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Best Debt Consolidation Loan Lenders in Kentucky

A debt consolidation loan is an excellent way to save on interest and get out of debt quickly. It allows you to combine multiple debts into a single loan with a lower interest rate. When applying for a debt consolidation loan in Kentucky, lenders often take into account your credit score, debt-to-income ratio and income. The average credit score in the state is 717, and the average personal loan debt is $18,887 with a 10.38% interest rate.

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Last Updated: 9/9/2022
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Best Debt Consolidation Loan Lenders in Kentucky

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.

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

    on Upgrade Website

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

    on Truist Website

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

    on Upstart Website

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

    on SoFi Website

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.

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 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.

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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

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.