The Best Debt Consolidation Loans for Bad Credit [August 2025]: Options for Scores Even 580 and Below

If you feel trapped by mountains of debt—and your credit has suffered because of it—don’t panic. You aren’t out of options. A debt consolidation loan could help. These loans combine multiple debts—like credit cards, medical bills, and personal loans—into a single monthly payment, ideally with a lower interest rate.

While the best rates go to borrowers with strong credit, even those with fair (580–669) or poor credit (below 580) may qualify for a loan that reduces their financial burden. Below, we’ll review the best debt consolidation loans for bad credit.

Table of Contents

1. Reviews of the best debt consolidation loans for bad credit
   1. Upstart
   2. Best Egg
   3. OneMain Financial
   4. LendingPoint
   5. Achieve
   6. Upgrade
   7. Avant
   8. Prosper
2. How your credit score affects your debt consolidation loan options
   1. Can you get a debt consolidation loan with a 580 credit score?
   2. What about a debt consolidation loan for a 500 credit score?
3. How to consolidate debt with bad credit
4. Are guaranteed debt consolidation loans for bad credit legit?
5. Credit card consolidation loans for bad credit
6. Alternatives to debt consolidation loans

Reviews of the best debt consolidation loans for bad credit

If you have bad credit but want to consolidate your debts, these lenders offer some of the best options available today. Whether you’re looking for low minimum credit score requirements, fast funding, or flexible repayment terms, our picks for the best debt consolidation loans for bad credit can help you get back on track.

Upstart

Best Overall

4.8 _/5

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Why it’s one of the best

Upstart offers the best debt consolidation loans for bad credit of any lender currently on the market. Borrowers with the lowest possible credit score (300) are eligible, and Upstart uses other factors outside of your credit score in its decisioning process.

You can borrow from $1,000 to $50,000, with funds as soon as the next day. Upstart currently has a 4.9-star rating on Trustpilot and an A+ rating on Better Business Bureau, with which it’s accredited.

• Available to borrowers with lowest possible credit score
• Considers non-credit factors in decision-making
• Low potential APR
• Funding as fast as one business day
• Great online reviews
• Small loans available

• The highest possible origination fee of all top lenders

Loan details

Rates (APR)	6.6% – 35.99%
Origination fee	Up to 12%
Loan amounts	$1,000 – $50,000
Repayment terms	3 – 5 years
Min. credit score	300

Best Egg

Best for Customer Satisfaction

4.8 _/5

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Why it’s one of the best

BestEgg offers some of the best customer satisfaction for debt consolidation loans. The lender is accredited with the Better Business Bureau, where it has an A+ rating, and it has a 4.6 on Trustpilot. BestEgg also has a Direct Pay feature to pay your creditors directly, simplifying the debt consolidation process.

• Direct pay available
• Low potential APR
• Great online reviews
• Funding in as fast as 24 hours

• Need a credit score of 640 or higher
• High origination fees
• No $1,000 loans available

Loan details

Rates (APR)	6.99% – 35.99%
Origination fee	0.99% – 9.99%
Loan amounts	$2,000 – $50,000
Repayment terms	3 – 7 years
Min. credit score	640

OneMain Financial

Best for No Credit Requirements

4.2 _/5

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Why it’s one of the best

If you have really bad credit (or no credit history at all), OneMain Financial could be another great option for debt consolidation. While OneMain will still check your credit, there’s no minimum credit score required.

That said, if you have poor credit or no credit at all, you may only qualify for a secured personal loan requiring collateral, such as your vehicle. Funding can be as fast as an hour but often takes one to two business days.

• Money as fast as one hour after loan closing
• No minimum credit score requirements
• Can use vehicle as collateral for lower rate (secured loan)

• Incredibly high APRs
• High origination fees
• Small max loan amount

Loan details

Rates (APR)	18% – 35.99%
Origination fee	1% – 10%
Loan amounts	$1,500 – $20,000
Repayment terms	2 – 5 years
Min. credit score	N/A

LendingPoint

Great for Low APR

4.9 _/5

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Why it’s one of the best

LendingPoint has one of the lower possible APRs (though you should expect a higher APR when applying with bad credit). You can get a loan as small as $1,000 and receive funding the very next day. While LendingPoint is known to approve borrowers with fair credit, the lender does not disclose its exact minimum credit score requirements.

