Best Debt Consolidation Loans in Lexington of 2024

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Edited byAshley Jacobs
Edited byAshley Jacobs

Updated: December 28, 2023

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WHAT WE’RE GEEKING OUT ON

Best Debt Consolidation Loan Lenders in Lexington, KY

MoneyGeek looked at more than 30 data points when reviewing different lenders to help borrowers compare available debt consolidation loan lenders in Lexington.

Our findings show that Truist has one of the lowest APR ranges and most flexible loan terms. SoFi is the second-best lender in the state, whereas Upgrade is an excellent choice to get the lowest interest rates for those with good to excellent credit. Meanwhile, Upstart has some of the most flexible requirements that allow borrowers with low credit scores to qualify for loans.

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Best Overall Debt Consolidation Loan in Lexington, KY: 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

    Truist personal loans are an ideal choice for debt consolidation loans in Lexington if your total debt amounts to less than $50,000. Although it does not have credit score requirements, having a high credit score means you’ll be offered a low APR rate.

    With Truist, there are no collateral or origination fees required. Keep in mind that Truist doesn’t allow co-signers. It also may not be the best option if you need more than $50,000 in funding.

    Pros

    • A+ BBB rating
    • Next-day loan funding
    • Joint loans available
    • No origination, late or prepayment fees
    • Autopay discount

    Cons

    • Low maximum loan amount
    • Hard credit inquiry
    • No co-signer options
    Truist

Runner-Up for Best Debt Consolidation Loan in Lexington, KY: SoFi


  • SoFi
    • 8.99% to 29.99%APR Range
    • 680Minimum Credit Score
    • $5,000 to $100,000Loan Amount Range
    • 12 to 60 monthsRepayment Terms
    • 2 DaysTime to Receive Funds

    For those who need a higher loan amount, SoFi personal loans could be the best debt consolidation lender of choice in Lexington.

    Creditworthy borrowers can get the lowest APR rates, but even borrowers with low credit may still be able to qualify. Getting a loan from SoFi does not require origination fees, late charges or prepayment penalties.

    Social Finance Inc., or SoFi, is a fintech business established in 2011 by a group of Stanford alumni. Since offering personal loans in 2015, it has already funded more than $50 billion in loans.

    Pros

    • High maximum loan amount
    • Autopay discount
    • No prepayment, origination or late fees
    • Unemployment protection
    • A+ BBB rating

    Cons

    • High minimum loan amount
    • No co-signers
    • Employment requirements
    SoFi

Best Debt Consolidation Loan for Bad Credit in Lexington, KY: Upstart


  • Upstart
    • 6.4% to 35.99%APR Range
    • 300Minimum Credit Score
    • $1,000 to $50,000Loan Amount Range
    • 3 or 5 yearsRepayment Terms
    • 1 business dayTime to Receive Funds

    Personal loans from Upstart are best for borrowers with bad credit who may have difficulty meeting most lenders’ requirements. It has a minimum loan amount starting at $1,000 up to a maximum of $50,000.

    Since Upstart’s rate calculation relies on artificial intelligence (AI), the lender doesn’t only look at credit scores to determine your creditworthiness. As a result, rates are much lower by 43% compared with a credit-only model.

    Pros

    • Joint loans available
    • Low maximum loan amount
    • A+ BBB rating
    • Low minimum credit score requirement
    • No prepayment penalty

    Cons

    • Late fees
    • Charges origination fee
    • No co-signers
    Upstart

Best Debt Consolidation Loan for Good Credit in Lexington, KY: Upgrade


  • Upgrade
    • 8.49% to 35.99%APR Range
    • UndisclosedMinimum Credit Score
    • $1,000 to $50,000Loan Amount Range
    • 24 to 84 monthsRepayment Terms
    • Within a dayTime to Receive Funds

    Upgrade personal loans are one of the best options for those with good credit scores. Upgrade is also an ideal choice for those who need money right away since you can access the funds on the same day it is approved.

    Take note that missed payments on an Upgrade loan can result in fees. In addition, you can monitor your account through Upgrade’s mobile app.

    Pros

    • Soft credit checks
    • Low minimum loan amount
    • No prepayment penalty
    • A+ BBB rating

    Cons

    • Origination fees
    • Late payment fee
    • No co-signers
    Upgrade

How to Choose the Best Debt Consolidation Loan in Lexington, KY, for You

In Kentucky, personal loan debt has an average interest rate of 10.38%. This is a good benchmark when considering offers from different lenders. If you need a debt consolidation loan, lenders will look at your income, debts, debt-to-income ratio and other useful information that could tell them about your financial standing.

