The best personal loans to help you consolidate debt, for anyone with fair to excellent credit

Credit card debt is common, and sometimes we end up over our heads before we even realize it.

The average credit card debt was $6,501 in, according to Experian data. And while that number has declined over the last few years, even debt in the low four figures can cost you a lot in interest when you only make the minimum payment.

If you’re stuck in a no-win situation with credit card debt you can’t afford to pay off, a personal loan for debt consolidation might be your ticket out. Debt consolidation also helps people with multiple student loans lump them into one loan, ideally with a lower interest rate.

One obvious benefit of using a personal loan for debt consolidation is that it helps you avoid getting overwhelmed by too many bills and different due dates since those payments would be streamlined into one monthly bill.

However, there are a few considerations to make when looking for the right debt consolidation loan. You’ll want to ensure you get the best interest rate and that the repayment plan works within your budget.

CNBC Select rounded up the top personal loans for debt consolidation, looking at fees, interest rates and flexible repayment options for different credit scores. We tried to prioritize loans with no origination or sign-up fees, but we also included options for borrowers with lower credit scores. Some options ahead have origination fees and/or APRs — make sure you understand the terms of the loan before you sign up. (Read more about our methodology below.)

Who’s this for? You can consolidate your student loans to get new rates and terms. SoFi consolidates and refinances both federal and private student loans. Note, however, that refinancing federal student loans disqualifies you from federal repayment programs, including PSLF and income-driven repayment plans, so it’s best to carefully consider this decision.

Standout benefits: SoFi charges no origination fees, no prepayment penalty fees and no late fees. You can check your rate before applying with no impact on your credit. Plus, SoFi membership comes with numerous perks, such as referral bonuses, rate discounts, financial planning, access to travel offers and an unemployment protection program that allows you to temporarily modify your loan payments.

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Who’s this for? Upstart can be a good choice if you’re new to credit, since it works with applicants with no credit score. When reviewing your application, it will consider factors beyond your credit, including your education history and work experience.

Standout benefits: The lender allows you to check your interest rate before you apply with a soft credit inquiry. You can receive the funds as soon as the next business day. Additionally, you can pay off your consolidation loan early at any time without penalty fees.

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Who’s this for? Achieve can be a great option even for borrowers with imperfect credit. You only need a FICO score of 620 for a chance to qualify. Note, however, that a low score may translate into a higher interest rate.

Standout benefits: Achieve offers several rate discounts, as well as flexible terms and payment dates. The lender charges no prepayment penalty fees.

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Who’s this for? Upgrade is ideal for those that want the opportunity to customize their debt consolidation loan. With multiple loan options, you can select a monthly payment that best fits your budget and pick a term that works for you.

Standout benefits: You can view your rate without impacting your credit score and receive funds in one business day after accepting a loan offer. You can opt to have the funds sent straight to your creditors. Upgrade also charges no early payoff fees.

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Who’s this for? If you need a little extra motivation to pay off your debts, Happy Money can give you a boost by making it easy to track your progress. Through the online Member Portal and Happy Money mobile app, you can monitor payments, track your progress and contact the support team if you need any help.

Standout benefits: Happy Money allows you to check your rate with a soft credit pull. The application process is quick and simple, and you can choose your terms, pay-off date and monthly payment. The lender lets you decide whether you want the money deposited into your account or sent to your credit card issuer directly.

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Who’s this for? LightStream can be an excellent choice for those with strong credit. The lender offers highly competitive rates and a high limit on how much you can borrow. Plus, LightStream advertises a Rate Beat Program which helps ensure you get the best rate when shopping for a debt consolidation loan.

Standout benefits: The application process allows you to choose a funding date and repayment terms that work for you. LightStream can approve and fund your loan as soon as the day you apply. There are no pre-payment penalties.

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Who’s this for? When you apply with a co-borrower, you might improve your approval odds and qualify for better terms. Prosper allows for joint applications, so if your co-applicant has strong credit, this is a lender worth looking into.

Standout benefits: Prosper lets you check your rate without a hard credit pull. You get to choose the length of your loan to customize the monthly payment and rate. Funds can be available as soon as in one business day. Prosper charges no prepayment penalties.

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SoFi is an online lender known for competitive interest rates and flexible loan terms. It offers a wide range of lending products, from private student loans to mortgages, savings accounts and more.

Eligible types of debt

Student loans, credit card debt, personal loans and more

Loan amounts

$5,000 to $100,000

Loan terms

2 to 7 years (up to 20 years with student loan refinancing)

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Achieve is an online lender providing various solutions to help borrowers get out of debt. It also offers personal loans and home equity loans.

Eligible types of debt

Qualifying unsecured debt

Loan amounts

 $5,000 to $50,000

Loan terms

2 to 5 years

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Upgrade is a fintech company that aims to provide affordable financial products, including personal loans, credit cards, savings and checking accounts, and credit monitoring.

