Last Updated: June 2026 — Rates and lender data sourced from LendingTree, Credible, Bankrate, and CNBC Select.
Debt Consolidation Loans for Bad Credit (2026): Best Options Compared
Bad credit does not mean you are out of options. Here are the best lenders for consolidation loans with credit scores as low as 550 — and how to get approved.
550
Min Credit Score (Avant)
6%–36%
APR Range 2026
$50K
Max Loan Amount
1 Day
Fastest Funding
Best Lenders for Bad Credit Debt Consolidation (June 2026)
Editor’s Choice — Bad Credit
Upstart
APR Range7.80%–35.99%
Loan Amount$1K–$50K
Funding Speed1 business day
Uses AI underwriting that considers education and employment — not just your credit score. Best for borrowers with thin credit files or recovering from past issues. No joint loans available.
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Best for Quick Approval
Avant
APR Range9.95%–35.99%
Loan Amount$2K–$35K
Funding SpeedNext day
Minimum 550 FICO Score accepted. Loans approved in minutes. Most applicants have scores in the 600-700 range. Good option if you need funds quickly and have fair-to-bad credit.
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Best Overall — Bad Credit
Upgrade
APR Range9.99%–35.99%
Loan Amount$1K–$50K
Funding Speed1-4 days
Bankrate’s top overall pick for debt consolidation. Wide range of loan amounts and terms. Option to have funds sent directly to creditors. Strong mobile app for managing payments.
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No Min. Credit Score
OneMain Financial
APR Range18%–35.99%
Loan Amount$1.5K–$30K
Funding SpeedSame day
No formal minimum credit score. Funding possible within an hour of signing. Secured loan option available for better rates. Best for borrowers who cannot qualify elsewhere. Rates are higher.
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What Credit Score Do You Need?
| Credit Score |
Rating |
Typical APR |
Options |
| 300–579 |
Poor |
25%–36% |
Upstart, OneMain |
| 580–669 |
Fair |
18%–30% |
Avant, Upgrade, Achieve |
| 670–739 |
Good |
12%–20% |
LendingTree, Credible |
| 740+ |
Very Good |
6%–15% |
All lenders, best rates |
Source: LendingTree marketplace data, Credible closed loans data June 2025-May 2026
5 Tips to Get Approved with Bad Credit
1
Add a co-borrowerA co-borrower with good credit can dramatically improve your approval odds and lower your rate.
2
Try a credit unionCredit unions are member-owned and not-for-profit — they tend to have more flexible credit requirements than banks.
3
Use collateral (secured loan)A secured loan backed by a vehicle or savings account gives the lender less risk — which means better rates for you.
4
Use a marketplace to compareSites like LendingTree let you compare multiple lenders with one soft credit pull — no impact on your score.
5
If rate is still high — consider alternativesIf your consolidation loan APR is not lower than your current credit card rate, debt settlement or a DMP may be better options.
Important: Avoid payday loans and car title loans even if you have bad credit. These products often carry APRs above 300% and can trap you in a cycle of debt that is very difficult to escape.
When Consolidation Is NOT the Right Move
A debt consolidation loan makes sense when your new APR is meaningfully lower than your current rate. If your bad credit means you only qualify for 30-35% APR — comparable to your current cards — consolidation may not save you money.
In that case, consider:
- Debt settlement — reduce what you owe by 30-50% (best for $10K+ balances)
- Debt management plan (DMP) — nonprofit credit counselors negotiate lower rates on your behalf
- Credit building first — spend 6-12 months improving your score, then apply for consolidation at better rates
FAQ
Can I get a debt consolidation loan with a 500 credit score?
Yes — Upstart accepts scores as low as 300, and OneMain Financial has no formal minimum. However, expect APRs near the 35.99% cap. Compare this to your current card rates before applying.
Does applying for a consolidation loan hurt my credit?
Pre-qualification uses a soft pull (no impact). The formal application triggers a hard inquiry, which may temporarily lower your score by up to 10 points. Over time, successfully managing the loan improves your score.
What is the minimum credit score for a debt consolidation loan?
Most mainstream lenders require 580-670. Upstart accepts 300. OneMain has no minimum. Credit unions often have the most flexibility for borrowers with poor credit histories.
Check Your Rate — No Credit Score Impact
Compare multiple lenders in minutes with one soft pull.
Sources: LendingTree Debt Consolidation Loans for Bad Credit (June 2026); Credible closed loans data June 2025-May 2026; Bankrate Best Debt Consolidation Loans June 2026; CNBC Select Best Debt Consolidation Loans for Bad Credit 2026; U.S. News Best Debt Consolidation Loans June 2026.
