With a debt consolidation loan, a lender issues a single personal loan that you use to pay off other debts, such as balances on high-interest credit cards.You’ll pay fixed, monthly installments to the lender for a set time period, typically two to five years.
Borrowers with excellent credit and low debt-to-income ratios may qualify for interest rates at the low end of lenders’ ranges.
Someone with poor or average credit may be able to get an unsecured personal loan on the strength of a steady income and low debt levels, but should expect rates toward the higher end of the range — up to 36%.
Nerdwallet has reviewed more than 25 lenders to help you compare and choose one that’s right for you.
Below is a list of Nerdwallet’s top lenders for debt consolidation. If you’re borrowing money to pay off debt, a personal loan works best if you have a plan to tackle your debts.
Other options for borrowers with bad credit include secured or co-sign personal loans.
Some lenders say they have no minimum credit score requirements, but that does not mean they don’t check your credit report.Knowing your credit profile before you apply can help set expectations.Several personal finance websites, including Nerd Wallet, offer free access to your credit score and credit report.Is there a time limit on how long I can receive loans? Direct Unsubsidized Loans are available to both undergraduates and graduate or professional degree students. *Note: If you received a Direct Subsidized Loan that was first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period.Your credit scores can take a hit if you use all or most of the available credit on your cards.