Debt Consolidation Loans

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What is a Debt Consolidation Loan?

A debt consolidation loan is a form of debt refinancing that combines multiple balances from credit cards and other high-interest loans into a single loan with a fixed rate and repayment term. It could help you save money by reducing your interest rate or making it easier to pay off debt fast with one monthly payment.

Depending on your credit profile, a debt consolidation loan could help improve your credit by diversifying your credit mix and showing that you can make on-time monthly payments.

Why Consolidate Your Debt?

Simplify Your Budget
Make one single monthly payment instead of juggling multiple bills.
Lock in a Fixed Rate
With competitive rates, your monthly payment never increases.
Improve Your Credit Score
When you pay debt down, your credit scores may go up.

What Our Members Say

Interest rates are much lower than credit cards so it's a great way to consolidate and pay off debt in a short amount of time. I'm finally sleeping at night again.

—Lori, a member from Ohio.

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How to Apply for a Personal Loan

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How to Apply for a Personal Loan

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Frequently Asked Questions

Members report saving money over the course of their loan with LendingClub when they use it to consolidate debt or pay down credit cards. Debt consolidation loans from LendingClub Bank have fixed rates and terms, so your monthly payment amount never changes, plus you'll know the exact date your loan will be paid in full.

When comparing your options, remember to factor in all costs such as balance transfer fees, annual fees, and early payoff penalties you may incur with credit cards or when borrowing from other sources.

Instead of credit limits, introductory rates, or revolving balances, debt consolidation loans come with a fixed rate and an affordable monthly payment that you choose up front. This means you get to start putting a dent into your debt right away. No additional interest will be added to your loan once you lock in your rate, so nearly all of your monthly payment goes to quickly reducing your balance and paying down what you owe.

Combining multiple debt balances into one new loan is likely to raise your credit scores over the long term as long as you use the money to pay off your debt. It is possible you could see a temporary decline in your credit scores at first, but your scores can quickly recover (and improve) if you continue to make payments on time and don't accumulate any more debt.

By rolling multiple debts such as medical, credit card, or other debt balances into one loan with one monthly payment—debt consolidation can be a good idea, especially if you qualify for a lower rate. A lower interest rate will help you reduce your total debt expense and pay the debt off faster. A debt consolidation loan may also lower your monthly payment.

Checking your rate with LendingClub Bank has no impact to your credit score because we use a soft credit pull. A hard credit pull that could impact your score will only occur if you continue with your loan and your money is sent.

The good news is that a personal loan could positively impact your credit down the road if you’re able to show a history of on-time payments and a reduction in overall debt.

You can help keep things moving along by checking your To-Do List and making sure you have submitted all the documents and information requested.

Once your personal financial information is verified and your loan funded, you can choose to have the money sent straight to your bank account and/or have us pay your creditors directly. The best part is you can apply and complete the entire process online from the comfort of your home using your phone, laptop, or tablet.

With a debt consolidation loan from LendingClub Bank, you can choose to have payments automatically withdrawn from your bank account each month. We'll email you a reminder a few days in advance so you can make sure money is there. And if you prefer to mail us a check each month, that’s okay, too. You can also change your payment date, make additional payments, or pay off your loan right from your Account Summary.

What’s also great about having a debt consolidation loan with a single monthly payment and a fixed loan term, you'll know exactly how much you owe each month and can circle the day your loan will be paid off.

Savings are not guaranteed and depend upon various factors, including but not limited to interest rates, fees, term length, and making payments as agreed. 

Reducing debt and maintaining low credit balances may contribute to an improvement in credit score, but results are not guaranteed. Individual results vary based on multiple factors, including but not limited to payment history and credit utilization.

A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $19,169 for a term of 36 months, with an interest rate of 10.49% and a 6.00% origination fee of $1,150 for an APR of 14.81%. In this example, the borrower will receive $18,019 and will make 36 monthly payments of $623. Loan amounts range from $1,000 to $40,000 and loan term lengths range from 24 months to 60 months. Some amounts, rates, and term lengths may be unavailable in certain states.

For Personal Loans, APR ranges from 8.98% to 35.99% and origination fee ranges from 3.00% to 8.00% of the loan amount. APRs and origination fees are determined at the time of application. Lowest APR is available to borrowers with excellent credit. Advertised rates and fees are valid as of March 8, 2024 and are subject to change without notice.

Checking a rate through us generates a soft credit inquiry on a person’s credit report, which is visible only to that person. A hard credit inquiry, which is visible to that person and others, and which may affect that person’s credit score, only appears on the person’s credit report if and when a loan is issued to the person. Credit eligibility is not guaranteed. APR and other credit terms depend upon credit score and other key financing characteristics, including but not limited to the amount financed, loan term length, and credit usage and history.

Any reviews presented are individual experiences and results may vary. Reviews are collected and authenticated by Bazaarvoice. Any average rating presented is based on these reviews. All reviews can be accessed at https://www.lendingclub.com/company/reviews.

Unless otherwise specified, all credit and deposit products are provided by LendingClub Bank, N.A., Member FDIC, Equal Housing Lender (“LendingClub Bank”), a wholly-owned subsidiary of LendingClub Corporation, NMLS ID 167439. Credit products are subject to credit approval and may be subject to sufficient investor commitment. Credit union membership may be required. Deposit accounts are subject to approval. Deposit products are FDIC-insured up to $250,000 per depositor, per ownership category.

"LendingClub" and the "LC" symbol are trademarks of LendingClub Bank.

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