Best Debt Consolidation Loans in Connecticut (December 2024)

fact checked icon

Updated: December 11, 2024

Advertising & Editorial Disclosure

Debt consolidation loans are personal loans used to pay off multiple debts, including student loan debt, at a lower interest rate.

MoneyGeek analyzed 24 lenders and found PenFed to be the top choice for debt consolidation loans in Connecticut, with a MoneyGeek score of 96 out of 100. Although PenFed stands out in our analysis, there are other lenders available in Connecticut that are not included in our study. You may also want to contact local lending options like Sikorsky Credit Union and American Eagle Financial Credit Union to see if they fit your borrowing needs.

MoneyGeek Logo IconBest Loans forConsolidationConnecticut
2024

Best Debt Consolidation Loans in Connecticut

Best Overall - PenFed
Runner-Up - Alliant Credit Union
Best for Affordability - Wells Fargo
Best for Large Loans - PNC
Best for Fast Funding - Rocket Loans

Overall Best Debt Consolidation Loan Lender in Connecticut

Company logo for PenFed
PenFed
MoneyGeek Score:
96/ of 100
APR Range8.99% to 17.99%
Loan Amount RangeUp to $50,000
Repayment TermsUp to 60 months
Time to Receive Funds1 to 2 Business Days
Overview

PenFed offers the best debt consolidation loan in Connecticut, 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 offers borrowers competitive interest rates with an APR range of 8.99% to 17.99%. It offers loan amounts of up to $50,000, providing flexibility for consolidating larger amounts of debt. Its quick disbursement time of one to two business days ensures borrowers can access their funds promptly.

Runner-Up for Best Debt Consolidation Loan in Connecticut

Company logo for Alliant Credit Union
Alliant Credit Union
MoneyGeek Score:
95/ of 100
APR RangeFrom 10.49%
Loan Amount Range$1,000 to $100,​​​​​000
Repayment Terms12 to 60 months
Time to Receive FundsSame Day
Overview

Alliant Credit Union is another solid option for a debt consolidation loan in Connecticut, with a MoneyGeek score of 95 out of 100.

Alliant Credit Union's low APR can save you money on interest over the life of the loan. Flexible loan terms allow you to choose a repayment plan that fits your budget, making it easier to manage your finances. Additionally, same-day funding helps you quickly pay off high-interest debts, reducing the amount of interest you accrue.

Best Debt Consolidation Loan in Connecticut for Affordability

Company logo for Wells Fargo
Wells Fargo
MoneyGeek Score:
94/ of 100
APR Range7.49% to 24.99%
Loan Amount Range$3,000 to $100,000
Repayment Terms12 to 84 months
Time to Receive Funds1 to 3 Business Days
Overview

Wells Fargo offers the best debt consolidation loan in Connecticut for borrowers who prioritize affordability, with a MoneyGeek score of 94 out of 100. Its APR range is 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 doesn't charge origination fees, which means you won't have to pay extra costs when consolidating your debts. Rate discounts are also available, helping you secure a lower interest rate and save money over the life of your loan.

Best Debt Consolidation Loan in Connecticut for Large Loan Amounts

Company logo for PNC
PNC
MoneyGeek Score:
96/ of 100
APR RangeUp to 24.99%
Loan Amount Range$1,000 to $35,000
Repayment Terms6 to 60 months
Time to Receive Funds3 Business Days
Overview

PNC offers the best debt consolidation loan in Connecticut for borrowers who need a large loan amount or longer repayment terms. It has a MoneyGeek score of 96 out of 100. It provides loan amounts ranging from $1,000 to $35,000, making it suitable for various financial needs.

PNC's flexible repayment terms of six to 60 months allow borrowers to choose a plan that fits their budget. Additionally, its quick funds disbursement within three business days ensures that borrowers can consolidate their debts promptly, reducing financial stress.

Best Debt Consolidation Loan in Connecticut for Fast Funding

Company logo for Rocket Loans
Rocket Loans
MoneyGeek Score:
95/ of 100
APR Range9.116% to 29.99%
Loan Amount Range$2,000 to $45,000
Repayment Terms36 or 60 months
Time to Receive FundsSame Day
Overview

Rocket Loans offers the best debt consolidation loan in Connecticut for borrowers who need funds quickly. It has a MoneyGeek score of 95 out of 100. You can receive funds on the same day, making it a reliable option for urgent financial needs.

One of Rocket Loans' notable features is its quick approval process. If you need to consolidate multiple high-interest debts immediately, the fast approval can help you avoid additional interest charges. Its flexible loan terms allow you to choose a repayment plan that fits your budget, ensuring you can manage your finances more effectively.

Should You Get a Loan to Consolidate Debt in Connecticut?

