The 7 Best Debt Consolidation Loans for Fair Credit in 2025

By Princella Esther Agyei, Certified Credit Counselor & HR Manager – HR People Associates

You’re doing everything right. You pay your bills every month, but when you look at your credit card statements, it feels like you’re running in place.

High interest rates are eating up your payments, and the principal balances barely budge. Juggling multiple due dates and varying interest rates is stressful and overwhelming. This is a common struggle, but you’re in a better position than you might think.

With a fair credit score, you are in a prime position to take control. A debt consolidation loan can be a powerful tool to simplify your finances into a single, manageable monthly payment, often at a much lower interest rate. This guide will break down the best debt consolidation loans available for those with fair credit, helping you find a clear and affordable path out of debt.

Quick Summary: Best Debt Consolidation Loans for Fair Credit

• What is Fair Credit? A “fair” credit score typically falls within the FICO range of 630 to 689. While not perfect, it’s often strong enough to qualify for good loan options.
• The Core Benefit: A debt consolidation loan replaces multiple high-interest debts (like credit cards) with a single, lower-interest installment loan. This simplifies your bills and can save you thousands in interest.
• Top Lenders for Fair Credit: Lenders like Upgrade, Upstart, and Achieve are excellent options because they look at more than just your credit score and offer features specifically for debt consolidation.
• Key Strategy: Always use a lender’s prequalification tool to check your potential rates. This uses a soft credit check and will not impact your credit score, allowing you to shop for the best deal risk-free.

How a Debt Consolidation Loan Works

The concept is simple but powerful. Imagine you have three credit cards with a total balance of $15,000 and an average APR of 22%. You’re paying around $330 in interest alone each month. With a debt consolidation loan, you could be approved for a new $15,000 personal loan at a fixed rate of, for example, 15%.

Read More: Will Applying for a Personal Loan Hurt My Credit? The Complete Answer

You use the funds from this new loan to pay off all three credit cards immediately. Now, instead of three separate, high-interest payments, you have just one predictable monthly payment for your new loan at a lower interest rate. This not only makes your budget easier to manage but also ensures more of your payment goes toward the principal, helping you get out of debt faster.

The 7 Best Debt Consolidation Lenders for Fair Credit

We’ve reviewed the top lenders who are friendly to borrowers with fair credit scores and offer features that make them ideal for debt consolidation.

1. Upgrade: Best Overall for Fair Credit

Why it’s a great option: Upgrade is a top choice because it directly caters to debt consolidation. The lender can pay your creditors directly, simplifying the process for you. They also offer rate discounts for setting up autopay and for using the loan to consolidate debt, rewarding you for your smart financial move. Their minimum credit score requirement of 580 makes them highly accessible.

• Minimum Credit Score: 580
• Estimated APR Range: 7.99% – 35.99%
• Loan Amounts: $1,000 – $50,000

2. Upstart: Best for Limited Credit History

Why it’s a great option: Upstart’s AI-powered model looks beyond just your credit score, considering factors like your education and employment history. This makes it an excellent choice if your fair credit score is due to a short credit history rather than negative marks. They have no minimum credit score requirement in most states, offering broad accessibility.

• Minimum Credit Score: None in most states
• Estimated APR Range: 6.70% – 35.99%
• Loan Amounts: $1,000 – $50,000

3. Achieve: Best for Joint Loans

Why it’s a great option: If you have a spouse or family member with stronger credit, Achieve allows you to apply with a co-borrower. This can significantly improve your chances of approval and help you secure a much lower interest rate. They also offer rate discounts for debt consolidation.

• Minimum Credit Score: 640
• Estimated APR Range: 8.99% – 29.99%
• Loan Amounts: $5,000 – $50,000

4. Best Egg: Best for Fast Funding

Why it’s a great option: Best Egg is known for its quick and efficient process, often providing funds as soon as the next business day after approval. This is ideal if you want to pay off your creditors quickly. They also offer secured loans, which could help you get a better rate by using fixtures in your home as collateral.

• Minimum Credit Score: 600
• Estimated APR Range: 6.99% – 35.99%
• Loan Amounts: $2,000 – $50,000

5. Prosper: Best for Peer-to-Peer Lending

Why it’s a great option: As a peer-to-peer lending platform, Prosper connects borrowers with individual investors. This model can sometimes result in more flexible approval criteria than traditional lenders. They have a long track record and offer competitive rates for fair-credit borrowers.

• Minimum Credit Score: 660
• Estimated APR Range: 8.99% – 35.99%
• Loan Amounts: $2,000 – $50,000

6. Happy Money: Best for Credit Card Debt

Why it’s a great option: Happy Money specializes in helping borrowers consolidate credit card debt. Their “Payoff Loan” is designed specifically for this purpose and comes with ongoing support to help you build healthier financial habits and improve your credit score over time.

• Minimum Credit Score: 640
• Estimated APR Range: 8.95% – 29.99%
• Loan Amounts: $5,000 – $40,000

7. LendingPoint: Best for Flexible Features

Why it’s a great option: LendingPoint offers fast funding and flexible features that are beneficial for fair-credit borrowers. They look at more than just your credit score, considering your overall financial picture, which can improve your approval odds.

• Minimum Credit Score: 640
• Estimated APR Range: 7.99% – 35.99%
• Loan Amounts: $1,000 – $36,500

How to Get the Best Rate with Fair Credit

Follow these steps to ensure you get the most affordable loan possible:

1. Know Your Score: Check your credit score for free from a reputable source to confirm you’re in the fair credit range.
2. Prequalify with Multiple Lenders: Use the soft-inquiry prequalification tools on the websites of at least three lenders listed above. This will give you a clear idea of the rates you can expect without impacting your credit.
3. Compare the Full Offer: Don’t just look at the APR. Compare origination fees (which are deducted from the loan amount) and the total interest you’ll pay over the life of the loan.
4. Choose the Best Fit and Apply: Once you’ve found the best offer, proceed with the full application. Be prepared to provide documents like pay stubs and bank statements to verify your income.

Final Thoughts: Take Control of Your Debt

Having fair credit puts you in a position of power. You have access to financial tools that can save you a significant amount of money and reduce your stress.

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A debt consolidation loan is more than just a financial product; it’s a strategic move to simplify your life and accelerate your journey to becoming debt-free. By shopping around and choosing a reputable lender, you can take a major step toward regaining control of your financial future.