Best Debt Consolidation Loans for February 2023

If you have existing credit card, medical or other personal debt, keeping track of payments and getting hit with high-interest charges can be overwhelming. Debt consolidation allows you to combine your debt into a new, lower-interest loan. With the Federal Reserve expected to continue raising interest rates, if you’re considering a debt consolidation loan, now is the best time to lock in a low rate.

A debt consolidation loan combines all your high-interest debt into one personal loan, giving you a lump sum you can use to pay off credit cards, medical bills and other debt. By consolidating multiple payments into one fixed monthly payment, a consolidation loan means your debts will be easier to manage and you can simplify your repayment plan. 

We’ve evaluated major debt consolidation loan providers and highlighted the best options below. We’ll update this list regularly as terms change and new loan products are released. Note that all of the starting annual percentage rates, or APRs, that are listed are based on a high credit score of 800 or above. 

Rates as of Jan. 3, 2023.


  • APR: 7.99% to 23.99%* (with AutoPay). Rates as of Dec. 20, 2022.
  • Loan amount: $5,000 to $100,000
  • Loan terms: 24 to 84 months*
  • Time to receive funds: As early as same day (conditions apply)
  • Prequalification: No 
  • Origination fee: No
  • Co-signer option: No, only joint applicants
  • Debt consolidation for student loans: No

LightStream is an online lender under Truist that offers some of the lowest rates for debt consolidation loans. Its low rates, high loan limits and long loan terms make it a great option for borrowers with excellent credit. LightStream also eliminates fee pitfalls by not charging origination or prepayment fees — but to lock in its lowest rates, you’ll want to enroll in AutoPay, which will earn you a 0.5% discount. 

A caveat is that LightStream doesn’t offer prequalification, which often lets you view possible loan rates before the lender runs a hard credit check. To find out what rate you qualify for with LightStream, the lender will conduct a hard pull on your credit, which could lead to a temporary dip in your credit score.

Rocket Loans

  • APR: 8.416% to 29.99%
  • Loan amount: $2,000 to $45,000
  • Loan terms: 36 to 60 months
  • Time to receive funds: As early as same day
  • Prequalification: Yes
  • Origination fee: 1% to 6%
  • Co-signer option: No
  • Debt consolidation for student loans: No

Rocket Loans is a great option for those seeking same-day funding. It offers prequalification and flexible loan amounts and terms, and boasts zero prepayment penalties. However, it does charge an origination fee of 1% to 6% for each loan. Furthermore, in order to access the best rates, you’ll need to sign up for AutoPay.


  • APR: 7.99% to 23.43%
  • Loan amount: $5,000 to $100,000
  • Loan terms: 36 to 84 months
  • Time to receive funds: 1 business day after accepting loan
  • Prequalification: Yes
  • Origination fee: 1% to 8%
  • Co-signer option: Yes
  • Debt consolidation for student loans: Yes

Social Financing, or SoFi, offers debt consolidation at a low rate without origination, late or prepayment fees. It also offers a 0.25% autopay discount. It’s notable for its special benefits, such as unemployment protection and free financial advising. 

SoFi also offers great rates on private student loan debt consolidation (private student loan refinancing), at 3.49% for fixed-rate refinancing and 1.74% for variable-rate refinancing. It holds several promotions and guaranteed rate matches on student loan refinancing, including a $20 promotion on checking your rate on a SoFi student or personal loan refinance.

Happy Money

  • APR: 8.99% and 29.99%
  • Loan amount: $5,000 to $40,000
  • Loan terms: 24 to 60 months
  • Time to receive funds: 2 to 5 business days
  • Prequalification: Yes
  • Origination fee: 0% to 5%
  • Co-signer option: No
  • Debt consolidation for student loans: No

The Payoff Loan by Happy Money is designed specifically for borrowers looking to pay off credit card debt. It focuses heavily on financial wellness, offering you access to tools to help track your credit score and build or rebuild your credit. Those with lower credit scores may also qualify, since Happy Money only requires a minimum credit score of 550 to take out a loan. On the downside, Happy Money does change an origination fee between 0% to 5% and its loans aren’t offered in Massachusetts or Nevada.


