- 6 min read
- The US Bank offers a few debt consolidation loan solutions.
- You can choose between a personal loan, unsecured line of credit, or home equity mortgage.
- You need to be a US Bank customer for their unsecured loans. Look for other alternatives.
US Bank Online Personal Debt Consolidation Options
Do you have credit card debt, medical bills, or other types of debt that you want to consolidate into one payment? Is your credit good enough to qualify for decent interest rates? Are you considering a debt consolidation loan?
The US Bank offers several types of debt consolidation loans including a personal loan, personal line of credit, payday type loan, and home equity mortgages.
In general, the US Bank offers debt consolidation loans to existing customers, although you can establish a seasoned account before applying for an unsecured loan. If you are looking for a long-term loan and have equity in your home, then a home equity mortgage, or cash-out refinance might be your best alternative.
Looking for a Debt Consolidation Loan
Bills.com makes it easy to shop for a debt consolidation personal loan. Start by filling in your credit score, zip code, loan purpose, and the amount of loan you need. Check out different offers and click on the appropriate ones.
US Bank Premier Loan - Unsecured Debt Consolidation Loan
The US Bank Premier loan is a short-term personal loan. You can use it for a variety of purposes including home renovations, major purchases, weddings, or debt consolidation.
According to the US Bank website,
As of October 15, 2018 the fixed Annual Percentage Rate (APR) ranged from 7.49% APR to 17.99% APR, and varies based on credit score, loan amount and term. Minimum loan amount is $3,000 and loan terms range from 12 to 60 months. Interest rates are lowest for customers who have loans over $5,000 and have other an automatic paying system and a US Bank Consumer Checking package."
Pros: If your current credit card interest rate is above those offered by US Bank, then you might benefit from a debt consolidation loan. The most significant benefits of the loan are fixed payments, no origination fees, and an online application process.
Cons: However, you need to verify your income, have good to excellent credit and be a US Bank customer.
US Bank Premier Line of Credit - Flexible Debt Consolidation Option
If you are looking for more flexibility, then a line of credit may be a good option. Unlike an installment loan, you do not have to take out the full amount all at once. The US Bank Premier Line of Credit is similar to a credit card but offered through your bank.
You do not have to utilize the full amount of your credit line and only pay interest on the amount you owe. The US Bank Premier Line of Credit is not your traditional debt consolidation loan, however, as the US Bank states you can,
Find relief from credit card balances and other high-interest debt. With a competitive APR, currently 12.25%, a Premier Line of Credit could be your option for consolidating debt.
One thing to keep in mind is that a line of credit is a variable rate based upon an index and a margin. The APR varies with the Prime Rate.
Pros: The main benefit of the line of credit is that you can take out as much money as you need, and make aggressive payments to pay off the line of credit. If you have emergencies, you can utilize the line of credit as required. If your credit score is high, then your interest rate might be lower than credit card companies rates.
Cons: While they advertise no annual fees, there are various cash fees including a Cash Advance ATM fee: 4% of each advance amount, $15 minimum Cash Equivalent fee: 4% of each cash amount, $20 minimum. And a Foreign Transaction fee: 3% of each foreign purchase transaction or foreign ATM advance transaction in a Foreign Currency.
US Bank Mortgage and Home Equity Loan Debt Consolidation
Are you looking for a longer term loan with lower monthly payments? If you own a home, and your total Loan to Value ratio (including your current mortgage and any new debt consolidation loan added) is under 80%, and you have good to excellent credit, then the US Bank offers a few debt consolidation mortgage products including a cash-out refinance mortgage, Home Equity Loans and a Home Equity Line of Credit.
Their home equity loans are at competitive rates. According to their website,
As of June 23, 2018, the fixed Annual Percentage Rate (APR) of 4.89% is available for 10-year second position home equity installment loans $50,000 to $250,000 with loan-to-value (LTV) of 70% or less. Higher rates apply for higher LTV, certain property types, lower credit scores or other loan amount. In order to receive the lowest rate advertised, a set-up of automatic payments from a U.S. Bank Consumer Checking Package account is required.
US Bank Simple Loan
The US Bank offers small-sized loans between $100-$1000 payable in three monthly installments. It is an alternative to expensive payday loans and not a real debt consolidation alternative due to its small size.
The Simple Loan is intended to fill in the gap for an emergency and not to solve debt problems. If not managed properly, this type of loan adds to your debt burden and comes with a hefty price. While the US Bank mentions that there are no hidden fees, The loans have substantial fees, as noted on their website:
Simple pricing with no late fees or prepayment fees. For every $100 borrowed you pay: $12 fee with automatic payments from your U.S. Bank consumer checking account Or $15 fee with manual paymentsThe APR would be about 70% on the automatic payment schedule. If you borrow $500, then your total fees would be $60 and you would make three monthly payments of $226.67.
Pros: The US Bank Simple Loan is not a debt consolidation loan. It might be an excellent alternative to pay off an emergency bill when you don’t have any liquid assets and avoid fees associated with an overdraft facility or selling off stocks or bonds.
Cons: The US Bank loan is expensive. Don't rely on short-term expensive loans to pay for bills or your debt. The US Bank does recommend looking into other alternatives before taking out a Simple loan.
Alternatives to US Bank Debt Consolidation Loans
A personal loan, a line of credit, or a mortgage are several debt consolidation solutions. However, they may not work for you. It is important to find a debt relief solution that fits your financial situation. Are you struggling with monthly payments? Do you have a steady income? Or are you facing collection calls?
Find a debt consolidation solution by using Bills.com innovative tool, the Debt Navigator. It requires just three easy steps. Tell us about your debt situation and we run a soft credit pull that doesn't affect your credit score. Get a recommended solution and custom offers. Then, select a plan that helps you get debt free.
Struggling with debt?
Debt is used to buy a home, pay for bills, buy a car, or pay for a college education. According to the NY Federal Reserve total household debt as of Q2 2022 was $16.15 trillion. Auto loan debt was $1.50 trillion and credit card was $0.89 trillion.
According to data gathered by Urban.org from a sample of credit reports, about 26% of people in the US have some kind of debt in collections. The median debt in collections is $1,739. Student loans and auto loans are common types of debt. Of people holding student debt, approximately 8% had student loans in collections. The national Auto/Retail debt delinquency rate was 4%.
Collection and delinquency rates vary by state. For example, in Virginia, 16% have student loan debt. Of those holding student loan debt, 7% are in default. Auto/retail loan delinquency rate is 4%.
To maintain an excellent credit score it is vital to make timely payments. However, there are many circumstances that lead to late payments or debt in collections. The good news is that there are a lot of ways to deal with debt including debt consolidation and debt relief solutions.