The best debt consolidation loans if you have bad credit

Debt consolidation can be an excellent way to get multiple debts under control and paid off quicker. It allows you to merge them into one loan with a fixed interest and a single monthly payment. This eliminates the stress of managing multiple bills and due dates and may also save you money on interest.

Unfortunately, qualifying for a debt consolidation loan with less-than-ideal credit (a score of 669 or lower) can be challenging. As with any type of loan, borrowers with a strong credit profile have better chances of being approved. They're also more likely to receive more favorable terms.

It's possible to find options without a good credit score. However, it's crucial to pay attention to interest rates and other added costs, such as sign-up fees. You may end up with terms that will make your loan even more expensive than the debt you're currently paying off.

To determine the best debt consolidation loan offers for bad credit, CNBC Select compared dozens of lenders by credit score requirements, interest rates, fees, repayment terms and other factors. (Read more about our methodology below.)

Who's this for? Achieve is an excellent debt consolidation loan option for those with imperfect credit, thanks to its flexible terms, fast approval, quick funding and relatively reasonable interest rates.

To qualify for a personal loan from Achieve, you'll need a credit score of 620, which is considered fair. You can see whether you're likely to be approved when you apply online: Achieve will perform a soft credit inquiry, meaning it won't impact your score.

If you opt to proceed with your application after pre-approval, the company will do a hard credit check that might ding you a few credit points. Achieve offers same-day approvals and can then send funds within 24 to 72 hours.

If your credit leaves a lot to be desired, you're more likely to qualify for an interest rate on the higher end of the APR range. Most debt consolidation loans for bad credit can charge interest of up to 36%, but Achieve's highest interest rate is considerably lower.

Who's this for? Upstart can be a solid option for those with no credit history. The company considers factors beyond your credit when evaluating your application, such as your work experience and education history.

You can borrow as little as $1,000, which also makes Upstart a good choice if you need a smaller loan.

Upstart lets you check the interest rate you'll get before applying without any impact to your credit score. According to Upstart, 99% of personal loan funds are sent one business day after signing. Note, however, that the origination fees could get somewhat expensive, depending on the terms of your loan.

Who's this for? Upgrade stands out for offering plenty of loan term options, making it easier to find a repayment plan that fits your situation. Upgrade can also send funds directly to your creditors making the process simpler for you.

You can borrow as little as $1,000 and get the funds within one business day of submitting all the required documents. Available loan term lengths range from 24 months to 84 months.

The interest rates are pretty standard for this type of loan and you can check what APR you'll get before committing to the loan.

Who's this for? LendingPoint is worth considering if you need quick access to funds but your credit score is poor.

You can check the terms you'll get without impacting your credit score. Once you apply, the company will let you know whether you're approved within seconds. Then, it should take one business day to get the funds.

Note that LendingPoint has an income requirement of $35,000 and doesn't offer loans in Nevada and West Virginia.

Who's this for? Avant can be an excellent option if you're looking to save on the upfront costs of your debt consolidation loan. While other lenders on our list charge 7% or more in origination fees, Avant will charge you 4.75% or less. If you're borrowing a large amount of money, this can lead to significant savings.

Additionally, you can receive the money quickly. If you're approved by 4:30 p.m. CT on a business day, you'll receive your funds the next day. Plus, you can prequalify without affecting your credit score.

• Can I apply for debt consolidation with bad credit?
• Why can't I get a debt consolidation loan? 
• What is the downside to consolidating debt?
• How long does it take to get approved for a debt consolidation loan?
• How to choose the best debt consolidation loan
• Alternatives to debt consolidation

It's possible to qualify for a debt consolidation loan with bad credit (a credit score of under 670). However, it's important to pay attention to the terms. Interest rates on personal loans for poor credit may at times exceed APRs on credit cards, especially if you apply with a low credit score.

When that's the case, taking out a loan to get rid of your debt might not be the best option. Instead, consider other ways to tackle your balances. For instance, you might be able to negotiate repayment terms with your current creditors. It can also be a good idea to look into credit counseling and get help creating a debt management plan.

Even with debt consolidation loans for bad credit, approval isn't guaranteed. Lenders typically look at multiple factors when evaluating a loan application. For example, you might be denied if you don't meet income requirements or if your debt-to-income ratio is too high.

Note that any lender that denies your credit application must disclose the specific reasons it has turned you down within 60 days under the Equal Credit Opportunity Act.

Debt consolidation might be an excellent debt repayment strategy but it's not perfect for everyone.