  • APR: 6.50% to 35.99%
  • Loan amount: $1,000 to $50,000
  • Loan terms: 36 to 60 months
  • Time to receive funds: 1 business day after accepting loan
  • Prequalification: Yes
  • Origination fee: 0% to 8%
  • Co-signer option: No
  • Debt consolidation for student loans: No

Upstart describes itself as an artificial intelligence lending platform designed to offer higher approval rates and improve consumers’ access to credit. While it does use your credit score to gauge eligibility, it also considers alternative factors, such as job history, to determine if you qualify. While you may be accepted even if you have insufficient credit history or no credit score, proof of a regular source of income is a requirement. It does not charge prepayment penalties. 

However, Upstart does charge relatively high origination fees, as well as late payment fees and $10 for every requested paper copy of your loan agreement. West Virginia or Iowa residents are also not eligible for Upstart loans.

Rates as of Jan. 3, 2023.

Best debt consolidation lenders, compared

LightStream Rocket Loans SoFi Happy Money Upstart
Best for Excellent credit Fast funding No fees Consolidating credit card debt Limited credit
APR 7.99% to 23.99%* (with AutoPay). Rates as of Dec. 20, 2022. 8.416% to 29.99% 7.99% to 23.43% 8.99% to 29.99% 6.50% to 35.99%
Loan amount $5,000 to $100,000 $2,000 to $45,000 $5,000 to $100,000 $5,000 to $40,000 $1,000 to $50,000
Term lengths 24 to 84 months* 36 to 60 months 36 to 84 months 24 to 60 months 36 to 60 months
Time to receive funds As early as same day (conditions apply) As early as same day 1 business day after accepting loan 2 to 5 business days 1 business day after accepting loan
Prequalification No Yes Yes Yes Yes
Origination fee No 1% to 6% 1% to 8% 0% to 5% 0% to 8%
Co-signer option No, only joint applicants No Yes No No
Debt consolidation for student loans No No Yes No No


Will a debt consolidation loan save me money?

A debt consolidation loan may save you money. You may pay less interest if you’re approved for a lower rate than your existing debt. For example, if you have $2,500 in total debt with a combined APR of 20% and a combined monthly payment of $125, you’ll pay $566 in interest over about two years. But if you were to take out a debt consolidation loan with an 11% APR and a two-year repayment term, the new monthly payment would be $116.50, and you would save $329 in interest.

Keep in mind that access to lower rates is heavily dependent upon a high credit score.

How does student loan debt consolidation work?

Student loan debt consolidation is similar to other types of debt consolidation — borrowers can combine multiple student loans into one for new terms and a potentially lower interest rate.

However, student loan debt consolidation differs depending on whether you have federal loans or private loans. If you have federal loans, consolidation can only occur through the Direct Loan program, for a new rate of the weighted average of all your loans, rounded to the nearest eighth. 

You cannot consolidate private student loans. However, you can refinance your loans (both private and federal) into one brand-new loan. Keep in mind that debt consolidation is a loan combination, while refinancing is simply changing the terms on a debt obligation.

What is prequalification?

Many lenders offer the option to prequalify, which allows you to view your payment plan and see what your potential interest rates and monthly payments would look like. Prequalification requires a soft credit pull, allowing lenders to view a limited portion of your credit history. A soft credit pull will not impact your credit score. 

What’s an origination fee?

An origination fee is an upfront, one-time fee for processing your loan. It may also be called the administrative or processing fee. 

What is a co-signer, and how does it differ from a joint applicant?

If you don’t have a longstanding credit history, you may need someone with good or excellent credit to co-sign your loan. A co-signer takes on loan responsibility, serving as a guarantor, and is required to make loan payments if you’re unable to. Keep in mind that your loan repayment history will affect your co-signer’s credit score. With a joint-applicant loan, both applicants are held equally responsible for paying the loan back. A co-applicant has more rights and responsibilities than a co-signer.

Lenders reviewed:

  • Avant
  • BestEgg
  • Discover
  • Freedom Plus
  • LightStream
  • Marcus by Goldman Sachs
  • Payoff
  • PenFed
  • Peerform
  • Prosper
  • One Main Financial
  • Rocket Loans
  • SoFi
  • Upstart

More loan advice:

*Your 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 3 years would result in 36 monthly payments of $313.32.

© 2023 Truist Financial Corporation. Truist, LightStream, and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.

The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.

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