Best Debt Consolidation Loan Interest Rates: The Best Low Cost Lenders of 2021

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December 2, 2020

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Using a personal loan for debt consolidation can simplify your financial life. But this move is most worthwhile when you can get interest rates on debt consolidation loans that are lower than what you’re currently paying.

Finding the best lenders that offer low debt consolidation loan rates can take time. To help you, we have reviewed interest rates and terms offered by several such lenders.

This overview can help you quickly find debt consolidation loan companies with the best terms. From there, you can find the lender that offers the best interest rates and terms to help you deal with your debt.

Top 3 Debt Consolidation Loan Companies

lender APR for Debt Consolidation Loans Outstanding Advantage main disadvantage
FreedomPlus 7.99% – 29.99% Multiple ways to get discounts Referral fees from 1.99% – 4.99%
SoFi 5.74% – 20.28% You can pause payments after losing your job Requires a high annual income
Lending Club 10.68% – 35.89% Low credit required Setup fees from 3.00% – 6.00%

1. FreedomPlus

With an APR starting at just 7.99% FreedomPlus can send loan funds directly to your creditors to pay off existing debts and receive an interest rebate in return.

Here’s what you should know about FreedomPlus Debt Consolidation Loans:

  • The FreedomPlus APR ranges from 7.99% to 29.99%.
  • Borrowers can receive interest rebates if they meet the following requirements: Send at least half of the loan funds directly to creditors, add a qualified co-signer, and have at least $40,000 in retirement savings.
  • Pay no signup fees or prepayment penalties.
  • There is a personal lending fee of 1.99% – 4.99%.
  • Use FreedomPlus personal loans to borrow from $7,500 to $50,000.
  • Get repayment terms between two and five years.
  • Pre-qualify and view a custom fare offer with a soft pull.
  • Send loan funds directly to creditors or your own bank account.

2. SoFi

SoFi is another APR lender for debt consolidation loans that might be hard to beat, starting at low prices 5.74% Fixed. The lender also offers a wide range of loan amounts, so you can borrow as much or as little as you need.

  • SoFi’s fixed APRs range from 5.74% until 20.28%. Advertised prices include a 0.25% discount for Autopay registration.
  • Get an additional 0.125% interest rebate when you take out another SoFi loan.
  • Pay no application fees, processing fees, or prepayment penalties for SoFi debt consolidation loans.
  • Borrow as little as $5,000 and as much as $100,000.
  • SoFi personal loans offer repayment periods of 24 to 84 months.
  • There is a minimum FICO score of 680.
  • Use a soft pull to get a custom price quote.

3. Lending Club

Rounding out the list is the peer-to-peer lending platform LendingClub, whose APR starts at 10.68%. It offers some of the most accessible and flexible options. However, applicants should be aware of LendingClub’s processing fees, which range from 3.00% to 6.00%.

  • The annual percentage rates for debt consolidation loans range from 10.68% and 35.89%.
  • LendingClub personal loans include a 3.00% – 6.00% processing fee.
  • Pay no management fees or prepayment penalties.
  • Get debt consolidation loans in amounts ranging from $1,000 to $40,000.
  • Choose between a 36 or 60 month loan.
  • The minimum requirement for the FICO score is not specified.
  • Get a custom price quote with a soft pull.

Find your best debt consolidation loan rates

These debt consolidation companies offer some of the best rates and terms available. But to find the best consolidation loan rates you can get, look beyond lender advertising.

When you shop around to find your best personal loan rates, be sure to ask for interest rate quotes. Requesting these quotes will not affect your credit score and you will receive custom debt consolidation loan rates. From there, you can compare costs and interest rates to find the debt consolidation company that best suits your needs.

Forget about filling out countless forms. Finding the best personal loan rate is now easier than ever.

Disclaimer: Student Loan Hero is a subsidiary of LendingTree.

Interested in a personal loan?

LendingTree allows you to compare rates from multiple lenders by filling out a simple form. How Student Loan Hero is paid

How Student Loan Hero is paid

Student Loan Hero is compensated by companies on this site and this compensation may affect how and where offers appear on this site (e.g. ordering). Student Loan Hero does not include every lender, savings product or loan option available on the market.

advertiser disclosure

Student Loan Hero Advertiser Disclosure

Student Loan Hero is an ad-supported comparison service. Products from our partners and institutions that are not advertising partners are presented on the site. While we endeavor to offer the best available deals to the general public, we make no guarantee that this information represents all available products.

How Student Loan Hero is paid

How Student Loan Hero is paid

Student Loan Hero is compensated by companies on this site and this compensation may affect how and where offers appear on this site (e.g. ordering). Student Loan Hero does not include every lender, savings product or loan option available on the market.

advertiser disclosure

Student Loan Hero Advertiser Disclosure

Student Loan Hero is an ad-supported comparison service. Products from our partners and institutions that are not advertising partners are presented on the site. While we endeavor to offer the best available deals to the general public, we make no guarantee that this information represents all available products.

PRICE (APR) loan amount
5.74% – 20.28%1 $5,000 to $100,000
4.37% – 35.99% $1,000 to $50,000
5.94% – 35.97%* $1,000 to $50,000
99.00% – 199.00%2 $500 to $4,000
5.99% – 24.99%3 $5,000 to $40,000
9.99% – 35.99%4 $2,000 to $36,500

NMLS #1136: Terms and Conditions apply

1 Including AutoPay discount. .
2 Including AutoPay discount. .
3 Including AutoPay discount. .
4 .
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