Best Debt Consolidation Loans in Tennessee 2024

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Updated: November 21, 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 you currently owe — like credit card or student loan debt — at a lower interest rate than what you're currently paying.

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

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2024

Best Debt Consolidation Loans in Tennessee

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

Overall Best Debt Consolidation Loan Lender in Tennessee

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 offers the best debt consolidation loan in Tennessee 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 providing lower interest rates, reducing the overall cost of the loan. Its loan amount range of up to $50,000 allows borrowers to consolidate significant amounts of debt. Additionally, the quick time to receive funds, within one to two business days, ensures that borrowers can address their financial needs promptly.

Runner-Up for Best Debt Consolidation Loan in Tennessee

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 Tennessee, with a MoneyGeek score of 96 out of 100. One of its pros is competitive interest rates, which means you can save money on interest payments over the life of your loan. Flexible loan terms allow you to choose a repayment plan that fits your budget, whether you need a shorter or longer term.

Quick fund disbursement is another benefit, as you can receive your funds on the same day, helping you consolidate your debts faster. With loan amounts ranging from $1,000 to $100,000 and an APR starting at 10.49%, Alliant Credit Union offers a range of options to suit different financial needs. Consider it for your debt consolidation loan to take advantage of these benefits.

Best Debt Consolidation Loan in Tennessee 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 Tennessee for borrowers who prioritize affordability, with a MoneyGeek score of 95 out of 100. Its APR range of 8.74% to 21.74% is competitive. It also has no origination fees and offers rate discounts, making it a cost-effective option for consolidating debts.

For example, a borrower can save on upfront costs due to the absence of origination fees, which can be a significant expense with other lenders. Additionally, the availability of rate discounts can lower the overall cost of the loan, making it easier for borrowers to manage their monthly payments and reduce their debt more quickly.

Best Debt Consolidation Loan in Tennessee 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 Tennessee 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 loan terms can help a borrower who needs more time to pay off their debt, making monthly payments more manageable. Additionally, its quick funding process, with funds available in as little as three business days, ensures that borrowers can consolidate their debts promptly and start their repayment plan without delay.

Best Debt Consolidation Loan in Tennessee 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 Tennessee for borrowers who need funds quickly, with a MoneyGeek score of 95 out of 100. It provides same-day funding, making it an excellent choice for those in urgent need of financial assistance.

One feature of Rocket Loans is its quick approval process. For example, a borrower can consolidate multiple high-interest debts into one loan within a day, reducing stress and financial burden. Another feature is its flexible loan terms, allowing borrowers to choose between 36 or 60 months for repayment, which can help manage monthly payments more effectively.

Should You Get a Loan to Consolidate Debt in Tennessee?

Using a debt consolidation loan in Tennessee 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.

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    Good Credit

    Having good credit can secure better terms on a debt consolidation loan in Tennessee, affecting interest rates and monthly payments.

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    High-Interest Debt

    Consolidating high-interest debt with a debt consolidation loan in Tennessee can lower your interest rates, saving you money.

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    Multiple Payments

    Combining multiple monthly payments into one with a debt consolidation loan in Tennessee simplifies your finances.

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    Lower Monthly Payments

    A debt consolidation loan in Tennessee can help lower your monthly payments, making them more manageable.

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 Tennessee is a better strategy.

How to Get a Debt Consolidation Loan in Tennessee

The average amount of personal debt in Tennessee is $93,821, compared to the overall average debt for Americans at $104,215. In Tennessee, the average monthly debt is around $7,818.

Using a personal loan to consolidate debt in Tennessee 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 find 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 Tennessee, Fifth Third Bank and SoFi 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 Tennessee, OneMain Financial charges an origination fee, and Upgrade charges a late fee. These fees can impact your short- and long-term finances.

  5. 5
    Get prequalified.

    Prequalification helps you gauge your loan eligibility without affecting your credit score. It uses a soft credit check, so your credit score remains unaffected.

  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 smooth application experience.

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

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 Tennessee, check your credit report for errors and work on reducing your existing debt.

You can also consider reaching out to credit counseling agencies to manage your debts better, such as The Kingdom Ministries, Inc. or GreenPath, Inc.. Another option is to use a 0% APR balance transfer credit card. This allows you to transfer balances from high-interest cards to a card with no interest for a set period, helping you save on interest payments.

Local Lenders for Debt Consolidation Loans in Tennessee

One reason people choose to consolidate debt is to benefit from lower interest rates. The average APRs you can qualify for vary between cities, with Nashville offering an average APR of 11.5% and Murfreesboro at 12.7%.

Another option to find the best debt consolidation loan in Tennessee is to consider other local lenders. Below is a table of local lenders and their corresponding average APRs.

Memphis City Employees Credit UnionMemphisFrom 9.75%UndisclosedFrom $50099
Fortera Credit UnionClarksville10.99% to 18.00%36 to 60 months$500 to $40,00099
Redstone Federal Credit UnionMurfreesboroFrom 10.99%Up to 72 monthsUp to $50,00098
Shelby County Federal Credit UnionMemphis10.75% to 18%UndisclosedUndisclosed94
Cornerstone Financial Credit UnionClarksvilleFrom 13%36 to 60 monthsUp to $75,00093

FAQ: Debt Consolidation Loans in Tennessee

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

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

MoneyGeek analyzed 27 national lenders licensed to do business in Tennessee, 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.

recency icon

We conducted our analysis in September 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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