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Best Debt Consolidation Loan Lenders in Texas

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Reviewed byKatherine Kurtz
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Updated: December 28, 2023

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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

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Runner-Up for Best Debt Consolidation Loan in Texas: Truist

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Best Debt Consolidation Loan for Bad Credit in Texas: Upstart

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Best Debt Consolidation Loan for Good Credit in Texas: SoFi

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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.

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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.

From MoneyGeek’s research, Upgrade offers the best debt consolidation loans in Texas for most borrowers, although the best lender may vary based on each borrower’s profile. For instance, SoFi is the best choice for those with good credit scores, while Upstart ranked the best for those with bad credit scores.

According to our findings, the lender with the lowest interest rates for debt consolidation is Upstart. The company’s interest rate starts from 3.22%.

You can use your debt consolidation loan to pay most debts in Texas, but this will depend on your lender. Ask them about restrictions before submitting your application since some lenders limit how you can use your loan.

How much you can consolidate in Texas depends on the lender. Different companies feature different minimum and maximum limits. You can get a loan as low as $1,000 and as high as $100,000.

The duration between submitting your application and receiving the funds varies across lenders. While some lenders disburse the funds within a day, others may delay the release of funds by up to a week. You can get this information from your lender during the application process.

In Texas, borrowers can pay off their debt consolidation loan early, although they may incur extra charges from some lenders. Find out from your lender if prepayment penalties apply to your loan before making early payments.

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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.

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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.