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Bankrate In-Depth Review
In a nutshell: Bankrate is one of the oldest and most well-known financial marketplaces today.
Bankrate In-Depth Review
In a nutshell: Bankrate is one of the oldest and most well-known financial marketplaces today.
Bankrate In-Depth Review

Overview

Bankrate provides loan comparison services to help borrowers find the best loan for their needs from top private lenders. You can quickly view the rates and terms of multiple lenders all in one place to help streamline the loan selection process after providing a little bit of basic information about yourself. Bankrate is not a direct lender, so you’ll have to contact the lenders listed on the Bankrate website to apply for loans or to ask questions about loan rates or terms.

Eligibility Process

If you find yourself in over your head with debt, consolidating it all into a single monthly payment could simplify your finances. You can do so with Bankrate through a simple 4-step process:

Step 1: Calculate the Loan Amount

How much money do you need to borrow? By calculating the total amount of debt you owe, you can understand how much you need to consolidate your debts.

Bankrate has a convenient online calculator to help. With this free tool, you can estimate your new monthly payment based on the amount you need to borrow, the interest rate, and your credit score. (The better your score, the better your APR rates. So you’ll want to know your credit score before applying. You can usually find your score through your bank or credit card account online.)

Step 2: Get Prequalified

Getting pre-qualified will make it faster and easier to apply for your loan. Bankrate offers quick prequalification for personal loans. You can get customized rates and terms from multiple lenders in just a few minutes after answering a couple of questions. The service is free and doesn’t have any impact on your credit score.

To discover which loans you prequalify for, you’ll have to provide Bankrate with your name, email address, phone number, date of birth, credit score, and social security number. They also ask for your home address, your zip code, whether you rent or own, and how much you pay monthly in housing expenses. Other information you’ll have to disclose includes the amount you want to borrow, why you need a loan, and your annual income.

Before you apply, keep in mind that Bankrate does have eligibility requirements. To use Bankrate’s services, you must be at least 18 years old and a resident of the United States.

Step 3: Compare and Complete the Application Process

Once you submit an application, you’ll receive a list of loan options from their network of lenders, including banks, credit unions, and online lenders. This gives you the chance to compare loans and choose the best option for your financial situation.

Once you find the ideal loan, you can continue finalizing the application process. Typically, you’ll need to submit documents such as pay stubs, tax returns, and proof of ID.

Step 4: Consolidate Debt

Once you receive your money, you can use it towards paying off multiple debts. That leaves you with your consolidated loan from Bankrate, simplifying your debt into a single monthly payment.

Debt Services

Though Bankrate is not a direct lender, you can use their services to find the right loan for consolidating your debt. The debt consolidation section of the Bankrate website explains the pros and cons of consolidating your debt and also explains alternative options you might want to consider. It’s important to know the interest rates you’re currently paying on your debt before using Bankrate’s debt services because this will help you find loans with lower rates.

Before you start comparing loans, Bankrate asks that you specify the amount you’d like to borrow and why you want to take out a loan. You’ll also need to provide your credit score, zip code, and annual income. Once you’ve given Bankrate all of this information, you’ll get personalized loan options from top private lenders.

You should consider interest rates, repayment terms, and fees when comparing loans using Bankrate. For in-depth loan offer information, you’ll have to visit the website of the lender listed on Bankrate. Along with terms and rates, Bankrate provides reviews of each lender they recommend to help you find the best match for your needs.

Types of Debt Covered

When you’re using Bankrate to compare loans for consolidating debt, the type of loans offered is personal loans. This means you can technically use the funds you qualify for to pay off any type of debt you wish. Bankrate’s service is designed to help you find a personal loan with better terms and lower interest rates than other loans and other types of debt you already have.

Bankrate lists credit card debt, student loan debt, and medical debt as the three main types of debt a personal loan can be used to consolidate. Credit card interest rates can be high and repayment terms don’t have much flexibility. You can use Bankrate to find a loan with a lower interest rate to help you pay off your credit cards faster and save on interest.

The loans offered through the providers Bankrate partners with are also great for consolidating multiple student loans into a single payment. Also, you can often get a lower interest rate than those offered for private student loans. Consolidating medical debt with a personal loan is a good option if your medical provider doesn’t have payment plans or if your monthly payments are higher than what you can afford.

Customer Support

Bankrate is not a lender, so they won’t be able to provide any assistance with debt consolidation loans you may learn about and apply for through their website. To ask questions about a loan application or to get help with your loan after you qualify, you’ll have to contact the lender you’ve signed with. However, Bankrate does have an online form you can fill out if you’d like to contact the company for any reason. Bankrate also has an active online presence and can be reached on Facebook, Twitter, LinkedIn, or Instagram.

The Bankrate website is full of helpful resources to help you make the best decisions when it comes to debt consolidation. From loan calculators to informative articles and blog posts, you can find everything you need to educate yourself on debt consolidation and the personal loan process. Bankrate frequently publishes new material related to personal loans and debt consolidation on its site.

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Pros
  • Large network of loan providers
  • No “middleman fees” charged
  • Easy-to-use filters
Cons
  • Not a direct lender
  • Need personal information to pre-qualify
  • Limited customer service
Bankrate at a Glance
8.0 Editorial Score
Application process
9.0
The application can be completed swiftly on their website with only essential documentation
Customer support
7.0
Primarily provide support via their help center articles or via an online form on their website
Eligibility criteria
9.0
Wide range of debt types, minimal proof of financial hardship, consider various income sources, operates across most states
Customer rewards
7.0
Standard service with no added perks or customer rewards
Financial tools and resources
8.0
Loan comparison tools and calculators, credit card comparisons, rate tracking
FAQs About Debt Consolidation Loans
Looking to improve your financial well-being and consolidate your debt? In addition to comparing the top debt consolidation lenders, we've compiled some of the most commonly asked questions about debt consolidation.
What is debt consolidation?
Debt consolidation refers to a financial strategy that combines high-interest debts into a single, lower-interest monthly payment. Consolidation loans have fixed terms and fixed interest rates, so you can take control of your debt, know exactly when you will be debt-free, and pay off your debt faster.
How does debt consolidation work?
Those looking to consolidate debt usually have two different options. A 0% interest, balance-transfer credit card involves transferring debts onto the card and paying the balance in full during a promotional period. Another type of debt consolidation provides a fixed-rate personal loan in which borrowers use the money from the loan to pay off debts before paying back the loan in installments according to new terms.
Does debt consolidation affect credit?
Debt consolidation can help improve credit if it helps someone make payments on time while also reducing the amount of money owed on different accounts. However, credit can suffer if the person continues to run up credit card balances again or miss payments.
What is the best debt consolidation solution?
The best debt consolidation lender for you will depend on several factors, including the amount of debt, type of debt (s), financial history, and what type of terms you are looking for. Those looking for a quality debt consolidation loan should consider these factors and review the different options using our comparison and in-depth reviews.
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