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Best Debt Consolidation Loans in Colorado 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 Colorado

MoneyGeek used a comprehensive ranking system based on 30+ data points to identify the best lenders for debt consolidation loans in Colorado. Data used to analyze lenders included average interest rates, credit score requirements, disbursement time and repayment terms, among other factors.

MoneyGeek’s analysis found that Upgrade is the best debt consolidation lender in Colorado. Upgrade offers borrowers quick disbursement and flexible repayment terms, along with the option to pay creditors directly. However, depending on your profile and needs, the best lender for you may vary.

Best Overall Debt Consolidation Loan in Colorado: 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

    Upgrade is MoneyGeek’s top pick for the best debt consolidation loans in Colorado. Upgrade has an A+ Better Business Bureau (BBB) rating. The lender was founded in 2017 and is headquartered in San Francisco, California.

    For borrowers who need funds urgently, Upgrade offers same-day disbursement and the option to pay creditors directly. This lender is also ideal if you have an average credit score since the minimum required to qualify for an Upgrade loan is only 560. You also do not have to meet a specific minimum income requirement to qualify. However, APR rates can be as high as 35.47%, depending on your creditworthiness.

    You can check rates online without impacting your credit score since Upgrade has a prequalification option with soft credit checks.

    Pros

    • Prequalification available with soft credit check
    • Quick funding of loans
    • No early payment penalties
    • Option for direct payment to creditors
    • No minimum gross income requirement

    Cons

    • Relatively high APR rates
    • Charges origination fees
    • Does not allow co-signers
    • 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 Colorado: 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

    MoneyGeek’s runner-up pick for the best debt consolidation loans in Colorado is LightStream. LightStream was founded in 2012 and is headquartered in San Diego, California.

    LightStream is a good option if you need a debt consolidation loan with high limits since you can borrow up to $100,000. This lender is also ideal if you want a low-cost debt consolidation loan since they offer competitive APR rates ranging from 4.49% to 20.49%. You will also not incur origination or prepayment fees with this lender.

    Although there is no option to pay third-party creditors directly, LightStream funds loans quickly, so they are ideal if you need funds urgently. However, you need a minimum credit score of at least 660 to qualify, and you cannot check rates before applying since there is no prequalification option.

    Pros

    • Quick disbursement of funds
    • No origination fees
    • No early payment fees
    • High loan limits of up to $100,000
    • Flexible repayment terms of up to 84 months

    Cons

    • High minimum credit score requirement
    • No prequalification option
    • No option to pay third-party creditors directly
    • 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 Colorado: 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

    Upstart was founded in 2012 and is headquartered in San Mateo, California. For borrowers with poor to average credit, Upstart is the best lender in Colorado for debt consolidation loans.

    Upstart stands out for using AI technology to qualify borrowers for their loans. To qualify for an Upstart loan, you do not need a lengthy credit history if you are employed with a minimum gross income of at least $12,000. The minimum credit score requirement is also very low at 300.

    Upstart is ideal if you need to borrow between $1,000 and $50,000, but APR rates can be high, ranging up to 35.99%. You can check rates before applying without impacting your credit score negatively using the prequalification option on the Upstart website.

    Pros

    • Quick disbursement of funds
    • APR rates as low as 3.22%
    • Pre-approval with soft credit check
    • Low minimum credit score requirement
    • No prepayment penalties

    Cons

    • APR rates as high as 35.99%
    • Origination fees
    • Late fees
    • 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 Colorado: 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

    SoFi was founded in 2011 and has funded more than $50 billion in loans. For Colorado borrowers with good credit, SoFi offers the best debt consolidation loans in the state.

    For borrowers looking for debt consolidation loans with competitive APR rates, SoFi is a good option with interest rates that max out at 20.28%. You will not incur any origination or prepayment fees, so this lender is relatively low-cost. You can borrow up to $100,000, but you need to have a minimum credit score of 680 to qualify for a loan.

    SoFi’s employment protection ensures that you can modify your payments in case you lose your job to make them more manageable. To find out rates before applying, you can use the pre-approval option, which will not impact your credit score.

