These Are the Top 5 Debt Consolidation Loans If You Have Bad Credit

Top10.com Staff
These Are the Top 5 Debt Consolidation Loans If You Have Bad Credit
If you’re suffering from mounting debt, chances are your credit score has taken a hit too. Luckily there is hope, thanks to the many online lenders that offer debt consolidation loans for bad credit.

We compiled a list of the best debt consolidation providers for people with credit below 620. Keep reading to compare rates, terms, loan amounts, and minimum credit scores to see which is best for you.


Min. credit score
Max loan amount
Loan terms
Fiona
580
$100,000
24 – 84 months
Monevo
580
$100,000
3-72 months
LendingClub
600
$40,000
36-60 months
Avant 
580
$35,000
24-60 months
Upstart
620
$50,000
36-60 months

1. Best for Poor Credit: Fiona

  • Min credit score: 580
  • Max loan amount: $100,000
  • Loan term: 24-84 months
  • APR range: 4.99% - 35.99%

Why go with Fiona? Shows you multiple personalized offers without impacting your credit score

Fiona is a personal loans marketplace specializing in debt consolidation loans for poor credit. When you use the Fiona platform, it scans through 10 trusted lenders to match you with the best debt consolidation loan for you. Fiona’s lenders accept credit scores as low as 580, which is as low as can reasonably be found for a debt consolidation loan. Fiona isn’t a direct lender, so rates and terms can vary depending on who you are matched with. But that’s the beauty of Fiona: it helps you make sense of the differences between lenders and identify the most suitable one for your purposes.

Read the full Fiona review

Fiona Fiona Get Quote

2. Best for Comparing Providers: Monevo

  • Min credit score: 580
  • Max loan amount: $100,000
  • Loan term: 3-96 months
  • APR range: 1.99% - 35.99%

Why go with Monevo? Helps you compare a broad range of debt consolidation providers

Like Fiona, Monevo is a personal loan matching service specializing in debt consolidation loans for bad credit. The difference is Monevo works with a broader range of lenders. This has its pros and cons: it gives you more lenders to compare, but some are more legit than others. One thing is for sure: Monevo offers the broadest range of APRs, loan terms, and loan amounts in the debt consolidation business. Plus, it caters to people with very bad credit.

Read the full Monevo review

Monevo Monevo Get Quote

3. Best Peer-to-Peer Lender: LendingClub

  • Min credit score: 600
  • Max loan amount: $40,000
  • Loan term: 36-60 months
  • APR range: 10.68% - 35.89%

Why go with LendingClub? Has some of the best rates for sub-620 credit

LendingClub is the world’s largest peer-to-peer lending platform, matching borrowers with investors willing to fund their loans. When you use LendingClub, it assigns you a grade based on things like your credit score and monthly income. Your grade then determines your APR, helping investors decide whether to fund your loan. This system allows LendingClub to offer better rates than other lenders to borrowers with bad credit. According to a LendingClub statement, the average user saves $1,291 in interest and fees when using their LendingClub loan to consolidate credit card debt.

Read the full LendingClub review

Lending Club Lending Club Get Quote

4. Best for Quick Funding: Avant

  • Min credit score: 580
  • Max loan amount: $35,000
  • Loan term: 24-60 months
  • APR range: 9.95% - 35.99%

Why go with Avant? Guaranteed next-day funding if approved by cut-off time

Avant is a direct lender specializing in personal loans, including debt consolidation loans. Not only does it cater to borrowers with very bad credit, but it’s also quick and convenient. For example, Avant promises to transfer the funds by the next business day if you get approved by 4:30pm CT Monday-Friday. Furthermore, it offers useful features such as autopay and a sleek mobile app where you can manage your loan repayments. 

Read more about Avant

5. Best for Fair Credit: Upstart

  • Min credit score: 620
  • Max loan amount: $50,000
  • Loan term: 36-60 months
  • APR range: 6.27% - 35.99%

Why go with Upstart? Judges you by more than just your credit score

Upstart was designed especially for people with fair credit. While its minimum credit score of 620 freezes out people in the 580-620 range, it is probably the best option for people in the 620-680 range. That’s because Upstart judges its applicants by more than just their credit score, also taking into account your education, area of study, and job history. According to Upstart, its users save an estimated 20% compared to their credit card rates.

Read more about Upstart

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What is a Debt Consolidation Loan?

A debt consolidation loan is like any other personal loan, except the funds are used to consolidate debts. Interest rates on credit cards average around 18%, compared to 10% for personal loans. Therefore, if you’re stuck with multiple credit card debts, a debt consolidation loan is a great way of simultaneously lowering your monthly payments and reducing the number of creditors you owe.

How Your Credit Affects What You Can Borrow

Every American has a credit score, a score between 300 and 850 assigned to them by the credit bureaus Experian, Equifax, and TransUnion. As Equifax explains, lenders generally see people with credit of 670 and up as good-credit borrowers who carry a low-risk. People with credit scores from 580-669 are seen as subprime or fair-credit borrowers. People rated below 580 are considered poor credit and may have trouble qualifying for a loan.

Many personal loans providers practice what is known as “cream-skimming”, where they only provide loans to people with good-to-excellent credit. However, a number of trusted lenders – including the five listed here – also cater to borrowers with fair credit. As for borrowers with poor credit of 580 or below, there are two options: work on improving your credit score or seek an alternative debt relief option

Tips for Getting a Debt Consolidation Loan with Bad Credit

If you suffer from poor credit, not all is lost. Here are our tips for qualifying for a debt consolidation loan with bad credit:

  • Check your credit score. By law, you can request one free copy of your credit report each year from each of the three major credit bureaus. You can contact the bureaus separately, or go to AnnualCreditReport.com to get all three reports at once. Comb through the reports separately for any inaccuracies. If you spot a mistake, dispute it and make sure the bureau corrects it. Your score could improve significantly as a result.
  • Compare lenders. Once you have a picture of your credit report, it’s time to apply. The better your credit, the more options you have. If your credit is at least 580, then you do have options. You can start by comparing the lenders on this page or by delving into the details of other top debt consolidation providers.
  • Improve your credit score. The good news is your credit score is never fixed for life. Debt consolidation is the first step to improving your credit score. But if your credit is so bad you can’t qualify for a debt consolidation loan, there are steps you can take to improve your credit score. Click here for a few simple steps to help you improve your credit score.
Top10.com Staff
Top10.com's editorial staff is a professional team of editors, writers and experts with dozens of years of experience covering consumer, financial and business products and services.