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Program · Federal

Debt consolidation loan

A single lower-rate loan used to pay off multiple higher-rate debts. Reduces interest cost without affecting credit beyond a short-term dip from the hard pull.

Eligibility

  • Credit score typically 660+ for competitive rates
  • Stable income, manageable debt-to-income ratio
  • Total debt usually under $50,000 for unsecured consolidation loans

Limits and rules

  • New rate must actually be lower than your current weighted average, run the math
  • Terms typically 3–7 years
  • Unsecured: rates 8–18% depending on credit; secured by home: prime + 1–3%

Source

FCAC: Consolidating your debts →