Best Debt Consolidation Loans in Kentucky (December 2024)

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Updated: December 11, 2024

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Debt consolidation loans are unsecured personal loans that you can use to pay off multiple debts, including credit card debts and student loans, at a lower interest rate.

MoneyGeek analyzed 27 lenders and found Truist to be the top choice for debt consolidation loans in Kentucky, scoring 96 out of 100. Although Truist stands out in our analysis, you may also want to contact local lending options like Commonwealth Credit Union and Greater Kentucky Credit Union to see if they fit your borrowing needs.

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2024

Best Debt Consolidation Loans in Kentucky

Best Overall - Truist
Runner-Up - PenFed
Best for Affordability - Fifth Third Bank
Best for Large Loans - PNC
Best for Fast Funding - Rocket Loans

Overall Best Debt Consolidation Loan Lender in Kentucky

Company logo for Truist
Truist
MoneyGeek Score:
96/ of 100
APR Range8.87% to 17.82%
Loan Amount RangeFrom $3,500
Repayment Terms24 to 60 months
Time to Receive FundsSame Day
Overview

Truist offers the best debt consolidation loan in Kentucky with a MoneyGeek score of 96 out of 100. Its competitive rates, loan terms, quick fund disbursement and reputation make it an ideal lender.

Truist's APR range of 8.87% to 17.82% offers competitive rates that can help borrowers save on interest. The loan amount range starting from $3,500 provides flexibility for various financial needs. Additionally, the same-day fund disbursement ensures that borrowers can quickly access the funds they need to consolidate their debt efficiently.

Runner-Up for Best Debt Consolidation Loan in Kentucky

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 is another solid option for a debt consolidation loan in Kentucky, with a MoneyGeek score of 96 out of 100. Its competitive rates can lower your overall debt costs, making it easier to manage your finances. And its flexible loan terms allow you to choose a repayment plan that fits your budget, giving you more control over your financial situation.

Additionally, its quick approval process means you can consolidate your debts faster, reducing the time you spend managing multiple payments.

Best Debt Consolidation Loan in Kentucky for Affordability

Company logo for Fifth Third Bank
Fifth Third Bank
MoneyGeek Score:
95/ of 100
APR Range8.74% to 21.74%
Loan Amount Range$2,000 to $50,000
Repayment Terms12 to 60 months
Time to Receive FundsNext Day
Overview

Fifth Third Bank offers the best debt consolidation loan in Kentucky 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 ranging from 12 to 60 months.

It has no origination fees, which means you won't have to pay extra costs upfront when consolidating your debts. Additionally, the availability of rate discounts can lower your overall interest rate, making your monthly payments more manageable. Affordability isn't just about interest rates; it's also about minimizing fees and taking advantage of rate discounts.

Best Debt Consolidation Loan in Kentucky 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 Maryland for borrowers who need a large loan amount or longer repayment terms. It has a MoneyGeek score of 96 out of 100. It offers loan amounts ranging from $1,000 to $35,000 and repayment terms of 6 to 60 months.

PNC's flexible repayment terms can help a borrower who needs more time to pay off their consolidated debt, reducing monthly payments and making it easier to manage their finances. Additionally, the quick fund disbursement within 3 business days ensures that borrowers can promptly address their debt consolidation needs.

Best Debt Consolidation Loan in Kentucky 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 Kentucky for borrowers who need funds quickly, with a MoneyGeek score of 95 out of 100. You can receive funds the same day, making it an ideal choice for urgent financial needs.

Rocket Loans also offers flexible loan terms, which can help borrowers choose a repayment plan that fits their financial situation, ensuring they can manage their consolidated debt more effectively.

Should You Get a Loan to Consolidate Debt in Kentucky?

Using a debt consolidation loan in Kentucky can simplify your finances by merging multiple payments into one, but it’s not always the best option. 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.

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    Good Credit

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

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    High-Interest Debt

    If you have high-interest debt, a debt consolidation loan in Kentucky 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 Kentucky simplifies management. For example, one $300 payment instead of three $100 payments.

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    Lower Monthly Payments

    A debt consolidation loan in Kentucky can help lower your monthly payments. For example, reducing your total from $500 to $400.

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 Kentucky is a better strategy.

How to Get a Debt Consolidation Loan in Kentucky

The average amount of personal loan debt in Kentucky is $73,132, while the overall average debt for Americans across all states is $104,215. In Kentucky, the average monthly debt translates to around $6,094.

Using a personal loan to consolidate debt in Kentucky 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, like credit card debt. Choosing the wrong debts can lead to higher interest rates. Check your credit scores; 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. 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.

  3. 3

    Check for extra benefits

    Some lenders offer added features that benefit you long-term. In Kentucky, Fifth Third Bank offers rate discounts, and Alliant Credit Union provides additional rate discounts.

  4. 4

    Watch out for fees and penalties

    Some lender features could be drawbacks. In Kentucky, Axos charges an origination fee, and OneMain Financial charges 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, making it a risk-free way to explore loan options.

  6. 6

    Complete your loan application

    Prepare the necessary documents — such as ID, proof of income and bank statements — to complete your loan application faster.

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

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

You can also reach out to some credit counseling agencies 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, potentially saving you money on interest payments.

FAQ: Debt Consolidation Loans in Kentucky

MoneyGeek addresses common questions borrowers have about debt consolidation loans in Kentucky to help you understand how debt consolidation can simplify your finances.

What is a debt consolidation loan in Kentucky?

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

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

Can a credit counseling agency in Kentucky help manage debt?

When should I get a debt consolidation loan in Kentucky?

MoneyGeek analyzed 27 national lenders licensed to do business in Kentucky, 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 December 2024.

27Lenders 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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