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Best Debt Consolidation Loans in California of 2024

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Updated: December 28, 2023

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WHAT WE’RE GEEKING OUT ON

Best Debt Consolidation Loan Lenders in California

MoneyGeek analyzed over 30 data points to determine the best debt consolidation loan lenders in California. This data included APR ranges, minimum credit score, origination and late fees, repayment terms, loan amounts, disbursement time, Better Business Bureau ratings, prepayment penalties and more.

The best debt consolidation loan lender for you depends on your specific financial goals. Overall, MoneyGeek’s top pick for California debt consolidation loan lender is Upgrade. The average credit score in California is 716, which works for this lender. But if you have bad credit, Upstart is a great choice.

Best Overall Debt Consolidation Loan in California: Upgrade


  • Upgrade
    • 5.94% to 35.47%APR Range
    • 560Minimum Credit Score
    • $1,000 to $50,000Loan Amount Range
    • 36 to 60 monthsRepayment Terms
    • Same DayTime to Receive Funds

    Based on MoneyGeek’s data, Upgrade is the best debt consolidation lender in California. Upgrade launched in 2017 and is headquartered in San Francisco, California. Since its inception, Upgrade has provided loans and credit cards to over 15 million customers. This lender has a great track record with customer reviews and received an A+ rating from the Better Business Bureau (BBB).

    Interested borrowers will be pleased that Upgrade doesn’t have a gross income requirement. Upgrade is also known for directly paying third-party creditors, which can help you save time. You’ll need a credit score of only 560 to qualify with Upgrade. Although this lender charges an origination fee, this cost is subtracted from the amount of the loan and there are no fees for paying off your loan early.

    Unfortunately, Upgrade doesn’t allow joint loans or co-signers. Upgrade also may not be an ideal lender if you need to consolidate debt exceeding $50,000 or if you prefer a lower APR.

    Pros

    • Receive funds within the same day
    • Fair minimum credit score
    • No prepayment fees
    • No minimum gross income
    • Has a mobile app

    Cons

    • High origination fees (3%–8%)
    • $50,000 maximum loan amount
    • Funds can’t be used for investments
    • APR range: 5.94%–35.47%
    • Minimum/maximum loan amount: $1,000–$50,000
    • Minimum credit requirements: 560
    • Repayment terms: 36–60 months
    • Time to receive funds: Same day
    Upgrade

Runner-Up for Best Debt Consolidation Loan in California: LightStream


  • LightStream
    • 4.49% to 20.49%APR Range
    • 660Minimum Credit Score
    • $5,000 to $100,000Loan Amount Range
    • 24 to 84 monthsRepayment Terms
    • Same DayTime to Receive Funds

    Founded in 2012, LightStream is MoneyGeek’s runner-up for best debt consolidation lender in California. LightStream has its headquarters in San Diego, California, and is a division of Truist Bank.

    LightStream allows joint loans, making it possible for partners to consolidate their debts together and help each other with monthly payments. If you’re able to pay off your loan early, LightStream does not charge prepayment penalty fees. Additionally, this lender has no origination or late fees. LightStream’s maximum loan amount is $100,000, one of the highest among other debt consolidation lenders.

    One downside to LightStream is that it performs a hard credit pull during rate checks, impacting your credit score. LightStream also doesn’t allow co-signers and doesn’t directly pay creditors.

    Pros

    • A+ BBB rating
    • High loan amount of $100,000
    • Joint loans available
    • No origination or prepayment penalty fees
    • Offers mobile app

    Cons

    • No co-signers
    • Doesn’t directly pay third-party creditors
    • Funds can’t be used to consolidate student loans
    • APR range: 4.49%–20.49%
    • Minimum/maximum loan amount: $5,000–$100,000
    • Minimum credit requirements: 660
    • Repayment terms: 24–84 months
    • Time to receive funds: Same day
    LightStream

Best Debt Consolidation Loan for Bad Credit in California: Upstart


  • Upstart
    • 3.22% to 35.99%APR Range
    • 300Minimum Credit Score
    • $1,000 to $50,000Loan Amount Range
    • 36 to 60 monthsRepayment Terms
    • Next DayTime to Receive Funds

    Founded in 2012, Upstart is an artificial intelligence lending platform headquartered in San Mateo, California.

    California residents with bad credit should consider Upstart since its minimum credit score is only 300. Upstart has earned an A+ rating from the BBB and has no prepayment penalties. Upstart also conducts a soft credit inquiry during rate checks so that your credit score isn’t affected.

    To qualify for an Upstart loan, borrowers need a debt-to-income ratio of 45% or less and a gross income of at least $12,000. Individuals who prefer having a mobile app for their debt consolidation should consider other lenders since Upstart doesn’t offer one.

    Pros

    • Can use loan to fund education-related expenses
    • Minimum credit score of 300
    • No prepayment penalty
    • Performs soft credit check
    • Offers joint loans

    Cons

    • Potentially high origination fee
    • No mobile app
    • Debt-to-income ratio limit is 45%
    • APR range: 3.22%–35.99%
    • Minimum/maximum loan amount: $1,000–$50,000
    • Minimum credit requirements: 300
    • Repayment terms: 36–60 months
    • Time to receive funds: Next day
    Upstart

Best Debt Consolidation Loan for Good Credit in California: SoFi


  • SoFi
    • 5.74% to 20.28%APR Range
    • 680Minimum Credit Score
    • $5,000 to $100,000Loan Amount Range
    • 12 to 60 monthsRepayment Terms
    • Two DaysTime to Receive Funds

    Since its founding by Stanford business students in 2011, SoFi (Social Finance, Inc.) has funded over $50 billion in loans. The company headquarters are in San Francisco, California.

