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Best Debt Consolidation Loan Lenders in Texas

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Updated: December 28, 2023

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WHAT WE’RE GEEKING OUT ON

Best Debt Consolidation Loan Lenders in Texas

The best debt consolidation loan in Texas differs for each borrower based on their situation. MoneyGeek reviewed more than 30 data points to determine the ideal option for different profiles. Some of the key data points include loan amounts, repayment and disbursement durations, interest rates, credit scores, BBB ratings and more.

Based on our findings, Upgrade is the best lender overall for Texas borrowers, while Truist was the runner-up. SoFi ranked the best for those with good credit, and Upstart is the top option for borrowers with a bad credit score.

Best Overall Debt Consolidation Loan in Texas: 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 rates Upgrade as the best lender in Texas for debt consolidation. Founded in 2017, the lender requires borrowers to have a minimum credit score of 560, which is average compared to other lenders.

    Borrowers can apply for a minimum of $1,000 and a maximum of $50,000. After approval of their application, they receive funds on the same day.

    The company has an interest rate of 5.94% to 35.47%. While it does not charge prepayment fees, borrowers may pay up to 8% in origination fees.

    Upgrade is ideal for individuals with a fair credit score who need same-day funding. However, the lender may not be suitable if your consolidated debt exceeds $50,000.

    Pros

    • A+ BBB rating
    • No prepayment penalty
    • Get funding on the same day
    • Autopay discount
    • Soft credit inquiry

    Cons

    • Origination fees
    • Maximum loan amount of $50,000
    • No co-signers
    • 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 Texas: 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

    Established in 2019 after a merger between Suntrust Bank and BB&T, Truist offers various loan products to its clients, including debt consolidation loans. Eligible borrowers get between $3,500 and $50,000, repayable in six to 60 months.

    MoneyGeek ranked Truist as the second-best in Texas for debt consolidation. The company processes funds within the next day of loan approval and does not charge additional costs, including origination and prepayment fees.

    Borrowers pay between 8.14% and 18.99% in interest, with the rate varying based on credit scores.

    Truist may not be the right lender for Texas residents who need lower interest rates but have poor credit ratings. Its starting APR of 8.14% is quite high.

    Pros

    • A+ BBB rating
    • Next-day funding
    • No origination or late fees
    • Allows joint loans
    • No prepayment penalties

    Cons

    • Performs hard credit inquiry
    • No co-signers
    • Restrictions on fund usage
    • APR range: 8.14%–18.99%
    • Minimum/maximum loan amount: $3,500–$50,000
    • Minimum credit requirements: None
    • Repayment terms: Six–60 months
    • Time to receive funds: Next day
    Truist

Best Debt Consolidation Loan for Bad Credit in Texas: 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

    Having a bad credit score may prevent some lenders from giving you a loan. The best lender in Texas for debt consolidation is Upstart. Established in 2012, Upstart focuses lightly on borrowers’ credit scores but considers other factors, such as income levels.

    Borrowers need a credit score of 300 to qualify for a debt consolidation loan from this lender. After Upstart approves your application, you will receive funds the next day. Depending on your creditworthiness, you may receive as high as $50,000 with an interest rate as low as 3.22%.

    When reviewing your application, Upstart conducts a soft credit check before a hard inquiry. The company may be a good fit for individuals working on improving their credit scores. However, those who need higher loan amounts may need to consider other lenders.

    Pros

    • Funds disbursed the next day
    • Conducts soft credit checks
    • No prepayment penalty
    • Allows joint loans
    • Low credit score requirement

    Cons

    • Potential origination fees
    • Maximum amount of $50,000
    • Charges late fees
    • 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 Texas: 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

    Based on our research, SoFi offers the best debt consolidation loans in Texas for individuals with a minimum credit score of 680. Established in 2011, Social Finance (SoFi) offers higher loan limits, up to a maximum of $100,000, with a repayment period extending to five years.

