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Best Debt Consolidation Loans in Louisiana of 2024

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Updated: December 28, 2023

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WHAT WE’RE GEEKING OUT ON

Best Debt Consolidation Loan Lenders in Louisiana

To find the best debt consolidation loan lenders in Louisiana, MoneyGeek analyzed over 30 data points including loan amount ranges, APR rates, repayment terms, disbursement time and loan-related fees. We also looked into each lending company’s credit score, gross income and debt-to-income ratio requirements to identify the best lenders for different borrower types.

Based on our analysis, Upgrade is the best overall lender for debt consolidation loans in Louisiana. However, the best lender for you will be based on your financial situation. Borrowers with poor and good credit will get the best debt consolidation loan in Louisiana from Upstart and SoFi, respectively.

Best Overall Debt Consolidation Loan in Louisiana: 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

    MoneyGeek found that Upgrade offers the best overall debt consolidation loan in Louisiana. The company was launched in 2017, providing consumers with various financial products including personal loans.

    Upgrade offers debt consolidation loans from $1,000 to $50,000, with a range of repayment terms. The lender pays third-party creditors directly, making the process easier for you. Its loans also lack prepayment penalties, so you can repay your loan early without being penalized. However, this company does charge a 2.9% to 8% origination fee and $10 late.

    This lender may not be an option for you if your credit score is lower than 560. While Upgrade accepts joint applications, it doesn’t allow co-signers.

    Pros

    • Fair minimum credit score requirement
    • No prepayment penalty
    • Joint loans available
    • Same-day funding

    Cons

    • Origination fee
    • Late fee
    • Co-signers not allowed
    • 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
    Upgrade

Runner-Up for Best Debt Consolidation Loan in Louisiana: 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

    LightStream is the second-best debt consolidation loan lender in Louisiana. It’s the online lending platform of Truist bank, which was formed after SunTrust and BB&T merged in 2019.

    The lowest debt consolidation loan amount available from LightStream is $5,000, with the company capping its borrowing limit at $100,000. Its loans come with no origination fees, prepayment penalties or late fees. Moreover, you can receive a discount of 0.5% for setting up automatic payments.

    This lender may not be the best option for everyone. To qualify for a LightStream loan, you need a relatively high minimum credit score of 660. The company doesn’t provide pre-approvals for loans and only accepts online applications. Furthermore, it imposes restrictions on the usage of funds. This lender may not be ideal for you if you plan to use your funds to pay off a student loan or an existing LightStream loan.

    Pros

    • No origination fee
    • No prepayment penalty
    • No late fee
    • Autopay discount of 0.5%
    • Same-day funding

    Cons

    • Minimum credit score requirement of 660
    • Co-signers not allowed
    • Restrictions on fund usage
    • APR range: 4.49%–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 Louisiana: 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

    Upstart is an artificial intelligence (AI) lending platform founded by former Google employees in 2012. To date, it has originated $25.4 billion in loans.

    This lender may be the best option for Louisiana residents with bad credit. The lender only requires applicants to have at least a 300 credit score and only performs soft credit checks, which won’t impact your credit score. Upstart allows you to borrow loans from $1,000 to $50,000. The company also allows you to use your funds for education-related purposes. Furthermore, it doesn’t charge a penalty if you pay off your loan early.

    However, you may consider another lender if you don’t want to pay any origination fee. If you have a high credit score, you may also want to look at a different lender that has lower interest rates.

    Pros

    • No minimum credit score requirement
    • No prepayment penalty
    • Soft credit inquiry
    • Next-day funding

    Cons

    • Origination fee
    • 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
    Upstart

Best Debt Consolidation Loan for Good Credit in Louisiana: 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 is the best debt consolidation loan lender for borrowers with good to excellent credit. The company has provided financial products, like personal loans, since it began in 2011.

    This lender offers debt consolidation loans up to $100,000, with a variety of repayment terms. With SoFi, you won’t have to pay origination fees, prepayment penalties or late fees. You may also save money over the course of your loan by receiving an autopay discount of 0.25%.

    It’s important to note that SoFi only accepts applicants with a minimum credit score of 680. Additionally, you must be employed or have documentation that you’ll be employed within 90 days of submitting your application.

