Best Debt Consolidation Loans for Bad Credit in September 2026
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Quick answer: Yes — you can qualify for a debt consolidation loan with bad credit. Several lenders, including Upstart and OneMain Financial, have no formal minimum credit score, while others (Avant, Upgrade) accept scores as low as 580 to 600. Expect a higher APR than borrowers with good credit typically see — rates for bad-credit personal loans typically go up to 35.99% APR, depending on your full financial profile, not just your score.
- No minimum credit score required: Upstart and OneMain Financial don’t publish a formal minimum credit score requirement.
- Lowest published minimums among featured lenders: Avant (580), Upgrade (600).
- Rates run high at the top of the range: all four featured lenders cap out at 35.99% APR for lower-credit borrowers.
- Funding can be fast: OneMain says funds can arrive in as little as an hour with a debit card; Avant and Upstart both cite next-business-day funding.
- Checking your rate doesn’t hurt your credit: all four lenders let you prequalify with a soft credit check before you formally apply.
Compare debt consolidation loans for bad credit
| Lender | Best for | APR | Loan amount | Term | Origination fee | Minimum credit score |
|---|---|---|---|---|---|---|
 | Overall bad-credit debt consolidation | 6.30% to 35.99% | $1,000 to $75,000 | 36 or 60 months | Varies | None |
 | Same-day funding | 11.99% to 35.99% | $1,500 to $30,000 | 24 to 60 months | $25 to $500, or 1.00% – 10.00% | None |
 | Fast approval decisions | 9.95% to 35.99% | $2,000 to $35,000 | 24 to 60 months | Up to 9.99% | 580 |
 | Rate discounts | 7.74% to 35.99% (with discounts) | $1,000 to $50,000 | 24 to 84 months | 1.85% – 9.99% | 600 |
What types of debt consolidation loans are available with bad credit?
Two main structures show up across bad-credit lenders:
- Unsecured personal loans. Most debt consolidation loans — including all four lenders above — are unsecured, meaning they’re backed by your promise to repay rather than collateral.
- Secured loans. Some lenders let you pledge an asset (commonly a vehicle) to improve approval odds or lower your rate. OneMain, for example, allows you to use your car as collateral in exchange for potentially better terms.
If you’re weighing secured vs. unsecured, remember: a secured loan puts your asset at risk if you fall behind on payments. An unsecured loan doesn’t put a specific asset at risk, but it typically carries a higher rate for bad-credit borrowers to offset the risk to the lender.
What credit score do you need to qualify?
Credit scores generally fall into these tiers, according to the National Credit Union Administration (NCUA):
| Tier | FICO range |
|---|---|
| Poor | Below 580 |
| Fair | 580 to 669 |
| Good or better | 670+ |
All lenders on this page have minimums in the poor or fair range, so borrowers with bad credit could have a real path to approval — but approval still depends on income, existing debt and overall financial history, not score alone.
What will a debt consolidation loan cost with bad credit?
Two costs matter more than the headline rate:
- APR (annual percentage rate). Across the four lenders featured here, APRs run up to 35.99% at the top of every lender’s range. The Federal Reserve has reported the average rate on a 24-month personal loan from commercial banks at 11.86% — a useful benchmark for seeing how much higher bad-credit pricing runs versus the broader market.
- Origination fee. This is deducted from your loan proceeds before you receive funds. On this page, OneMain Financial ($25 to $500, or 1.00% - 10.00%) and Avant (Up to 9.99%) both charge origination fees. A legitimate lender always deducts the origination fee from the loan amount — it should never be requested as an upfront payment before funding (see red flags below).
How do you apply for a debt consolidation loan with bad credit?
- Prequalify with a soft credit check. All four lenders above let you see estimated rates without a hard inquiry.
- Compare at least three offers. Rates and fees vary significantly from lender to lender even at the same credit score.
- Gather your documents. Typical requirements include a government-issued ID, proof of residence and proof of income (pay stubs or tax returns) — OneMain specifically requires all three.
- Complete the full application. This triggers a hard credit check and finalizes your actual rate and terms.
- Review final terms before signing. Confirm the APR, origination fee, monthly payment and total repayment amount match what you expect.
- Receive funds. Speed varies by lender — OneMain says funds can arrive in as little as an hour with a debit card; Avant and Upstart both cite as soon as the next business day.
What are your repayment options?
Loan terms across the featured lenders range from 24 to 84 months. Generally:
- Shorter terms (24 to 36 months) mean higher monthly payments but less total interest paid over the life of the loan.
- Longer terms (60 to 84 months), available through lenders like Upgrade, lower your monthly payment but increase total interest paid.
Choose the shortest term you can comfortably afford — the monthly payment difference is often smaller than the total-interest difference.
Alternatives to a bad-credit debt consolidation loan
Before committing to an online lender, it’s worth checking these options first:
- Payday alternative loans (PALs). Federal credit unions can offer PALs from $200 to $1,000 with terms of one to six months — a regulated, far lower-cost alternative to a payday loan, according to the NCUA.
