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While Texas residents earn slightly less than the rest of the country, they also have a smaller amount of total debt.
However, although Texas residents had marginally less debt than the national average, it could still be a lot to handle. One option to more easily manage your debt is to combine it with a debt consolidation loan.
Here’s what to know about debt consolidation in Texas:
- Where to get a debt consolidation loan in Texas
- How to apply for a debt consolidation loan
- Will a debt consolidation loan affect your credit score?
- Alternatives to debt consolidation loans
Where to get a debt consolidation loan in Texas
A debt consolidation loan is a type of personal loan that lets you combine multiple types of debt and leaves you with one payment and potentially a lower interest rate.
If you’re looking for debt consolidation loans in Texas, here are a few lender options to choose from:
Online lenders
Online lenders can be a convenient choice for debt consolidation loans since you can easily shop around and compare loan options with just a few clicks of your mouse.
The time to fund for online loans is typically five business days or less — though depending on the lender, you might have your loan funded as soon as the same or next business day if you’re approved.
Here are Credible’s partner lenders that offer debt consolidation loans in Texas:
| Lender | Fixed rates | Loan amounts | Min. credit score | Loan terms (years) |
|---|---|---|---|---|
 View details | 9.95% - 35.99% APR | $2,000 to $35,000** | 580 | 2, 3, 4, 5* |
*If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state. **Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33. |
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 View details | 6.49% - 29.99% APR | $5,000 to $35,000 | 740 | 1, 2, 3, 4, 5 |
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 View details | 5.99% - 29.99% APR | $5,000 to $35,000 | 600 | 3, 5 |
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 View details | 6.99% - 24.99% APR | $2,500 to $35,000 | 660 | 3, 4, 5, 6, 7 |
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 View details | 7.99% - 29.99% APR | $10,000 to $35,000 | Not disclosed by lender | 2, 3, 4, 5 |
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 View details | 10.68% - 35.89% APR | $1,000 to $40,000 | 600 | 3, 5 |
LendingClub personal loans review †Based on a majority of borrowers from LendingClub's marketing partners who were issued loans between 1/1/19-12/13/19. The time it takes for your loan to be funded may vary. |
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 View details | 15.49% - 35.99% APR | $2,000 to $25,000 | 580 | 2, 3, 4 |
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 View details | 3.99% - 19.99% APR | $5,000 to $100,000 | 660 | 2, 3, 4, 5, 6, 7 (up to 12 years for home improvement loans) |
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 View details | 6.99% - 19.99% APR1 | $3,500 to $40,0002 | 660 (TransUnion FICO®️ Score 9) | 3, 4, 5, 6, 7 |
1Rate reduction of 0.25% available for AutoPay. 2You may be required to have some of your funds sent directly to pay off outstanding unsecured debt. 3After making 12 or more consecutive monthly payments, you can defer one payment as long as you have made all your prior payments in full and on time. Marcus will waive any interest incurred during the deferral and extend your loan by one month (you will pay interest during this extra month). Your payments resume as usual after your deferral. Advance notice is required. See loan agreement for details. |
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 View details | 18.00% - 35.99% APR | $1,500 to $20,000 | None | 2, 3, 4, 5 |
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 View details | 5.99% - 24.99% APR | $5,000 to $40,000 | 640 | 2, 3, 4, 5 |
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 View details | 6.49% - 17.99% APR | $600 to $20,000 (depending on loan term) | 670 | 1, 2, 3, 4, 5 |
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 View details | 6.95% - 35.99% APR | $2,000 to $40,000 | 640 | 3, 5 |
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 View details | 5.99% - 18.83% APR | $5,000 to $100,000 | Does not disclose | 2, 3, 4, 5, 6, 7 |
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 View details | 10.97% - 35.93% APR7 | $1,000 to $20,000 | 580 | 3 to 5 years 8 |
7Personal loans made through Universal Credit feature APRs of 10.97%-35.93%. All personal loans have a 4.25% to 8% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Information on Universal Credit’s lending partners can be found at https://www.universal-.credit.com/landing/lendingpartners 8Your loan terms are not guaranteed and are subject to our verification and review process. You may be asked to provide additional documents to enable us to verify your income and your identity. You may be required to have some of your funds sent directly to pay off your credit cards. This rate includes an Autopay APR reduction of 0.5%. By enrolling in Autopay your payments will be automatically deducted from your bank account. Selecting Autopay is optional. Annual Percentage Rate is inclusive of a loan origination fee, which is deducted from the loan proceeds. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. Personal loans made by Universal Credit's lending partners. Information on Universal Credit's lending partners can be found at https://www.universal-credit.com/landing/lendingpartners. Please refer to Universal Credit's Terms of Use and Borrower Agreement for all terms, conditions and requirements. 9Accept your loan offer and your funds will be sent to your bank or designated account within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes the transaction. From the time of approval, funds sent directly to you should be available within four (4) business days. Funds sent directly to pay off your creditors may take up to two (2) weeks to clear, depending on the creditor. |