• Low potential APR
• Funding as fast as next business day
• Small loans available

• Exact credit score requirements not disclosed
• High origination fees
• Small max loan amount

Loan details

Rates (APR)	7.99% – 35.99%
Origination fee	Up to 10%
Loan amounts	$1,000 – $36,500
Repayment terms	2 – 6 years
Min. credit score	Not disclosed

Achieve

Best Customization

4.8 _/5

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Why it’s one of the best

Achieve gives you multiple options for consolidating your debt. Not only can you get a debt consolidation loan with flexible repayment terms and a potentially lower rate by direct pay, but you can also choose various routes to consolidation, including a personal loan, home equity loan, or debt resolution.

• Multiple options for consolidating debt
• Direct pay available
• Rate discounts available
• Lower max APR

• No small loans available
• High minimum origination fee

Loan details

Rates (APR)	8.99% – 29.99%
Origination fee	1.99% – 8.99%
Loan amounts	$5,000 – $50,000
Repayment terms	2 – 5 years
Min. credit score	620

Upgrade

Best for Money Bonus

4.9 _/5

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Why it’s one of the best

Upgrade is another great debt consolidation loan for bad credit (580 minimum credit score). Its flexible loan terms (up to seven years) and low potential APR are attractive, but even more exciting is the potential $200 bonus. The catch? You need to open a Rewards Checking Preferred account and deposit $1,000.

• Low potential APR
• Small loans available
• Funding as soon as one business day
• Direct pay available
• Rate discounts available
• $200 bonus available

• Bonus requires banking with Upgrade
• High minimum origination fee

Loan details

Rates (APR)	7.99% – 35.99%
Origination fee	1.85% – 9.99%
Loan amounts	$1,000 – $50,000
Repayment terms	2 – 7 years
Min. credit score	580

Avant

Good for Fast Decisions

4.6 _/5

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Why it’s one of the best

Avant offers good debt consolidation loans if you need a decision fast. The application process takes minutes, the decisioning process takes only a few minutes more, and funds are available as fast as the next business day.

Credit score requirements are notably low (550), but the loan terms and amounts are more restricted than the other best debt consolidation loans for bad credit on this list.

• Decision within minutes of applying
• Funding as soon as the next business day
• Fast application process (also minutes)
• Low minimum credit score requirement (550)

• Small max loan amount
• No $1,000 loans available
• High potential origination fee

Loan details

Rates (APR)	9.95% – 35.99%
Origination fee	Up to 9.99%
Loan amounts	$2,000 – $35,000
Repayment terms	2 – 5 years
Min. credit score	550

Prosper

Good for Fast Funding

4.8 _/5

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Why it’s one of the best

Prosper offers personal loans for debt consolidation to borrowers with fair credit (640 and above). You can get funding as soon as the next business day, and loans go as high as $50,000.

APRs can be as low as 8.99%, but if you’re borrowing with bad credit, expect to pay more. Prosper has a 4.6-star rating on Trustpilot and an A rating with the Better Business Bureau, with which it’s accredited.

• Funding as soon as one business day
• Great online reviews
• Low potential APR

• Need a credit score of 640 or higher
• No $1,000 loans available
• High potential origination fee

Loan details

Rates (APR)	8.99% – 35.99%
Origination fee	1% – 9.99%
Loan amounts	$2,000 – $50,000
Repayment terms	2 – 5 years
Min. credit score	640

How your credit score affects your debt consolidation loan options

If you’re shopping for a debt consolidation loan with bad credit, your credit score will play a big role in what you’re actually eligible for. While there’s no official minimum, lenders tend to group applicants by score ranges—and those groups come with very different rates, loan terms, and requirements.

Below is a breakdown of what you can expect based on your credit score, including typical APRs, whether you may need a cosigner or collateral, and which lenders are most likely to work with you.

Credit score ranges and loan options

Credit score range	Loan options	Likely APR
300–579	Very limited; often secured loans only	30%+ or denied
580–619	Subprime loans with high interest	20%–36%
620–679	Fair credit lenders, more choices	15%–29%
680+	Good to excellent credit; best rates	6%–20%

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Can you get a debt consolidation loan with a 580 credit score?

Yes—many lenders do offer a debt consolidation loan for a 580 credit score, but rates will be high and you may need to offer collateral or apply with a cosigner. Lenders like Upgrade and Avant are open to applicants in this credit tier, especially if you have a steady income and a low debt-to-income (DTI) ratio.

