Best Debt Consolidation Loans in Seattle of 2024

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Edited byScott Strandberg
Edited byScott Strandberg

Updated: December 28, 2023

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WHAT WE’RE GEEKING OUT ON

Best Debt Consolidation Loan Lenders in Seattle, WA

MoneyGeek identified which lenders offer the best debt consolidation loans in Seattle by using more than 30 different data parameters. We took a close look into their APR ranges, available loan amounts, repayment terms and associated fees. Additionally, we considered their minimum requirements and fund disbursement times.

LightStream is our pick for the best overall debt consolidation loan in Seattle. However, the best option for you may vary based on your unique needs and situation. For instance, Upstart is ideal for borrowers with bad credit.

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Best Overall Debt Consolidation Loan in Seattle, WA: LightStream


  • LightStream
    • 7.49% to 25.49%APR Range
    • UndisclosedMinimum Credit Score
    • $5,000 to $100,000Loan Amount Range
    • 24 to 144 monthsRepayment Terms
    • Same day funding possibleTime to Receive Funds

    MoneyGeek discovered that LightStream offers the best debt consolidation loans in Seattle. This lender was founded in 2012 as Truist Bank’s online lending arm. It offers unsecured loans ranging between $5,000 and $100,000 to qualified borrowers.

    Debt consolidation loans from LightStream have no origination fee, prepayment penalty or late fee. You can lower your interest rate by 0.5% if you choose to make automatic payments. LightStream also has a Rate Beat Program, offering to beat a competitor’s interest rate by 0.1% for any loan offer you receive.

    Keep in mind, however, that LightStream doesn’t offer to pay creditors directly for debt consolidation. It also restricts you from using your loan to pay off a student loan. To qualify for a LightStream debt consolidation loan, you need a minimum credit score of 660.

    Pros

    • High borrowing limits
    • No prepayment penalty
    • No origination or late fees
    • 0.5% autopay discount
    • Offers Rate Beat Program

    Cons

    • Does not pay creditors directly
    • Co-signers not allowed
    • Restrictions on fund usage
    LightStream

Runner-Up for Best Debt Consolidation Loan in Seattle, WA: 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

    Founded in 2011, SoFi is another lender worth considering for debt consolidation loans in Seattle. It offers to make direct payments to lenders, which is convenient for borrowers looking to consolidate multiple debts.

    Debt consolidation loans from SoFi range between $5,000 and $100,000. With this lender, you can save on various fees that often affect the cost of your loan, as it does not assess origination, prepayment penalty or late fees. Plus, you can earn a 0.25% APR discount if you set up automatic payments.

    However, note that only borrowers with a minimum credit score of 680 can qualify for SoFi’s debt consolidation loans. This lender may also not be ideal for those who need a co-signer on their loan. Finally, the minimum APR is pretty high.

    Pros

    • Offers to pay lenders directly
    • 0.25% autopay discount
    • Lacks origination and late fees
    • No prepayment penalty
    • Allows joint loans

    Cons

    • No co-signers
    • Small loans not available
    • Requires a minimum credit score of 680
    • High minimum APR
    SoFi

Best Debt Consolidation Loan for Bad Credit in Seattle, WA: 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 has the best debt consolidation loans in Seattle for individuals with poor credit. The company was formed in 2012 and focuses on other variables instead of credit scores to evaluate whether or not applicants are approved for its financial products.

    Debt consolidation loans from Upstart range from $1,000 to $50,000, repaid in three or five years. If you choose to pay off your loan early, you won’t be charged a penalty fee. That said, Upstart may charge an origination fee.

    Although you can qualify for an Upstart debt consolidation loan with a credit score of 300, you may be subjected to a high interest rate. Shop around and compare rates to find the best possible deal for your needs.

    Pros

    • Minimum credit score of 300
    • No prepayment penalty
    • No restrictions on fund usage
    • Soft credit inquiries
    • Next-day funding

    Cons

    • Charges origination and late fees
    • Potentially high APR
    • No co-signers
    Upstart

Best Debt Consolidation Loan for Good Credit in Seattle, WA: 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

    Seattle residents with good credit may apply for a debt consolidation loan from Upgrade. Launched in 2017, this lending company accepts borrowers with a minimum credit score of 560.

    Upgrade offers debt consolidation loans between $1,000 and $50,000. There’s no prepayment penalty, but it charges a 1.85% to 8.99% origination fee and a late fee of up to $10. Interest rates from Upgrade can be reduced if you set up automatic payments.

    With Upgrade, you can receive your funds quickly. This lender also offers to pay third-party creditors directly. It’s worth noting, however, that this lender may not be ideal for you if you need a larger loan or have a poor credit score.

