Start with a free call to a nonprofit credit counselor, such as an NFCC member agency, which can set up a debt management plan without a new loan. If a loan makes sense, SoFi is our top pick for no required fees, a 6.99% to 35.49% APR range as listed October 2026 and direct payment to creditors, LightStream is best for excellent credit, and Citi has the lowest maximum APR. Choose the loan with the lowest APR after fees that beats what you pay now, and prefer one that pays your creditors directly.
A debt consolidation loan replaces several debts, usually credit cards, with one fixed-rate loan and one monthly payment. It only saves money if the new APR, including any origination fee, is lower than what you pay now and you stop adding new balances.
We compared SoFi, LightStream, Citi, Happen Bank (formerly LendingClub), Achieve and Upstart on APR range, origination fee, loan amounts, minimum credit score and whether they pay your creditors directly.
Below you will find the free nonprofit option to check first, each lender's published terms and weak spots, and why debt settlement is a different and riskier product.
Company reviews
Borrowers with good to excellent credit, ideally existing Citi customers, who want a no-fee fixed-rate loan of $30,000 or less funded quickly.: Citi Personal Loans
Why we picked it. Citi personal loans run $2,000 to $30,000 ($50,000 for some Citi customers) at 10.24% to 18.49% APR with no origination, late or prepayment fees, but no co-applicants.
Pros and cons
Pros
- No origination, late or prepayment fees
- Fixed APRs top out at 18.49%, low for an unsecured loan
- Same-day funding into a Citi bank account
- Soft-pull rate check before you apply
- Existing Citi customers can borrow up to $50,000
Cons
- New-to-Citi borrowers are capped at $30,000
- No co-applicants or co-signers
- Cannot be used to pay off Citi credit cards, education or business costs
- No principal-only payments
- Citi's bank-wide BBB D- rating and a pending New York lawsuit over fraud reimbursement
Borrowers with fair or limited credit history who need $1,000 to $75,000 quickly and want to see a rate without a hard credit pull.: Upstart
Why we picked it. Upstart lists fixed APRs of 6.3% to 35.99% on loans of $1,000 to $75,000, with a soft-pull rate check. The BBB now rates it A+, and it has conditional OCC approval to open Upstart Bank.
Pros and cons
Pros
- Soft-pull rate check in about five minutes
- Considers education and employment, not just credit score
- Small loans from $1,000
- Next-business-day funding
- No prepayment penalty; A+ BBB rating
Cons
- APRs up to 35.99%
- Origination fee of up to 12% reduces the cash you receive
- Only 3 or 5 year terms
- 2,896 CFPB complaints in three years, mostly about credit reporting and collections
- Upstart is not the lender, so your loan servicing and terms depend on the partner
Borrowers with good to excellent credit and steady income who need $5,000 or more quickly, especially to consolidate card debt.: SoFi
Why we picked it. SoFi personal loans run $5,000 to $100,000 at 6.99% to 35.49% APR with discounts. SoFi still says no fees are required, but its APR can now include a 0% to 7% origination fee.
Pros and cons
Pros
- Large loans, $5,000 to $100,000
- Soft-pull rate check before you commit
- Same-day funding for most approved borrowers who sign by 5:30 p.m. ET
- No late fees or prepayment penalties
- Unemployment Protection forbearance if you lose your job
Cons
- Origination fee of up to 7% can apply, despite the no-fees-required message
- Advertised low end assumes autopay and member discounts
- No loans under $5,000
- No published minimum credit score; fair credit applicants are often declined
- High overall complaint volume across SoFi's bank and loan products
Borrowers with fair to good credit who want to consolidate $5,000 to $50,000 of card debt with help from a loan consultant and a direct-pay discount.: Achieve Personal Loans
Why we picked it. Achieve (formerly FreedomPlus and Freedom Financial Network) offers personal loans of $5,000 to $50,000 at 6.25% to 35.99% APR, with a 1.99% to 9.99% origination fee and a 560 minimum credit score.
Pros and cons
Pros
- Publishes a 560 minimum credit score, which most lenders do not
- Three rate discounts: co-borrower, retirement savings and direct pay to creditors
- Soft-pull rate check and no prepayment penalty
- Funds in 24 to 72 hours after approval
- A+ BBB rating and accreditation; 4.7 out of 5 on Trustpilot
Cons
- Every loan has an origination fee, up to 9.99%
- Maximum loan is $50,000 and the minimum is $5,000
- Not available in every state
- Sister debt relief brand has a CFPB and state enforcement history
- Achieve's FAQ and legal disclosure list different APR and fee ranges
Free option first: nonprofit credit counseling
Before you take on a new loan, talk with a nonprofit credit counselor. The CFPB describes credit counseling as free or low-cost advice, and counselors can build a budget with you and set up a debt management plan (DMP).
