Best Personal Loans for Debt Consolidation 2020

29 Sep 2020

Are you running a crippling debt on many credit cards accumulated over the last one year? You must consider getting a personal loan for debt consolidation. 

It is very difficult to manage multiple debts from different lenders, due on different dates, and because of multiple debts, you are likely to miss some. Missing a single credit card payment can attract a heavy penalty because of higher interest rate on credit cards. A personal loan for debt consolidation helps you manage multiple debts by rolling them into single, larger piece of debt. A debt consolidation loan helps to untangle multiple debts as after getting a personal loan for debt consolidation you would have a single payment to make in a month, and can save a lot of money in the form of interest rate. A personal loan for debt consolidation also helps you improve your credit score if you make timely payment. 

There are lenders that offer a personal loan for debt consolidation. While searching for the best debt consolidation loan, you should look at and compare low rates, flexible tenure and consumer friendly features from various lenders. Here are the best debt consolidation loan companies with exciting features and benefits based on the eligibility criteria of applicants.

Best debt consolidation personal loan for candidate with excellent credit score

SoFi personal loan for debt consolidation

You can get a personal loan from SoFi at low fixed rates starting from as low as 6.99%. There is no charge for applying for a loan with SoFi and neither is a prepayment fee. You need to have a good credit score to apply with SoFi, but you can check your eligibility online without affecting your credit score. 

Key details of SoFi personal loan are as under: 

  • Loan amount: $5,000 to $100,000
  • APR: 5.99% to 16.99%
  • Loan term: 2 to 7 years

Prosper personal loan for debt consolidation

Prosper is a peer to peer lender and asks for a clear minimum credit score of 640. Prosper charges an origination fee of 1% to 5%, depending on your credit score. 

Key details of Prosper personal loan are as under:

  • Loan amount: $2,000 to $40,000
  • APR: 6.95% to 35.99%
  • Loan term: 3 to 5 years

Best debt consolidation personal loans for overall candidate

LightStream personal loan for debt consolidation

Lightstream offers a personal loan for candidates with an excellent credit score and significant proof of income. There is no charge for applying for a personal loan from LightStream.

Key details of LightStream personal loan

  • Loan amount: $5,000 to $100,000
  • APR: 3.99% to 16.99%
  • Loan term: 2 to 7 years

LendingClub personal loan for debt consolidation

You can check the interest rate you are eligible for LendingClub personal loan without getting a hard inquiry on your credit score. There is no prepayment charge on a LendingClub personal loan.

Key details of Lendingclub personal loan are as under:

  • Loan amount: Up to $40,000 
  • APR: 6.95% to 35.89%
  • Loan term:  3 to 5 years

Marcus by Goldman Sachs personal loan for debt consolidation

Marcus by Goldman Sachs offers a personal loan at a competitive interest rate. Apart from that, there is no origination fees and prepayment charges. The best thing about Marcus by Goldman Sachs is it doesn’t charge late payment fees, however, you need to make a payment on time.  

Key details of Marcus by Goldman Sachs personal loan:

  • Loan amount: $3,500 to $40,000
  • APR: 5.99% to 28.99%
  • Loan term: 3 to 6 years

Best debt consolidation personal loan for candidates with average credit

Avant personal loan for debt consolidation

Avant offers a personal loan for applicants with average credit score and through Avant you can get a personal loan quickly. However, the APR is a little higher at Avant, making it a not so good choice for candidates with a good to excellent credit score. 

The are the key details of Avant personal loan

  • Loan amount: $2,000 to $35,000
  • APR: 9.95% to 35.99%
  • Loan term: 2 to 5 years

Upgrade personal loan for debt consolidation

Upgrade offers personal loan for borrowers with high debt-to-income ratio. It also offers loan for average credit score holder applicants; minimum credit score required by Upgrade is 620.  

Here are the key details of Upgrade personal loan

  • Loan amount: $1,000 - $50,000
  • APR: 7.99% to 35.89%
  • Loan term: 3 to 5 years

Upstart personal loan for debt consolidation

Upstart is a peer-to-peer lender and focuses on a younger buyer with a less developed credit history; there is no hard credit check process involved. You can use Upstart debt consolidation personal loan to pay off both credit card debt and other types of debt.

Key details of Upstart personal loan are as under:

  • Loan amount: $1,000 to $50,000
  • APR: 7.98% to 35.99% APR.
  • Loan term:  36 to 60 months

Compare debt consolidation loans from top companies

Lender

APR

Min Credit Score

Loan Amount

SoFi

5.99% to 16.99%

680

$5,000 to $100,000

Prosper

6.95% to 35.99%

640

$2,000 to $40,000

LightStream

3.99% to 16.99%

660

$5,000 to $100,000

LendingClub

6.95% to 35.89%

640

Up to $40,000

Marcus by Goldman Sachs

5.99% to 28.99%

660

$3,500 to $40,000

Avant

9.95% to 35.99%

580

$2,000 to $35,000

Upgrade

7.99% to 35.89%

620

$1,000 - $50,000

Upstart

7.98% to 35.99%

620

$1,000 to $50,000

 You can save hundreds or even thousands of dollars in interest rate and also alleviate the stress of months if you choose the right loan for you.