Top Debt Consolidation Loans of 2023
Simplify your finances. Compare and see today’s offered rates.
How much would you like to consolidate?
This Lantern site is operated by SoFi Lending Corp. in cooperation with Engine by MoneyLion. The preliminary loan offers presented on this site are from providers that pay SoFi and Engine by MoneyLion compensation for marketing their products and services on this site. This affects whether a provider is featured on this site and could affect the order of presentation. Lantern by SoFi does not include all providers in the market nor all of their available offerings. All rates, terms, and conditions vary by provider.
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What Are Debt Consolidation Loans?
How Do Personal Loans for Debt Consolidation Work?
Can Any Debt Be Consolidated?
Pros and Cons of Debt Consolidation Loans
Pros of debt consolidation loans
Fixed Interest Rates
Potentially Low Interest Rates
Your credit score. If you have a good credit score, you pose less of a risk to the lender, meaning you’ll likely qualify for a lower rate. The loan term. Longer loan terms present more risk to the lender, so rates tend to be higher. Your current financials. Lenders will assess your creditworthiness based on factors like monthly income, debt-to-income ratio (monthly debt divided by monthly income), and existing debt. A lower debt-to-income ratio also indicates less risk to the lender, meaning they may offer you a lower rate.
Cons of debt consolidation loans
Some Lenders Charge Fees
It's Still Debt
Not Everyone Qualifies for Lower Interest Rates
When Can Debt Consolidation Be a Good Idea?
You can consistently make timely payments, since late and missed payments can add fees and other charges to your loan balance You qualify for an interest rate that’s lower than the rate or rates on the debts you plan to consolidate You feel overwhelmed by the number of monthly payments you have — and have been missing them.
Getting a Debt Consolidation Loan
Be at least 18 years old. Be a U.S. resident. Not be in bankruptcy or foreclosure proceedings. Have credit scores above 660 to qualify for favorable rates and terms. Have a debt-to-income ratio below 45 percent.