 TITLE: How to Get a Debt Consolidation Loan with Bad Credit? CONTENT: While there are debt consolidation options available for people with \"poor\" scores, they often come with high-interest rates that may be higher than the rates of your current loans.\nA good option would be to look at online lenders like Upstart—which is an Experian personal loan partner. Upstart looks at alternative data, beyond credit reports and scores, to determine whether a person qualifies for a loan. Factors like job history, income and education influence whether a candidate qualifies for a loan and a lower rate.\n* * *\n### Upstart\n[](;site=exp&placement=ae-single-embed&sessionid=8952CE01-C3FF-5C0C-1210-7E33C129F096&pageid=blogs:ask-experian:how-to-get-a-debt-consolidation-loan-with-bad-credit&previouspageid=&ecsstaticid=8A13831A-7B59-4855-92DA-BEBA4848241A)[Apply](;site=exp&placement=ae-single-embed&sessionid=8952CE01-C3FF-5C0C-1210-7E33C129F096&pageid=blogs:ask-experian:how-to-get-a-debt-consolidation-loan-with-bad-credit&previouspageid=&ecsstaticid=8A13831A-7B59-4855-92DA-BEBA4848241A)\non Upstart's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,262\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Loan amounts from $1,000 - $50,000\n*   APRs from 6.46% - 35.99% with loan terms of 3 or 5 years\n*   Won't affect your credit score\n*   You can have funds in as fast as 1 day\n*   You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.\nDisclosure\nUpstart offers loans of up to $50,000 that can be used to pay off credit cards and consolidate other types of debt. Upstart has an easy application process and getting prequalified will not affect your credit scores.\n* * *\n### LendingPoint\n[](;site=exp&placement=ae-single-embed&sessionid=8952CE01-C3FF-5C0C-1210-7E33C129F096&pageid=blogs:ask-experian:how-to-get-a-debt-consolidation-loan-with-bad-credit&previouspageid=&ecsstaticid=8A13831A-7B59-4855-92DA-BEBA4848241A)[Apply](;site=exp&placement=ae-single-embed&sessionid=8952CE01-C3FF-5C0C-1210-7E33C129F096&pageid=blogs:ask-experian:how-to-get-a-debt-consolidation-loan-with-bad-credit&previouspageid=&ecsstaticid=8A13831A-7B59-4855-92DA-BEBA4848241A)\non LendingPoint's website\n**Recommended FICO® Score\\***\nFair - Good\nAmount\nAvailable loan amounts: $2,000 to $25,000\nEst. monthly payment: $95 to $1,437\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   Personal loans from $2,000 to $25,000\n*   Rates from 15.49% to 35.99% APR with no prepayment penalties\n*   Check your rate for free without impacting your credit score\n*   Qualified customers receive offers in three simple steps, and funds in as little as 24 hours if approved\n*   Simple and Secure - quick online application\n*   LendingPoint's customer success representatives are available online or by phone 24\/7, just call 888-969-0959\n*   Terms from 24 - 60 months\nDisclosure\nLendingPoint offers loans to those with credit scores in the \"fair\" or \"good\" range that can be anywhere from $2,000 to $25,000. LendingPoint allows you to check your rate before you apply and doesn't ding your credit score for doing so. In addition to your credit score, LendingPoint also considers factors such as your job history and income when deciding your loan terms.\n* * *\n### SoFi\n[](;site=exp&placement=ae-single-embed&sessionid=8952CE01-C3FF-5C0C-1210-7E33C129F096&pageid=blogs:ask-experian:how-to-get-a-debt-consolidation-loan-with-bad-credit&previouspageid=&ecsstaticid=8A13831A-7B59-4855-92DA-BEBA4848241A)[Apply](;site=exp&placement=ae-single-embed&sessionid=8952CE01-C3FF-5C0C-1210-7E33C129F096&pageid=blogs:ask-experian:how-to-get-a-debt-consolidation-loan-with-bad-credit&previouspageid=&ecsstaticid=8A13831A-7B59-4855-92DA-BEBA4848241A)\non SoFi's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $5,000 to $100,000\nEst. monthly payment: $217 to $4,944\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   Personal Loans with low fixed rates\n*   Borrow up to $100,000\n*   No Origination Fees, No Prepayment Penalties, and No Late or Overdraft Fees\n*   Simple online application with live support 7 days a week\n*   Apply Now\nDisclosure\nIf your credit scores are in the good to exceptional range, SoFi provides loans from $5,000 to $100,000 without charging application or origination fees. SoFi is a great option if you need a large loan and can stand to wait a few days for your funds to arrive.\nWhat Are the Benefits of a Debt Consolidation Loan?\n---------------------------------------------------\nOne of the main advantages of a debt consolidation loan is eliminating the task of paying multiple lenders each month. When you consolidate all your existing debt into one new loan, you only have to make payments to your new lender. Making only one payment is not only easier, but it can save you from dealing with late and missed payments—which can occur when juggling multiple different payments each month.\nPayment history is the most important factor in calculating your credit score—accounting for 35% of your FICO® Score—and it is important to avoid paying any loan payments past their due date. Late payments can easily occur when someone has multiple loan payments each month and is not using auto pay. Another advantage of a debt consolidation loan is lowering the amount of interest you're paying on your outstanding debt. People typically use debt consolidation loans to pay off their high-interest debt—like credit card debt, which can have interest rates that range from 18-25%. In most cases, a debt consolidation loan will have a much lower interest rate depending on your creditworthiness, saving you money on interest over the life of your loan.\nImagine you had $5,000 worth of credit card debt with an APR of about 25%. Over 36 months, the monthly payment on the debt would be approximately $240 and you would pay a total of $2,500 in total interest. If you were to consolidate this debt into a new loan with an average APR of 17% over 36 months, the total amount you pay toward interest would drop to around $1,700 and your monthly payment would come down to $200. In this scenario, the lower the APR on your new loan, the less you will pay toward interest over time.