MoneyGeek analyzed more than 30 data points to determine which lenders have the best debt consolidation loans in Kentucky. We evaluated what each lending company has to offer, including loan amounts, APR ranges, repayment terms, disbursement times and fees. We also took a look at their minimum requirements that may affect your chances of getting approved, such as credit score and gross income.
Top Lenders & Best Rates for You
Best Debt Consolidation Loans in Kentucky of 2024
Updated: December 28, 2023
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WHAT WE’RE GEEKING OUT ON
- Best Overall Debt Consolidation Loan Lender in Kentucky
- Runner-Up for Best Overall Debt Consolidation Loan Lender in Kentucky
- Best Debt Consolidation Loan Lender for Bad Credit in Kentucky
- Best Debt Consolidation Loan Lender for Good Credit in Kentucky
- How to Choose the Right Personal Loan for You
- What to Do if You Can’t Get a Debt Consolidation Loan in Kentucky
- Calculate Your Monthly Payment
- Frequently Asked Questions About Personal Loans in Kentucky
Best Debt Consolidation Loan Lenders in Kentucky
Best Overall Debt Consolidation Loan in Kentucky: 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 analysis, Upgrade offers the best overall debt consolidation loans in Kentucky. The company, which was launched in 2017, offers direct payments to third-party creditors.
With Upgrade, you can borrow as little as $1,000 and as much as $50,000, which can be repaid in three to five years. It offers interest rates starting at 5.94% and ranging up to 35.47%, based on your credit score, loan term and other factors. Note that there’s a 2.9% to 8% origination fee (deducted from your total loan amount) and a late fee of up to $10. However, there’s no penalty for paying off your loan early.
To qualify for an Upgrade debt consolidation loan, you need a minimum credit score of 560. That said, you may be better off looking for a different option if you need a bigger loan or lower interest rate.
Pros
- Fair credit score requirement
- No prepayment penalty
- Soft credit inquiry
- Same-day funding
Cons
- Has origination fee
- Has late fee
- Low borrowing limit
- 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
Runner-Up for Best Debt Consolidation Loan in Kentucky: Truist
- Truist
- 8.14% to 18.99%APR Range
- NoneMinimum Credit Score
- $3,500 to $50,000Loan Amount Range
- 6 to 60 monthsRepayment Terms
- Next DayTime to Receive Funds
According to MoneyGeek’s study, Truist is the second-best option for debt consolidation loans in Kentucky. The company doesn’t charge any origination fee, prepayment penalty or late fee.
Kentucky residents who are interested in applying will be pleased that Truist doesn’t require a minimum credit score, which means those with poor credit may qualify for a loan. Once approved, you may get your loan funding as early as the next day. However, this may not be the ideal lender for you if you’re looking to take out a large loan since the maximum loan amount is capped at $50,000. Furthermore, Truist doesn’t offer direct payments to creditors for debt consolidation.
Truist was formed in 2019 after a merger between BB&T and SunTrust. It’s considered one of the top 10 U.S. commercial banks, offering a wide range of financial products, including personal loans.
Pros
- No origination fee
- No prepayment penalty
- No minimum credit score requirement
- Next-day funding
Cons
- High baseline APR
- Low borrowing limit
- Doesn’t directly pay creditors
- APR range: 8.14%–18.99%
- Minimum/maximum loan amount: $3,500–$50,000
- Minimum credit requirements: None
- Repayment terms: 6–60 months
- Time to receive funds: Next day
Best Debt Consolidation Loan for Bad Credit in Kentucky: 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
Kentucky residents who are looking for personal loans and have bad credit may find Upstart as the best option for their particular needs. The company has been using artificial intelligence since 2012 to fund loans for various purposes, including debt consolidation.
With Upstart, you can qualify for a loan with a minimum credit score of 300, the lowest among debt consolidation loan lenders in the state. Upstart also conducts soft credit inquiries, which means your credit score won’t be affected.
That said, this company may not be ideal for you if you need a loan over $50,000. Another thing to keep in mind is that Upstart charges origination fees and requires a debt-to-income ratio of 45%. Finally, while Upstart offers an excellent interest rate of 3.22% for well-qualified borrowers, those with poor credit may pay up to 35.99%.
Pros
- No prepayment penalty
- Credit score requirement of just 300
- Soft credit inquiry
- Next-day funding
Cons
- Has origination fee
- Loans are only up to $50,000
- Debt-to-income limit of 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
Best Debt Consolidation Loan for Good Credit in Kentucky: 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
MoneyGeek found that SoFi offers the best debt consolidation loans in Kentucky for borrowers with good credit. The company was founded in 2011 and has since funded over $50 billion in loans.
SoFi offers debt consolidation loans from $5,000 to $100,000. You won’t have to pay an origination fee, prepayment penalty or late fee. Moreover, you can receive a 0.25% discount for setting up automatic payments.
However, this lender may not be an option if you have a credit score below 680. SoFi also only offers debt consolidation loans to borrowers who are employed or have sufficient income from other sources. That said, the company has an unemployment protection program that can temporarily modify your payments if you lose your job.
Pros
- No origination fee
- No prepayment penalty
- No late fee
- Loans up to $100,000
- 0.25% autopay discount
Cons
- Co-signers not allowed
- Credit score of at least 680 required
- 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
How to Choose the Best Debt Consolidation Loan in Kentucky for You
Kentucky residents have an average personal loan debt of $18,887 with a 10.38% interest rate. Borrowers often use their loans for debt consolidation since it combines several debts into a single monthly payment. By doing this, you can save money on interest and get out of debt faster.
