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Best Debt Consolidation Loans in Colorado of 2024
Updated: December 28, 2023
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- Best Overall Debt Consolidation Loan Lender in Colorado
- Runner-Up for Best Overall Debt Consolidation Loan Lender in Colorado
- Best Debt Consolidation Loan Lender for Bad Credit in Colorado
- Best Debt Consolidation Loan Lender for Good Credit in Colorado
- How to Choose the Right Personal Loan for You
- What to Do if You Can’t Get a Debt Consolidation Loan in Colorado
- Calculate Your Monthly Payment
- Frequently Asked Questions About Personal Loans in Colorado
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
Runner-Up for Best Debt Consolidation Loan in Colorado: LightStream
Best Debt Consolidation Loan for Bad Credit in Colorado: Upstart
Best Debt Consolidation Loan for Good Credit in Colorado: 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.
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.
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.
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.
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.
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.
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.
Upgrade is the best overall lender for debt consolidation loans in Colorado. However, if you have bad credit, Upstart is the best option, while SoFi is the best lender for those with good credit.
Upstart has the lowest interest rates for debt consolidation rates in Colorado, starting at 3.22%. However, its rates can range up to 35.99%, depending on your creditworthiness.
Depending on the lender, you may not be able to use your debt consolidation loans to pay off education expenses or illegal debts. However, restrictions on fund usage can vary depending on the lender, so find out from your preferred provider what restrictions apply.
In Colorado, debt consolidation loans range from $1,000 to $100,000. However, the lender will determine how much you qualify for based on factors like your credit score, income and DTI ratio. Some lenders may also have lower loan limits of $50,000.
It can take as little as a day to get a debt consolidation loan in Colorado. Most lenders disburse funds within one to two days but approval times may vary based on your profile and chosen lender.
Yes, most lenders in Colorado allow you to pay off your loan early without incurring penalty fees. However, since terms can vary depending on the lender, always check with your preferred lender for their terms on early payment.
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
- LightStream. "Debt consolidation." Accessed June 30, 2022.
- SoFi. "Personal Loans." Accessed June 30, 2022.
- Upgrade. "Personal Loans up to $50,000." Accessed June 30, 2022.
- Upstart. "Personal Loans." Accessed June 30, 2022.
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
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