How to Get a Debt Consolidation Loan With Bad Credit

Getting a debt consolidation loan if you have bad credit may require some shopping around, but there are options, including personal loans from online lenders.

Some lenders accept borrowers with bad credit (any score in the high 500s or lower) and consider factors beyond credit score, such as education, income and job history.

The lenders we feature below all let you pre-qualify for a debt consolidation loan, so you can check whether you qualify with no risk to your credit score.

Best debt consolidation loans for bad credit in October 2025:

Minimum credit score required: 600.

APR range: 7.74% – 35.99%.

Loan amounts and terms: Upgrade personal loans range from $1,000 to $50,000 and can be repaid over two, three, four or five years. For loans over $15,000 that are secured by a home fixture, you may qualify for terms up to seven years.

Why we chose Upgrade for multiple rate discounts: One of the biggest challenges facing borrowers with bad credit is finding a debt consolidation loan with a rate that’s lower than the rate of your current debts. Upgrade’s annual percentage rates range from about 8% to 36%, but it offers three potential rate discounts: for setting up autopay, for sending loan funds directly to your creditors and for customers with multiple Upgrade products. Few lenders offer this many discounts, and getting even one could save you hundreds of dollars in interest, depending on the details of your loan.

Minimum credit score required: None.

APR range: 6.70% – 35.99%.

Loan amounts and terms: Upstart personal loans range from $1,000 to $75,000 and can be repaid over three or five years.

Why we chose Upstart for borrowers with thin credit: Upstart is unique among personal loan lenders we review because it doesn’t rely as much on credit scores to qualify you. Instead Upstart looks at alternative data, like college education and work experience, and it even accepts borrowers that don’t have enough credit history to generate a credit score. If you do have a credit score, Upstart says its minimum requirement is 300, meaning it basically doesn’t have one. Upstart says this approach helps it approve more borrowers at lower rates compared to other lenders.

Minimum credit score required: 560.

APR range: 11.69% – 35.99%.

Loan amounts and terms: Universal Credit personal loans range from $1,000 to $50,000 and can be repaid over three, four or five years.

Why we chose Universal Credit for fast funding: When you’re ready to start the journey to becoming debt-free, you don’t want to lose momentum waiting a week or longer to get your debt consolidation loan. According to Universal Credit, it can approve most loan applications in under five minutes, and the funds are typically available in your account in one business day. That means you’ll go from application to funding in as little as 24 hours, which is lightning-fast even for an online lender.

Minimum credit score required: 600.

APR range: 6.99% – 35.99%.

Loan amounts and terms: Best Egg personal loans range from $2,000 to $50,000 and can be repaid over three, four or five years.

Why we chose Best Egg for secured debt consolidation loans: Another way to improve your chances of getting a debt consolidation loan with bad credit is to secure the loan with collateral. This helps “guarantee” the loan, making it less risky for the lender, who may in turn approve your application and give you a reasonable rate. Best Egg lets borrowers secure their personal loan with a car or a permanent home fixture, like built-in cabinets or bathroom vanities. One thing to keep in mind: If you fail to repay the loan, the lender can seize the collateral, so make sure to take out a secured loan if you’re sure you can repay it.

Minimum credit score required: 550.

APR range: 9.95% – 35.99%.

Loan amounts and terms: Avant personal loans range from $2,000 to $35,000 and can be repaid over two, three, four or five years.

Why we chose Avant for low income requirement: In addition to looking at your credit score and credit history, personal loan lenders often have a minimum income requirement that can be just as hard to meet as the credit score requirement. Avant stands out for its leniency — it only requires a monthly net income above $1,200 to qualify for a personal loan. Paired with its particularly low minimum credit score requirement (550), it’s a strong option for borrowers who are worried about meeting the qualification criteria.

Are mistakes on your credit report the reason your score is low? Check for errors such as wrong accounts, incorrectly reported payments or inaccurate credit limits.

Even a small bump in your credit score may increase your odds of qualifying for a debt consolidation loan.

Another tip is to pay off any small debts you owe. This lowers your credit utilization, which accounts for 30% of your credit score. It can also improve your overall debt-to-income ratio, which lenders use to evaluate your ability to repay a loan. The lower your DTI ratio, the more likely a lender may approve your loan application.

Some types of personal loans may be easier to qualify for, including a secured, co-signed or joint loan.

Many lenders can make an immediate approval decision, though some may take a few business days to get back to you. Once you’re approved, you’ll receive the loan documents, which you can usually sign electronically. Make sure to read the documents carefully before signing.

Lenders can then deposit the funds directly into your bank account, though some may offer direct payment to creditors, which means the lender pays off your creditors for you, simplifying the process — and eliminating any temptation to use the cash for something else.

Though funding time varies, many online lenders offer same- and next-day funding.

Once you receive the funds in your account, use them to pay off your debts. If the funds are being sent to your creditors for you, confirm with each creditor that your debt was successfully paid off.

Most lenders charge a late fee for missed payments — and report them to the credit bureaus, which can hurt your score — so consider setting up automatic payments to avoid falling behind.

If you’re struggling to pay off high-interest debt, like credit cards, and you can qualify for a low enough interest rate on a personal loan, debt consolidation is generally a good idea.

Here are some of the benefits:

If you don’t qualify for a debt consolidation loan, there are still ways to tackle high-interest debt.

The debt snowball and debt avalanche methods are popular strategies for paying off debt without consolidating.

A debt management plan from a nonprofit credit counseling agency can help reduce your interest rate and pay off debt faster. It’s an option if you have credit card debt and if you can stick to a payment plan for several years while not using the credit cards. Credit counseling agencies charge small monthly fees for this service, and there’s no credit score requirement.

Debt settlement is when you settle your debt for less than you owe, usually with the help of a third-party debt settlement company. The settlement company will ask you to stop making payments on your debts and instead funnel that money into a holding account, which it will then use to make an offer to your creditors, once your debts are significantly overdue. Debt settlement is risky, so explore alternatives first.

Discharging your debts in bankruptcy may be an option if you are overwhelmed by debt and it will take five years or longer to repay it through consolidation. Bankruptcy wipes out most kinds of unsecured debt, including credit cards and medical bills.

While your credit score will take a hit, it should begin to recover within a few months after filing for bankruptcy.