Best Debt Consolidation Loans in El Paso of 2024

Updated: December 28, 2023

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WHAT WE’RE GEEKING OUT ON

Best Debt Consolidation Loan Lenders in El Paso, TX

MoneyGeek’s analysis of the APR ranges, loan amounts, funds disbursement time, loan repayment terms, credit score requirements and 30+ other essential factors will help you determine the lender offering the best debt consolidation loans in El Paso.

Based on our analysis, Truist offers the best debt consolidation loans in the city. If you don’t qualify for its loans, SoFi is the second-best option. On the other hand, borrowers with good and bad credit histories will benefit the most from Upgrade and Upstart, respectively.

Best Overall Debt Consolidation Loan in El Paso, TX: 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

    Based on MoneyGeek’s analysis of debt consolidation lenders, MoneyGeek ranked Truist as the best option for debt consolidation loans in El Paso. Formed from the merger of BB&T and SunTrust, the lender offers personal loans, credit cards, checking and savings accounts, mortgages and other financial products.

    Truist offers fast loan approvals and funding, which can benefit borrowers who need access to funds quickly. After your loan is approved, funds may be disbursed the next business day. With Truist, you can get a minimum loan of $3,500, which makes it a good option for consolidating small loans. Its APR range is also one of the lowest among its competitors.

    Although Truist will complete a hard credit inquiry when you apply for a loan, its pre-approval process only features a soft credit check that won’t impact your credit score. However, if you have a low credit score, your application may be denied, as the lender doesn’t allow co-signers.

    Pros

    • Next-day funding available
    • Fast approvals and funding
    • Autopay discount
    • No origination fees
    • Low minimum loan amount

    Cons

    • Co-signers not permitted
    • Performs hard credit check first (unless you opt for pre-approval)
    • Restrictions on the usage of funds
    Truist

Runner-Up for Best Debt Consolidation Loan in El Paso, TX: 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

    SoFi, also known as Social Finance, is a fintech lender formed by Stanford business college students in 2011. MoneyGeek’s research shows that SoFi offers the second-best debt consolidation loans in El Paso.

    Besides debt consolidation, a SoFi personal loan can be used to fund other expenses, such as weddings, vacations or family planning. Once your SoFi debt consolidation loan is approved, you might receive the funds after a few days.

    SoFi charges a relatively low APR in comparison with other lenders. To reduce their APR by an additional 0.25%, borrowers can sign up for automatic payments. However, this lender won’t work for those wanting to consolidate a small amount of debt, as the lender offers loan amounts starting at $5,000.

    Pros

    • Direct payment to creditors available
    • Provides autopay discount
    • Soft credit check first
    • No application, prepayment or origination fees
    • High maximum loan amount

    Cons

    • Co-signers not permitted
    • High minimum credit score requirement
    • Relatively high minimum loan amount
    SoFi

Best Debt Consolidation Loan for Bad Credit in El Paso, TX: 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

    Upstart is an AI-based lending platform that offers the best debt consolidation loan in El Paso for borrowers with bad credit scores. Besides your credit score, the company considers other factors like your education and employment history, which makes it easier for borrowers with bad credit histories to qualify for a loan.

    When you apply for an Upstart personal loan, the lender conducts a soft credit inquiry that doesn’t affect your credit score. After your loan is approved, you may receive funds the next business day. With Upstart, you won’t pay a prepayment fee for early repayment of your loan.

    Although Upstart provides loans to applicants with low credit scores, you may receive a high APR if you have a poor credit score. Furthermore, the lender doesn’t offer APR discounts for making automatic payments, so there are few ways to reduce the APR you’re quoted.

    Pros

    • Soft credit check that won’t hurt credit score
    • No prepayment fees
    • Next-day funding available
    • Wide range of loan amounts available
    • Low minimum credit score requirement

    Cons

    • Origination fees
    • Autopay discount not available
    • Co-signers not permitted
    Upstart

Best Debt Consolidation Loan for Good Credit in El Paso, TX: 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

    If you have a good credit score, you should opt for an Upgrade debt consolidation loan. The lender offers personal loans, checking and rewards accounts and credit cards to its customers.

    With Upgrade, you can get a maximum loan of $50,000, which can help you consolidate significant debts in a lower monthly payment. When you apply for a loan with this lender, it performs a soft credit inquiry that won’t negatively impact your credit score. It also offers joint loans and a discount for setting up automatic payments.

    However, the lender charges origination and late payment fees. As such, if you want to avoid paying extra fees, it’s best to apply for a loan with a different lender.

    Pros

    • No prepayment penalty
    • Autopay discount available
    • Joint loans available
    • Soft credit inquiry completed first

    Cons

    • Late payment and origination fees
    • Co-signers not permitted
    • High minimum credit score requirement
    Upgrade

How to Choose the Best Debt Consolidation Loan in El Paso, TX, for You

Based on MoneyGeek’s research, the average personal loan debt in Texas is $15,505. Borrowers may be able to repay this debt faster and at a lower interest rate with a debt consolidation loan. However, before applying for a loan, you should analyze your credit score, income and previous debts to ensure this loan is the right option for you.