To ensure that you’re not missing any important steps in your loan application process, here are some steps to help guide you.

1

Ask Yourself the Important Questions

If your goal is to eliminate debt, determining whether a debt consolidation loan is the best solution is an important initial question. You also want to know how much funding you need to repay your total debt together with interest and if you meet specific lender requirements, such as credit score and income.

Specifically, make sure to ask yourself:

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

Do Your Research

After you determine how much funding you need to repay your debts, you want to also make sure that you can qualify for the lenders that can offer you the best interest rate. Doing your research is important since a personal loan is a two- to four-year commitment, on average.

Taking the time to do your own research for what’s best for your unique needs is often the right move. MoneyGeek’s comparison of lenders is a helpful resource that you can use as a starting point. However, our recommendations are based on a general borrower profile, so your ideal lender may vary from our suggestions.

3

Wait

Once you think you’ve identified the best lender for your needs, take a few days to think through your decision. Since personal loans are a long-term commitment, you want to be certain that applying for one is the right option for your financial needs. You may even find that a different funding option is a better fit for your funding goals.

4

Read the Fine Print

When researching personal loans, borrowers often forget to review the fine print. This contains all the important information about fees and additional charges. For some lenders, missed payments and paying off your loan earlier are subject to fees or penalties. You might even be subject to origination fees. Make sure you understand all the extra charges you may face in order to minimize the extra costs associated with your loan.

5

Apply

Only apply and submit your financial documents once you are confident with the terms and conditions offered by your lender. Most lenders now accept applications online, but it doesn’t hurt to call or visit the office when submitting your documents to guarantee your security if your lender offers those options. Also, make sure to have all necessary documentation ready to go before applying in order to simplify the process. This can include income statements, verification of your identity and more.

What to Do if You Can’t Get a Debt Consolidation Loan in Lexington, KY

Having a high debt-to-income ratio, which is common among borrowers with multiple debts, or a low credit score is often a reason for a rejected application. When you apply for a loan, lenders may view you as high-risk, causing your application to be denied. When that happens, one of the first steps you can take is to call your lender and ask for the specific reason for your denial.

Shortening the loan terms or lowering the loan amount often does the trick. However, if this doesn’t work, you’ll want to improve on the factors that your lender discussed to increase your chances of getting approved before sending another application to a different lender.

If a debt consolidation loan is not an option, you can also try looking at HELOCs and home equity loans and other types of loans for your current financial situation. MoneyGeek cautions against payday loans as these can land you even deeper in debt.

Calculate Your Monthly Payment

If you are choosing between different loan offers, it’s good to compare how much your monthly payments will be. This can help you estimate whether your finances can cover your loan. Simply enter your loan details in MoneyGeek’s debt consolidation loan calculator.

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Frequently Asked Questions About Debt Consolidation Loans in Lexington, KY

Here are some frequently asked questions from the average borrower in Lexington to help you learn about the best consolidation loans in the city based on your needs.

Truist and SoFi are the best debt consolidation lenders in Lexington. If you have good credit, you’ll find that loans from Upgrade are the best option. On the other hand, those with bad credit struggling to qualify for most loans may want to check out offers from Upstart.

In Lexington, the debt consolidation loan lender with the lowest interest rate is Truist.

Debt consolidation loans are actually personal loans that, aside from consolidation debt, can also be used for a variety of purposes. Borrowed funds can be used for large purchases, including funding a vacation, home renovations and repairs or medical expenses. However, each lender may have specific fund restrictions. These often include investments, funding secondary education or repaying an existing personal loan.

It usually depends on the loan amount a lender is willing to offer you based on your creditworthiness. Debt consolidation lenders in Lexington can loan you an amount ranging from $1,000 to $100,000.

After your loan application is approved, there are lenders who can immediately release the funds to your account. Other lenders take a longer disbursement time of around one to three days.

Yes, paying off a loan early is allowed, but keep in mind that your lender may charge a prepayment penalty for doing so. This is one of the reasons why reading the fine print before signing an agreement is good practice.

Methodology

METHODOLOGY

MoneyGeek reviewed more than 30 personal loan lenders using at least 35 individual data points across six key categories. These include 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 amounts, minimum credit scores, minimum income amounts, application fees and disbursement times.

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, including prequalification, payment options and mobile apps.

After careful consideration and calculation, we make our picks 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.