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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:
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Upgrade : Best for multiple rate discounts.
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Upstart
: Best for borrowers with thin or no credit history.
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Best Egg : Best for secured debt consolidation loans.
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Avant : Best for low income requirement.
Best for multiple rate discounts
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.
Best for borrowers with thin credit or no credit history
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.
Universal Credit personal loan
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.
Best for secured debt consolidation loans
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.
Best for low income requirement
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.
How to qualify for a debt consolidation loan with bad credit
1. Check your credit report to ensure accuracy and identify any errors that may be impacting your credit score. You can check your credit report for free weekly at Experian, Equifax, and TransUnion through AnnualCreditReport.com. Correcting mistakes on your credit report can potentially increase your credit score and improve your chances of qualifying for a debt consolidation loan.
Consider alternative options such as secured, co-signed, or joint loans if you have difficulty qualifying for a traditional debt consolidation loan. A secured loan requires collateral, while a co-signed loan involves having someone with a higher credit score or income co-sign the loan. Joint loans, on the other hand, allow both borrowers equal access to the funds.
Shop around and pre-qualify with multiple lenders to compare interest rates and terms for your debt consolidation loan. Pre-qualifying involves a soft credit check that does not impact your credit score. Once you’ve chosen a lender, apply for the loan and provide the necessary documentation. Upon approval, funds can be deposited into your account, or the lender may pay off your creditors directly.
After receiving the loan funds, use them to pay off your debts and create a plan to manage your loan payments. Setting up automatic payments can help you avoid late fees and maintain a good payment history. Debt consolidation can save you money on interest, help you pay off debt faster, simplify the repayment process, and potentially improve your credit score.
If you are unable to qualify for a debt consolidation loan, consider using the snowball or avalanche method to pay off debt. The snowball method focuses on paying off debts from smallest to largest balance, while the avalanche method prioritizes debts with the highest interest rates first. Both strategies can help you become debt-free without consolidating your debts. If you want to pay off your debts efficiently, consider the debt avalanche method. Start by paying off the debt with the highest interest rate first, then move on to the second-highest-interest debt, and so on until all debts are cleared. While this approach may not provide the quick wins of the snowball method, it can save you money and time in the long run.
Another option to manage your debt is to seek help from a nonprofit credit counseling agency. They can help you reduce your interest rates and pay off your debt faster. This is a good option if you have credit card debt and can commit to a payment plan for several years without using your credit cards. While credit counseling agencies charge small monthly fees for their services, there are no credit score requirements.
Debt settlement is another strategy where you negotiate with creditors to settle your debt for less than what you owe. This is usually done with the help of a third-party debt settlement company. However, debt settlement is risky, so it’s important to explore alternatives before pursuing this option.
If you’re overwhelmed by debt and it will take five years or longer to repay it through consolidation, you may consider discharging your debts through bankruptcy. Bankruptcy can wipe out most types of unsecured debt, such as credit cards and medical bills. While filing for bankruptcy will impact your credit score, it should start to recover within a few months.
Overall, there are various options available to help you manage and pay off your debts. It’s important to carefully consider each option and choose the one that best fits your financial situation and goals. sentence: “The cat jumped on the table and knocked over a vase.”
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