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Best Debt Consolidation Loan Lenders in Iowa

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Updated: December 28, 2023

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Best Debt Consolidation Loan Lenders in Iowa

MoneyGeek analyzed over 30 factors to help you choose the best Iowa debt consolidation loan provider, including Better Business Bureau (BBB) ratings, debt-to-income ratios, interest rates and loan terms. We also looked at origination, prepayment and late payment fees.

Best Overall Debt Consolidation Loan in Iowa: 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

    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%

    Cons

    • High origination fee
    • Low borrowing limits
    • Has 45% or less debt-to-income ratio
    • No mobile app to manage loan
    • 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

Runner-Up for Best Debt Consolidation Loan in Iowa: 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

    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

    Cons

    • Performs hard credit check
    • Does not accept borrowers with new or no credit
    • Requires good to excellent credit score
    • 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
    LightStream

Best Debt Consolidation Loan for Bad Credit in Iowa: 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 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

    Cons

    • Potentially high origination fee
    • Charges late fees
    • Maximum loan amount is $50,000
    • Debt consolidation loan cannot be used to pay post-secondary education expenses
    • 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
    Upgrade

Best Debt Consolidation Loan for Good Credit in Iowa: 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. 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

    Cons

    • Requires good to excellent credit score
    • High minimum loan amount
    • 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
    SoFi

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

MoneyGeek data found that the average credit card debt in Iowa is $4,587, the average personal loan debt is $15,314, and the average interest rate on personal loan debt is 10.12%. When applying for personal loans in Iowa, you must assess your income, employment history, current credit score and creditworthiness.

Follow the steps below to find the best debt consolidation loan provider in Iowa for your unique profile.

1
Ask Yourself the Important Questions

First, determine whether a debt consolidation loan is appropriate for you. Then, research which lenders best match your qualifications. You can make better financial decisions by taking a step back and asking yourself some important questions.

  • How much funding do you need?
  • What’s your credit score?
  • Can you afford the monthly payments?
  • Do you have existing debts?
  • Is your debt manageable through other means?
2
Do Your Research

Debt consolidation loans require commitment. You may have to make monthly payments for two to four years, depending on the loan term.

Before applying for a loan, it’s important to do your research. Make an informed decision based on your knowledge of the options and loan package. Some lenders may do a hard credit check, which can affect your credit rating.

Compare several rates to determine which one best meets your needs. MoneyGeek prepared this guide to help you through the process of applying for a debt consolidation loan. However, our recommendations may not be best for your unique situation, so we advise you to do your research.

3
Wait

A debt consolidation loan is a significant, years-long financial commitment. After you've completed your research, give it some thought. Take a few days to decide whether a debt consolidation loan is the right solution for you.

4
Read the Fine Print

Make sure you understand all pertinent information related to your loan. Read the fine print. Research the lender’s fees, such as prepayment penalties, early payback and origination fees.

5
Apply

You can submit your application after you've decided on a lender. You’ll need to provide information, such as proof of identity, residence and income.

Some lenders accept applications online. Calling or visiting the lender may be preferable for some individuals and could help them understand the loan better and address any issues.

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

A lender may deny your application for a debt consolidation loan. After being rejected for a loan, it’s best to take a step back and assess the situation. Find out why your loan was rejected. In most cases, lenders reject loan applications because of poor credit scores, insufficient income, high debt-to-income ratios and incomplete loan application information.

To understand why your application was denied, speak with the lender directly. Find out whether you can improve your application. One option is to reduce the loan term or reduce the loan amount. Getting a loan from another lender is also an option, but you should wait to do this until you have resolved the issue that caused your application to be rejected.

Be cautious of quick-fix financial solutions like payday loans. Generally, they are short-term loans with very high interest rates.

Calculate Your Monthly Payment

Borrowers typically pay back debt consolidation loans in Iowa monthly, with interest. You can calculate your monthly debt consolidation loan payment using the MoneyGeek calculator below.

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 Iowa

The best debt consolidation lender in Iowa for you will depend on a combination of factors, including your credit score, income and specific needs. MoneyGeek answers some of the most frequently asked questions about Iowa personal loans.

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