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Debt Consolidation Loans
Replace several balances with one loan, one rate and one payoff date. Borrow $1,000 to $5,000 over 6 to 36 months, with the total cost shown before you sign.
A debt consolidation loan replaces several balances with one: one rate, one payment, one payoff date. We lend $1,000 to $5,000 over 6 to 36 months, deposit the funds to your checking account, and you clear the old balances yourself in whatever order you choose.
| Key loan information | Details |
|---|---|
| Loan amount | $1,000 – $5,000 |
| Term | 6 – 36 months, fixed monthly payments |
| APR | 17.99% – 35.99% |
| Origination fee | Up to 5%, disclosed in your offer |
| Prepayment penalty | None |
| Collateral | None |
| Funds paid to | Your checking account, so you control the payoff order |
| Credit reporting | Payments reported to one or more major bureaus |
| Funding | 1 – 2 business days |
The only calculation that matters
Consolidation is worth doing when the total interest on the new loan is less than the total interest you would pay carrying on as you are. Not when the monthly payment is smaller: a longer term always lowers the payment and often raises the total cost.
| Three balances now | One consolidation loan | |
|---|---|---|
| Total owed | $3,500 | $3,500 |
| Blended APR | About 24% | 29.99% |
| Monthly payment | $140 in minimums | $195.68 |
| Months to clear | 36 | 24 |
| Total interest | $1,400 | $1,196 |
In that example the payment is higher but you finish a year sooner and pay about $204 less in interest. Change any input in the debt consolidation calculator and the answer can flip, which is exactly why it is worth checking rather than assuming.
When it works
- Your blended rate is higher than the consolidation APR you are offered.
- You are only making minimum payments, so the balances barely move.
- Several due dates across the month make budgeting unpredictable.
- You want a fixed date when the debt is gone.
When it does not
- Your existing debt is already cheaper than what we can offer.
- You would clear the balances within a few months anyway.
- You are likely to run the cleared cards back up, which doubles the debt rather than replacing it.
- You are behind on essentials rather than juggling rates. Speak to a non-profit credit counsellor first; the National Foundation for Credit Counseling is one place to start.
Effect on your credit
Applying may add a hard inquiry, which can lower a score slightly and briefly. Over the following months, paying down revolving balances lowers your credit utilisation and the new loan builds payment history, both of which usually help. The risk is rebuilding the balances you just cleared while also carrying the loan.
Eligibility
- 18 or older and resident in a state where we lend
- At least $1,000 a month in verifiable income after tax
- An active checking account in your name, open at least 30 days
- Government-issued ID and a Social Security number or ITIN
- Fair credit or better is recommended for this product
Related loans
Personal loans are the same product used for any other purpose. Installment loans are the option if your credit is below fair, though the higher APR means consolidation may not save money.
Frequently asked questions
Is a debt consolidation loan a good idea?
It helps when the new APR is lower than the blended rate you pay now and you do not rebuild the balances you clear. Compare total interest across both scenarios rather than comparing monthly payments, because a longer term always lowers the payment.
Do you pay my creditors directly?
No. Funds are deposited into your checking account and you pay the balances off yourself. That lets you choose the order and keep any accounts open that you want to keep.
How much can I consolidate?
From $1,000 to $5,000 over 6 to 36 months, depending on your state, income and credit profile.
Will consolidating hurt my credit score?
Applying may add a hard inquiry that can lower a score slightly and briefly. Over time, reducing revolving balances and making on-time loan payments usually helps, because utilisation falls and positive payment history builds.
Can I consolidate with bad credit?
Consolidation loans are priced for fair credit and above. With a lower score you may still qualify for an installment loan, but the higher APR often means consolidating would not save money, so check the calculator first.
Borrow $200 to $5,000 for any purpose
Apply in about five minutes and get a decision in minutes. Checking your rate won't affect your FICO® score.