Debt Consolidation Loans for Bad Credit Rates in August 2025

I shopped for personal loans with Upstart using my real personal information to better understand the application process. Here’s what I found:

• Application experience: Upstart’s application is straightforward and clear. It has more questions than the average loan application, but these questions are tied to its AI algorithm designed to improve users’ chances of approval.
• Unusual questions to prepare for: Amounts in checking, savings and investment accounts; car payment; miles on car

If you have bad (or no) credit, lending platform Upstart is worth exploring. At just 300, Upstart has the lowest credit threshold of all the picks on our list. In fact, Upstart may approve you even if you don’t have any credit. Unlike other traditional lending companies, Upstart approves some borrowers who don’t have a credit history.

But if you have bad credit, you’ll likely be on the hook for a hefty origination fee and likely 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.

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
• Employment: Have a job or job offer that starts within six months, or have regular income
• Credit-related factors: Debt-to-income (DTI) ratio no higher than 50% (45% in Connecticut, Maryland, New York and Vermont), no bankruptcies within the last year, fewer than six inquiries on your credit report in the last six months 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)

I shopped for personal loans with Best Egg using my real information. Here’s what I found:

• Application experience: Best Egg asks more questions than the average lender, but its application is clear and easy to complete. Once you have offers, you can quickly click through to a loan agreement that outlines next steps and how much you’ll pay.
• Unusual questions to prepare for: Annual income for other people in your household, other types of accounts held (e.g., savings, retirement and investments), car payment, number of cash advances taken in past six months

If you’re a homeowner and looking for the lowest debt consolidation rates for your credit score, consider applying with Best Egg. Best Egg offers a homeowner discount that allows you to use your home’s fixtures (like cabinets) as collateral in exchange for lower rates and better approval odds.

Keep in mind that as long as you’re paying off your secured loan, it will be hard to sell or refinance your home since Best Egg will have a lien on your home’s fixtures.

Best Egg uses your home’s permanent fixtures as collateral, but no appraisal is needed. Instead, Best Egg will review your credit history and home equity to see if you qualify.

You must also meet the requirements below to qualify for a Best Egg loan:

• Citizenship: Be a U.S. citizen or permanent resident living in the U.S.
• Administrative: Have a personal checking account, email address and physical address
• Residency: Not live in the District of Columbia, Iowa, Vermont, West Virginia or U.S. territories
• Credit score: 580+

I shopped for personal loans with Upgrade using my real information. Here’s what I found:

• Application experience: Upgrade’s application is very quick with few questions, and it’s easy to apply with a co-borrower — you can add their information on the first page.
• Unusual step to prepare for: Must create an account to see your rates

Lending platform Upgrade offers the longest repayment terms on our list. Longer terms mean you’ll likely pay more in interest over the life of the loan in exchange for cheaper monthly payments.

Plus, 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. Upgrade also charges $10 for missed or late payments.

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+

I shopped for personal loans with Avant using my real personal information to better understand the application process. Here’s what I found:

• Application experience: Avant’s application is straightforward and fast — easily one of the best application experiences I tested.
• Unusual questions to prepare for: None! Just make sure to have your Social Security number on hand.

If you need to consolidate your debt quickly, consider Avant. Avant can let you know if you’re approved within minutes and can fund your loan as soon as the next 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.

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+

I shopped for personal loans with OneMain using my real information. Here’s what I found:

• Application experience: OneMain’s application is fast and easy to navigate, especially if you’ve prepared for additional questions about your income and employment (see below).
• Unusual questions to prepare for: Monthly take-home pay (most lenders ask for annual income), employer phone number, car payment

If you’re in a hurry to consolidate your debt, check your rates with OneMain Financial. You could get your money as soon as an hour after signing. Plus, OneMain has one of the lowest credit score requirements on the market — you could qualify with a credit score as low as 500. 

That said, if you have a lot of debt, consider another lender on this list. OneMain only offers up to $20,000. You’ll also need to budget for a one-time origination fee that OneMain will take from your loan money before sending it to you.

OneMain Financial isn’t very transparent about its personal loan eligibility requirements, but it’s possible to qualify even with a credit score as low as 500. Before closing on a loan, you must provide:

• Government-issued identification (such as a driver’s license or passport)
• Proof of residence (such as a rental agreement or utility bill)
• Proof of income (such as pay stubs or tax returns)

OneMain loans are not available in Alaska, Arkansas, Connecticut, District of Columbia, Massachusetts, Rhode Island, Vermont or U.S. territories.