Eligible types of debt

Credit cards and personal loans

Loan amounts

$1,000 to $50,000

Loan terms

2 to 7 years

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Happy Money is a lending platform that partners with credit unions and other community-centered financial institutions. Currently, it offers one product, The Payoff Loan, that allows borrowers to consolidate credit card debt.

Eligible types of debt

Credit cards

Loan amounts

$5,000 to $40,000

Loan terms

2 to 5 years

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LightStream is an online lender that provides loans to borrowers with good credit, including personal loans, auto loans, debt consolidation loans and others.

Eligible types of debt

Credit card debt, auto loans, personal loans, medical costs and more

Loan amounts

$5,000 to $100,000

Loan terms

2 to 12 years

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Prosper is a peer-to-peer lending marketplace that offers a range of financial products. These include personal loans, home equity loans and lines of credit, business loans and a credit card.

Eligible types of debt

Credit card debt

Loan amounts

$2,000 to $50,000

Loan terms

2 to 5 years

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To apply for a debt consolidation loan, first consider how much of a loan you need to apply for. This can be done by adding up the debt balances you wish to consolidate. Once you start browsing for lenders, make sure their minimum loan amount and funding range align with how much money you’re looking to borrow. For instance, if you need to borrow $1,000 and the lender’s minimum loan amount starts at $3,000, you won’t be approved for such a small loan.

You’ll also want to double-check any minimum credit score requirements. This lets you avoid taking a hit to your credit score only to not be approved for the loan. Keep in mind that you can consider credit unions, an online lender or even an in-person bank. You should also make sure you’re aware of any fees, including application fees, a late payment fee, prepayment penalties and more.

Some lenders also let you submit information to see what rates you may prequalify for without damaging your credit score. You can also compare rates this way to make sure you’re applying for a loan with some of the lowest rates available to you. Keep in mind that personal loans are a form of unsecured debt, which means you can’t use collateral to secure the loan in case you default.

Once you decide which lender you want to go with, you’ll submit an application with complete details. Once you’re approved for the loan, your lender will use the funds to make a direct payment to each of your creditors — you’ll just be responsible for repaying the personal loan.

Before you even submit a loan application, you should make sure you have a debt management plan in place. Consider factors like the loan amount, the loan rates, and the life of the loan (also called the loan term). Make sure the monthly payments are within your budget since on-time payments are crucial for avoiding a poor credit score, as well as being approved for the best loan rates in the future.

Also make sure you’re able to manage your personal loan payments alongside any other debt payments you already have.

A debt consolidation loan can help you save on repaying high-interest debt — and make it more manageable. Make sure to compare rates from different lenders to pick the best deal for you. And stay disciplined when consolidating. It can be tempting to rack up new balances once the old ones are paid off, but such behavior can easily put you into more debt.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every personal loan review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best personal loans for consolidating debt.

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To determine which personal loans are the best for consolidating debt, CNBC Select analyzed dozens of U.S. personal loans offered by both online and brick-and-mortar banks, including large credit unions. When possible we chose loans with no origination or sign-up fees, but we also included options for borrowers with lower credit scores on this list. Some of those options have origination fees.

When narrowing down and ranking the best personal loans, we focused on the following features:

• Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you lock in an interest rate for the duration of the loan’s term, which means your monthly payment won’t vary, making your budget easier to plan.
• Flexible minimum and maximum loan amounts/terms: Each lender provides more than one financing option that you can customize based on your monthly budget and how long you need to pay back your loan.
• No early payoff penalties: The lenders on our list do not charge borrowers for paying off loans early.
• Streamlined application process: We considered whether lenders offered same-day approval decisions and a fast online application process. 
• Customer support: Every loan on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
• Fund disbursement: The loans on our list deliver funds promptly through either electronic wire transfer to your checking account or in the form of a paper check. Some lenders (which we noted) offer the ability to pay your creditors directly.
• Autopay discounts: We noted the lenders that reward you for enrolling in autopay by lowering your APR by 0.25% to 0.5%.
• Creditor payment limits and loan sizes: The above lenders provide loans in an array of sizes, from $1,000 to $100,000. Each lender advertises its respective payment limits and loan sizes, and completing a preapproval process can give you an idea of what your interest rate and monthly payment would be for such an amount.

Note that the rates and fee structures advertised for personal loans are subject to fluctuate in accordance with the Fed rate. However, once you accept your loan agreement, a fixed-rate APR will guarantee your interest rate and monthly payment will remain consistent throughout the entire term of the loan. Your APR, monthly payment and loan amount depend on your credit history and creditworthiness. To take out a loan, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.

*Your LightStream loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 7.99% APR with a term of three years would result in 36 monthly payments of $313.32.