Best Debt Consolidation Loan Lenders in Iowa

Launched in 2012, Upstart is an artificial intelligence (AI) lending platform. Upstart works with banks and credit unions to give borrowers loans and has served over 1.8 million people.

Due to its modest credit score of 300, A+ ratings from the BBB and ability to release funds the next day, Upstart tops the list as the overall best for borrowers in Iowa.

Furthermore, the company conducts a soft inquiry at first to avoid affecting your credit score. It will only conduct a hard inquiry if the borrower accepts the rate and completes the application. However, if you are shopping for loan amounts higher than $50,000 or have a debt-to-income ratio of more than 45%, Upstart may not be the best option.

Pros

• Soft credit inquiry
• No prepayment penalty fee
• A+ rating from the BBB
• Low credit score requirement
• Interest rates as low as 3.22%

• 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

In 2012, SunTrust Bank established LightStream, an online lending division. The company offers debt consolidation loans online via its mobile app, which is available nationwide.

MoneyGeek ranked LightStream as the second-best debt consolidation loan provider in Iowa. The lender can disburse large loan sums online at the customer's convenience through its mobile app. LightStream is also a no-fee lender; it does not charge origination, prepayment, or late fees, making this lender an excellent option for most borrowers.

LightStream, on the other hand, only lends to consumers with excellent credit. If you have no or bad credit, continue reading to find the best lender for you.

Pros

• High loan amount of $100,000
• No origination fee or prepayment penalty
• A+ BBB rating
• 0.5% auto payment discount
• Offers mobile app to manage loan

• APR range: 5.73%–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

Upgrade is a neobank, which means it does all of its business online. The company was launched in 2016. MoneyGeek found Upgrade to be the best debt consolidation provider for borrowers with bad credit in Iowa.

Upgrade prohibits using your loan to pay for post-secondary education expenses or investments. However, it is an excellent option for Iowans with poor credit who want to consolidate their debt.

The maximum loan amount is $50,000, and you only need a credit score of 560 to qualify. Upgrade also provides a 15-day grace period before charging late fees of up to $10.

Pros

• Soft credit inquiry
• No prepayment penalty fee
• A+ rating from BBB
• Accepts applications in person and online
• Fair minimum credit score

• APR range: 6.55%–35.97%
• Minimum/maximum loan amount: $1,000–$50,000
• Minimum credit requirements: 560
• Repayment terms: 36–60 months
• Time to receive funds: Same day

SoFi was founded in 2011. MoneyGeek recommends SoFi as the best debt consolidation lender for consumers with good credit. It requires a minimum credit score of 680. This company has no prepayment penalties, origination fees, or late fees. Furthermore, if you want a large loan, SoFi allows you to borrow up to $100,000.

Borrowers may also be eligible for unemployment benefits. This means that if you lose your job, SoFi may temporarily modify your payments.

SoFi, on the other hand, may not be a good option for borrowers with poor credit or those looking for loans of less than $5,000.

Pros

• No origination fees
• No late fees
• A+ rating from BBB
• Funding in as little as two days
• Conducts soft credit inquiries

• APR range: 6.99%–22.23%
• Minimum/maximum loan amount: $5,000–$100,000
• Minimum credit requirements: 680
• Repayment terms: 12–60 months
• Time to receive funds: Two days