
- Charges a $10 late payment fee
Why we like it
Upgrade offers the longest repayment terms on our list. Longer terms may mean you pay more in interest over the life of the loan, but you may have smaller, more affordable monthly payments.
What to know
Upgrade offers joint loans. If you’re looking to consolidate debt that you and someone else have accrued together, it’s worth your time to check your rates with Upgrade. You can also put your car up as collateral with a secured loan to access lower rates.
If your score is low, you’ll likely pay a steep origination fee. Upstart also charges $10 for missed or late payments.
How to qualify
To qualify for a loan through Upgrade, you must meet the requirements below:
- Age: Be at least 18 years old (19 in some states)
- Citizenship: Be a U.S. citizen, permanent resident or live in the U.S. with a valid visa
- Administrative: Have a valid bank account and email address
- Credit score: 580+
LendingClub: Best for getting a loan with a second person
600
7.90% - 35.99%
24 to 72 months
$1,000 to $60,000
0.00% - 8.00%
Pros
- Can change your due date one time
- Add another person to your loan to potentially qualify for more money or better rates
- 15-day grace period for payments
Cons
- Only offers up to $60,000 (other lenders offer up to $50,000)
- May charge an origination fee of 0.00% - 8.00%
Why we like it
LendingClub allows you to apply for joint loans, meaning you and a second person can apply for a debt consolidation loan together. Adding another person to your loan application can make it easier for you to qualify.
What to know
You can take some of the stress out of the debt consolidation process by having LendingClub pay your creditors directly. Plus, applying for a LendingClub loan with a co-borrower who has excellent credit can help you get better rates and more money.
However, this online lender may charge you a 0.00% - 8.00% origination fee and you can only borrow up to $60,000.
How to qualify
To be eligible for a LendingClub personal loan, you must meet the following requirements:
- Age: Be at least 18 years old
- Citizenship: Be a U.S. citizen or permanent resident
- Administrative: Have a verifiable bank account
- Credit score: 600+
Prosper: Best for peer-to-peer lending
600
8.99% - 35.99%
24 to 60 months
$2,000 to $50,000
1.00% - 9.99%
Pros
- Get better chances of approval by adding a second person with good credit to your loan
- Peer-to-peer loans are typically easier to qualify for
- Change your due date up to once a year
Cons
- Keeps 1.00% - 9.99% of your loan as an origination fee
- Cancels loan request if investors don't fund at least 70% of your loan within 14 days
- $15 late fee (or 5% of the unpaid balance, whichever is greater)
Why we like it
Prosper is a peer-to-peer loan platform that links investors with borrowers. This nontraditional approach may make it easier to get approved if you have poor credit.
What to know
Aside from its peer-to-peer lending model, Prosper allows you to apply with a co-applicant, which could improve your odds of getting a loan and help you qualify for more money.
Although you can get your loan as soon as the next business day after Prosper approves you, getting to that stage can take up to five business days. And, since it’s peer-to-peer, you’ll need to wait for an individual investor to pick up your loan request.
How to qualify
To get a loan with Prosper, you must meet the following requirements:
- Age: Be 18 or older
- Administrative: Have a U.S. bank account and Social Security number
- Residency: Not live in Iowa or West Virginia
- Credit score: 600+
Happy Money: Best for consolidating credit card debt
640
8.95% - 29.99%
24 to 60 months
$5,000 to $40,000
1.50% - 5.50%
Pros
- Customer service available seven days a week
- No application or late payment fees
- Consolidation loans specifically geared toward credit card debt
Cons
- May take as long as seven business days for approval
- Can't add a second person to your loan
- Loans not available in Iowa, Massachusetts or Nevada
- Charges a 1.50% - 5.50% origination fee on all loans
Why we like it
Happy Money specializes in offering loans to those who are looking to consolidate their credit card debt. As of this writing, the average credit card rate is 24.20%, but with Happy Money, the max you’ll pay is 29.99%.
What to know
Happy Money offers loans specifically for refinancing credit card debt. Even if you barely qualify for a loan, your maximum APR will only be 29.99% — much lower than many other lenders that offer debt consolidation loans for bad credit.
You can’t get a small loan from Happy Money, and you’ll need a credit score of at least 640 to qualify. You will also have to pay an origination fee (albeit one that’s lower than some competitors).
How to qualify
Happy Money provides clear eligibility requirements as to how you can qualify for a loan:
- Age: Must be 18 years or older
- Administrative: Must have a valid Social Security number and checking account
- Residency: Not live in Iowa, Massachusetts or Nevada
- Credit score: 640+
- Payment history: Zero current delinquencies on your credit profile
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LendingTree users save $1,659 on average just by shopping and comparing rates.
309,000 loans
In 2024, LendingTree helped find funding for over 309,000 personal loans.
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How to qualify for a debt consolidation loan if you have bad credit
- Check your credit score. You can check your credit score with LendingTree Spring. You can also request a free copy of your credit report from all three credit bureaus at AnnualCreditReport.com.
- Research lenders in your credit band. If you have bad credit, many lenders might not be willing to extend you a loan — but that doesn’t mean you’re out of options. Check minimum credit score requirements for potential lenders.
- Check with local credit unions. A credit union personal loan may benefit those who have bad credit when it comes to debt consolidation. Credit unions are not-for-profit, member-owned financial institutions that have membership requirements typically based on where you live or work.
- Consider a cosigner. Bad credit borrowers may consider getting a personal loan with a cosigner by enlisting the help of a friend or family member who has good credit and would be willing to cosign on a loan. Review our list of the best personal loans with a cosigner. Be aware that not all lenders allow cosigners.
- Apply for prequalification. Prequalification involves a soft credit inquiry, so you can check your eligibility and the terms you may be offered without affecting your credit score. If you have bad credit, even losing a few points from a hard credit inquiry could affect your chances of getting the loan.
- Formally apply for the loan. This will involve a hard credit inquiry and could slightly (but temporarily) impact your credit score. When you reach this stage of the application process, be prepared with documents that show your ability to repay debt, such as tax returns and pay stubs.
- Use the loan funds to pay off other debts. If approved, the lender will typically deposit the money into your bank account within a few days. You can use this money to pay off your debts, like credit cards and payday loans.
Compare debt consolidation rates in your area
Frequently asked questions
Different lenders have different credit score requirements. Some will require that you have a good credit score while others will accept fair credit. The lower your credit score, the higher your APR will likely be.
Yes, you can get a debt consolidation loan with bad credit. However, you’ll likely pay high rates and may need to take out a secured loan or apply with a co-borrower. If you’re stuck with high rates, you can always refinance your personal loan down the road.
If you want to apply for a debt consolidation loan but you have a lot of debt, getting approved may be difficult, but not impossible. For starters, check your credit score to see where you stand and work on cutting down on your debt. You can do this by using methods like the debt snowball method or the debt avalanche method.