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 View details | 6.94% - 35.97% APR | $1,000 to $50,000 | 580 | 3, 5 |
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 View details | 8.27% - 35.99% APR4 | $1,000 to $50,0005 | 580 | 3 to 5 years4 |
4The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 25.79% and 36 monthly payments of $37 per $1,000 borrowed. There is no down payment and no prepayment penalty. Average APR is calculated based on 3-year rates offered in the last 1 month. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved. 5This offer is conditioned on final approval based on our consideration and verification of financial and non-financial information. Rate and loan amount are subject to change based upon information received in your full application. This offer may be accepted only by the person identified in this offer, who is old enough to legally enter into contract for the extension of credit, a US citizen or permanent resident, and a current resident of the US. Duplicate offers received are void. Closing your loan is contingent on your meeting our eligibility requirements, our verification of your information, and your agreement to the terms and conditions on the www.upstart.com website. Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Loans are not available in West Virginia or Iowa. The minimum loan amount in MA is $7,000. The minimum loan amount in Ohio is $6,000. The minimum loan amount in NM is $5100. The minimum loan amount in GA is $3,100. 6If you accept your loan by 5pm EST (not including weekends or holidays), you will receive your funds the next business day. Loans used to fund education related expenses are subject to a 3 business day wait period between loan acceptance and funding in accordance with federal law. |
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Banks
If you already have an account at a bank, it could be worth checking to see if they also offer debt consolidation loans since you might qualify for a rate discount as an existing customer.
Here are a few regional banks in Texas that offer debt consolidation loans. Note that these lenders aren’t Credible partners.
Learn More: Credit Card Consolidation Loans
Credit unions
Because credit unions are nonprofit organizations, they sometimes offer lower rates than banks. They also tend to be more community-focused.
Here are some of the major credit unions in Texas that offer debt consolidation loans. Keep in mind that these lenders aren’t Credible partners.
- NavyArmy Community Credit Union
- Randolph-Brooks Federal Credit Union
- Security Service Federal Credit Union
No matter which type of lender you choose for your debt consolidation loan, it’s important to consider how much the loan will cost you over time. You can estimate how much you’ll pay for a loan using our personal loan calculator below.
Enter your loan information to calculate how much you could pay
With a $ loan, you will pay $ monthly and a total of $ in interest over the life of your loan. You will pay a total of $ over the life of the loan.
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Check Out: When to Use a Personal Line of Credit
How to apply for a debt consolidation loan
If you’re ready to apply for a debt consolidation loan, follow these four steps:
- Check your credit history. Lenders will review your credit to determine your creditworthiness, which is why it’s important to make sure your credit history has no errors that could be impacting your score. You can use a site like AnnualCreditReport.com to check your credit reports. If you find any errors, dispute them with the appropriate credit bureaus to potentially see a boost to your credit score.
- Compare lenders and choose a loan option. Be sure to compare as many lenders as possible to find the right loan for you. Consider not only personal loan rates but also repayment terms and any fees charged by the lender. After you’ve done your research, you can pick the loan option that best suits your needs.
- Fill out the application. Once you’ve chosen a lender, you’ll need to complete a full application and submit any required documentation, such as tax returns or pay stubs.
- Get your funds. If you’re approved, the lender will have you sign for the loan so they can release the funds to you. The time to fund for a debt consolidation loan is typically one week or less.
If you’re struggling to get approved for a personal loan for debt consolidation, another option is applying with a cosigner. Not all lenders allow cosigners on personal loans, but some do.
Even if you don’t need a cosigner to qualify, having one could get you a lower interest rate than you’d get on your own — which could help you save money on interest charges over time and potentially pay off your loan faster.
Learn More: How Do Personal Loans Work?
Will a debt consolidation loan affect your credit score?
