Best Companies for Debt Consolidation Loans (2026): Top Lenders for Lower APR & One Monthly Payment

Best Debt Consolidation Companies (2026): Top Lenders for Lower APR & One Monthly Payment

Looking for the best debt consolidation companies? This guide summarizes top debt consolidation
lenders using comparisons published by NerdWallet (Feb 2026), focusing on APR ranges,
credit score access, funding speed, and terms.

Quick Answer: What is debt consolidation?

Debt consolidation means replacing multiple high-interest debts (often credit cards) with
one personal loan—so you have a single monthly payment and (ideally) a lower APR.
The goal is to reduce interest cost, simplify repayment, and set a clear payoff timeline.

Best Debt Consolidation Companies (Top Picks)

1) LendingClub — Best Overall

• Why it’s a top pick: strong “all-around” option with flexibility for paying creditors directly.
• Good fit if: you want a mainstream, well-rounded consolidation loan.

2) SoFi — Best for Good-Credit Borrowers

• Why it’s a top pick: designed for strong credit profiles and may offer rate discounts/perks.
• Good fit if: you have good-to-excellent credit and want the lowest possible APR.

3) Upgrade — Best for Multiple Rate Discounts

• Why it’s a top pick: discount opportunities (e.g., autopay, direct payoff) and broader access.
• Good fit if: you’re in the fair-credit range and want ways to cut rate.

4) Best Egg — Best Secured Debt Consolidation Loan

• Why it’s a top pick: secured options can reduce APR if you have eligible collateral.
• Watch for: origination fees may apply (NerdWallet notes potential fees).

5) Discover — Best for Fast Approval & Funding

• Why it’s a top pick: known for fast decisions and quick funding pathways.
• Good fit if: you want speed and predictability.

6) Happy Money — Best for Instant Pre-Qualification

• Why it’s a top pick: fast pre-qual flow to view estimated offers quickly.
• Good fit if: you want to compare without committing immediately.

7) Achieve — Best Joint Debt Consolidation Loan

• Why it’s a top pick: joint borrowing can improve approval odds or pricing.
• Watch for: origination fees may apply (per NerdWallet notes).

8) Universal Credit — Best for Bad-Credit Borrowers

• Why it’s a top pick: more accessible minimum credit score compared to many lenders.
• Watch for: origination fees may apply (per NerdWallet notes).

How to Choose the Best Debt Consolidation Company

1. Compare APR first. If the new APR isn’t lower than your current debt, consolidation may not help.
2. Confirm total cost. Check origination fees and the total repayment amount, not just the monthly payment.
3. Pick a term you can afford. Longer terms reduce monthly payment but can increase total interest paid.
4. Prefer direct creditor payoff. Many consolidation lenders allow paying creditors directly.
5. Pre-qualify with multiple lenders. Pre-qualification helps compare offers more efficiently.

When Debt Consolidation Is (and Isn’t) Worth It

Debt consolidation can be worth it if you can secure a lower APR and commit to not re-building credit card balances.
It may not be worth it if fees erase savings or if you plan to keep using high-interest credit after payoff.

Debt Consolidation vs. Debt Settlement

Debt consolidation typically replaces debts with a new loan. Debt settlement usually involves negotiating balances down,
often through a third party—and can severely damage credit. NerdWallet generally favors consolidation when possible.

Frequently Asked Questions

Will a debt consolidation loan hurt my credit score?

Applying usually triggers a hard credit inquiry (small, temporary dip). Over time, paying down revolving debt and
making on-time payments can improve your credit profile.

How long does it take to get funded?

Many online lenders fund within 1–3 business days after approval, though timing depends on verification and the lender’s process.

What credit score do I need?

Consolidation loans exist across the credit spectrum. Some lenders target good credit, while others accept lower scores
(often with higher APRs and/or fees).

What debts can I consolidate?

Commonly: credit cards, personal loans, and some medical bills. Eligibility varies by lender and your overall profile.