Updated on December 30, 2019
By Jen Williamso
Have a lot of different debts? If so, your best bet for paying them off fast may be consolidation. When you consolidate your loans, you replace multiple types of debt with a single loan.
Consolidating all your debts under a personal loan brings several key advantages that can help improve your credit.
Consolidating your loans with a personal loan can help your credit score. But not all debt consolidation loans are equal. Some have better terms than others—and it’s essential to make sure you’re getting the best deal possible with a reputable lender.
We’ve conducted exhaustive research to identify some of the best debt consolidation loans on the market. Here’s our list of carefully-screened top picks:
Whether you're looking to pay off existing debt or make that big purchase, a Citizens One Personal Loan can help you achieve your financial goals.
Citizens Bank Personal Loans: Low Rates and No Existing Account Required
We'd recommend a Citizens Bank personal loan as a good option if you have good to excellent credit, especially if you are an existing customer of the bank. However, you don't have to be a customer to apply.
Benefits of a Citizens Bank Personal Loan:
Low rates. No fees. Personal loans made easy.
Pay off credit cards or invest in home improvements.
Are you paying more than 17% interest on your credit cards? SoFi Personal Loans could help you save thousands. With low personal loan interest rates and a fixed monthly payment, you can get loans to pay off credit cards, pay off high interest debt, or make a major purchase. It only takes minutes to apply.
We're Offering Personal Loans With No Fees. Ever.
See if you're eligible for a personal loan from Marcus.
Get personal loan options in as few as 5 minutes. Here's how it works:
1) . Tell us about yourself. We’ll customize your personal loan options based on your input.
2). Choose your personal loan. Explore your loan options, and pick one that suits your budget and time frame.
3). Complete your application. Add a few details to verify your identity and finalize your personal loan application.
Pros
Cons
Apply in minutes. Have funds in your account as soon as today.
Finally, a loan that rewards your credit. Low rates, great service. Your best loan ever, guaranteed.
When you have a track record of financial responsibility, you deserve an exceptional rate and superior service.
Qualifications
Pros
Cons
Fund the Unexpected with Laurel Road. The simple solution for personal lending.
Life can be expensive.
Borrow up to $45,000 with flexible terms to fit your needs. Use a personal loan to pay off high rate credit cards and other high-interest debt, to make home improvements, and more.
With low rates and flexible terms, Laurel Road offers personal loans that fit your needs. Get rates in just two minutes and receive funds in as little as two business days.
Check Your Rate in Minutes!
Manage your debt by simplifying your bills.
Put your credit card debt behind you. A low-interest loan from Best Egg gives you the freedom to pay off or pay down your higher-rate balances on credit cards and loans.
Determine how much you need to get things done. Request a loan from $2,000 to $35,000* to handle household remodeling, car repairs, vacations, and even medical expenses.
Make one fixed, monthly payment. Enjoy fixed Annual Percentage Rates (APRs) that range from 5.99% to 29.99%
Qualifications
Pros
Cons
So where can you get the best deal on a debt consolidation loan to consolidate your debt? Which rates and terms are the best—and which lenders are trustworthy?
We’ve developed relationships with several key lenders that we’ve put through an exhaustive screening process. Some factors we’ve researched include:
When it comes to a debt consolidation loan, how do you know when you’re looking at a great deal? Here are a few factors to take into account:
Different lenders will offer you different rates depending on your credit score, earning potential, and other factors. The best way to compare rates is to fill out an application on their website and get a custom quote. Most lenders will do a “soft pull” on your finances to find out your credit history, which will not impact your credit score.
Most personal loans have a fixed interest rate—meaning the rate stays the same throughout your loan period.
However, some lenders also offer loans with a variable interest rate that changes month by month based on market fluctuations. They’re usually based on the U.S. prime rate, a baseline rate for loans issued in America.
Fixed rates make it easier to plan your finances on a monthly basis—while a variable rate can add some unpredictability to the mix. However, variable-rate loans tend to start out with lower interest rates overall. Some have a maximum limit, but if you opt for a variable rate loan, it’s important to check.
Terms can vary depending on the lender. However, many personal debt consolidation loans take approximately three to five years to repay.
Some lenders don’t offer personal loans under or over a certain amount. There’s a wide range of limits out there; some banks won’t loan more than $25,000 in personal loans, while others will go up to $100,000 or more.
By contrast, some banks may have minimum limits of $1,000, $10,000, or no minimum limit at all. However, small loan amounts may include very high interest rates and fees—so be aware.
Fees and penalties can add up quickly, increasing the cost of your loan over time.
Some typical fees and penalties include origination fees, prepayment fees, and additional fees for bounced checks and late payments. A few lenders may charge a fee for applying for a loan, or for paying by check.
Some lenders offer discounts off your interest rate for things like setting up automatic payments, opening a checking account with the same lender, or making 12 on-time payments.
Lenders have different criteria for assessing your eligibility. These include your current debt level, credit score, debt-to-income potential, and current income.
One key consideration is how much your new debt consolidation loan costs. There are a few variables to take into account.
Your interest rate, or APR, is the amount you pay every month on top of the original amount of the loan. Most personal loans have fixed rates that stay the same through the life of the loan. A few have variable rates, which change based on market fluctuations.
Calculate the average of all interest rates on the loans you plan to consolidate. Ideally, your new debt consolidation loan won’t have an interest rate higher than that.
However, your interest rate isn’t the only thing that determines how expensive your loan is.