Using a debt consolidation loan in Connecticut can simplify your finances by merging multiple payments into one. However, it may not be the best option if the interest rate on the new loan is higher than your current debts. Always consider your specific situation before deciding.

    carInsurance icon

    Good Credit

    Having good credit can get you better terms on a debt consolidation loan in Connecticut, affecting your interest rates and monthly payments.

    uninsured icon

    High-Interest Debt

    Consolidating high-interest debt with a debt consolidation loan in Connecticut can lower your interest rates, for example, from 20% to 10%.

    calendar icon

    Multiple Payments

    Combining several monthly payments into one with a debt consolidation loan in Connecticut is easier. For example, one $500 payment instead of five $100 payments is more straightforward to keep track of.

    securePayment icon

    Lower Monthly Payments

    A debt consolidation loan in Connecticut can lower your monthly payments, for example, from $600 to $400.

When You Shouldn't Get a Debt Consolidation Loan

  • When your new monthly payment is higher: Consolidating might increase your monthly expenses, worsening your financial situation.
  • When you can pay off debt within a year: Consolidation could unnecessarily extend your repayment period.
  • When your income is unpredictable: Variable income makes it hard to commit to fixed payments.
  • When your debt-to-income (DTI) ratio is above 40%: High DTI can lead to loan denial or unfavorable terms.

How to Get a Debt Consolidation Loan in Connecticut

The average personal debt in Connecticut is $110,034 per year, while the overall average debt for Americans across all states is $104,215. In Connecticut, the average monthly debt is around $9,170.

Using a personal loan to consolidate debt in Connecticut 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.

  1. 1

    Review your debts and credit score

    Account for 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 and improve your credit score by paying bills on time and reducing balances.

  2. 2

    Compare loan terms from lenders.

    Compare loan terms from multiple lenders. Contact lenders to ensure you can use the loan to consolidate debts. Look at APRs, loan limits and how soon you can receive the funds.

  3. 3

    Check for extra benefits

    Some lenders in Connecticut offer added features that could benefit you. For example, Upgrade and Lightstream offer rate discounts, which can save you money over time.

  4. 4

    Watch out for fees and penalties

    Some lender features could be drawbacks. In Connecticut, Prosper charges an origination fee, and Lending Club charges a late fee. These fees can impact your short and long-term finances.

  5. 5

    Get prequalified.

    Prequalification helps borrowers gauge eligibility without affecting their credit score. It involves a soft credit check, which doesn't impact your credit.

  6. 6

    Complete your loan application.

    Prepare the necessary documents, such as proof of income and identification, to complete your loan application. This will make the process faster and smoother.

mglogo icon
WHAT TO DO IF YOU'RE DENIED A DEBT CONSOLIDATION LOAN IN CONNECTICUT

Lenders might deny your loan application due to a low credit score or a high debt-to-income ratio. Before applying for a consolidation loan in Connecticut, consider improving your credit score and reducing your overall debt.

You can also contact some credit counseling agencies to help you manage your debts better, such as Financial Education Services Inc. and Parachute Credit Counseling, Inc. Another option is to use a 0% APR balance transfer credit card. This allows you to transfer existing debt to a new card without interest for a promotional period, helping you pay off debt more efficiently.

Local Lenders for Debt Consolidation Loans in Connecticut

Debt consolidation allows you to benefit from lower interest rates, which can save you money over time. The average APRs available can vary significantly between cities. For example, in Bridgeport, the average APR is 11.6%.

You can also consider other local lenders to find the best debt consolidation loan in Connecticut. Review the table of local lenders to help you explore your options.

Sikorsky Credit UnionBridgeportFrom 9.44% 12 to 60 monthsUndisclosed97
Bridgeport Police Federal Credit UnionBridgeportFrom 12.75%Up to 72 monthsUndisclosed92
St. Vincent's Medical Center Federal Credit UnionBridgeportFrom 12.59%12 to 48 monthsUp to $7,50085

FAQ: Debt Consolidation Loans in Connecticut

MoneyGeek answers common questions about debt consolidation loans in Connecticut. Our information helps you understand how these loans can simplify multiple debts into a single payment, potentially lowering interest rates and monthly payments.

What is a debt consolidation loan in Connecticut?

What's the best debt consolidation loan lender in Connecticut?

Can I get a debt consolidation loan in Connecticut if I have bad credit?

Can a credit counseling agency in Connecticut help manage debt?

When should I get a debt consolidation loan in Connecticut?

MoneyGeek analyzed 24 national lenders licensed to do business in Connecticut 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.

recency icon

We conducted our analysis in December 2024.

24Lenders Analyzed

About Zachary Romeo, CBCA

Zachary Romeo, CBCA headshot

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.

Read Full Bio »
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.

Insurance
Mortgage
Credit Cards
Loans
About MoneyGeekPressPrivacy PolicySitemap
Copyright © 2024 MoneyGeek.com. All Rights Reserved Terms of Use