- Secured personal loans. If you have savings, a certificate or a vehicle to pledge, a secured loan may come with a lower rate than an unsecured offer.
- 0% intro APR balance-transfer credit cards. If your credit qualifies, a promotional 0% period (typically 12 to 21 months) can let you pay down existing debt with no interest during that window.
- Nonprofit credit counseling. If the goal is managing existing debt rather than getting new financing, a nonprofit counselor can sometimes arrange a lower-cost payment plan than any new loan.
Risks and red flags to avoid
Bad-credit borrowing attracts predatory offers. Watch for:
- “Guaranteed approval.” No legitimate lender can guarantee approval before reviewing your application, income and credit history. Any promise of guaranteed approval is a red flag for predatory lending or fraud.
- Upfront fee requests. Legitimate lenders deduct origination fees from your loan proceeds — they never ask you to send money before funding.
- Payday loans. These carry extremely high effective costs. The NCUA notes that a typical $15 fee on a $100, two-week payday loan works out to roughly 391% APR — significantly higher than the 35.99% max from lenders featured on this page.
Key terms to know
- APR (annual percentage rate): The interest rate plus applicable fees, expressed as a yearly rate — the most accurate way to compare total loan cost across lenders.
- Origination fee: An upfront fee deducted from your loan proceeds before disbursement, not paid separately out of pocket.
- Secured loan: A loan backed by collateral (like a vehicle), which the lender can claim if you don’t repay.
- Unsecured loan: A loan backed only by your promise to repay, with no specific asset at risk.
- Soft credit check: A credit check used for prequalification that doesn’t affect your credit score, as opposed to a hard inquiry triggered by a full application.
How we chose these lenders
LendingTree’s team of expert writers and editors reviewed more than 40 lenders and lending platforms — and shopped directly with 15 of them — to find the best debt consolidation loans for bad credit. To make our list, lenders must offer debt consolidation loans, advertise a minimum credit score of 600 or lower and cap their annual percentage rates (APRs) at 36% or lower.
From there, we assessed each lender or marketplace across four categories: eligibility and access; cost to borrow; loan terms and options; repayment support and tools.
Our categories
We assess how easy it is for people to qualify and apply. This includes state availability, soft-credit prequalification, membership requirements, funding speed and whether borrowers with less-than-excellent credit can get a loan.
We evaluate how affordable the loans are based on minimum and maximum APRs, loan fees and rate discounts. Lenders with unclear or potentially predatory costs receive lower scores.
We consider repayment term flexibility, loan amount ranges and whether options like secured loans, joint loans or direct-to-creditor payments are offered — plus whether the lender clearly communicates these options.
We evaluate borrower experience after funding: customer service access, hardship or forbearance programs, payment flexibility and digital tools like mobile apps or credit monitoring.
Our process
We gather data directly from lenders through their websites, disclosures and direct communication with company representatives. Our editorial team verifies and updates information regularly. We value transparency and award less favorable scores when lenders obscure or omit details.
Our editorial team applies the same scoring model and standards to every lender. Lenders cannot pay to influence our ratings. Read more about our editorial guidelines.
According to our systematic rating and review process, the best debt consolidation loans for bad credit come from Upstart, Upgrade, Avant and OneMain Financial.
This page was last updated in September 2026. Rates, terms and lender availability change frequently — confirm current details directly with each lender before applying. Sources referenced on this page include the National Credit Union Administration and the Federal Reserve.
Frequently asked questions
Among the lenders compared here, Upstart and OneMain Financial have no formal minimum credit score requirement, making them the most accessible options for very low or thin credit files.
Expect APRs toward the higher end of each lender’s range — up to 35.99% across all four lenders featured here.
No. Legitimate lenders review your credit, income and application before making a decision. Any offer advertising guaranteed approval should be treated as a warning sign of predatory lending.
A debt consolidation loan is a fixed-rate installment loan repaid in equal monthly payments over months or years. A payday loan typically requires full repayment within a few weeks and carries a dramatically higher effective cost — the NCUA calculates a typical payday loan fee structure at roughly 391% APR.
No, not at the prequalification stage. All four lenders compared on this page let you check estimated rates with a soft credit check, which doesn’t affect your score. A hard inquiry only occurs once you submit a full application.
Typical personal loan requirements include a government-issued ID, proof of residence (like a lease or utility bill) and proof of income (pay stubs or tax returns).
Personal loan funding speed varies by lender. OneMain says funds can be available in as little as an hour with a debit card; Avant and Upstart both advertise funding as soon as the next business day after approval.
Consider a credit union (especially one that offers Payday Alternative Loans), a secured loan using an asset as collateral, a 0% intro APR balance-transfer card if you qualify or nonprofit credit counseling to restructure existing debt before taking on new financing.