    If you have good credit, SoFi is a top-performing lender for debt consolidation in California. The average California resident has a 716 credit score, making it easier to qualify for debt consolidation since SoFi requires a minimum credit score of 680. SoFi also offers one of the highest loan amounts in California at $100,000. Plus, with SoFi’s mobile app, you can manage your account from almost anywhere.

    Pros

    • A+ BBB rating
    • Offers competitively high loan amounts
    • Has a mobile app
    • No origination fee
    • Offers loss of employment protection

    Cons

    • Cannot use loans for business, investing or post-secondary educational purposes
    • Co-signers not allowed
    • APR range: 5.74%–20.28%
    • Minimum/maximum loan amount: $5,000–$100,000
    • Minimum credit requirements: 680
    • Repayment terms: 12–60 months
    • Time to receive funds: Two days
    SoFi

How to Choose the Best Debt Consolidation Loan in California for You

On average, Californians have $22,425 combined in personal loan and credit card debt. Debt consolidation can merge your outstanding debts to make paying easier and help you save by obtaining a lower interest rate.

If you’re interested in debt consolidation loans in California, know that lenders will evaluate your credit score, current debts, employment, proof of income and more. In the steps below, MoneyGeek outlines how to shop around for debt consolidation lenders in California:

1
Ask Yourself the Important Questions

The first step is to assess your current financial standing and ensure a debt consolidation loan is the best step to move forward. Answering the following questions can help you determine the best debt consolidation lender for you:

  • How much funding do you need?
  • What is your credit score?
  • Can you afford the monthly payment?
  • How much debt do you already have?
  • Is your debt manageable through other means?
2
Do Your Research

It’s wise to shop around before you apply with a lender. Keep in mind that debt consolidation loans are long-term financial commitments. It takes around two to four years for borrowers to complete their repayment. Additionally, some lenders perform hard credit checks that can negatively impact your credit score. So you’ll want to be sure about your lender before you apply.

MoneyGeek created this guide to help borrowers choose the best debt consolidation lender in California for them. However, every consumer has different needs. If our recommendations don’t suit yours, you should explore other options in California.

3
Wait

After you’ve selected a debt consolidation lender, consider waiting a day or two before you apply. Taking out a debt consolidation loan is a huge commitment, so you need to be sure about your desired lender. Waiting gives you time to arrive at an objective decision.

4
Read the Fine Print

Borrowers often miss small yet significant details about their debt consolidation loan. MoneyGeek strongly recommends that you thoroughly read the fine print to ensure you catch important information like fees and charges. Prepayment penalties, origination fees and late fees might infringe on your monthly savings if you’re not careful. Reading the fine print can save you money in the long run.

5
Apply

Once you’re absolutely sure about your chosen lender and meet all their requirements, you’re ready to submit your application. During the application process, lenders usually ask for your identification, address verification and proof of income. There are different ways to apply for a loan, whether online, over the phone or by visiting the lender. If available, you can choose the option which is most comfortable and convenient for you.

What to Do if You Can’t Get a Debt Consolidation Loan in California

If a lender denies your application, it doesn’t mark the end of your debt consolidation journey. The next step is to ask the lender for the specific reason your application was denied. There are many reasons a lender might reject your application. Insufficient income, low credit score, high debt-to-income ratio and no employment history are common reasons.

You could negotiate with your desired lender and, for example, ask for a smaller loan amount or a shorter loan repayment term. Although it’s not guaranteed, the lender may accept your modified application. As a last resort, you can apply with a different lender. However, make sure to correct whatever caused the rejection of your first application.

Some borrowers are tempted by payday loans, which have virtually no requirements. However, MoneyGeek strongly advises against this. Payday loans are dangerous financial choices with short repayment terms and extremely high interest rates.

Calculate Your Monthly Payment

Borrowers usually pay off debt consolidation loans in monthly installments with interest. Use MoneyGeek’s debt consolidation loan calculator below to help you determine if you’re financially ready to cover this expense each month.

years
months
%
Principal
+ $114.98
Interest
+ $8.33
Origination Fee Percentage
+
%
Origination Fee Fixed amount
+
Total monthly Payment
$123.31

FAQs About Debt Consolidation Loans in California

When it comes to debt consolidation, a good way to start is by assessing your financial standing. Here, MoneyGeek answers some of the most commonly asked questions about debt consolidation loans in California.

What is the best debt consolidation loan lender in California?
Which lender in California has the lowest interest rate for debt consolidation?
What kind of debts can I not use my debt consolidation loan for in California?
How much debt can I consolidate in California?
How long does it take to get a debt consolidation loan in California?
Can I pay off my loan early in California?
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METHODOLOGY

MoneyGeek reviewed over 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 amount, minimum credit score, minimum income amount, application fees and disbursement time.

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, our picks are chosen 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
  • Better Business Bureau. "LightStream." Accessed June 23, 2022.
  • Better Business Bureau. "SoFi." Accessed June 24, 2022.
  • Better Business Bureau. "Upgrade, Inc." Accessed June 23, 2022.
  • Better Business Bureau. "Upstart." Accessed June 24, 2022.
  • SoFi. "About Us." Accessed June 20, 2022.
  • Upgrade. "About Us." Accessed June 23, 2022.
  • Upstart. "Overview." Accessed June 20, 2022.
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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.

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