\nHow Do I Qualify for a Debt Consolidation Loan\n----------------------------------------------\nDepending on your credit range, taking out a debt consolidation loan might not be the best idea. If you have a \"poor\" credit score, it may be difficult to get approved for a debt consolidation loan. Lenders often see people in \"poor\" credit ranges as risky, and as a result, might not issue a new loan to someone in that range.\nAnother potential issue with getting a debt consolidation loan with a \"poor\" credit score is that the interest rate on your new loan could, in some cases, be higher than the APR on your existing debt. Lenders often use your creditworthiness to establish what interest rate you get, so people with \"poor\" or even \"fair\" credit scores should be careful not take on new loans with higher rates.\nDebt Consolidation Loan Options for Military Members\n----------------------------------------------------\nMembers of the military can sometimes have more difficulty obtaining new credit from conventional lenders. Spending extended periods away from home without the need to take loans and utilize lines of revolving credit, members of the military can often have a less robust credit history.\nAs a result, there are specialized private lenders that service members of the military exclusively. Through these lending institutions, members of the military can apply for auto loans, mortgages and even personal loans that can be used for debt consolidation.\nObtaining a personal loan from a military lender is one option for military members trying to consolidate their existing debt. Military lenders will consider applicants with a lower score, but may still find people with a severely compromised credit history risky.\n* * *\n### Prosper\n[](;site=exp&placement=ae-single-embed&sessionid=8952CE01-C3FF-5C0C-1210-7E33C129F096&pageid=blogs:ask-experian:how-to-get-a-debt-consolidation-loan-with-bad-credit&previouspageid=&ecsstaticid=8A13831A-7B59-4855-92DA-BEBA4848241A)[Apply](;site=exp&placement=ae-single-embed&sessionid=8952CE01-C3FF-5C0C-1210-7E33C129F096&pageid=blogs:ask-experian:how-to-get-a-debt-consolidation-loan-with-bad-credit&previouspageid=&ecsstaticid=8A13831A-7B59-4855-92DA-BEBA4848241A)\non Prosper's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $2,000 to $40,000\nEst. monthly payment: $61 to $1,720\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   640 minimum FICO® Score\n*   More than $16 billion loans funded\n*   Consolidate debt, finance a home improvement project, or pay off medical expenses\n*   9 out of 10 customers would recommend Prosper to friends or family\\*\\*\n*   Co-borrower option available. Applying with a co-borrower could help improve your rates.\n*   Get your money in as few as 3 days - your monthly payment stays the same\nDisclosure\nProsper works with members of the military to provide fixed-rate loans without requiring the borrower to visit a physical bank location. Prosper provides unsecured loans as large as $40,000 for those with good to very good credit scores.\n* * *\nAlternatives to Debt Consolidation\n----------------------------------\nWhile consolidating your debt may seem like the best way to lower your monthly payments or eliminate the hassle of paying multiple bills each month, for some people other debt management tactics might be a better option.\n*   ### Debt Management Plans\n    Before you consider applying for a loan, one option is to use a debt management plan to consolidate your monthly debt payments. With a plan like this, you must first find a credit counselor and work with them to formulate and stick to a repayment plan. Once you and your counselor agree on a plan, they will often try to negotiate with your creditors to see if they can get you a lower monthly payment and sometimes a lower interest rate.\n    In this scenario, once the counselor has finished negotiating, you will pay their organization directly each month and they will make all of your monthly debt payments for you.\n    A debt management plan may be a good alternative for people with \"poor\" credit scores who may not be approved for a debt consolidation loan.\n*   ### Credit Card Usage\n    Responsible credit card usage can help make sure that you don't rack up too much debt and don't get behind on payments. Knowing how to pay down credit card debt can be extremely helpful and can help you save money over time.\n*   ### Creating a Budget\n    Creating a budget and monitoring your expenses is a vital step in understanding how much you can afford to pay toward existing debt each month. Once a budget is in place, you will be able to set aside a set amount toward your debt payments and inch toward your goal of paying your loans off.\n*   ### Bankruptcy\n    If you are overwhelmed with debt and see no way of paying it off, bankruptcy may help you find relief. Filing for bankruptcy, however, will remain on your credit file for seven to 10 years and may affect your ability to obtain other loans in the future.\nIf you think debt consolidation might help you, but you are unsure what your credit score is, Experian's CreditMatchTM tool can help you find a personalized loan based your FICO® Score.\nPersonal Loan Calculator\n------------------------\n†The information provided is for educational purposes only and should not be construed as financial advice. Experian cannot guarantee the accuracy of the results provided. Your lender may charge other fees which have not been factored in this calculation. These results, based on the information provided by you, represent an estimate and you should consult your own financial advisor regarding your particular needs.\n* * *\n**Want to instantly increase your credit score?** Experian Boost™ helps by giving you credit for the utility and mobile phone bills you're already paying. Until now, those payments did not positively impact your score.\nThis service is completely free and can boost your credit scores fast by using your own positive payment history. It can also help those with poor or limited credit situations. Other services such as credit repair may cost you up to thousands and only help remove inaccuracies from your credit report. END