    Pros

    • Makes direct payments to creditors
    • No penalty for repaying loans early
    • Conducts soft credit inquiries
    • Offers autopay discount

    Cons

    • Charges origination fee
    • Charges late fee
    • Low borrowing limits
    • High maximum APR
    Upgrade

How to Choose the Best Debt Consolidation Loan in Seattle, WA, for You

When utilized properly, personal loans can be used to combine multiple debts into one account at a lower interest rate. Based on MoneyGeek’s analysis, Washington residents have an average personal loan debt of $14,822 and pay approximately 9.54% in interest.

With various options available in Seattle, it may be challenging to determine which lender can best accommodate your particular needs. MoneyGeek recommends taking the following steps to choose the best debt consolidation loan lender in the city for your unique profile and situation.

1

Ask Yourself the Important Questions

Ensure that a debt consolidation loan is the best financial decision you can make by asking yourself the following questions:

  • How much funding do you need? Determine how much money you need to avoid borrowing too little or too much.
  • What’s your credit score? Having a good-to-excellent credit score can increase your chances of getting lower interest rates on your debt consolidation loan.
  • Can you afford the monthly payments? Make sure your source of income can handle the regular monthly payments.
  • Do you have existing debts? Having a high debt-to-income ratio can negatively affect your chances of getting approval for a debt consolidation personal loan.
  • Is your debt manageable through other means? Taking out a debt consolidation loan may be unnecessary if there’s another way to manage your debts.
2

Do Your Research

A debt consolidation loan is a long-term commitment. As such, it’s vital to conduct thorough research on it before pursuing an application. Find out which lenders can accommodate your particular needs by looking into their APR ranges, loan amount limits, repayment terms and associated fees. You can also determine which loans you qualify for by reviewing their minimum requirements.

MoneyGeek provided this guide to help different borrowers, but our recommendations may not cover your unique circumstance. If so, it’s in your best interest to explore options that were not mentioned in our list.

3

Wait

Wait a day or two after deciding on a debt consolidation lender. Keep in mind that this loan involves making monthly payments for up to four years on average. Thus, deciding on whether to apply for one should be taken seriously. Giving yourself some time to think may also help you come up with another solution to manage your debts without significantly affecting your finances.

4

Read the Fine Print

You may have overlooked some important details when doing your research on lenders. Reading the fine print can help you avoid being caught off guard by fees that affect the total cost of your loan. These include prepayment penalties, origination fees and late fees. Knowing what you’re signing up for can result in significant savings in the long run.

5

Apply

If you’re 100% sure about your chosen lender, the only thing left to do is submit your loan application. Make sure that all the information you include in it is accurate to avoid delays in loan approval. Gather the documents typically required by lenders, such as identification, proof of income and address verification. You may apply online if you find it more convenient and if your lender allows it, but you may also call or visit your lender in person.

What to Do if You Can’t Get a Debt Consolidation Loan in Seattle, WA

Loan applications can be denied due to various reasons, such as insufficient income or incorrect information. If your lender rejects your application, it’s crucial to find out the exact reason why. You may also try asking if it’s possible to modify your application to make it more acceptable. Perhaps decreasing the loan amount or shortening the repayment term may result in a positive decision.

If your lender refuses to change their decision, you may apply for a debt consolidation loan with a different lending company. However, this move is not advisable until you have improved the factor that caused you to be rejected in the first place.

Be wary of payday loans when searching for alternative options. They may offer quick access to cash, but they come with steep interest rates and extremely short payback periods, which can put you in even deeper debt.

Calculate Your Monthly Payment

Keep in mind that you have to pay back your debt consolidation loan in monthly installments with interest. MoneyGeek has a personal loan calculator that can help you estimate how much you’ll pay monthly and determine if you can afford it.

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Frequently Asked Questions About Debt Consolidation Loans in Seattle, WA

Getting a personal loan doesn’t have to be challenging. MoneyGeek addresses some frequently asked questions about debt consolidation loans in Seattle to help ease this process for you.

LightStream is MoneyGeek’s top pick for debt consolidation loans in Seattle. However, the best lender for you may differ depending on your financial profile. For instance, Upstart is ideal for borrowers with poor credit scores.

Among Seattle personal loan lenders, Upstart has the lowest interest rates.

Restrictions on fund usage depend on the lender. Some prohibit borrowers from consolidating debt related to business, education or investments; others don’t have restrictions.

Depending on the lender, you can borrow up to $100,000 to consolidate debt in Seattle.

Lenders have different processing times. Some offer same-day funding, whereas others take two days to release funds.

You can prepay your debt consolidation loan. However, some lenders charge a prepayment penalty fee.

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.