    Pros

    • No origination fee
    • No prepayment penalty
    • No late fee
    • High maximum loan amount
    • Autopay discount

    Cons

    • Relatively high minimum credit score requirement
    • Co-signers not allowed
    • 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
    SoFi

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

MoneyGeek found that the average personal loan debt in Louisiana is $15,402, with a 9.36% interest rate. People take out personal loans for various purposes, like financing a major purchase or covering a medical bill. If you’re looking to manage multiple debts, a debt consolidation personal loan can help you roll them into one loan and lock in a lower interest rate.

When you apply for a debt consolidation loan in Louisiana, lenders will take into account your credit score, income and more. We outlined some important steps below to help you choose the best debt consolidation loan lender for your needs.

1
Ask Yourself the Important Questions

It’s important to consider your current financial standing to see if a debt consolidation loan is the right option for you. Asking yourself the following questions can help you make a smarter financial decision:

  • How much funding do you need? Assessing how much funding you need can help you decide if a debt consolidation loan is the best option for you. Lenders also offer different minimum and maximum loan amounts, so assessing how much money you need can help narrow down your search.
  • What’s your credit score? To assess your capacity to repay the loan, lenders look at your credit score. If your credit score is currently low, consider improving it before you apply for a debt consolidation loan. That way, you’ll receive the lowest possible interest rate.
  • Can you afford the monthly payments? You should ensure that you have enough income to make the monthly payments, including interest. If you don’t have a stable monthly income, consider an alternative funding source.
  • Do you have existing debts? It’s important to consider the amount and type of existing debt that you have. Some lenders won’t allow you to use a debt consolidation loan for secondary education. Thus, if you’re hoping to use your debt consolidation loan for this purpose, you’ll have to find a lender that meets your specific needs.
  • Is your debt manageable through other means? A debt consolidation loan may not be the best option for you if the interest rate you receive isn’t lower than your current loan payments.
2
Do Your Research

MoneyGeek created this guide to provide important information on debt consolidation loans in Louisiana. However, our recommendations may not cover your specific needs. It’s best to explore other options in the state to find the best lending company for you.

Make sure to conduct your own research and look into what each lender has to offer. Gather information about their loan amounts, interest rates, repayment terms and fees. Also, find out if the lender imposes restrictions on fund usage or conducts hard credit checks. Knowing this information can help you narrow down your options and make it easier for you to choose a debt consolidation loan lender.

3
Wait

It may be tempting to immediately choose a lender once you have all the necessary information you need. However, your choice may be a result of confirmation or recency bias. We advise that you wait a day or two before finalizing your decision. A debt consolidation loan is a long-term commitment — up to seven years — so we advise that you take the time to consider if it’s the best choice for you.

4
Read the Fine Print

It’s common to miss certain details while researching debt consolidation loan lenders. Once you’ve chosen a lending company, make sure to read the fine print for all its fees and charges. These include origination fees, prepayment penalties and late fees. Note that reviewing and understanding the fine print can help you save money in the long run.

5
Apply

Once you’ve read the fine print and you’re confident with your chosen lender, there’s only one thing left to do: submit your loan application! Lenders typically require identification, address verification and proof of income during the application process. To save time, you should gather all this information beforehand. With most lenders, you can easily apply online or over the phone, but some may require that you apply in person at a physical branch.

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

If your debt consolidation loan application is denied, you may still be able to get a loan. Your application may be rejected for a number of reasons, including a low credit score, insufficient income or high debt-to-income ratio.

It’s best to reach out to your lender and inquire about the reasons for the loan denial. You may also ask if it’s possible to make modifications to your application, such as lowering your loan amount or shortening your loan term, to have your application approved.

If your lender’s decision is final, you can always look for a different lending company. However, it’s best to improve the factor that caused your application to be rejected before submitting a new application. This way, you can avoid another rejection.

MoneyGeek advises against using payday loans. These are usually small loans with extremely high interest rates and short repayment terms, putting borrowers at a higher risk for defaulting.

Calculate Your Monthly Payment

Typically, debt consolidation loans are paid off on a monthly basis plus interest. You can use MoneyGeek’s debt consolidation loan calculator to estimate your monthly payment.

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 Louisiana

The best debt consolidation loan for you will be based on your particular needs, as well as your credit score and income. To help you learn more, MoneyGeek answered some frequently asked questions about debt consolidation loans in Louisiana.

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

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