Updated: January 15, 2025
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Debt consolidation loans are personal loans that borrowers use to 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 Colorado, with a MoneyGeek score of 96 out of 100. Although PenFed stands out in our analysis, you may also want to check out local lending options like Colorado Credit Union and Credit Union of Colorado to see if they fit your borrowing needs.
For those looking to consolidate their debt in Colorado, PenFed emerges as the top choice, with an impressive MoneyGeek score of 96 out of 100. While specific details on APR ranges and loan minimums for PenFed aren’t explicitly outlined, its high MoneyGeek score indicates its overall excellence in terms of customer satisfaction, loan terms, and financial stability.
Key Features of PenFed:
- Reputation for competitive interest rates, which could potentially save you money over time.
- Strong customer service and support, making it easier for borrowers to navigate the debt consolidation process.
- A robust online platform, offering easy loan management and application processes.
While PenFed is a national lender, local options such as the Colorado Credit Union and the Credit Union of Colorado may also offer competitive terms and personalized service that could make them suitable for your specific needs.
Considerations for Debt Consolidation Loans:
- Evaluate if the new loan’s interest rate is lower than your current debts to ensure cost-effectiveness.
- Be mindful of your ability to manage monthly payments, especially if they increase with the new loan.
- Assess your financial and employment stability, as unpredictable income could complicate loan repayment.
- Understand that a high debt-to-income ratio might limit your options or result in less favorable loan terms.
Given the higher average personal debt in Colorado, standing at $154,481 per year, compared to the national average, a debt consolidation loan can be a strategic move to manage this burden more effectively. However, always consider your unique financial situation and consult with a financial advisor if needed to ensure the best outcome.
In addition to PenFed, which ranks as the best choice for debt consolidation loans in Colorado with a MoneyGeek score of 96 out of 100, you may also consider SoFi as another standout lender in the state. Although specific details on SoFi's MoneyGeek score and APR range aren't provided, it is renowned for offering competitive interest rates and flexible loan terms that can be attractive to those looking to consolidate debts.
SoFi is widely appreciated for its user-friendly platform and consistently competitive interest rates, making it a solid option for debt consolidation. Their customer support and additional perks, like unemployment protection and career coaching, add extra value, particularly for Colorado residents who might benefit from such services.
The process of debt consolidation through options like SoFi can streamline multiple debts into one manageable payment, potentially with a lower interest rate. However, it's essential to ensure the new loan's APR is lower than your current debts, and consider your financial situation carefully, as opting for debt consolidation may not be beneficial for everyone.
For anyone considering consolidating their debt in Colorado, visiting local lenders such as Colorado Credit Union and Credit Union of Colorado might also yield good alternatives with tailored solutions to meet various personal financial needs.
In Colorado, PenFed is recognized as the best choice for debt consolidation loans, achieving an impressive MoneyGeek score of 96 out of 100. While specific APR ranges and features like fee waivers or rate discounts for PenFed are not included in the provided information, it stands out as a top-rated option according to MoneyGeek's analysis.
Apart from PenFed, local lending options such as Colorado Credit Union and Credit Union of Colorado might also be worth exploring to see if they match your specific borrowing needs.
When considering debt consolidation, it's important to review your personal financial circumstances to ensure it's the right choice for you. Be cautious of scenarios where a higher interest rate, increased monthly payments, or a high debt-to-income ratio could make consolidation less beneficial.
PenFed offers the best debt consolidation loan in Colorado, 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 lower interest rates than other lenders. Its loan amount range of up to $50,000 provides flexibility for those needing to consolidate large amounts of debt. It also has a quick funds disbursement time of one to two business days, ensuring borrowers can promptly address their debt.
Alliant Credit Union is another solid option for a debt consolidation loan in Colorado, with a MoneyGeek score of 95 out of 100. It has a low APR, which can save you money on interest over the life of the loan. You can also benefit from its high loan amount, allowing you to cover multiple debts at once.
Alliant Credit Union's flexible repayment terms make monthly payments more manageable. For example, you can choose a term that fits your budget, whether you prefer to pay off the loan quickly or spread payments over a longer period.
Wells Fargo offers the best debt consolidation loan in Colorado for borrowers who prioritize affordability, with a MoneyGeek score of 94 out of 100. It has an APR range from 7.49% to 24.99%, and it provides loan amounts from $3,000 to $100,000 with repayment terms of 12 to 84 months.
Wells Fargo has no origination fees, so you won't have to pay extra costs when taking out a loan. It also offers rate discounts for existing customers, which can lower your interest rate and make your monthly payments more manageable.
