Best Debt Consolidation Loans of 2025
Last updated: July 2, 2026
Debt consolidation loans replace multiple high-interest debts with a single fixed-rate personal loan. If you qualify for a rate below what you're currently paying (most credit cards charge 20–29% APR), consolidating can save you thousands and simplify your monthly payments to just one.
Our top picks
LightStream
Consistently offers the lowest personal loan rates in the industry with zero fees, same-day funding, and a Rate Beat program that tops any competitor by 0.10%.
APR
6.99%–25.49% APR (with AutoPay)
Pros
- ✓Lowest rates available (from 6.99% APR)
- ✓Rate Beat program
- ✓No fees of any kind
Cons
- ✗Requires excellent credit (720+)
- ✗No soft-pull prequalification
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SoFi Personal Loans
SoFi offers some of the lowest personal loan rates with no fees whatsoever — no origination, prepayment, or late fees — plus unemployment protection if you lose your job.
APR
8.99%–29.99% APR
Pros
- ✓No origination, prepayment, or late fees
- ✓Rates from 8.99% APR
- ✓Unemployment protection program
Cons
- ✗Requires good credit (minimum ~680)
- ✗No co-signer option
Rates & terms on partner's site. We may earn a commission. Learn more
Marcus by Goldman Sachs®
Marcus offers simple, no-fee personal loans with fixed rates, on-time payment rewards (defer a payment after 12 consecutive on-time payments), and direct payoff to creditors.
APR
6.99%–24.99% APR
Pros
- ✓No fees (origination, late, prepayment)
- ✓On-time payment reward
- ✓Direct creditor payoff for debt consolidation
Cons
- ✗Requires good credit (660+)
- ✗Loan amounts max at $40,000
- ✗No mobile app for loan management
Rates & terms on partner's site. We may earn a commission. Learn more
LendingTree
Not a lender — a marketplace that lets you compare offers from 300+ lenders with one form, so you can find the best rate for your credit profile.
APR
Varies by lender
Pros
- ✓Compare multiple lenders at once
- ✓Soft credit pull
- ✓Works for all credit levels
Cons
- ✗Can result in many lender contacts
- ✗Rates vary widely depending on profile
- ✗Not a direct lender
Rates & terms on partner's site. We may earn a commission. Learn more
How we chose these picks
When Debt Consolidation Makes Sense
Consolidation works best when: (1) you qualify for a rate meaningfully lower than your current debt, (2) you have good-to-excellent credit (670+), and (3) you're committed to not adding new credit card debt during the payoff period. If your credit is below 640, explore options like debt management plans or debt settlement instead.
How to Compare Consolidation Loan Offers
- Look at the APR — not just the interest rate (APR includes fees)
- Check for origination fees, which reduce the amount you actually receive
- Compare loan terms (3-year vs 5-year changes monthly payment significantly)
- Use a soft pull prequalification so your score isn't impacted while shopping
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