- How a DMP works. You make one monthly deposit with the counseling agency, which pays your creditors. Creditors may agree to lower your interest rates or waive certain fees, according to the FTC. Plans can take 48 months or more to complete.
- Fees. Counseling is often free, but some agencies charge setup or monthly fees for a DMP. Ask about fees up front, and avoid any agency that charges before it provides help.
- Where to start. The CFPB suggests the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association of America (FCAA). NFCC lists more than 1,500 certified counselors at nfcc.org.
We also review nonprofit agencies, including Money Management International, InCharge Debt Solutions and Cambridge Credit Counseling. A DMP needs no new credit approval, which helps if your score is too low for a good loan rate.
How much a debt consolidation loan costs
As listed October 2026, the lowest advertised APRs at the lenders we compared run from 5.96% (Happen Bank) to 10.24% (Citi), and the highest from 18.49% (Citi) to 35.99% (Happen Bank, Achieve and Upstart). Only borrowers with excellent credit get the low end.
LendingTree’s marketplace data for the second quarter of 2026 shows average personal loan offers of 15.34% APR for scores of 800 and above, 22.70% for 670 to 739, 27.52% for 580 to 669 and 30.51% under 580.
Read each range carefully. SoFi, LightStream and Citi quote rates with autopay discounts. Happen Bank, Achieve and Upstart can charge an origination fee that is taken out of your loan, so you receive less than you borrow. On Upstart’s example, a $10,000 loan with an 8.15% fee pays out $9,185.
How to choose a debt consolidation loan
- Add up what you pay now. List each balance, rate and payment, so you know the APR a new loan has to beat.
- Compare APR, not the interest rate. APR includes the origination fee. A no-fee loan at a slightly higher rate can cost less.
- Check total cost, not just the payment. The CFPB warns that a longer term can lower your payment but cost more overall.
- Prefer direct payment to creditors. It makes sure the money pays off the debt, and SoFi and Achieve give a rate discount for it.
- Pre-qualify with soft pulls. SoFi, Citi, Upstart and Achieve show rates with a soft pull. LightStream uses a hard inquiry when you apply.
- Stop new charges. A loan only helps if the paid-off cards do not fill back up.
Direct payment to creditors, explained
| Lender |
Pays creditors directly? |
Detail |
| SoFi |
Yes |
0.25% rate discount if 50% or more goes to creditors |
| Happen Bank |
Yes |
Funds to your account, creditors or both |
| Achieve |
Yes |
Rate discount for direct pay |
| Citi |
Yes, for non-Citi cards |
Citi cards are not eligible |
| LightStream |
No |
Funds go to your personal bank account |
| Upstart |
Not published |
Funds are sent to you |
Keep paying your old accounts until each creditor confirms the payoff. SoFi says creditor payments take about 3 business days to arrive.
Debt settlement is not a loan
Debt settlement companies try to get creditors to accept less than you owe. It is a different product from a consolidation loan, and the FTC lists serious risks:
- You are usually told to stop paying creditors, so late fees and penalties can grow and your credit can suffer.
- You can be sued while you wait for a settlement.
- Forgiven debt may count as taxable income.
- A settlement company cannot legally collect fees before it settles a debt. Walk away from any company that asks for money up front.
Some loan brands are tied to settlement companies. Achieve’s subsidiary Freedom Debt Relief settled a CFPB lawsuit in 2019 that alleged illegal advance fees and misleading claims, including a $5 million civil penalty.
Other options and red flags
- Balance transfer card. A 0% promotional rate can beat a loan if you pay the balance off in time, but the CFPB notes the rate rises after the promotion and most transfers carry a fee.
- Home equity loan. Rates can be lower, but the CFPB and FTC warn that you could lose your home if you cannot pay.
- Loan marketplaces. Sites like LendingTree are not lenders. They pass your information to partner lenders, who may contact you.
- Red flags. “Teaser” rates that expire, fees taken before you get any help, pressure to stop paying your bills, and short-term lenders that advertise APRs far above 36%.
Terms to know
- APR
- The yearly cost of a loan, including interest and any origination fee.
- Origination fee
- A one-time fee, usually a percentage of the loan, often deducted from the money you receive.
- Direct pay
- An option where the lender sends loan funds straight to your creditors instead of to you.
- Debt management plan
- A repayment plan set up by a credit counseling agency, which collects one monthly payment and pays your creditors.
- Soft credit pull
- A credit check used to show rates that does not affect your credit score.
- Hard inquiry
- A credit check made when you apply that can lower your score slightly for a short time.
- Debt settlement
- A service that negotiates with creditors to accept less than the full balance, with risks to your credit.
