3 Best Debt Consolidation Loans for Any Credit Type
From credit card chaos to calm: How one millennial is consolidating debt and getting back on track.
Best Debt Consolidation Loans At A Glance
Looking for the best debt consolidation loan? Here are the key takeaways from Josh’s story as he looked to manage his monthly payments and make progress towards paying down his high-interest credit card debt.
- Like many Americans, Josh was struggling to keep up with an increasingly high monthly payments on debt.
- He considered multiple options before settling on a debt consolidation loan to help manage his monthly payments.
- SoFi is a strong debt consolidation loan option for those with good to excellent credit seeking low rates and added perks.
- Achieve offers flexible solutions for people with average credit or those exploring debt relief. It's one of the few options that allows you to consider debt relief and debt consolidation in one place.
- Credible lets you compare multiple lenders offers for debt consolidation loans with no impact on your credit score, helping you find the best rate you may be eligible for.
With over 15 years of experience on staff at Debt Relief Ranger, our mission is to provide consumers with the most reliable and transparent information to make informed decisions about debt relief. Our methodology involves a rigorous evaluation process that considers various factors, including company reputation, service offerings, customer feedback, and industry standards. We strive to present unbiased comparisons to help you find the best solution tailored to your unique financial situation.
3 Top Debt Consolidation Loan Options
Our picks for the best debt consolidation loans are meant to provide you with the best starting points for your debt relief journey. Whether you’re considering debt forgiveness or exploring your rate options, we’ve made a pick to point you in the right direction.
SoFi Personal Loans
SoFi personal loans are a popular option due to their ease of online application. Most potential borrowers can check their rates online in minutes before deciding whether to apply.
- Large loans available
- Ranked above average in J.D. Power 2025 U.S. Consumer Lending Satisfaction Study
- Autopay discount of 0.25% available
- Loan amounts up to $100,000 and repayment terms up to 84 months
- Those with poor or fair credit may not qualify
- Higher monthly fees
Achieve Debt Solutions
Achieve is a strong choice for comparing debt consolidation or relief options due to its comprehensive offerings. They provide various solutions, including personal loans for debt consolidation (with direct creditor payment options), home equity loans, and debt resolution programs for unsecured debts. This enables individuals to explore various debt management options tailored to their unique financial situation and credit profile.
- Over $19 Billion in debt resolved
- Offers free debt assessment to develop personalized plans
- No upfront fees
- Served more than one million members with debt resolution
- A+ Better Business Bureau rating
- Fees can eat into the savings from settlements
- A credit score may go down significantly for those who use debt settlement services
Credible
No mysteries. No bait-and-switch. You see real prequalified rates for loans that are available to you with no impact to your credit score. Checking rates on Credible is 100% free.
- Preapproval won't affect your credit score
- It's free to get matched with multiple loan options so you can easily compare providers
- Check your rates easily online before applying
- Credible is a marketplace, not a lender
Meet Josh: An American Debt Story
Josh is a thirty-something living in Colorado, works remotely in digital marketing, and, like many people his age, has accumulated more debt than he is proud of. Between student loans, helping his mom with unexpected medical bills, and leaning on credit cards during a 6-month freelance slump, things spiraled. Josh was juggling five credit card bills, all with APRs above 20%, and barely keeping up with the minimum payments.
Reddit became Josh’s go-to escape and source of advice. He found a thread on r/personalfinance where a user had paid off $40,000 using a debt consolidation loan from SoFi, and another commenter in r/debtfree discussed how they used Achieve to reduce their total balance through a combination of consolidation and settlement. Josh was hooked and knew he needed to learn more before taking the next step to start paying down his debt.
What Are Debt Consolidation Loans?
First things first, getting to know the basics. Debt consolidation loans roll multiple high-interest debts, like credit cards or personal loans, into a single loan with one monthly payment. For many, that means a lower interest rate and a more straightforward path to becoming debt-free. It doesn’t erase the debt, but it does make it more manageable.
Why Consider a Credit Card Consolidation Loan?
Credit card debt is brutal. The high interest alone can keep you trapped. Consolidating with a personal loan allows you to lock in a lower rate, avoid compounding interest, and build momentum. Additionally, it can enhance your credit mix and payment history over time if managed effectively.