    Pros

    • Flexible loan limits
    • Auto payment discount
    • Unemployment protection
    • No origination fees
    • No early payment fees

    Cons

    • High minimum credit score requirement
    • Restrictions on usage of funds
    • 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 Colorado for You

In Colorado, the average personal loan debt is $21,783 at an average APR of 9.4%. Debt consolidation loans can be a cost-effective way to manage multiple debts and lower your interest payments.

However, before choosing a debt consolidation loan lender, it is important to consider factors such as your gross income, DTI ratio and credit score. These factors will be used by lenders to qualify you for a loan, so they will determine which lender is best for your specific needs and profile.

1
Ask Yourself the Important Questions
  • How much funding do I need? Figure out how much you need to effectively consolidate your debt. Different lenders offer varying loan limits, so the best for you may depend on the amount you need to borrow.
  • What is my credit score? Your credit score is one of the key factors lenders use to qualify you for a loan. Make sure your credit score meets the minimum requirements of your preferred lender before you apply.
  • Can I afford the monthly payment? Debt consolidation loans will bundle your debts into a single monthly payment. Make sure you can afford to make the required payment to avoid taking on more debt than you can handle.
  • How much debt do I already have? Some lenders may require you to have a specified DTI ratio to qualify for a loan.
  • Is my debt manageable through other means? Take time to consider whether there are cheaper financing options available to you.
2
Do Your Research

It’s important that you research and compare providers to find the best lender for your profile. Lenders have different minimum requirements, fees, interest rates and accessibility options. Comparing them will help you find the most favorable terms and options for your needs.

MoneyGeek recommended the best lenders for certain profiles, but our recommendations may not cover all scenarios. By doing your own research, you can identify a lender that’s best for your specific needs.

3
Wait

Personal loans are a long-term commitment, so we advise that you wait a few days before applying for one. Taking a few days to weigh your options will help you make the right decision based on your current financial situation.

You can also use this time to compare debt consolidation with any other financing options that are available to you. This will help you figure out what the most cost-effective solution is based on your finances and the implications of the loan.

4
Read the Fine Print

Expenses like prepayment penalties, late payment fees and other charges can stack up over time. Make sure you understand all the terms, fees and rates stipulated in the fine print before signing your loan agreement. This will save you from incurring hidden charges or penalties down the line.

Always verify any unclear information or terms with the lender before agreeing to the loan. This will help you avoid missing important information that will impact the cost and terms of your loan.

5
Apply

Once you have settled on a lender and understood their terms, you can go ahead and apply for the loan. Lenders will typically request your personal information, such as identification, address and income verification statements.

Most lenders in Colorado have an online application process, so you can complete the application conveniently within minutes. You may also be able to check rates beforehand if you choose a lender that offers a prequalification option. There’s no harm in calling or visiting the lender if you need further clarification.

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

In some cases, your loan application may get declined. This should not worry you too much because most factors that get you declined, like credit score or DTI ratio, can be improved over time.

If your application is rejected, it’s important to ask the lender why you were denied. This will help you understand what you need to improve to get approved in the future. For instance, if your application was declined due to a low credit score, you can either work on improving your credit score before reapplying or apply with a different lender that has a lower minimum credit score requirement.

MoneyGeek recommends that you avoid reapplying immediately to avoid denting your credit score. Payday loans may seem like a viable alternative, but it is best to avoid them due to their extremely high interest rates and short repayment periods.

Calculate Your Monthly Payment

When applying for debt consolidation loans in Colorado, it is best to figure out your monthly payments first to understand if your finances can cover them. You can use MoneyGeek’s personal loan calculator to get an estimate of your monthly payments based on your profile.

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 Colorado

The best debt consolidation loan lender for you will depend on your unique needs and profile. You can learn more about debt consolidation loans in Colorado by reading the answers to some frequently asked questions.

What is the best debt consolidation loan lender in Colorado?
Which lender in Colorado has the lowest interest rate for debt consolidation?
What kind of debts can I not use my debt consolidation loan for in Colorado?
How much debt can I consolidate in Colorado?
How long does it take to get a debt consolidation loan in Colorado?
Can I pay off my loan early in Colorado?
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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 range, available loan amount, minimum credit score, minimum income amount, application fee 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
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.

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