Top 4 Debt Consolidation Loan Companies for 2021

December 3, 2020 Loans & Finance

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Using a personal loan to consolidate debt can simplify your financial life. But this move is most worthwhile if you can get debt consolidation loan rates that are lower than what you’re currently paying.

It can take some time to hunt down the best lenders that offer low debt consolidation loan rates. To help you out, we reviewed the rates and terms offered by several such lenders.

This overview can help you quickly find debt consolidation loan companies with the best rates. From there, you can find the lender that offers the best rates and terms to help you get ahead of your debt.

Top 4 debt consolidation loan companies

Lender Debt consolidation loan APRs Standout benefit Major drawback
FreedomPlus 7.99% – 29.99% Multiple ways to get rate discounts Origination fees of 1.99% – 4.99%
Earnest See Earnest for details. Option to get smaller loans Limited repayment terms
SoFi 5.99% – 19.16% You can pause payments after job loss Requires high annual income
LendingClub 10.68% – 35.89% Low credit score requirement Origination fees of 2.00% – 6.00%

1. FreedomPlus

With an APR starting at just 7.99%, FreedomPlus can send loan funds directly to your creditors to pay off existing debt, and you’ll get a rate discount for doing so.

Here’s what you’ll want to know about FreedomPlus debt consolidation loans:

FreedomPlus APRs range from 7.99% – 29.99%.
Borrowers can get rate discounts when they satisfy the following requirements: send at least half of the loan funds directly to creditors, add a qualifying cosigner, and have at least $40,000 in retirement savings.
Pay no application fees or prepayment penalties.
A personal loan origination fee of 1.99% – 4.99% will apply.
Use FreedomPlus personal loans to borrow from $7,500 to $40,000.
Get repayment terms between two and five years.
Get prequalified and see a custom rate offer with a Soft Pull.
Send loan funds directly to creditors or your own bank account.

3. Earnest

Another company with low debt consolidation loan rates is Earnest, with APRs as low as 5.99%.

Find debt consolidation APRs between 5.99% and 17.24%.
Face no application fees, origination fees, or prepayment penalties.
Earnest debt consolidation loans range from $5,000 to $75,000.
Choose a loan length of 36 to 60 months.
Earnest requires a minimum FICO score of 650 but uses comprehensive and flexible underwriting criteria to evaluate your loan application.

4. SoFi

SoFi is another lender with debt consolidation loan APRs that might be hard to beat, starting as low as 5.99% fixed. The lender also offers a wide range of loan amounts, so you can borrow as much or as little as you need.

SoFi fixed APRs range from 5.99% to 19.16%. Advertised rates include a 0.25% discount for autopay enrollment.
Get an additional 0.125% rate discount when you take out another SoFi loan.
Pay no application fees, origination fees, or prepayment penalties on SoFi debt consolidation loans.
Borrow as little as $5,000 and as much as $100,000.
SoFi personal loans offer repayment lengths of 24 to 84 months.
There’s a 680 minimum FICO score requirement.
Use a Soft Pull to get a custom rate quote.

5. LendingClub

Rounding out the list is peer-to-peer lending platform LendingClub, with APRs starting at 10.68%. It offers some of the most accessible and flexible options. Applicants should watch out for LendingClub’s origination fees, however, which range from 2.00% – 6.00%.

Debt consolidation loan APRs range between 10.68% and 35.89%.
LendingClub personal loans include an origination fee of 2.00% – 6.00%.
Pay no administration fees or prepayment penalties.
Get debt consolidation loans in amounts between $1,000 and $40,000.
Choose between a 36 or 60 month loan.
The minimum FICO score requirement is Not specified.
Get a customized rate quote with a Soft Pull.

Shop around for your best debt consolidation loan rates

These debt consolidation companies offer some of the best rates and terms out there. But to find the best consolidation loan rates you can get, look beyond what lenders advertise.

As you shop around to find your best personal loan rates, be sure to request rate quotes. Requesting these offers won’t affect your credit score, and you’ll get custom debt consolidation loan rates. From there, you can compare costs and rates to find the debt consolidation loan company that best fits your needs.

Get multiple custom offers at once

Forget filling out tons of forms. Finding your best personal loan rate is now easier than ever.

Disclaimer: Student Loan Hero is a subsidiary of LendingTree.See how this worksNMLS #1136: Terms & Conditions Apply
Interested in a personal loan?LendingTree allows you to compare rates from multiple lenders by filling out one easy form. How Student Loan Hero Gets Paid

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Student Loan Hero is compensated by companies on this site and this compensation may impact how and where offers appears on this site (such as the order). Student Loan Hero does not include all lenders, savings products, or loan options available in the marketplace.

Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

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How Student Loan Hero Gets Paid

How Student Loan Hero Gets Paid

Student Loan Hero is compensated by companies on this site and this compensation may impact how and where offers appears on this site (such as the order). Student Loan Hero does not include all lenders, savings products, or loan options available in the marketplace.

Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Student Loan Hero is an advertising-supported comparison service. The site features products from our partners as well as institutions which are not advertising partners. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products.

LenderRATES (APR)loan amount
5.99% – 19.16%1 $5,000 to $100,000
7.98% – 35.99% $1,000 to $50,000
7.99% – 35.97%* $1,000 to $35,000
99.00% – 199.00%2 $500 to $4,000
5.99% – 24.99%3 $5,000 to $35,000
7.99% – 29.99%4 $7,500 to $40,000
compare rates on Lendingtree nowNMLS #1136: Terms & Conditions Apply
1 Includes AutoPay discount. Important Disclosures for SoFi.
SoFi Disclosures
Fixed rates from 5.99% APR to 18.82% APR (with AutoPay). SoFi rate ranges are current as of March 19, 2020 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your creditworthiness, years of professional experience, income and other factors. See APR examples and terms. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.
To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.
See Consumer Licenses.
Minimum Credit Score: Not all applicants who meet SoFi’s minimum credit score requirements are approved for a personal loan. In addition to meeting SoFi’s minimum eligibility criteria, applicants must also meet other credit and underwriting requirements to qualify.
If you lose your job through no fault of your own, you may apply for Unemployment Protection. SoFi will suspend your monthly SoFi loan payments and provide job placement assistance during your forbearance period. Interest will continue to accrue and will be added to your principal balance at the end of each forbearance period, to the extent permitted by applicable law. Benefits are offered in three month increments, and capped at 12 months, in aggregate, over the life of the loan. To be eligible for this assistance you must provide proof that you have applied for and are eligible for unemployment compensation, and you must actively work with our Career Advisory Group to look for new employment. If the loan is co-signed the unemployment protection applies where both the borrower and cosigner lose their job and meet conditions.
Terms and Conditions Apply: SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)

2 Includes AutoPay discount. Important Disclosures for Opploans.
Opploans Disclosures

Direct Deposit required for payroll.

Opploans currently operates in these states: . *Approval may take longer if additional verification documents are requested. Not all loan requests are approved. Approval and loan terms vary based on credit determination and state law. Applications processed and approved before 7:30 p.m. ET Monday-Friday are typically funded the next business day.

To qualify, a borrower must (i) be a U.S. citizen or permanent resident; (ii) reside in a state where OppLoans operates; (iii) have direct deposit; (iv) meet income requirements; (v) be 18 years of age (19 in Alabama); and, (vi) meet verification standards.

NV Residents: The use of high-interest loans services should be used for short-term financial needs only and not as a long-term financial solution. Customers with credit difficulties should seek credit counseling before entering into any loan transaction.

OppLoans performs no credit checks through the three major credit bureaus Experian, Equifax, or TransUnion. Applicants’ credit scores are provided by Clarity Services, Inc., a credit reporting agency.

Based on customer service ratings on Google and Facebook. Testimonials reflect the individual’s opinion and may not be illustrative of all individual experiences with OppLoans. Check loan reviews.

 

Rates and terms vary by state.

3 Includes AutoPay discount. Important Disclosures for Payoff.
Payoff Disclosures
All loans are subject to credit review and approval. Your actual rate depends upon credit score, loan amount, loan term, credit usage and history. Currently loans are not offered in: MA, MS, NE, NV, OH, and WV.

4 Important Disclosures for FreedomPlus.
FreedomPlus Disclosures
The loan terms presented are not guaranteed and APRs presented are estimates only. To obtain a loan you must submit additional information and documentation and all loans are subject to credit review and our approval process. The range of APRs is 7.99% to 29.99% and your actual APR will depend upon factors including your credit score, usage and history, the requested loan amount, the stated loan purpose, and the term of the requested loan. To qualify for a 7.99% APR loan, a borrower will need excellent credit on a loan for an amount less than $12,000.00, and with a term equal to 24 months. Adding a co-borrower with sufficient income; using at least eighty-five percent (85%) of the loan proceeds to directly pay off qualifying existing debt; or showing proof of sufficient retirement savings, could help you also qualify for the lowest rate available. All loans are made by Cross River Bank and MetaBank®, N.A., Members FDIC.

* Important Disclosures for Upgrade Bank.
Upgrade Bank Disclosures

Personal loans made through Upgrade feature APRs of 7.99%-35.97%. All personal loans have a 2.9% to 8% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Accept your loan offer and your funds will be sent to your bank or designated account within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes the transaction. From the time of approval, funds should be available within four (4) business days. Funds sent directly to pay off your creditors may take up to 2 weeks to clear, depending on the creditor. Personal loans issued by Upgrade’s lending partners. Information on Upgrade’s lending partners can be found at https://www.upgrade.com/lending-partners/.

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