Best Debt Consolidation Loans in Rhode Island 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. They allow you to streamline and pay off debts you currently owe, including 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 Rhode Island, scoring 96 out of 100. Although PenFed stands out in our analysis, you may also want to contact local lending options like Rhode Island Credit Union and People's Credit Union to see if they fit your borrowing needs.

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2024

Best Debt Consolidation Loans in Rhode Island

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 Rhode Island

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

The best debt consolidation loan lender in Rhode Island is PenFed, with a MoneyGeek score of 96 out of 100. Several features contribute to an ideal debt consolidation loan lender, including competitive rates, loan amounts, fund disbursement speed, service quality and reputation.

PenFed offers an APR range of 8.99% to 17.99%, which can help borrowers secure a loan with favorable interest rates. It also provides loan amounts up to $50,000, allowing borrowers to consolidate significant debt. Additionally, funds can be received within one to two business days, ensuring a quick and efficient debt consolidation process.

Runner-Up for Best Debt Consolidation Loan in Rhode Island

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 Rhode Island with a MoneyGeek score of 96 out of 100. One of its pros is a low APR starting from 10.49%, which can help borrowers save on interest payments over time. Another benefit is the high loan amount range of $1,000 to $100,000, allowing borrowers to consolidate multiple debts into one manageable loan.

Additionally, Alliant Credit Union offers flexible repayment terms ranging from 12 to 60 months. This flexibility can help borrowers choose a repayment plan that fits their budget. With same-day fund disbursement, borrowers can quickly access the funds they need to pay off their existing debts.

Best Debt Consolidation Loan in Rhode Island 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 Rhode Island 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.

One benefit is that 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 loan even more affordable.

Best Debt Consolidation Loan in Rhode Island 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 Rhode Island for borrowers needing 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 between six to 60 months.

Flexible repayment terms can help a borrower manage their monthly budget better, ensuring they can meet other financial obligations. Quick fund disbursement ensures the borrower can pay off existing debts promptly, reducing the stress of juggling multiple payments.

Best Debt Consolidation Loan in Rhode Island 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 Rhode Island for borrowers who need funds quickly, with a MoneyGeek score of 95 out of 100. You can receive funds the same day.

One feature of Rocket Loans is its fast approval process. This can benefit a borrower who needs to consolidate debts immediately to avoid late fees. Another feature is its flexible loan terms, allowing borrowers to choose a repayment plan that fits their budget, making it easier to manage monthly payments.

Should You Get a Loan to Consolidate Debt in Rhode Island?

A debt consolidation loan in Rhode Island 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 secure better interest rates and lower monthly payments on a debt consolidation loan in Rhode Island.

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    High-Interest Debt

    Consolidating high-interest debt with a debt consolidation loan in Rhode Island can lower the interest rates you're paying, saving you money.

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    Multiple Payments

    Combining several monthly payments into one with a debt consolidation loan in Rhode Island makes managing your debt easier.

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    Lower Monthly Payments

    A debt consolidation loan in Rhode Island can help you achieve lower monthly payments, easing your financial burden.

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 Rhode Island is a better strategy.

How to Get a Debt Consolidation Loan in Rhode Island

The average amount of personal loan debt in Rhode Island is $100,960, compared to the overall average debt in the U.S. of $104,215. In Rhode Island, the average monthly debt is $8,413.

Using a personal loan to consolidate debt in Rhode Island 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 your existing debts to see which ones to consolidate, especially credit card debt. Choosing the wrong debts can lead to higher interest rates and longer repayment periods. Check your credit scores. To improve your credit score, pay bills on time and reduce outstanding balances.

  2. 2
    Compare loan terms from lenders.

    Compare loan terms from multiple lenders to get the best deal. 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.

  3. 3
    Check for extra benefits.

    Some lenders offer added features that benefit you long-term. In Rhode Island, SoFi and PNC offer rate discounts, which can save you money over the life of the loan.

  4. 4
    Watch out for fees and penalties.

    Some lender features can be drawbacks. In Rhode Island, Avant charges an origination fee and a late fee. These fees can impact your short- and long-term finances by increasing your overall debt.

  5. 5
    Get prequalified.

    Prequalification helps you understand your loan eligibility without affecting your credit score. It involves a soft credit check, giving you an idea of potential loan terms.

  6. 6
    Complete your loan application.

    Complete your loan application by preparing necessary documents like proof of income, identification, and bank statements. This speeds up the process and ensures a smoother experience.

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

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 Rhode Island, check your credit report for errors and work on reducing your existing debts.

You can also consider reaching 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. This allows you to transfer your existing debt and pay no interest for a specified period, helping you save on interest payments.

FAQ: Debt Consolidation Loans in Rhode Island

We addressed common questions borrowers have about debt consolidation loans in Rhode Island to help you understand how debt consolidation can simplify your finances.

What is a debt consolidation loan in Rhode Island?
What's the best debt consolidation loan lender in Rhode Island?
Can I get a debt consolidation loan in Rhode Island if I have bad credit?
Can a credit counseling agency in Rhode Island help manage debt?
When should I get a debt consolidation loan in Rhode Island?

MoneyGeek analyzed 25 national lenders licensed to do business in Rhode Island, 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.

25Lenders 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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