What about a debt consolidation loan for a 500 credit score?

At the 500 credit score level, your options are limited. You may not qualify for an unsecured loan at all, and your best chance is through a secured loan, such as one backed by a vehicle or savings account. OneMain Financial and Upstart are two potential options, though you should expect APRs at the high end of the range.

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Bottom line: If you’re consolidating debt with bad credit, here’s what to keep in mind:

• Your interest rate will likely be higher, especially below 620.
• Lenders may require a cosigner or collateral to approve your application.
• Your best bet is to prequalify with multiple lenders to compare real offers without impacting your score.

How to consolidate debt with bad credit

If your credit score is under 600, getting a debt consolidation loan can be tough—but it’s not impossible. The process just requires a little more strategy, and you’ll want to make every move count.

Here’s a step-by-step breakdown of how to consolidate debt with bad credit, starting right where you are.

Step 1: Check your credit and fix any errors

Before you apply, review your full credit report from all three bureaus at AnnualCreditReport.com. Look for:

• Incorrect account statuses (e.g., paid-off debt marked as unpaid)
• Duplicate collections
• Accounts you don’t recognize

Disputing even one error could give your credit score the bump it needs to unlock better loan terms or move you out of the “high risk” category.

Step 2: Compare secured vs. unsecured loan options

If your credit score is under 600, you’re more likely to qualify for:

• Secured loans: Backed by your vehicle, savings, or home equity. These offer lower rates but come with risk if you can’t repay.
• Unsecured loans with high rates: Available from bad-credit lenders like the ones above, but rates can go as high as 36%.
• Cosigned loans: If someone with good credit is willing to cosign, you could qualify for better rates and terms.

Step 3: Use prequalification tools

Most legit lenders offer soft credit check prequalification, letting you preview loan offers without impacting your score. Use this to your advantage.

You can:

• Compare rates and terms
• See if secured or unsecured loans are more realistic
• Narrow your options to lenders that actually serve bad-credit borrowers

Step 4: Organize and prioritize your debt

Gather your credit card statements, loan balances, and monthly payments. This helps you:

• See exactly how much you owe
• Choose the right loan amount
• Identify which debts should be prioritized (e.g., high-interest cards first)

Some consolidation loans allow you to pay off creditors directly, while others deposit the funds in your bank account—make sure you’re ready to use them strategically.

Step 5: Improve your loan eligibility if you’re getting denied

If no lender will approve you—or the rates are sky-high—it might be time to pause and strengthen your financial profile. Try:

• Paying down small balances to lower your credit utilization
• Making all payments on time for a few months
• Adding a coborrower or cosigner with better credit
• Opening a secured credit card and using it responsibly

Even a 20- to 40-point improvement could open the door to much better consolidation offers. Check out our roundup of the best debt consolidation loans for options with a higher credit score.

While consolidating or eliminating debt with bad credit might be challenging, it is a crucial step toward improving your financial well-being. By demonstrating responsible credit management, simplifying repayment, reducing interest costs, and freeing up resources for saving and investing, you can build a more secure and prosperous financial future.

Are guaranteed debt consolidation loans for bad credit legit?

If you’ve come across ads promising “guaranteed” debt consolidation loans—especially with bad credit—be cautious. These offers often aren’t what they seem.

Legitimate lenders must assess your credit, income, and ability to repay before approving a loan. “Guaranteed approval” is typically just a marketing phrase used by lead generation sites or questionable companies more interested in your personal information than offering a real loan.

Watch out for red flags like upfront fees, requests for gift cards or wire transfers, vague contact info, or high-pressure tactics. Read more about how to avoid personal loan scams in our guide. Bottom line: If anything feels off, it probably is.

Instead of chasing guarantees, look for lenders that offer prequalification with a soft credit check. It’s a safe way to see potential rates and terms without hurting your credit—and a much better path than falling for promises that sound too good to be true.

Credit card consolidation loans for bad credit

Trying to consolidate credit card debt with bad credit can feel frustrating—especially when many solutions are designed for people with good scores. But that doesn’t mean you’re out of options.

Here’s how different methods of consolidating credit card debt compare, including which ones may still be available even if your score is below 600.

