Top 7 Lenders for Debt Consolidation Loans with Bad Credit in USA

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If you’re struggling with multiple debts, credit cards, personal loans, or medical bills you are not alone. Millions of Americans are turning to debt consolidation loans as a way to simplify finances, reduce interest rates, and regain control.

But what if your credit score is less than perfect? The good news is that several lenders specialize in helping people with bad or fair credit. In this 2025 guide.

Top 7 lenders for debt consolidation loans with bad credit.

Their features, and what makes them stand out.

1. Upstart

  • Loan Range: USD1,000 to USD50,000
  • APR: ~6.5percent to 35.99percent 
  • Minimum Credit Score: 580

Why It’s Great: Uses AI and alternative data like education and job history, not just credit score. Perfect for borrowers with limited credit history.

2. Avant

  • Loan Range: USD2,000 to USD35,000
  • APR: ~9.95percebt  to 35.99percent
  • Minimum Credit Score: 550

Why It’s Great: Flexible repayment terms and quick approvals, making it one of the top choices for borrowers with poor to fair credit.

3. LendingClub

  • Loan Range: USD1,000 to USD40,000
  • APR: ~8.3percent to 36percent
  • Minimum Credit Score: 600

Why It’s Great: A peer-to-peer platform that connects borrowers with investors. Known for its transparency and flexible loan options.

4. OneMain Financial

  • Loan Range: USD1,500 to USD20,000
  • APR: ~18percent to 35.99percent
  • Minimum Credit Score: No strict requirement

Why It’s Great: Ideal for borrowers with very poor credit. They offer in-person service and consider applicants overlooked by traditional banks.

5. Upgrade

  • Loan Range: USD1,000 to USD50,000
  • APR: ~8.5percent to 35.99percent
  • Minimum Credit Score: 580

Why It’s Great: Provides flexible repayment terms and free credit monitoring tools to help borrowers improve financial habits.

6. Happy Money (formerly Payoff)

  • Loan Range: USD5,000 to USD40,000
  • APR: ~11percent to 25percent
  • Minimum Credit Score: 600

Why It’s Great: Specializes in consolidating high-interest credit card debt. Great for those focused on paying down revolving debt.

7. Discover Personal Loans

  • Loan Range: USD2,500 – USD40,000
  • APR: ~6.99percent to 24.99percent
  • Minimum Credit Score: 660 (fair credit and above)

Why It’s Great: Offers competitive fixed rates with no origination fees. A solid choice for borrowers who are closer to fair/good credit.

Tips to Boost Your Approval Chances (Even with Bad Credit)

  • Check and dispute errors on your credit report
  • Show proof of stable income
  • Consider a co-signer with good credit
  • Keep your debt-to-income ratio as low as possible
  • Avoid payday lenders, they’re predatory and extremely costly

In Conclusion:

Bad credit doesn’t have to be the end of your financial journey. In 2025, lenders like Upstart, Avant, and OneMain Financial are providing real solutions for borrowers who need to consolidate debt.

By choosing the right lender and sticking to a repayment plan, you can lower your interest, simplify your finances, and begin rebuilding your credit score.

Remember: Debt consolidation isn’t just about merging loans, it’s about creating a fresh start toward financial stability. 

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