Updated: November 21, 2024
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Debt consolidation loans are personal loans that help streamline and pay off multiple debts, including student loan debt, at a lower interest rate. MoneyGeek analyzed 25 lenders and found PenFed to be the top choice for debt consolidation loans in California, scoring 96 out of 100. While PenFed stands out in our analysis, it's a good idea to also check out local lenders like California Credit Union and 1st United Credit Union to see if they fit your borrowing needs.
Best Loans forConsolidationCaliforniaBest Debt Consolidation Loans in California
PenFed offers the best debt consolidation loan in California with a MoneyGeek score of 96 out of 100. Several features contribute to an ideal debt consolidation loan lender, such as competitive rates, how much you can borrow, how quickly you can get your funds, the quality of service it provides and its reputation.
PenFed's APR range of 8.99% to 17.99% can benefit borrowers by offering competitive interest rates. Its loan amount range of up to $50,000 provides flexibility for various debt consolidation needs. Additionally, receiving funds within one to two business days ensures quick access to money, which is crucial for managing debt effectively.
Alliant Credit Union is another solid option for a debt consolidation loan in California, with a MoneyGeek score of 96 out of 100. A low APR can significantly reduce the overall interest paid over the life of the loan, making it easier to manage monthly payments.
With a high loan amount range, borrowers can consolidate larger amounts of debt, simplifying their financial obligations. Additionally, same-day fund disbursement means you can quickly pay off existing debts, reducing the stress of multiple due dates.
Wells Fargo offers the best debt consolidation loan in California for borrowers who prioritize affordability, with a MoneyGeek score of 94 out of 100. Its APR range is 7.49% to 24.99%, but affordability isn't just about interest. Wells Fargo also has no origination fees and offers rate discounts, making it a cost-effective choice for debt consolidation.
One benefit is the availability of rate discounts, which can lower your monthly payments. For example, if you have multiple high-interest debts, consolidating them with Wells Fargo can reduce your overall interest costs. Another benefit is the absence of origination fees, which means you won't have to pay extra charges when taking out the loan, allowing you to focus on paying off your debts more efficiently.
PNC offers the best debt consolidation loan in California for borrowers who need a large loan amount or longer repayment terms. It has a MoneyGeek score of 96 out of 100. PNC provides loan amounts ranging from $1,000 to $35,000, with repayment terms between 6 to 60 months.
One benefit is its flexible repayment terms. For example, if you need more time to pay off your debt, you can choose a longer repayment period to lower your monthly payments. Another advantage is the quick fund disbursement. If you need to consolidate your debts quickly, you can receive funds within three business days.
Rocket Loans offers the best debt consolidation loan in California for borrowers who need funds quickly, with a MoneyGeek score of 95 out of 100. It provides same-day access to funds, making it an ideal choice for urgent financial needs.
One feature of Rocket Loans is its fast approval process. This can benefit a borrower who needs to consolidate multiple high-interest debts quickly to avoid further interest accumulation. Another feature is its flexible loan terms, which allow borrowers to choose a repayment plan that fits their budget, ensuring they can manage their finances more effectively after consolidating their debts.
Using a debt consolidation loan in California can simplify your finances by merging multiple payments into one. But it's not always the best option. For instance, if the interest rate on the new loan is higher than your current debts, it might not make sense. Consider your specific situation before deciding.
Good Credit
Having good credit can secure better terms on a debt consolidation loan in California, affecting interest rates and monthly payments.
High-Interest Debt
Consolidating high-interest debt with a debt consolidation loan in California can lower the interest rates you pay. For example, reducing from 20% to 10%.
Multiple Payments
Combining multiple monthly payments into one with a debt consolidation loan in California simplifies management. One payment is easier than juggling several.
Lower Monthly Payments
A debt consolidation loan in California can lower your monthly payments. For example, reducing from $500 to $300 per month.