Ways to consolidate credit card debt

Method	Credit score needed	Best for
Personal loan	580+	Paying off multiple cards
Secured loan	500+	Homeowners or car owners
Balance transfer credit card	670+	Good credit and light debt

Personal and secured loans are often the most realistic options for bad credit borrowers. You may not qualify for low rates, but you can still get a fixed payoff plan and potentially lower your monthly payments. Just keep in mind that secured loans put your asset—like a car or savings account—on the line.

How consolidation might save you money

Even with a high-interest consolidation loan, switching from revolving credit card debt to a fixed-term loan could save you thousands. Here’s an example:

• Credit card scenario: $7,500 balance at 25% APR, making minimum payments → payoff takes 18+ years and costs over $10,000 in interest
• Consolidation loan: $7,500 loan at 28% APR with a 5-year term → monthly payment around $220, total interest about $5,700

The rate isn’t ideal—but the structure helps you pay off the debt faster and with far less interest overall. That predictability alone can be a major step forward if you’re stuck in the minimum-payment trap.

If you don’t qualify for any of these options, there are still other ways to take control of your debt. We’ll explore those in the next section on alternatives to debt consolidation loans.

Alternatives to debt consolidation loans

If you’ve been denied a loan—or the rates are so high they wouldn’t actually help—there are still other ways to tackle your debt. Not every debt solution requires taking out new credit, and for some borrowers, that’s actually a better path forward than a debt consolidation loan.

Here are the most common alternatives to debt consolidation loans for bad credit.

Reviewing the reasons why you have bad debt can help determine the best path forward. Many clients I work with have credit challenges due to the loss of a loved one, and that puts them in a difficult financial position. 

Work with a nonprofit credit counseling agency

A debt management plan (DMP) through a certified nonprofit can help you consolidate payments without borrowing. Instead of getting a new loan, you’ll make a single monthly payment to the agency, which will then pay your creditors on your behalf.

The agency may be able to negotiate lower interest rates, reduce fees, and extend your repayment timeline—without the upfront costs or credit score damage that often comes with debt settlement programs.

American Consumer Credit Counseling

Best Alternative Debt Consolidation Loan

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Why it’s one of the best

American Consumer Credit Counseling (ACCC) is a debt management company that helps borrowers who are deep in debt take control of their finances. The debt management plan (also called nonprofit debt consolidation) includes a debt consolidation loan, paid to ACCC, which in turn pays you creditors.

Meanwhile, ACCC actively works with your creditors to lower your interest rates, reduce finance charades and late fees, and negotiate extended deadlines. Unlike debt relief companies, ACCC’s program should not negatively impact your credit score as dramatically at the start.

• Full debt management plan to get out of debt
• Potential to lower rates
• Potential to remove fees and extend repayment
• No minimum debt required

• Not all debt may be eligible
• Rates may not go down
• Can take several years to get out of debt
• Small fees (may be waived)

Loan details

Rates (APR)	May go down from current rates, if ACCC can negotiate them
Origination fee	$39 enrollment fee, $7 per debt account managed per month (up to $70/month); fees may be waived
Loan amounts	No specific amounts
Repayment terms	4 – 5 years, generally
Min. credit score	N/A

The National Foundation for Credit Counseling (NFCC) is another organization I recommend that helps individuals reduce high interest rates with debt management plans. This may be more flexible and effective than debt settlement.

Explore debt settlement (with caution)

Debt settlement involves negotiating with your creditors to pay less than what you owe. It can reduce your total debt, but it usually requires you to stop making payments for a while, which can trigger late fees, collection calls, and a big hit to your credit score.

This option is best for people who are already behind on payments and unlikely to catch up through a loan or repayment plan. It’s not a quick fix—but for some, it’s a realistic way to avoid bankruptcy.

Companies like National Debt Relief offer free consultations to help you decide if settlement is a good fit or if there’s a better alternative for your situation.

Consider bankruptcy as a last resort

If your debt is unmanageable and you don’t qualify for other solutions, bankruptcy may be a legal path to discharge or restructure what you owe. It has long-term consequences for your credit and finances, so it’s important to explore it only after speaking with a bankruptcy attorney or certified credit counselor.

How we chose the best debt consolidation loans for bad credit

Since 2017, LendEDU has evaluated personal loan companies to help readers find the best personal loans. Our latest analysis reviewed 1,029 data points from 49 lenders and financial institutions, with 21 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.