    SoFi charges interest rates between 5.74% and 20.28%. After submitting an application and getting approved, borrowers receive funds within two days.

    With this lender, you do not need to worry about additional charges since you don’t pay origination or prepayment fees. You will also receive employment protection if you lose your income.

    However, SoFi may not be the best option if you have bad credit or need to add co-signers to your loan.

    Pros

    • No origination, prepayment or late fees
    • 0.25% auto payment discount
    • Maximum loan amount of $100,000
    • Conducts soft inquiry
    • A+ BBB rating

    Cons

    • Required good to excellent credit scores
    • No co-signers allowed
    • High minimum income requirement
    • 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 Texas for You

The average personal loan debt in Texas is $15,505, and the average credit card debt is $6,033. Funds from a debt consolidation loan can help you combine your debts and make repayments at lower interest rates.

Lenders in Texas often review debt consolidation loan applications based on several factors, such as your credit score and monthly income. MoneyGeek’s study provides the steps to take before getting a debt consolidation loan in Texas.

1
Ask Yourself the Important Questions

Analyzing your financial standing can help you determine whether you can make payments on a debt consolidation loan comfortably. You may need to ask yourself the following pertinent questions in order to make better financial decisions based on the loan you wish to get:

  • How much funding do you need?
  • What is your credit score?
  • Can you afford the monthly payment?
  • How much debt do you already have?
  • Is your debt manageable through other means?
2
Do Your Research

When choosing the best lender for your needs, ensure you review the terms that may affect you in the long run. Compare repayment periods, interest rates, discounts, qualification requirements and other features for your preferred loans so you may know how much you are likely to pay every month. Note that you may need to keep making monthly installments for up to two to four years. MoneyGeek’s research provides valuable information about the best lenders for different situations. However, conducting research on your own can help you identify options that we have not covered in this study.

3
Wait

Once you have collected all the information you need, take a few days to think through your decision. Waiting for a few days before completing the application process helps you think through the offer more objectively. Getting a debt consolidation loan is a huge commitment, and you need to be sure that the repayment terms won’t affect your financial standing.

4
Read the Fine Print

When getting a debt consolidation loan in Texas, the lender will provide you with details about the loan terms. Every detail in the fine print is crucial, however small. MoneyGeek advises that you read through the details, including fees, interest rates, discounts and repayment terms. Some lenders may charge origination or other fees that increase your monthly payments. You can avoid these by taking the time to read the fine print before committing to any loan offer.

5
Apply

If you feel good about your preferred lender and the loan requirements, you can finalize the process by submitting your application. Most lenders ask for identification details, as well as proof of income and your credit information as part of the process. While most lenders allow you to apply for a loan online, this should not hinder you from calling or visiting the company’s office if you need assistance or clarification with your loan if the lender offers those options.

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

If your application isn’t approved, you may still have the opportunity to submit a modified application with the same lender or elsewhere. Lenders may deny your debt consolidation loan application in Texas for various reasons, such as a poor credit score, insufficient income or missing application information.

MoneyGeek recommends that you reach out to the lender to find out why your loan wasn’t approved. Check whether you can modify details like the repayment period to get a more positive outcome.

If the rejection is due to an issue with your income or credit score, you may need to apply for a debt consolidation loan from another lender. However, you should only do this after you improve the issues that originally caused your application to be rejected.

You might be tempted to get a payday loan for immediate funds. MoneyGeek strongly advises against this idea since it comes with various drawbacks. Payday loans feature shorter repayment periods and high interest rates.

Calculate Your Monthly Payment

When applying for a debt consolidation loan, it is essential to note that you will need to pay back the money in monthly installments and with interest. MoneyGeek’s debt consolidation loan calculator can help you determine your monthly payments and whether you can manage them.

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 Texas

Texas has various debt consolidation loan lenders, and the best option depends on several factors. Going through some of the most commonly asked questions about Texas debt consolidation loans can help you find the best option for your needs.

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