Best Debt Consolidation Loans in Indianapolis of 2024

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Edited byMorgan Hull
Edited byMorgan Hull

Updated: December 28, 2023

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WHAT WE’RE GEEKING OUT ON

Best Debt Consolidation Loan Lenders in Indianapolis, IN

MoneyGeek utilized more than 30 data points to identify the top companies offering debt consolidation loans in Indianapolis. These data points include BBB ratings, minimum credit score requirements, interest rates and other repayment terms.

Based on MoneyGeek's unique scoring system, Truist is the best overall lender in Indianapolis; SoFi is the second best. Borrowers with a poor credit score may consider Upstart for the best offer, whereas Upgrade tops the list for those with good credit.

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Best Overall Debt Consolidation Loan in Indianapolis, IN: Truist


  • Truist
    • 8.14% to 18.99%APR Range
    • NoneMinimum Credit Score
    • $3,500 to $50,000Loan Amount Range
    • 6 to 60 monthsRepayment Terms
    • Next DayTime to Receive Funds

    Truist is one of the leading commercial banks in the United States and MoneyGeek’s top pick for the best debt consolidation loan provider in Indianapolis. Founded in 2019 through a merger between SunTrust Banks and BB&T, the lender provides several loan products, including personal loans, auto loans and home equity lines of credit.

    Truist offers loans between $3,500 and $50,000 for debt consolidation. Borrowers receive funds the day after their application is approved. Truist also runs LightStream, an online lending platform that offers higher limits to interested applicants.

    The lender does not charge origination, late or prepayment fees. However, the lender’s prequalification requirements remain unclear; no minimum credit score requirement is publicly available. You may also need to consider another lender if you need to consolidate over $50,000 in debt.

    Pros

    • No origination fees
    • Fixed rates for the lifetime of the loan
    • No prepayment penalty or late fees
    • Mobile application

    Cons

    • Modest maximum loan amount
    • Unclear credit score requirements
    Truist

Runner-Up for Best Debt Consolidation Loan in Indianapolis, IN: SoFi


  • SoFi
    • 8.99% to 29.99%APR Range
    • 680Minimum Credit Score
    • $5,000 to $100,000Loan Amount Range
    • 12 to 60 monthsRepayment Terms
    • 2 DaysTime to Receive Funds

    Social Finance Inc., also known as SoFi, is an online lender offering up to $100,000 in personal loans. The company has been offering loan products since 2011 and serves borrowers with a minimum FICO score of 680.

    MoneyGeek picked SoFi as the second-best lender for debt consolidation in Indianapolis. The lender features a generous repayment term and allows borrowers to add co-applicants to their loan requests. SoFi also offers unemployment protection to customers who lose their jobs during the loan repayment period.

    SoFi conducts soft credit checks, which do not affect borrowers’ credit scores. The lender also charges no origination, prepayment or late fees and offers an autopay discount of 0.25%. Although the lender offers fairly low interest rates in comparison with its competitors, those with bad or fair credit may not qualify.

    Pros

    • Unemployment protection
    • No origination, late or prepayment fees
    • Autopay discount of 0.25%
    • Quick disbursement of funds
    • Soft credit checks
    • Fully automated online application process

    Cons

    • High credit score requirement
    • Restrictions on the usage of funds
    • Co-signers not allowed
    SoFi

Best Debt Consolidation Loan for Bad Credit in Indianapolis, IN: Upstart


  • Upstart
    • 6.4% to 35.99%APR Range
    • 300Minimum Credit Score
    • $1,000 to $50,000Loan Amount Range
    • 3 or 5 yearsRepayment Terms
    • 1 business dayTime to Receive Funds

    MoneyGeek ranked Upstart as the top lender for debt consolidation in Indianapolis for borrowers with bad credit. Upstart was established in 2012 and offers personal loans for education, home improvement, debt consolidation, relocation and medical purposes.

    Although the lender does not have strict credit score requirements, those with low credit scores may receive high interest rates. The minimum loan amount offered also varies by state; borrowers in Georgia, Hawaii, Massachusetts, New Mexico and Ohio have a higher minimum loan amount.

    Upstart conducts an initial soft credit inquiry while reviewing applications, which means your credit score won’t be impacted. After your loan is approved, you may receive funding the next day.

    Pros

    • No prepayment fees
    • Excellent minimum credit score requirement
    • Next-day funding
    • Soft credit check

    Cons

    • Origination fee
    • Modest maximum loan limit of $50,000
    Upstart

Best Debt Consolidation Loan for Good Credit in Indianapolis, IN: Upgrade


  • Upgrade
    • 8.49% to 35.99%APR Range
    • UndisclosedMinimum Credit Score
    • $1,000 to $50,000Loan Amount Range
    • 24 to 84 monthsRepayment Terms
    • Within a dayTime to Receive Funds

    Based on MoneyGeek’s review, Upgrade is the best debt consolidation loan lender for borrowers with good credit in Indianapolis. Founded in 2017, Upgrade funds borrowers with a minimum credit score of 560, which is average compared with other lenders.

    Typically, the lender funds borrowers within one business day, but direct payment to creditors may take several days. Borrowers can receive between $1,000 and $50,000 for debt consolidation purposes. Apart from debt consolidation, you can use Upgrade funds for credit card debt payments and home improvement. You may not use the loan to pay for post-secondary education, invest in a business or fund illegal activities.

    Despite having a fair credit score requirement, Upgrade’s APR range is relatively higher than other lenders. Individuals with good-to-excellent credit may find better rates and limits with other companies.