PNC offers the best debt consolidation loan in Colorado 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 of six to 60 months.
PNC's flexible repayment terms allow borrowers to choose a plan that fits their budget. For example, someone consolidating multiple debts can opt for a longer term to reduce monthly payments. The lender also offers large loan amounts, enabling you to consolidate high levels of debt into a single loan, simplifying your financial management.
Rocket Loans offers the best debt consolidation loan in Colorado for borrowers who need funds quickly. It has a MoneyGeek score of 95 out of 100 and provides same-day funding. This lender's fast approval process means you can consolidate your debts without waiting for days or weeks.
Rocket Loans also offers flexible loan terms, allowing you to choose between 36 or 60 months for repayment. For example, if you need to manage your monthly payments better, you can opt for a longer term. These features make it an excellent choice for those needing quick and efficient debt consolidation.
Using a debt consolidation loan in Colorado can simplify your finances by merging multiple payments into one, making debt management easier.
However, debt consolidation may not be the best move for all situations. For instance, it might not make sense if the interest rate on the new loan is higher than your current debts. Consider your specific situation before deciding.
Having good credit can secure better interest rates and lower monthly payments on a debt consolidation loan in Colorado.
Consolidating high-interest debt can reduce the interest rates you're paying. For example, lowering a 20% rate to 10%.
Combining several monthly payments into one can simplify your finances — for example, one payment instead of five.
A debt consolidation loan can lower your monthly payments of, for example, $500 to $300.
The average personal debt in Colorado is $154,481 per year, compared to the overall average debt in the U.S., which is $104,215. In Colorado, the average monthly debt is $12,873.
Using a personal loan to consolidate debt in Colorado can simplify your payments and potentially lower your interest rates. Going into the process uninformed 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. Wrong choices 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 the loan can be used for debt consolidation. Look at APRs, loan limits and how soon you can receive the funds.
Some lenders in Colorado offer additional features that could benefit you. For example, lenders like Santander and Alliant Credit Union offer rate discounts, which can save you money in the long run.
Some lender features could be drawbacks. In Colorado, OneMain Financial charges an origination fee and a late fee. These fees can impact your short and long-term finances.
Prequalification helps borrowers gauge their loan eligibility without affecting their credit score. It involves a soft credit check, which doesn't impact your credit score.
Completing your loan application means providing the necessary documents, such as proof of income, identification and bank statements. Having these ready can make the process faster.
Lenders might deny your loan application if you have a low credit score or a high debt-to-income ratio. To improve your chances before applying for a debt consolidation loan in Colorado, check your credit report for errors and work on improving your credit score.
You can also consider contacting credit counseling agencies to help you manage your debts better, such as Evergreen Financial Counseling and OnlineBankruptcyClass.com, to help you manage 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. This can help you pay off your debt faster and save on interest.
Consolidating debt allows you to take advantage of lower interest rates, which can save you money over time. However, the average APRs you can qualify for vary between cities in Colorado. For example, in Denver, the average APR is 10.1%, while in Lakewood, the average APR is 11.4%.
Another option to find the best debt consolidation loan in Colorado is to consider other local lenders. Below is a table of local lenders to help you explore your options.
| ENT Credit Union | Thornton | 10.24% to 20.99% | 36 to 84 months | From $500 | 100 |
| ENT Credit Union | Fort Collins | 10.24% to 20.99% | 36 to 84 months | From $500 | 100 |
| Climb Credit Union | Aurora | From 8.49% | Up to 84 months | Undisclosed | 100 |
| Credit Union of Denver | Denver | From 8.49% | Up to 60 months | From $250 | 99 |
| Security Service Federal Credit Union | Lakewood | 9.99% to 17.95% | 3 to 66 months | $250 to $50,000 | 99 |
MoneyGeek addresses common questions about debt consolidation loans in Colorado. We provide clear and reliable information to help make managing your finances simpler.
A debt consolidation loan in Colorado is an unsecured personal loan used to pay off high-interest debt. Borrowers choose this to simplify their payments and potentially secure a lower interest rate.
PenFed is the best debt consolidation loan lender in Colorado. However, the best lender for you might vary depending on your specific needs and priorities.
Yes, you can get a debt consolidation loan in Colorado even if you have bad credit.
Yes, a credit counseling agency in Colorado can help manage debt by providing advice and creating a debt management plan.
Consider getting 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.
MoneyGeek analyzed 25 national lenders licensed to do business in Colorado 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 conducted our analysis in December 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.
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