Best Debt Consolidation Loans for Bad Credit in 2025: Top Lenders to Help You Regain Control

---

Introduction

Struggling with multiple debts and a less-than-perfect credit score? You’re not alone. Millions face the same challenge—and in 2025, there are debt consolidation loans for bad credit that can help you simplify payments, reduce interest, and take control of your financial future.

In this comprehensive guide, we’ll explore the best debt consolidation loans for bad credit in 2025, including top lenders, what to look for, and how to qualify even with a low credit score.

---

What Is a Debt Consolidation Loan?

A debt consolidation loan is a personal loan used to pay off multiple debts—such as credit cards, medical bills, or payday loans—by combining them into a single monthly payment with a fixed interest rate and term.

✅ Benefits:

• Simplified repayment

• Lower monthly payments

• Fixed interest rates

• Boost to credit score (if managed well)

---

Can You Get a Debt Consolidation Loan with Bad Credit?

Yes! While it may be harder to qualify with traditional banks, many online lenders specialize in helping people with credit scores under 600.

You may not get the lowest interest rate, but you can still get:

• Lower payments

• Predictable terms

• A chance to rebuild your credit

---

Top 5 Best Debt Consolidation Loans for Bad Credit in 2025

Here are the most trusted lenders offering debt consolidation loans for people with poor or fair credit:

---

1. Upgrade

• Minimum Credit Score: 560

• Loan Amount: $1,000 – $50,000

• APR: 8.49% – 35.99%

• Terms: 24 – 84 months

• Pros: Fast funding, direct payment to creditors, soft credit check

Why it’s great: Upgrade is one of the few lenders offering direct payments to your creditors, making debt consolidation automatic and stress-free.

---

2. Avant

• Minimum Credit Score: 550

• Loan Amount: $2,000 – $35,000

• APR: 9.95% – 35.99%

• Terms: 12 – 60 months

• Pros: Flexible terms, easy online application

Why it’s great: Avant is ideal for borrowers with very poor credit, offering one of the lowest minimum score requirements on this list.

---

3. LendingClub

• Minimum Credit Score: 600

• Loan Amount: $1,000 – $40,000

• APR: 8.98% – 35.99%

• Terms: 36 or 60 months

• Pros: Joint applications allowed, fast approval

Why it’s great: LendingClub allows co-borrowers, which can help you qualify for a better rate if you have a creditworthy partner.

 

---

4. OneMain Financial

• Minimum Credit Score: No minimum

• Loan Amount: $1,500 – $20,000

• APR: 18.00% – 35.99%

• Terms: 24 – 60 months

• Pros: In-person branches, secured loan options

Why it’s great: OneMain offers secured personal loans, which can help you get approved with bad credit if you provide collateral.

---

5. Upstart

• Minimum Credit Score: 580

• Loan Amount: $1,000 – $50,000

• APR: 6.40% – 35.99%

• Terms: 36 or 60 months

• Pros: AI-powered approval, quick funding

Why it’s great: Upstart uses more than your credit score (like education and employment) to assess your application—great for borrowers with thin credit files.

---

What to Look for in a Debt Consolidation Loan

When comparing loans, focus on the following:

Factor	Why It Matters
APR	Determines your total cost of borrowing
Origination Fees	Can be 1%–10% of loan amount
Loan Term	Shorter terms = less interest paid overall
Funding Time	Some lenders offer same-day or next-day funding
Direct Creditor Payments	Avoids temptation to spend funds elsewhere

How to Consolidate Credit Card Debt Without Hurting Your Credit Score

 

Introduction

Credit card debt is one of the most common financial burdens faced by millions of people today. The good news? Debt consolidation can be a powerful way to simplify your payments, reduce interest, and regain financial control. But there's a big concern for most: "Will consolidating my credit card debt hurt my credit score?"

In this guide, we’ll show you exactly how to consolidate credit card debt without hurting your credit, step by step. From choosing the right strategy to avoiding common pitfalls, you’ll get all the practical tips you need.

---

What Is Credit Card Debt Consolidation?

Debt consolidation is the process of combining multiple credit card balances into a single payment—usually through a loan, balance transfer, or debt management program. The goal is to reduce interest, simplify repayment, and become debt-free faster.

Popular Methods of Credit Card Debt Consolidation:

• Balance Transfer Credit Cards

• Personal Loans for Debt Consolidation

• Home Equity Loans or HELOC

• Debt Management Plans via Credit Counseling Agencies

Each method has its pros and cons. The key is choosing the one that won’t hurt your credit.

---

Does Debt Consolidation Hurt Your Credit?

The short answer: It depends on how you do it.

Some methods, like applying for multiple new credit lines at once or closing old accounts, can hurt your score. But when done right, debt consolidation can actually improve your credit over time by lowering your credit utilization and helping you make timely payments.

---

How to Consolidate Credit Card Debt Without Hurting Credit

1. Check Your Credit Score First

Before making any move, check your credit score. Many options—like balance transfer cards or personal loans—depend on your credit profile. Use free tools like Credit Karma or your bank’s app.

2. Choose a Low-Risk Consolidation Method

Here are your best options if you're trying to avoid credit damage:

✅ Balance Transfer Card (0% APR Intro Offer)

• Transfer your existing balances to a new credit card with 0% interest for 12–21 months.

• Make sure you pay it off before the intro period ends.

• Pro Tip: Don’t close your old cards—keep them open to maintain credit history.

✅ Personal Loan for Debt Consolidation

• Take out a fixed-rate personal loan to pay off all your cards.

• You’ll make one predictable monthly payment.

• Look for lenders that offer soft credit checks initially, like LendingClub or Upgrade.

✅ Debt Management Plan (Through a Credit Counselor)

• Non-profit agencies help negotiate lower interest rates and combine your debts into one monthly payment.

• These programs don't require new loans or credit pulls.

---

3. Avoid Common Mistakes That Hurt Your Credit

Even the best plan can backfire if you make the following mistakes:

Mistake	How It Hurts Your Credit
Applying for multiple loans or cards	Each hard inquiry may lower your score temporarily
Closing old credit card accounts	Reduces credit age and available credit
Missing payments on the new loan	Payment history is the biggest factor in your score
Continuing to use old cards	Adds more debt, increasing utilization