When you apply for a debt consolidation loan in Kentucky, your loan eligibility will be determined through various factors like your credit score and gross income. Below, MoneyGeek outlines some steps you can follow to choose the best debt consolidation loan for your needs and situation.
1
Ask Yourself the Important Questions
Before pursuing a loan application, take the time to evaluate your current financial standing to see if a debt consolidation loan is the best option for you. You can do this by asking yourself the following pertinent questions:
- How much funding do you need? It’s important to know your desired loan amount, especially if you’re going to use the fund to consolidate your debts.
- What’s your credit score? Lenders usually consider your credit score when reviewing your application. Having good to excellent credit can help in obtaining low rates and favorable terms.
- Can you afford the monthly payments? Evaluate your current financial obligations and determine whether you can afford the monthly payments to avoid late fees.
- Do you have existing debts? Take into account all your existing debts and decide whether combining them into a single loan is the best option for your situation.
- Is your debt manageable through other means? Look for other alternatives, such as a balance transfer card, to see if they can better meet your needs.
2
Do Your Research
The value of doing your own research can’t be understated. This can help you learn more about lenders and narrow down your options for the best debt consolidation loan in Kentucky. Evaluate what each company can offer in terms of loan amounts, interest rates and repayment terms. Also, gather information about the fees you might incur, such as origination, prepayment and late fees. By conducting your own research, you can also increase your chances of getting approved through a lender’s minimum requirements.
MoneyGeek created this guide to provide you with information about different lenders in the state, but our recommendations may not cover your unique situation. As it stands, it’s still in your best interest to explore other options.
3
Wait
Once you’ve gathered all the necessary information about debt consolidation loan lenders in Kentucky, it’s time to take a step back. It’s advisable to wait for a day or two before reviewing your options to avoid becoming a victim of confirmation or recency bias. Plus, doing this can help you be more objective when choosing your preferred loan lender. Keep in mind that a debt consolidation loan is a significant commitment, so you have to make sure you’re making the right decision before pursuing an application.
4
Read the Fine Print
It’s common to overlook some details while you’re researching. After choosing your loan lender, it’s essential to read the fine print. Understand the lender’s terms and keep a close eye on hidden fees that you missed during your initial research. These may include origination fees, prepayment penalties and late fees. By reviewing the fine print, you can save some money in the long run.
5
Apply
Once you’re sure about your chosen loan lender, there’s only one thing left to do: submit your debt consolidation loan application! Gather all the necessary documents that your lender may ask of you. Typically, lenders require identification, address verification and proof of income during the application process. Make sure that all the information you provide is accurate to avoid getting denied.
Some lenders allow online applications. However, there’s no harm in calling your lender or visiting a physical location if the option is available.
What to Do if You Can’t Get a Debt Consolidation Loan in Kentucky
Getting your loan denied does not mean your debt consolidation journey is over. Sometimes, debt consolidation loans get denied due to a low credit score or insufficient income. Your next course of action should be to contact your lender. Find out and understand why your application was denied.
In addition, you can ask your lender if you can make some modifications to your application to have a more positive outcome. These can include lowering the loan amount or shortening the loan repayment term.
If your lender’s decision is final, you can always look for debt consolidation loans elsewhere. However, this move isn’t advisable until you’ve improved the factor that caused your application to be rejected in the first place.
Also, payday loans may be an attractive alternative to a debt consolidation loan, but MoneyGeek advises against using them. You may have quick access to cash, but you risk facing extremely high interest rates and short repayment terms.
Calculate Your Monthly Payment
With a debt consolidation loan, you’re paying off multiple debts with a single monthly payment. Use MoneyGeek’s debt consolidation loan calculator to see if you can afford to pay the expense each month.
FAQs About Debt Consolidation Loans in Kentucky
The best debt consolidation loan for you will depend on your personal needs, credit score and income. To help you find the best option for your situation, MoneyGeek answered some frequently asked questions about debt consolidation loans in Kentucky.
What is the best debt consolidation loan lender in Kentucky?
MoneyGeek found that the best debt consolidation loan in Kentucky is from Upgrade. However, another company may be ideal depending on your background. For instance, Upstart is excellent for borrowers in Kentucky with bad credit.
Which lender in Kentucky has the lowest interest rates for debt consolidation?
In Kentucky, Upstart offers the lowest interest rates for debt consolidation loans, starting at 3.22%.
What kind of debts can I not use my debt consolidation loan for in Kentucky?
This will depend on the lender. Some impose restrictions on fund usage, while others don't. It’s best to ask your lender before pursuing an application.
How much debt can I consolidate in Kentucky?
In Kentucky, you may typically borrow as little as $1,000 and as much as $100,000. However, loan amounts vary by lender.
How long does it take to get a debt consolidation loan in Kentucky?
How fast you receive your loan funding will depend on your lender. There are some lenders that release funds on the same day, while others take several business days.
Can I pay off my loan early in Kentucky?
Yes, but some lenders charge a fee for doing so. Contact your lender and ask if it charges prepayment penalties.
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
- SoFi. "Frequently Asked Questions." Accessed June 28, 2022.
- SoFi. "Personal Loans." Accessed June 28, 2022.
- Truist. "Personal Loans." Accessed June 28, 2022.
- Upgrade. "Debt Consolidation Loans." Accessed June 28, 2022.
- Upstart. "A personal loan for your personal needs." Accessed June 28, 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
our editorial policies and expert editorial team.