Many lenders charge flat fees for various services. These are usually charged only once, or when you need the specific service. A few common ones include:
Some lenders charge penalties for various transgressions as well. These may be flat amounts, or a percentage of your payment. Some common penalties include:
Still not sure how different lenders stack up? Here’s a point-by-point comparison of our top lenders.
Named one of the “best banks in America” by Money magazine, Citizens is a consistently solid choice for a debt consolidation loan. Even though it’s one of the nation’s oldest and largest financial institutions, Citizens has shown a commitment to being at the cutting edge of technology, offering both convenience and stability to their customers. Plus, Citizens has an excellent record of civic responsibility and engagement. Their staff provides more than 85,000 hours of volunteer time each year to various causes, including teaching financial literacy in the communities they serve. So it’s a bank you can feel good about doing business with.
Key features of a Citizens Bank debt consolidation loan:
The folks behind SoFi, which stands for “social finance,” feel your pain when it comes to debt. The company was created by a group of Stanford business students who found themselves with a mountain of debt after graduation. Today, they offer a variety of lending products through their online platform.
Key benefits of a SoFi debt consolidation loan include:
Marcus is the retail banking arm of finance giant Goldman Sachs. Founded in 2016, Marcus currently focuses on two things: high-interest savings accounts and debt consolidation loans. By tightly focusing on these two areas, the company is able to offer highly customized financial products.
Key benefits of a Marcus debt consolidation loan include:
Lighstream is the digital banking arm of SunTrust Bank. It was founded with the vision to simplify the lending process for borrowers with good to excellent credit. If you have a high credit score and a solid income history, Lightstream is definitely worth taking a look at.
Key benefits of a Lightstream debt consolidation loan:
Laurel Road has small-town roots, but it has grown into a national online lending powerhouse. In fact, it was one of the first lenders to completely digitize the loan process using proprietary technology. Expect a seamless online experience if you decide to take a out a loan from Laurel Road.
Key benefits of a Laurel Road debt consolidation loan:
Best Egg is an online-only lending platform that was conceptualized by veterans from the banking industry who wanted to bring a tech-startup vibe to online lending. The goal: make banking easy for the way that people live today.
Key benefits of a Best Egg debt consolidation loan:
Most lenders have an online application and some may even allow you to apply over the phone. Some information you may need includes:
You can often a preliminary approval in minutes. However, the official approval may take a few days to a week, depending on whether the lender needs additional information from you.
There are pros and cons to each, but most people find that a fixed rate is preferable because the interest rate stays the same over the life of your loan. That’s good news if you want to keep your monthly payment the same and predictable. This is often better for long-term loans.
Variable rates fluctuate based on the market. Depending when you apply, you may start off with a lower interest rate but it may change over time. Often, variable rates work better for shorter-term loans that can be paid off quickly.
Most lenders have minimum and maximum limits, and they’re all different. A typical range may be from approximately $5,000 to $50,000, but you may be eligible to borrow more if you have a strong credit score and income.
This depends on your lender. Some may promise your cash within 24 hours, however, two to three days is more typical. Some lenders may take as long as a week or even a month. This could be an important consideration if you need access to your funds quickly.
Whether you're looking to pay off existing debt or make that big purchase, a Citizens One Personal Loan can help you achieve your financial goals.
Citizens Bank Personal Loans: Low Rates and No Existing Account Required
We'd recommend a Citizens Bank personal loan as a good option if you have good to excellent credit, especially if you are an existing customer of the bank. However, you don't have to be a customer to apply.
Benefits of a Citizens Bank Personal Loan:
Low rates. No fees. Personal loans made easy.
Pay off credit cards or invest in home improvements.
Are you paying more than 17% interest on your credit cards? SoFi Personal Loans could help you save thousands. With low personal loan interest rates and a fixed monthly payment, you can get loans to pay off credit cards, pay off high interest debt, or make a major purchase. It only takes minutes to apply.
We're Offering Personal Loans With No Fees. Ever.
See if you're eligible for a personal loan from Marcus.
Get personal loan options in as few as 5 minutes. Here's how it works:
1) . Tell us about yourself. We’ll customize your personal loan options based on your input.
2). Choose your personal loan. Explore your loan options, and pick one that suits your budget and time frame.
3). Complete your application. Add a few details to verify your identity and finalize your personal loan application.
Pros
Cons
Apply in minutes. Have funds in your account as soon as today.
Finally, a loan that rewards your credit. Low rates, great service. Your best loan ever, guaranteed.
When you have a track record of financial responsibility, you deserve an exceptional rate and superior service.
Qualifications
Pros
Cons
Fund the Unexpected with Laurel Road. The simple solution for personal lending.
Life can be expensive.
Borrow up to $45,000 with flexible terms to fit your needs. Use a personal loan to pay off high rate credit cards and other high-interest debt, to make home improvements, and more.
With low rates and flexible terms, Laurel Road offers personal loans that fit your needs. Get rates in just two minutes and receive funds in as little as two business days.
Check Your Rate in Minutes!
Manage your debt by simplifying your bills.
Put your credit card debt behind you. A low-interest loan from Best Egg gives you the freedom to pay off or pay down your higher-rate balances on credit cards and loans.
Determine how much you need to get things done. Request a loan from $2,000 to $35,000* to handle household remodeling, car repairs, vacations, and even medical expenses.
Make one fixed, monthly payment. Enjoy fixed Annual Percentage Rates (APRs) that range from 5.99% to 29.99%
Qualifications
Pros
Cons