Yes, U.S. Bank does offer debt consolidation loans. You can take out a personal loan from U.S. Bank and use it to pay off existing debts, thus consolidating those debts into a single new balance with one monthly payment that you must make to U.S. Bank. U.S. Bank does not specifically refer to their loans as "debt consolidation loans," so you'll need to take out a general-purpose personal loan..
Quick Facts About U.S. Bank Debt Consolidation Loans
APR: 5.99%- 18.49%
Origination fee: $0
Loan amount: 1,000 - $50,000
Payoff period: 12 - 60 months
Credit score required: Not Disclosed
Keep in mind that a debt consolidation loan from U.S. Bank will be worthwhile if it saves you money compared to the interest rates you are paying on your existing debts. In addition to the loan's APR, you should also consider any potential fees, as well as the available loan amounts and payoff periods.
Before you apply for a U.S. Bank debt consolidation loan, it's a good idea to compare it to WalletHub's editors'picks for the best debt consolidation loans. That way, you'll be able to see how the offer stacks up against loans from leading competitors.
U.S. Bank’s debt consolidation solutions include personal loans, personal lines of credit, home equity loans, home equity lines of credit and credit cards. Each of these options works best for different types of people. Their APRs and funding amounts vary drastically. Some also require collateral while others do not.
Below, you’ll find a description of each U.S. Bank debt consolidation option, including the potential costs.… read full answer
U.S. Bank Debt Consolidation Options:
Premier Loan (personal loan): With a U.S. Bank Premier Loan, you can borrow between $3,000 and $25,000. The APRs range from 6.49% to 17.99%, and there is no origination fee. The loan does not require collateral, and the repayment periods range from 12 to 48 months.
Premier Line of Credit (personal line of credit): This gives you revolving credit, meaning you can borrow up to a certain credit limit at any time rather than getting a lump sum immediately. In addition, you can borrow multiple times as long as you never go over the credit limit. Credit lines are up to $25,000. The APR is currently 11.75% for all borrowers, and there is no annual fee. There is no collateral requirement.
Home Equity Loan: A home equity loan uses your house as collateral, which means you could lose the property if you default. Home equity loans from U.S. Bank range from $15,000 to $750,000 and have APRs of roughly 4% to 8%, with no closing costs. They can last up to 30 years.
Home Equity Line of Credit: This is a revolving line of credit (meaning you can borrow multiple times), but it’s secured by your house. Credit lines range from $15,000 to $750,000, and APRs go from about 4% to 8%. There are no closing costs, but there is an annual fee of up to $90 after the first year. U.S. Bank HELOCs have a draw period of 10 to 15 years, followed by a repayment period of 10 to 20 years for any outstanding balance.
Credit Card: U.S. Bank offers several credit cards. If you consolidate debt on a credit card, you’ll want one with a long introductory 0% APR period.
How to Choose the Right U.S. Bank Offer for Debt Consolidation
In general, your best option is to use a Premier Loan or Premier Line of Credit when consolidating debt with U.S. Bank. These loans offer relatively low APRs without requiring any collateral.
However, if you are a homeowner and don’t mind using your house as collateral, a home equity loan or HELOC can get you even lower rates and much longer repayment periods.
Unfortunately, U.S. Bank does not disclose minimum credit requirements for any of their loans, but they do note that only people with credit scores of 730+ have a shot at qualifying for the lowest rates.
To get a debt consolidation loan, you must be at least 18 years old and have a steady income as well as a credit score of at least 660. Not all debt consolidation loans will require a 660+ credit score, but it’s unlikely you’ll get rates that are worthwhile for consolidation with a lower score. People who meet the general requirements for a debt consolidation loan will find the process of getting approved to be pretty easy. It really comes down to comparing offers in order to find the right one for your specific needs.… read full answer
Depending on the lender, you may be able to apply for a debt consolidation loan online, by phone or in person. You can expect to receive a decision within a few business days, if not instantly. Applicants typically receive their funds within 7 business days of being approved. Using those funds to pay off existing debts and consolidate what you owe can take another few days to a few weeks, depending on the lenders you owe and how you choose to pay them.
Now that you know the basics of getting a debt consolidation loan, it’s time to learn about the specifics of each step in the process.
How to Get a Debt Consolidation Loan
Compare personal loan offers
The most important factor when comparing personal loans is the APR. You’ll want the lowest rate possible to help you pay off your existing debts faster. However, you should also take into account how much each loan charges in fees, how much you’re able to borrow, and how long you can take to pay the loan off.
Identify lenders that work for your situation
Lenders have a minimum credit score that they require for approval – often 660. And unless you have good or excellent credit, you’re not likely to get rates that are worthwhile. In addition, not all lenders will allow you to consolidate all kinds of debt. For example, many don’t allow student loan consolidation, and some lenders specialize in only one type of consolidation (e.g. Payoff and credit cards).
Pre-qualification doesn’t guarantee approval, but it will give you a sense of how likely you are to be approved as well as what rates you might receive. If you want to pre-qualify for multiple lenders at once, rather than one at a time, you can use WalletHub’s pre-qualification tool.
Submit an application
After you settle on a debt consolidation loan offer with a low enough APR and a high enough loan amount, you can submit an application online. You may also be able to do it over the phone or in person. Make sure you fill out the application accurately and truthfully.
Wait for a decision and funding
Often, applicants for debt consolidation loans will receive a decision instantly. But that won’t always be the case. You should expect to wait around 7 business days for the entire decision and funding process to finish. Your wait could be shorter than that, or as long as a month, depending on the lender and your personal situation.
Once you receive your debt consolidation loan, you’ll use the money to pay off your creditors. From that point on, you’ll owe all of the debt to the company that issued the consolidation loan. Make sure to submit your monthly installments on time to ensure that the lender reports positive information to the credit bureaus each month.
Debt consolidation loan rates usually range from 6% to 36%, depending on the lender. The best debt consolidation loan rate is 5.95%, from LightStream (a division of SunTrust Bank), with its personal loan offer. Only the most qualified applicants will receive a rate that low, but even LightStream’s maximum APR is relatively low, at 17.29%.… read full answer
Most lenders don’t offer loans specifically for debt consolidation. Rather, they offer general personal loans that can be used for any purpose, including consolidating debts. The average rate is around 10%, according to the Federal Reserve Bank of St. Louis. So if you can get a lower rate than that, you’re on the right track.
Let’s take a look at some popular personal loans that can be used for debt consolidation, along with their rates.
Debt Consolidation Loan Rates by Lender
LightStream: 5.95% - 17.29%
Payoff: 5.99% - 24.99%
Best Egg: 5.99% - 29.99%
FreedomPlus: 5.99% - 29.99%
LendingClub: 6.95% - 35.89%
Prosper: 6.95% - 35.99%
Avant: 9.95% - 35.99%
LendingPoint: 9.99% - 35.99%
American Express: 6.90% - 19.98%
Discover: 6.99% - 24.99%
Wells Fargo: 5.24% - 22.99%
Marcus by Goldman Sachs: 6.99% - 28.99%
There’s a way that you can estimate your debt consolidation loan rates before applying. If you use WalletHub’s free personal loan pre-qualification tool, you’ll see your odds of being approved with various lenders, along with what rates you might qualify for.
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