We recommend taking the following steps to help you make a well-informed decision:

1
Ask Yourself the Important Questions

Before researching your loan options, it’s important to assess your financial needs and capacity to repay the loan. At a minimum, you should ask yourself the following questions:

  • How much funding do you need? You should only take out exactly what you need. The more precise you can be in your loan approximation, the less you’ll pay in interest.
  • What’s your credit score? Your credit score will impact the loans you’re eligible for and the APR you receive. Because of this, it’s essential to know your credit score before you apply for a loan. If your credit score is low, and you don’t need funds urgently, consider improving your credit score first before applying for a debt consolidation loan.
  • Can you afford the monthly payments? Although making a higher monthly payment will reduce the amount in interest you’ll pay, you should choose a monthly payment that allows you to repay your loan without compromising your present situation.
  • Do you have existing debts? Assessing your existing debt (type, amount and so on) will help you decide if a debt consolidation loan is the best option for you. Some types of debt, such as those for post-secondary education, aren’t eligible for a debt consolidation loan.
  • Is your debt manageable through other means? If the interest rates on your current loans are lower than the one you would receive with a debt consolidation loan, it may cost less to simply repay your loans individually.
2
Do Your Research

Once you’re certain that a debt consolidation loan is the best option for you, and you’ve evaluated your financial situation, it’s time to research different lenders. You should compare providers for their repayment terms, APR, eligibility requirements and loan amounts to find the best option for you.

MoneyGeek’s guide provides recommendations for general borrower profiles, so our chosen lenders may not be the best for your unique situation.

3
Wait

After finding the right lender for your situation, it’s best to wait a few days before submitting your loan application. During this period, you can consider your decision and explore other ways to meet your financial needs. It’s important that you’re confident in your lender choice, since a loan is a long-term commitment that can take years to repay.

4
Read the Fine Print

MoneyGeek strongly advises that you take the time to carefully read and understand the terms of your loan agreement, as it could save you a significant amount of money in the long run. It may include hidden fees, like those for prepayment, origination or late payments. If you have any questions, you can ask your lender for clarification.

5
Apply

After analyzing important factors and reading the fine print, you can apply for a debt consolidation loan. You might have to provide address verification, income details, identification and other personal information. Although there are several lenders that only accept online applications, some lenders allow you to apply in person.

What to Do if You Can’t Get a Debt Consolidation Loan in El Paso, TX

Lenders may deny your loan application due to many factors, including a low credit score, incomplete application, unstable employment, high debt-to-income ratio or insufficient income.

After the lender has notified you of its decision, it will often send you a letter outlining why your application was rejected. If you don’t receive this document, you should contact the lender directly to find out why you weren’t approved. That way, you can improve your application before reapplying for a loan.

If your application was rejected because of a low credit score, it may take time to improve your credit history. Sometimes, however, simply modifying the terms of your loan agreement, such as adjusting the repayment period or loan amount, may lead to your application getting approved.

MoneyGeek strongly advises against getting a payday loan, as these loans have high interest rates and can result in more debt if left unpaid.

Calculate Your Monthly Payment

Since a loan’s monthly payment also includes interest, it’s essential to know exactly how much you will pay so you can budget accordingly. You can use MoneyGeek’s personal loan calculator to estimate your monthly payment by entering your loan information.

years
months
%
Principal
+ $114.98
Interest
+ $8.33
Origination Fee Percentage
+
%
Origination Fee Fixed amount
+
Total monthly Payment
$123.31

Frequently Asked Questions About Debt Consolidation Loans in El Paso, TX

MoneyGeek answered the following frequently asked questions to help you understand how debt consolidation loans work.

What is the best debt consolidation loan lender in El Paso?

Truist is the best option for debt consolidation loans in El Paso, whereas SoFi is the runner-up lender. Borrowers with good and bad credit histories will benefit the most from Upgrade and Upstart, respectively.

Which lender in El Paso has the lowest interest rates for debt consolidation?

MoneyGeek’s analysis shows Upstart offers one of the lowest interest rates for debt consolidation loans.

What kind of debts can I not use my debt consolidation loan for in El Paso?

Lenders generally prohibit using debt consolidation loan funds to settle business debts or any illegal expenses.

How much debt can I consolidate in El Paso?

The maximum loan amount for debt consolidation varies based on the lender. However, some lenders offer a loan of up to $100,000 in El Paso.

How long does it take to get a debt consolidation loan in El Paso?

Although fund disbursement time is different for every lender, you’ll typically receive the funds in your account within a week after you’re approved.

Can I pay off my loan early in El Paso?

Yes, lenders permit the early repayment of a loan. However, some may charge you a prepayment penalty.

Methodology

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 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 — like 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.

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