The average amount of personal loan debt in California is $148,428, while the overall average debt for Americans is $104,215. In California, the average monthly debt translates to around $12,369.
Using a personal loan to consolidate debt in California can simplify your payments and potentially lower your interest rates. Going into the process blindly can lead to higher interest rates and damage your credit score. To avoid these risks, follow these steps to apply for a debt consolidation loan.
Account for your existing debts to see which ones to consolidate, like credit card debt. Choosing the wrong debts can lead to higher interest rates. Check your credit scores. To improve your credit score, pay bills on time and reduce outstanding balances.
Compare loan terms from multiple lenders to find the best deal. Contact lenders to ensure you can use the loan for consolidating debts. Look at APRs, loan limits, and how soon you can receive the funds.
Some lenders offer added features that benefit you long-term. For example, Rocket Loans and SoFi in California offer rate discounts, which can save you money over time.
Some lender features could be drawbacks. For example, Axos in California charges an origination fee and a late fee. These fees can impact your short- and long-term finances.
Prequalification helps you gauge your eligibility for loans without affecting your credit score. Learn more about prequalification and how a soft credit check can help.
Complete your loan application by preparing necessary documents like proof of income and identification. This makes the process faster and smoother.
Lenders might deny your loan application due to reasons such as a poor credit score or a high debt-to-income ratio. Before applying for a debt consolidation loan in California, consider checking your credit report for errors and reducing your existing debt.
You can also reach out to credit counseling agencies like Abacus Credit Counseling or Access Counseling, Inc. for help in managing your debts better. Another option is to use a 0% APR balance transfer credit card, which allows you to transfer existing debt to a new card with no interest for a promotional period, helping you pay off your debt faster.
Consolidating debt can help you take advantage of lower interest rates, which can save you money over time. The average APRs you can qualify for vary between cities. For example, in San Francisco, the average APR is 7.7%, while in Pomona, it's 12.3%.
Another option to find the best debt consolidation loan in California is to consider other local lenders. Below is a table of local lenders to help you make an informed decision.
| California Credit Union | Chula Vista | 8.99% to 19.50% | Up to 120 months | Up to $50,000 | 100 |
| Chevron Federal Credit Union | Bakersfield | From 9.10% | 1 to 60 months | $2,000 to $25,000 | 100 |
| California Credit Union | Santa Clarita | 8.99% to 19.50% | Up to 120 months | Up to $50,000 | 100 |
| California Credit Union | Escondido | 8.99 to 19.50% | Up to 120 months | Up to $50,000 | 100 |
| Long Beach City Employees Federal Credit Union | Long Beach | From 8.74% | 12 to 60 months | $500 to $50,000 | 100 |
MoneyGeek addresses common questions homeowners have about debt consolidation loans in California. We provide clear, reliable information on loan terms, interest rates, and how these loans can simplify your payments. Our goal is to help you understand your options without overwhelming you with unnecessary details.
A debt consolidation loan is an unsecured personal loan that borrowers use to pay off high-interest debt. Borrowers choose this option to simplify their payments and potentially lower their interest rates.
PenFed is considered the best overall lender for debt consolidation loans in California. However, the best lender for you might vary depending on your priorities and financial situation.
Yes, you can get a debt consolidation loan even if you have bad credit, but your options may be limited.
Yes, a credit counseling agency can help manage debt by providing financial advice and creating a debt management plan.
Consider a debt consolidation loan if you have good credit and can qualify for better terms, or if your household budget can handle the new monthly payment without sacrificing essential expenses.
MoneyGeek analyzed 27 national lenders licensed to do business in California, based on a rubric that includes APR ranges, loan amounts, and repayment terms, among other key areas. We use a point-based system and assign scores according to the presence or absence of desirable features in various important categories.
We score lenders differently when recommending the best for affordability, loan amounts, and fast funding.
We conducted our analysis in September 2024.
About Zachary Romeo, CBCA
Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.
Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.
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
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