Why we recommend it: Zero fees (no origination, no prepayment, no late fees). Competitive rates for debt consolidation. Unique on-time payment reward: make 12 consecutive on-time payments and you can skip one month. Best for borrowers with 660+ credit.
Before accepting any loan offer, calculate the total cost of the loan (principal + all interest + fees). A lower monthly payment often means paying thousands more over the life of the loan.
Affiliate disclosure: WiseIQ may earn a commission if you apply.
Why we recommend it: Specifically designed for credit card debt consolidation. Provides free FICO score monitoring and financial coaching. Research shows Happy Money customers see an average 40-point credit score increase after paying off their credit cards.
Affiliate disclosure: WiseIQ may earn a commission if you apply.
Why we recommend it: Best rates for 700+ credit scores. No fees, same-day funding, and a Rate Beat program — if you get a lower rate elsewhere, LightStream will beat it by 0.10%. Best for large debt consolidation ($25K+).
Affiliate disclosure: WiseIQ may earn a commission if you apply.
A personal loan is not the right tool for every situation. Consider alternatives if any of the following apply to you:
Is a personal loan good for debt consolidation?
Yes, if you can get a lower interest rate than your current debts. If you have credit card debt at 20%–25% APR and qualify for a personal loan at 10%–15%, consolidation can save thousands in interest and simplify your payments to one monthly bill.
What credit score do I need for a debt consolidation loan?
Most debt consolidation lenders require a 640–660 minimum credit score. Marcus and LightStream require 660+. Happy Money accepts 640+. Upstart accepts lower scores but rates will be higher. The better your credit, the lower your consolidation rate.
How much can I save by consolidating credit card debt?
The savings depend on your current rates and the consolidation rate you qualify for. Example: $20,000 in credit card debt at 22% APR costs $4,400/year in interest. Consolidating at 12% APR saves $2,000/year. Over a 3-year payoff, that's $6,000 in savings.
Does debt consolidation hurt your credit score?
Applying for a consolidation loan causes a hard inquiry (typically -5 to -10 points temporarily). However, paying off multiple credit cards reduces your credit utilization, which can increase your score significantly. Most borrowers see a net positive impact within 3–6 months.
Recommended books to go deeper on this topic
Dave Ramsey's famous baby steps system for getting out of debt and building wealth — practical and actionable.
View on Amazon →A comprehensive budgeting and debt management guide from one of the most trusted voices in personal finance.
View on Amazon →As an Amazon Associate, WiseIQ earns from qualifying purchases. This does not affect our editorial recommendations.
WiseIQ's editorial team researches and fact-checks all content using primary sources. Our recommendations are based on independent analysis and are not influenced by advertiser relationships.
Last reviewed: April 2026 | How we rank products
Dave Ramsey's famous baby steps system for getting out of debt and building wealth — practical and actionable.
View on Amazon →A comprehensive budgeting and debt management guide from one of the most trusted voices in personal finance.
View on Amazon →As an Amazon Associate, WiseIQ earns from qualifying purchases. This does not affect our editorial recommendations.