    Pros

    • No prepayment penalty
    • Direct payment to creditors
    • Fair credit score requirement
    • Soft credit check

    Cons

    • Origination fees
    • Restrictions on the usage of funds
    • High APR range
    Upgrade

How to Choose the Best Debt Consolidation Loan in Indianapolis, IN, for You

On average, Indiana has an average personal loan debt of $13,636 and an average interest of 9.29%. If you have several existing loans, you may get a debt consolidation loan to merge them into one. Lenders will decide your loan terms based on your credit score, employment history and income level, among other factors.

MoneyGeek recommends that borrowers take the following steps to find the best debt consolidation loan in Indianapolis for their situation.

1

Ask Yourself the Important Questions

Before applying for a debt consolidation loan, you should make sure it’s the best decision for you. Remember, a personal loan is a long-term commitment and involves making monthly payments for two to four years. At a minimum, you should ask yourself the following questions:

  • How much funding do you need? It’s important to accurately assess how much money you need to avoid paying money in interest or taking out a second loan.
  • What’s your credit score? Your credit score will impact your eligibility for a loan as well as the rates, loan amounts and repayment periods available to you.
  • Can you afford the monthly payments? Ensure that you can make the monthly payments for two to four years. A higher monthly payment will reduce the amount that you’ll pay in interest; however, you should ensure you have the financial capacity to make the payment.
  • Do you have existing debts? Consider the types of debt you have. Credit card debt is eligible for debt consolidation loans, but debt from post-secondary education is ineligible.
  • Is your debt manageable through other means? If the interest rate you receive is more than that of your individual loans, a debt consolidation loan may not be the best option for you.
2

Do Your Research

The terms included in your personal loan agreement will vary based on factors like your income and credit score. When comparing lenders, you should make sure that you meet their requirements and that they can fulfill your financial objectives. Review lenders for their interest rates, repayment periods, loan amounts and fund disbursement times.

MoneyGeek’s guide provides an overview of the best debt consolidation loan lenders for general borrower profiles, but the best lender for you will vary based on your specific circumstances. As such, you should always do your own research.

3

Wait

After narrowing down your selection of lenders and reviewing their essential features, wait a few days to revisit each option. Evaluate how each lender’s terms will impact your financial health by assessing interest rates, loan amounts and repayment periods. If you submit your application in a rush, you may miss out on a lender that may be better suited for your situation.

4

Read the Fine Print

You should review the terms included in your loan agreement for any fees. These include prepayment, origination and late fees, among others. Missing out on these charges means you could end up paying more than you initially anticipated. The fine print often contains all the terms of your debt consolidation loan. Be sure to review every detail and ask your lender for clarification, should you have any doubts about the terms outlined in the document.

5

Apply

This is the last stage of the process. To apply, you should gather the necessary documents in advance. These include, but aren’t limited to, proof of identification, employment and income. Most lenders request personal financial details and contact information, although some may require more details, depending on your profile.

What to Do if You Can’t Get a Debt Consolidation Loan in Indianapolis, IN

When you apply for a debt consolidation loan in Indianapolis, you aren’t guaranteed that you’ll receive it. A lender may refuse to give you a loan due to a low-income level, incomplete application or low credit rating.

If you’re rejected, you should reach out to the lender for detailed feedback on your application. Sometimes, simply modifying the terms of your loan agreement, including the repayment period or loan amount, can lead to approval. An insufficient credit score, however, will take some time to improve. MoneyGeek recommends first improving your credit score before you reapply since your credit score is negatively impacted with each submitted application.

Even if your application is denied, MoneyGeek strongly advises against payday loans. These feature high interest rates with short repayment periods, which may end up costing the borrower more in the long run.

Calculate Your Monthly Payment

Like most loan types, debt consolidation loans have a monthly repayment schedule that includes the principal amount and interest. MoneyGeek’s debt consolidation loan calculator can help you estimate your monthly installments, especially if the loan amount and repayment period were determined by the lender.

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Frequently Asked Questions About Debt Consolidation Loans in Indianapolis, IN

Several factors play a critical role in determining the best debt consolidation loan lender in Indianapolis for your situation, including your income and credit score. MoneyGeek answered the frequently asked questions about debt consolidation in the city to ensure you understand lender requirements before starting the application process.

Overall, Truist is the best debt consolidation loan lender in Indianapolis. Nonetheless, the best lender varies depending on each borrower’s profile. For instance, Upgrade is the best if you have a good credit score, whereas Upstart is the top lender for those with bad credit.

According to MoneyGeek’s analysis, Upstart is the lender with the lowest interest rate in Indianapolis. Borrowers may pay little based on their creditworthiness.

Although most lenders in Indianapolis don’t impose restrictions on their debt consolidation loans, some won’t allow you to refinance debts or pay for post-secondary education. Consult with your insurer to determine the restrictions before submitting your application.

This varies across lenders. In Indianapolis, you can receive between $1,000 and $100,000.

Fund disbursement time also varies by lender. Some companies will credit your account within a few hours, whereas others may not do so until one week later.

Most Indianapolis lenders will allow you to repay your loan early; however, some may charge a prepayment fee for doing so.

Methodology

METHODOLOGY

MoneyGeek reviewed more than 30 personal loan lenders using at least 35 individual data points across six key categories: loan affordability, accessibility, consumer friendliness, customer service, flexibility and lender transparency.

Within each ranking category, we considered several individual data points that we feel carry the most weight when choosing a personal loan lender. These factors include APR ranges, available loan amounts, minimum credit scores, minimum income amounts, application fees and disbursement times.

Here at MoneyGeek, we value you, the consumer, so we also factor in each lender’s customer support, business ratings and additional features that could make your experience easier and more accessible — like prequalification, payment options and mobile apps.

After careful consideration and calculation, we make our picks with your best interests in mind. Our personal loan recommendations and expert tips are meant to help you make smart financial decisions when choosing a lender that meets your needs.

sources
Shield Insurance

The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.

Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about our editorial policies and expert editorial team.