Updated: November 19, 2024
Advertising & Editorial Disclosure
Debt consolidation loans are unsecured personal loans that borrowers use to pay off multiple debts, including student loan debt, at a lower interest rate.
MoneyGeek analyzed 21 lenders and found PenFed to be the top choice for debt consolidation loans in Iowa, with a MoneyGeek score of 96 out of 100. Although PenFed stands out in our analysis, you may also want to contact local lending options like Greater Iowa Credit Union and Midland Credit Union to see if they fit your borrowing needs.
Best Loans forConsolidationIowaBest Debt Consolidation Loans in Iowa
PenFed offers the best debt consolidation loan in Iowa, 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 larger amounts of debt. Additionally, the quick disbursement time of one to two business days ensures that borrowers can access their funds promptly, making it easier to manage and pay off existing debts.
Alliant Credit Union is another solid option for a debt consolidation loan in Iowa, with a MoneyGeek score of 95 out of 100.
Alliant Credit Union's low APR can reduce the overall interest paid on consolidated debts. Its high loan amounts allow borrowers to consolidate larger sums of debt. Its flexible repayment terms can help borrowers manage their monthly payments more effectively.
Wells Fargo offers the best debt consolidation loan in Iowa for borrowers who prioritize affordability. It has a MoneyGeek score of 94 out of 100. Its APR range is 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, meaning you won't have to pay extra to get the loan. This feature makes it easier to manage your debt consolidation. It also has rate discounts that can lower your interest rate, saving you money over the life of the loan.
PNC offers the best debt consolidation loan in Iowa 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, making it easier to manage monthly payments. Quick fund disbursement means you can consolidate your debts faster, reducing the time you spend paying high interest rates on multiple loans.
Discover offers the best debt consolidation loan in Iowa for borrowers who need funds quickly. It has a MoneyGeek score of 94 out of 100. You can receive funds as soon as the next day.
Discover has a competitive APR range of 7.99% to 24.99%, which can help you save on interest costs. Its flexible repayment terms of 36 to 84 months allow you to choose a plan that fits your budget, making it easier to manage your consolidated debts.
Using a debt consolidation loan in Iowa 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 financial situation before deciding on debt consolidation.
Good Credit
Having good credit can secure better terms on a debt consolidation loan in Iowa, affecting interest rates and monthly payments.
High-Interest Debt
If you have high-interest debts, a debt consolidation loan in Iowa can lower your overall interest rate. For example, you can reduce a 20% rate to 10%.
Multiple Payments
Combining several monthly payments into one with a debt consolidation loan in Iowa simplifies management. For example, one $300 payment instead of three $100 payments is easier to track.
Lower Monthly Payments
A debt consolidation loan in Iowa can lower your monthly payments — for example, reducing $500 to $300 per month.
The average personal debt in Iowa is $80,933 per year, which is lower than the overall average debt for Americans, which is $104,215. In Iowa, the average monthly debt is around $6,744.
Using a personal loan to consolidate debt in Iowa 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, such as 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.
Compare loan terms from multiple lenders to find the best deal. 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.
Some lenders offer additional features that benefit you long-term. For example, lenders in Iowa, like Upgrade and Lightstream, offer rate discounts.
Some lender features could be drawbacks. In Iowa, lenders like Achieve and Axos charge an origination fee and a late fee. These fees can impact your short and long-term finances.
Prequalification helps borrowers understand their loan options without affecting their credit score. It uses a soft credit check, so it won't hurt your credit.
Complete your loan application by preparing the necessary documents like proof of income, identification and bank statements. This makes the process faster and smoother.
Lenders might deny your loan application due to a poor credit history or a high debt-to-income ratio. Before applying for a debt consolidation loan in Iowa, consider checking your credit report for errors and paying down existing debts to improve your financial standing.
You can also contact some credit counseling agencies to help you manage your debts better. Another option is to use a 0% APR balance transfer credit card. This card allows you to transfer high-interest debt to a card with no interest for a promotional period, giving you time to pay down your balance without accruing additional interest.
MoneyGeek addresses common questions about debt consolidation loans in Iowa, helping you understand your options and make informed decisions.
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 secure a lower interest rate.
PenFed is the best debt consolidation loan lender in Iowa. However, the best lender for you might vary depending on your priorities, such as loan amount or quick funds.
Yes, you can get a debt consolidation loan in Iowa even if you have bad credit.
Yes, a credit counseling agency in Iowa can help manage debt by offering advice and creating a debt management plan.
You should get a debt consolidation loan if you have good credit and can qualify for better terms on a loan or if your household budget can handle the new monthly payment without sacrificing essential expenses.
MoneyGeek analyzed 21 national lenders licensed to do business in Iowa 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 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
our editorial policies and expert editorial team.
