Updated: November 19, 2024
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Debt consolidation loans are personal loans that help borrowers pay off multiple debts, including student loans, at a lower interest rate.
MoneyGeek analyzed 26 lenders and found PenFed to be the top choice for debt consolidation loans in Illinois, scoring 96 out of 100. While PenFed stands out in our analysis, you may also want to check out local options like Central Credit Union of Illinois and Illinois Community Credit Union to see if they fit your borrowing needs.
Best Loans forConsolidationIllinoisBest Debt Consolidation Loans in Illinois
PenFed offers the best debt consolidation loan in Illinois with a MoneyGeek score of 96 out of 100. It provides competitive rates, a high loan amount range, and quick fund disbursement.
PenFed's APR range of 8.99% to 17.99% can benefit borrowers by offering lower interest rates compared to other lenders. The loan amount range of up to $50,000 allows borrowers to consolidate larger amounts of debt. Additionally, the quick fund disbursement time of 1 to 2 business days ensures that borrowers can access their funds promptly.
Alliant Credit Union is another solid option for a debt consolidation loan in Illinois, with a MoneyGeek score of 95 out of 100. It offers a low APR, which can reduce the overall interest paid on consolidated debts.
Additionally, Alliant Credit Union provides a high loan amount range, allowing borrowers to consolidate larger amounts of debt. Its flexible repayment terms can help borrowers manage their monthly payments more effectively.
Fifth Third Bank offers the best debt consolidation loan in Illinois for borrowers who prioritize affordability, with a MoneyGeek score of 95 out of 100. Its APR range is 8.74% to 21.74%, and it provides loan amounts from $2,000 to $50,000 with repayment terms of 12 to 60 months.
It has no origination fees, which means you won't have to pay extra costs when taking out the loan. Additionally, the availability of rate discounts can lower your overall interest, making your monthly payments more manageable. Affordability isn't just about interest rates; it's also about minimizing fees and taking advantage of discounts.
PNC offers the best debt consolidation loan in Illinois 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, making it suitable for various financial needs.
It offers competitive APRs, which can save you money over the life of the loan. Additionally, PNC's quick fund disbursement means you can consolidate your debts faster, reducing the time you spend managing multiple payments.
Rocket Loans offers the best debt consolidation loan in Illinois for borrowers who need funds quickly, with a MoneyGeek score of 95 out of 100. It provides same-day fund disbursement, making it an ideal choice for those in urgent need of financial assistance.
Its fast approval process, allows borrowers to consolidate their debts without delay. Additionally, its flexible loan terms offer repayment options that can be tailored to fit different financial situations, helping borrowers manage their debt more effectively.
Using a debt consolidation loan in Illinois 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 qualify you for better interest rates and lower monthly payments on a debt consolidation loan in Illinois.
High-Interest Debt
Consolidating high-interest debt with a debt consolidation loan in Illinois can lower your interest rates, saving you money. For example, reduce 20% interest to 10%.
Multiple Payments
Combining several monthly payments into one with a debt consolidation loan in Illinois simplifies your finances. For example, manage one payment instead of five.
Lower Monthly Payments
A debt consolidation loan in Illinois can lower your monthly payments. For example, reduce your total monthly payments from $500 to $300.
The average amount of personal loan debt in Illinois is $89,523, while the overall average debt for Americans is $104,215. In Illinois, the average monthly debt translates to around $7,460.
Using a personal loan to consolidate debt in Illinois can simplify your payments and potentially lower your interest rates. Going into the process unaware 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 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. 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. In Illinois, Fifth Third Bank and Alliant Credit Union offer rate discounts.
Some lender features could be drawbacks. In Illinois, Happy Money charges an origination fee, and Laurel Road charges a late fee. These fees can impact your short- and long-term finances.
Prequalification helps borrowers gauge eligibility without affecting credit scores. It involves a soft credit check, which doesn't impact your credit score.
Prepare the necessary documents — such as ID, proof of income and bank statements — to complete your loan application faster.
Lenders might deny your loan application if you have a low credit score or a high debt-to-income ratio. Before applying for a debt consolidation loan in Illinois, check your credit report for errors and work on reducing your outstanding debts.
You can also consider reaching out to credit counseling agencies such as Hananwill Credit Counseling or MoneySharp Credit 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 high-interest debt to a new card with no interest for a promotional period, helping you save on interest payments.
One reason people may choose to consolidate debt is to benefit from lower interest rates. The average APRs you can qualify for can vary between cities in Illinois. For example, in Peoria, the average APR is 9.5%, while in Chicago, it is 10.1%.
Another option to find the best debt consolidation loan in Illinois is to consider other local lenders. Below is a table of local lenders to help you explore your options.
| MWRD Employees’ Credit Union | Chicago | 6.9% to 21.9% | Up to 60 months | Undisclosed | 95 |
| Peoria Postal Employees Credit Union | Peoria | From 8.99% | Up to 72 months | Undisclosed | 95 |
| U.S. Employees Credit Union | Chicago | From 10.15% | Undisclosed | Up to $30,000 | 95 |
| Cooperative Choice Network Credit Union | Peoria | From 8.50% | 24 to 48 months | Undisclosed | 95 |
| Peoria Bell Credit Union | Peoria | From 6.75% | Undisclosed | Undisclosed | 93 |
MoneyGeek addresses common questions borrowers have about debt consolidation loans in Illinois to help you understand how debt consolidation can simplify your finances.
A debt consolidation loan is an unsecured personal loan that borrowers use to pay off high-interest debt. Borrowers choose this option to combine multiple debts into one payment, often at a lower interest rate.
PenFed is the best debt consolidation loan lender in Illinois. However, the best lender for you might vary depending on your priorities.
Yes, it is possible to get a debt consolidation loan in Illinois even if you have bad credit. However, your options may be limited.
Yes, a credit counseling agency can help you manage debt by providing financial advice and creating a debt management plan.
You might 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 without sacrificing essential expenses.
MoneyGeek analyzed 26 national lenders licensed to do business in Illinois, 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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