Josh’s Debt Consolidation Plan
Josh considered both debt relief and debt consolidation but ultimately chose debt consolidation over debt relief for a few key reasons:
-
Credit Impact
Debt relief programs often involve settling debts for less than what you owe, which can significantly hurt your credit score. Josh wanted to preserve his credit and improve it over time. -
Control and Simplicity
With consolidation, he keeps making regular monthly payments on a new loan, just like a car or student loan. It’s structured and predictable — no negotiations, no collections, no surprises. -
Avoiding Default
Debt relief usually requires you to stop paying creditors while a settlement is negotiated. Josh was uncomfortable with the idea of skipping payments and risking collections. -
Lower Rate, Not Less Payback:
Josh didn’t want to get out of paying what he owed — he just wanted to pay less interest and get out of debt faster. Debt consolidation felt more like a responsible reset than an escape route.
Debt Consolidation Loan Potential Savings
Here’s how the math works out on $35,000 in personal debt. Josh aimed to save around $18,111 in interest over 5 years, assuming a fixed 60-month payoff schedule.
| Term | 26.99% APR (Credit Cards) | 8.99% APR (Personal Loan) |
|---|---|---|
| Monthly Payment* | $1,060 | $728 |
| Total Interest | ~$27,155 | ~$8,714 |
| Total Paid | ~$62,155 | ~$43,714 |
| Loan Term | 5 years | 5 years |
Josh saw those numbers and quickly realized he wasn’t just consolidating his debt, he was buying himself time, peace of mind, and thousands of dollars in savings.
SoFi: Best for Good to Excellent Credit
SoFi is one of the most trusted lenders for borrowers with a good credit score (generally considered 680 and above). They offer fixed-rate loans with APRs starting at 8.99% and no origination or prepayment fees. You can borrow up to $100,000, which worked perfectly for someone in my Reddit thread who consolidated $70K of credit card and personal loan debt into one fixed-rate payment. What makes SoFi even better is its member perks, like career coaching and unemployment protection. It’s ideal for individuals seeking stability and a seamless digital experience.
Achieve: Best for Average Credit or Debt Relief
Achieve (formerly FreedomPlus) is ideal for people in the 620–680 credit score range. What stood out to me is their hands-on approach. One Redditor shared how they went from nearly defaulting on $ 25,000 in credit card debt to making a single $400 monthly payment and felt genuinely supported by the customer service. Achieve offers personal loans and hybrid relief options, including negotiation services if you qualify. It’s not a quick fix, but it’s a solid partner if your credit isn’t perfect.
Credible: Best for Comparing Loan Options
If you’re nervous about applying outright (like Josh was), Credible is your best starting point. It’s a loan marketplace where you fill out one form and get personalized rates from multiple lenders. They do a soft credit check—so no harm to your score—and show options instantly. A Redditor in r/frugal reported finding a better rate on Credible than their bank offered, and that’s a common experience. You don’t borrow from Credible directly, but it’s great for shopping smart. When consolidating debt, one of your primary decision points should be getting the lowest interest rate available to you.
Frequently Asked Questions
Find answers to your most pressing questions about debt consolidation loans.
Debt consolidation simplifies and reduces interest by combining debts into one loan. Debt settlement negotiates to pay less than you owe, often impacting your credit.
Yes! There are a handful of lenders that specialize in helping borrowers who are still building credit. Achieve is one of our favorites for borrowers with average credit.
It depends. Many lenders, like SoFi and loan marketplaces like Credible, allow you to check your personalized rates using only a soft credit check. A hard credit inquiry is done if you decide to apply for a loan after you receive a prequalification.
Most lenders provide funding within 1–5 business days once approved.
It depends. If you can pay off a balance transfer within the promo period, it may work. However, consolidation loans offer longer terms and fixed rates, which makes them more manageable for larger debt loads. Balance transfer credit cards often charge a balance transfer fee of around 5%. If you can pay your balance off in full during your transfer period, this can represent a significant savings over a personal loan. However, if your balance carries over after the introductory period, interest charges will quickly accumulate on a balance transfer.