Best Debt Consolidation Loans in Delaware 2024

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Updated: November 19, 2024

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Debt consolidation loans are unsecured personal loans that are used as part of a debt repayment strategy. It's a popular way to streamline and pay off debts like credit card or student loan debt — at a lower interest rate than what you're currently paying. MoneyGeek analyzed 25 lenders and found PenFed to be the top choice for debt consolidation loans in Delaware, scoring 96 out of 100.

Although PenFed stands out in our analysis, you may also want to contact local lending options like Del-One Federal Credit Union and DEXSTA Federal Credit Union to see if they fit your borrowing needs.

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2024

Best Debt Consolidation Loans in Delaware

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 Delaware

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

MoneyGeek has identified PenFed as offering the best debt consolidation loan in Delaware, 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. Its loan amount range of up to $50,000 provides flexibility for those needing to consolidate larger amounts of debt. Additionally, the quick time to receive funds, typically one to two business days, ensures that borrowers can address their financial needs promptly.

Runner-Up for Best Debt Consolidation Loan in Delaware

Company logo for Alliant Credit Union
Alliant Credit Union
MoneyGeek Score:
96/ 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 Delaware, with a MoneyGeek score of 96 out of 100. It offers a low APR starting from 10.49%, which can help you save on interest payments over time. Additionally, the high loan amount range of $1,000 to $100,000 provides flexibility for consolidating various debts into one manageable payment.

One of the pros is same-day funding, which means you can quickly access the funds needed to pay off your debts. This can be particularly beneficial if you are facing high-interest rates on credit cards. Another advantage is the flexible repayment terms ranging from 12 to 60 months, allowing you to choose a plan that fits your budget and financial goals.

Best Debt Consolidation Loan in Delaware 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 Delaware 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.

Borrowers benefit from no origination fees, which means you won't have to pay extra costs upfront. Additionally, the availability of rate discounts can lower your overall interest, making your debt consolidation more affordable. Affordability isn't just about interest rates; it's also about minimizing fees and taking advantage of rate discounts.

Best Debt Consolidation Loan in Delaware 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 Delaware for borrowers who need a large loan amount or longer repayment terms, with a MoneyGeek score of 96 out of 100. It provides loan amounts ranging from $1,000 to $35,000.

PNC's flexible repayment terms can help a borrower who wants to consolidate debts without the pressure of a short repayment period. Additionally, its high loan amount range allows borrowers to consolidate multiple debts into one manageable payment.

Best Debt Consolidation Loan in Delaware 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 Delaware 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 excellent choice for urgent financial needs.

One feature of Rocket Loans is its fast approval process. For example, if you need to consolidate multiple high-interest debts, you can get approved and receive funds on the same day, reducing the time you spend paying high interest. Another feature is its flexible loan terms, allowing you to choose between 36 or 60-month repayment plans. This flexibility helps you manage your monthly payments more effectively, ensuring you can meet your financial obligations without strain.

Should You Get a Loan to Consolidate Debt in Delaware?

Using a debt consolidation loan in Delaware can simplify your finances by merging multiple payments into one. Yet, it may not be beneficial if the new loan's interest rate is higher than your current debts. Consider your specific situation before deciding.

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    Good Credit

    Having good credit can get you better interest rates and lower monthly payments on a debt consolidation loan in Delaware.

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    High-Interest Debt

    If you have high-interest debt, a debt consolidation loan in Delaware can lower your interest rates. For example, reducing from 20% to 10%.

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    Multiple Payments

    Combining several monthly payments into one with a debt consolidation loan in Delaware simplifies your finances. One payment is easier to manage.

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    Lower Monthly Payments

    A debt consolidation loan in Delaware can lower your monthly payments. For example, reducing from $500 to $300 per month.

When You Shouldn't Get a Debt Consolidation Loan

  • When your new monthly payment is higher: A higher monthly payment can strain your budget further, leading to more financial stress rather than relief.
  • When you can pay off debt in a year: If you can clear your debt within a year, a consolidation loan might not be necessary. Short-term sacrifices could save you interest.
  • When your income is unstable: Unpredictable income makes it hard to commit to fixed monthly payments. This could lead to missed payments and additional fees.
  • When your DTI ratio is high: A high debt-to-income ratio can result in loan denial or unfavorable terms. Improving your DTI before applying for a debt consolidation loan in Delaware is a better strategy.

How to Get a Debt Consolidation Loan in Delaware

The average amount of personal debt in Delaware is $106,317, while the overall average debt for Americans is $104,215. In Delaware, the average monthly debt is around $8,860.

Using a personal loan to consolidate debt in Delaware 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.

  1. 1

    Review your debts and credit score.

    Account for existing debts to see which ones to consolidate, especially 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 outstanding balances.

  2. 2

    Compare loan terms from lenders.

    Compare loan terms from multiple lenders to find the best deal. Contact lenders to ensure you can use the loan for debt consolidation. Look at APRs, loan limits, and how soon you can receive the funds.

  3. 3

    Check for extra benefits.

    Some lenders offer added features that benefit you long-term. In Delaware, lenders like Achieve and Upgrade offer rate discounts. These can save you money over the life of the loan.

  4. 4

    Watch out for fees and penalties.

    Some lender features could be drawbacks. In Delaware, lenders like Universal Credit and Prosper charge an origination fee and a late fee. These fees can impact your short- and long-term finances.

  5. 5

    Get prequalified.

    Prequalification helps borrowers gauge their eligibility without affecting their credit score. It involves a soft credit check, providing an estimate of loan terms you might qualify for.

  6. 6

    Complete your loan application.

    Complete your loan application by providing necessary documents like proof of income, identification, and bank statements. Preparing these documents in advance can make the process faster.

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WHAT TO DO IF YOU'RE DENIED A DEBT CONSOLIDATION LOAN IN DELAWARE

Lenders might deny your loan application for reasons such as a low credit score or a high debt-to-income ratio. Before applying for a consolidation loan in Delaware, consider improving your credit score and reducing your debt-to-income ratio to increase your chances of approval.

You can also consider reaching out to credit counseling agencies like Financial Education Services Inc. or 123 Credit Counselors, Inc. to help manage your debts better. Another option is to use a 0% APR balance transfer credit card. This allows you to consolidate multiple debts into one with no interest for an introductory period, potentially saving you money on interest payments.

FAQ: Debt Consolidation Loans in Delaware

MoneyGeek addresses common questions homeowners have about debt consolidation loans in Delaware, providing precise and reliable information tailored to their needs. This ensures Delaware residents can find clear answers to their debt consolidation queries.

What is a debt consolidation loan in Delaware?

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

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

Can a credit counseling agency in Delaware help manage debt?

When should I get a debt consolidation loan in Delaware?

MoneyGeek analyzed 28 national lenders licensed to do business in Delaware, 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.

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We conducted our analysis in September 2024.

28Lenders 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.

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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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