While a debt consolidation loan could temporarily hurt your credit score, the positive impact will usually outweigh this over time.
Here are a few ways that a debt consolidation loan could impact your credit score:
- Could lower your credit utilization ratio: Your credit utilization — which is the amount of credit you’ve used compared to the total amount of credit you have available — makes up 30% of your FICO score. Consolidating your debt might help reduce this ratio and improve your credit.
- Might help payment history: Your payment history makes up the biggest part of your credit score. If you want to build your credit, consistently making on-time payments on your debt consolidation loan could help.
- Could add to your credit mix: Lenders like to see that you can handle multiple types of debt, so adding a consolidation loan to your credit mix might have a positive impact.
- Might temporarily lower your score: Because the lender will perform a hard credit pull when you apply for a debt consolidation loan, you could see your score drop by a few points. However, this effect is usually short-lived, and you’ll likely see your score bounce back within a few months.
- Could damage your credit if you miss payments: If you can’t keep up with your payments, you could see your score drop significantly.
Check Out: Pay Off Credit Card Debt ASAP With a Personal Loan
Alternatives to debt consolidation loans:
If a debt consolidation loan doesn’t seem right for you, here are a few other options to consider:
- Balance transfer credit card: If you want to pay off credit card debt, a balance transfer card could be a good choice. Some cards offer a 0% APR introductory offer, during which you won’t have to worry about interest charges on the card. If you can repay your balance before this period ends, you could avoid paying any interest. However, keep in mind that if you can’t pay off the card in time, you could be stuck with some hefty interest charges.
- Home equity loan: Homeowners might be able to access the equity in their homes with a home equity loan. If you’re considering a home equity loan vs. personal loan, note that you might get a lower interest rate on a home equity loan since it’s secured by your house. However, keep in mind that if you can’t make your payments, your home could be at risk.
- Debt management plan: These plans are offered by nonprofit credit counseling agencies — such as the National Foundation for Credit Counseling — that help you get your payments back on track with your creditors. You’ll typically make one monthly payment over three to five years, which the agency pays out to your creditors.
- Debt settlement: This service is offered by third-party companies and could help you reduce your debt, typically by negotiating a smaller lump-sum payment with your creditors. Keep in mind that debt settlement companies sometimes ask you to simply stop paying your debts as a way to gain leverage in the negotiations, which could hurt your credit. There’s also no guarantee it will work — so if you decide to go this route, be sure to consult with an attorney or the appropriate financial advisors first. Your local credit unions might also have advisors available to help you make an informed decision.
- Bankruptcy: If you can’t pay your bills, declaring bankruptcy might be an option. Note that bankruptcy can come with costly fees and could severely damage your credit for up to 10 years, so it should be a last resort after exploring all of your other alternatives.
If you decide to take out a personal loan to consolidate your debt, remember to consider as many lenders as you can to find the right loan for you. Credible makes this easy — you can compare your prequalified rates from multiple lenders that work with Texas residents in two minutes.
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About Rates and Terms: Rates for personal loans provided by lenders on the Credible platform range between 4.99-35.99% APR with terms from 12 to 84 months. Rates presented include lender discounts for enrolling in autopay and loyalty programs, where applicable. Actual rates may be different from the rates advertised and/or shown and will be based on the lender’s eligibility criteria, which include factors such as credit score, loan amount, loan term, credit usage and history, and vary based on loan purpose. The lowest rates available typically require excellent credit, and for some lenders, may be reserved for specific loan purposes and/or shorter loan terms. The origination fee charged by the lenders on our platform ranges from 0% to 8%. Each lender has their own qualification criteria with respect to their autopay and loyalty discounts (e.g., some lenders require the borrower to elect autopay prior to loan funding in order to qualify for the autopay discount). All rates are determined by the lender and must be agreed upon between the borrower and the borrower’s chosen lender. For a loan of $10,000 with a three year repayment period, an interest rate of 7.99%, a $350 origination fee and an APR of 11.51%, the borrower will receive $9,650 at the time of loan funding and will make 36 monthly payments of $313.32. Assuming all on-time payments, and full performance of all terms and conditions of the loan contract and any discount programs enrolled in included in the APR/interest rate throughout the life of the loan, the borrower will pay a total of $11,279.43. As of March 12, 2019, none of the lenders on our platform require a down payment nor do they charge any prepayment penalties.