Here are some disadvantages to consider:

• You may end up with a higher interest rate. This is especially true if you have less-than-ideal credit. Or, even if you get a lower APR, you might still pay more in interest if you've picked a long loan term.
• You may pay upfront costs. Debt consolidation loans typically charge loan origination fees which can run high if you're dealing with a large debt.
• You might be tempted to continue spending. Merging multiple balances into one loan may feel like a weight off your shoulders. However, if you know you have trouble living below your means or saving enough, you might fall back into your old patterns once you feel free of debt. To avoid that, be disciplined about your budget and make a point to prioritize debt repayment.

You can expect to receive the lender's decision within a few business days. However, many lenders might also approve you instantly. For a smooth process, make sure you provide any documentation the lender requires with your application and promptly respond to requests for more information.

Shopping around is crucial when you're choosing a lender or financial product. When determining the best debt consolidation loan for you, look beyond the APRs. While the interest rate is often the deciding factor, you should also pay attention to other costs associated with the loan. For instance, some lenders charge origination fees which can get as high as 10% of the loan amount.

Additionally, pay attention to extra features and user experience the lender offers. For example, do they provide a convenient way for the borrower to manage their loan virtually? Is there an option to chat with customer service online? And finally, it can be helpful to read customer reviews on websites like the Better Business Bureau to ensure the lender offers a solid level of service.

A debt consolidation loan might be hard to secure if you have credit issues, and even then, the terms might not be favorable. Some alternatives to debt consolidation you can look into include:

• Mortgage refinancing: If you have a mortgage, you may be able to replace it with a new larger one and use the difference to consolidate debt. This type of loan is called "cash-out refinance". Note that most lenders require a credit score of at least 620 to qualify.
• Negotiating with your lenders: When managing your debt becomes challenging, don't be afraid to reach out to your lenders and credit card issuers. While not guaranteed, they may be able to offer help. For example, they may agree to lower your interest rate, develop a payment plan or provide other arrangements to make your loan more manageable. It's always best to keep open communication with your financial institutions.
• Credit counseling: In a credit counseling program, a certified financial expert will take an in-depth look at your finances and offer steps to improve your situation. For instance, they may recommend a debt management program where the credit counseling organization would develop a payment plan with your lenders for you. The most reputable organizations are nonprofits and don't charge for their services (or require a low fixed rate). You can search for a credit counseling provider at the National Federation for Credit Counseling (NFCC) and the Financial Counseling Association of America (FCAA).
• Debt relief: Debt relief companies can also negotiate what you owe with your creditors for a fee. However, debt settlement comes with potential risks as it requires that you stop making payments while the negotiation is in process. This can cause a huge hit to your credit score. Even worse, some lenders may try to sue you. Keeping this in mind, you might want to consider debt settlement the last-resort option.

Consolidating debt may be a difficult task if your credit score isn't perfect. Luckily, it's still possible to qualify for a debt consolidation loan even with a low score.

It's important to do the math before taking out a debt consolidation loan. Check the APR before applying if the lender offers this option and factor in origination fees to determine whether a debt consolidation loan will save you money. If not, you might be better off finding a different strategy to deal with your debt.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every debt consolidation loan review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we chose the best bad credit debt consolidation loans.

To determine which debt consolidation loans are the best for consumers with bad credit, CNBC Select analyzed dozens of U.S. personal loans offered by both online and brick-and-mortar banks, including large credit unions.

When narrowing down and ranking the best personal loans, we focused on the following features:

• Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you lock in an interest rate for the duration of the loan's term, which means your monthly payment won't vary, making your budget easier to plan.
• Flexible minimum and maximum loan amounts/terms: Each lender provides more than one financing option that you can customize based on your monthly budget and how long you need to pay back your loan.
• No early payoff penalties: The lenders on our list do not charge borrowers for paying off loans early.
• Streamlined application process: We considered whether lenders offered same-day approval decisions and a fast online application process. 
• Customer support: Every loan on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
• Fund disbursement: The loans on our list deliver funds promptly through either an electronic wire transfer to your checking account or in the form of a paper check. Some lenders (which we noted) offer the ability to pay your creditors directly.
• Creditor payment limits and loan sizes: The above lenders provide loans in an array of sizes, from $1,000 to $50,000. Each lender advertises its respective payment limits and loan sizes, and completing a preapproval process can give you an idea of what your interest rate and monthly payment would be for such an amount.

The rates and fee structures advertised for personal loans are subject to fluctuate in accordance with the Fed rate. However, once you accept your loan agreement, a fixed-rate APR will guarantee your interest rate and monthly payment will remain consistent throughout the entire term of the loan. Your APR, monthly payment and loan amount depend on your credit history and creditworthiness. To take out a loan, many lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.

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