Quicken Debt Consolidation Review
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Struggling to pay off high-interest-rate credit card debt? Are you juggling medical bills and student loan payments, worried about missing your due dates because you face so many monthly payments? A debt consolidation loan from Quicken Loans can help.
Quicken Loans offers personal loans that you can use to pay off other debts, including the money you owe on your credit cards or other loans. This will save you money and reduce the number of payments you’re required to make each month.
The downside? You might not qualify for a large enough personal loan to pay off all your debt. Quicken Loans also charges an origination fee on its personal loans. This means that taking out a personal loan for debt consolidation can be costly, depending on how much you are borrowing.
And a personal loan from Quicken Loans won’t make any of your existing debt disappear. You’ll just use the funds from this personal loan to pay off what you owe your other creditors. You’ll still need to pay on your Quicken Loans personal loan on time or face late-payment penalties.
Even with these downsides, a personal loan from Quicken Loans can help you gain control over your credit card debt, medical debt, and the money you owe from higher-rate personal loans. If you use a personal loan to consolidate your other debt, you can reduce the monthly payments you make. You can also swap out higher-interest-rate debt for a personal loan with a lower interest rate, meaning you’ll pay less over time to pay off those debts. Quicken Loans also offers other loan types, including auto loans, jumbo loans, VA loans, FHA loans, fixed-rate loans, and adjustable-rate loans.
And if you own a home? You can apply for other loan options from Quicken Loans to help pay off existing debt, including a home equity loan or cash-out refinance. Unlike other mortgage lenders, though, Quicken does not offer home equity lines of credit or HELOCs, another way that homeowners can tap the equity in their homes to pay off their existing debt. Read out Quicken Loans review to learn more.
In this article
What is a debt consolidation loan from Quicken Loans?
You can apply for a personal loan from Quicken Loans, ranging from $2,000 to $45,000. You’ll repay what you borrow with regular monthly payments with interest. It offers loans with terms of either 36 or 60 months, three or five years.
When you qualify for a personal loan, you’ll receive your money in a lump-sum payment, deposited directly into your bank account. You can then use that money however you’d like.
If you have high-interest-rate credit card debt, you might use the funds from your personal loan to pay it off. This can make financial sense because of the high rates that credit card debt typically carries, with many cardholders saddled with interest rates up to 29%. The interest rate on a Quicken Loans personal loan will vary depending on your credit report, but you might qualify for a personal loan with an interest rate of under 15%. If you then use the money from this personal loan to eliminate your higher-rate credit card debt, you can save thousands of dollars.
Consider this example: Say you owe $16,000 in credit card debt with an APR – the total cost of your debt, including your interest rate and any fees – of 23.24%. If you pay $376.83 each month and make no other purchases with that card, it will take you 91 months, or 7.6 years, to pay off that debt. You'll pay $17,940 in interest in addition to the $16,000 you owe.
Say you take out a personal loan from Quicken Loans for $16,000 with an APR of 17.9% and a term of five years. Say, too, that it charges an origination fee of $1,112 for your loan. If you use that money to pay off your existing credit card debt and make the same $376.83 monthly payment, you'll pay an extra $7,744.48 over five years in addition to the $16,000 you've borrowed.
Using a Quicken Loans personal loan to consolidate your credit card debt instead of paying it off on your own can save you $10,196.
If you’ve built equity in your home, you can use a home equity loan or cash-out refinancing to consolidate your debt. Equity is the difference between what you owe on your mortgage and how much your home is worth. If your home is worth $350,000 and you owe $150,000 on your mortgage, you have $200,000 in equity. You can then borrow a percentage of that amount, usually up to 80%, as a home equity loan or cash-out refinance.
As with a personal loan, you’ll repay your home equity loan with regular monthly payments with interest. The upside of home equity loans is that they come with lower interest rates than personal loans. The downside? If you stop making your payments, your lender could foreclose on you and take over your home ownership. That can’t happen with a personal loan because these loans are unsecured, meaning you are not using any assets, such as your home, as collateral.
With a cash-out refinance, you refinance to a new loan for more than you owe on your current mortgage. Say you owe $200,000 on your mortgage. You can refinance to a new loan of $250,000 and receive the extra $50,000 in cash you can use however you’d like. You’d then repay the total of $250,000 with regular monthly payments with interest.
To apply for a cash-out refinance or home equity loan with Quicken, you’d work with Rocket Mortgage (the sister company of Quicken Loans) instead of with Quicken Loans.
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- Cash Out Refinance
- Home Equity Loans
- Home Equity Line of Credit
- Personal Loans
- Home Equity Alternative Solutions
- Connect with Providers
How a debt consolidation loan from Quicken Loans works
When you apply for a personal loan through Quicken Loans, the company will review your credit reports and three-digit credit score. The company says that it typically requires that borrowers have a FICO minimum credit score of 640 or higher to qualify for a personal loan. That’s considered a “fair” FICO score.
To apply for a debt consolidation loan from Quicken Loans, you must be 18 and a resident of the United States. You must also live in one of the 48 states where Quicken Loans is available. The only states that it doesn’t lend in are Iowa and Nevada. If you are looking for a home equity loan or cash-out refinance to consolidate debt, you can live in any state: Rocket Mortgage, which provides those equity loans, lends in all 50 states.
You can apply for a Quicken Loans personal loan online at the company’s home page.
Click on the red “Get Started” button on the home page. That will bring up an online loan application. First, you’ll need to provide basic information about how you want to use your personal loan, whether you own a home or rent or are employed. The lender will also want to know your estimated annual income before taxes are taken out. This helps determine how much of a monthly personal loan payment you can afford.
Quicken will also ask you for information about yourself, including your home address, name, and phone number.
You’ll also be required to provide your email address and Social Security number.
At the bottom of this page, you’ll see a red “See My Options” button. Click on that to proceed with your application. If the company approves your application, you’ll often receive your funds on the same day if you elect to have them deposited directly into your bank account.
Once you receive your money, you’ll repay Quicken Loans with regular monthly payments, with interest, until you repay what you’ve borrowed.
How much does a debt consolidation or personal loan from Quicken Loans cost?
Taking out a personal loan from Quicken Loans isn’t free. The company charges an origination fee of up to 9% of your borrowing amount. This fee is deducted from your balance before it sends you your money.
If you are borrowing $30,000, your origination fee could be as high as $2,700. Quicken Loans would deduct that $2,700 from the amount you borrow, leaving you with a loan amount of $27,300. Consider these closing costs when determining how much you need to borrow.
- Complete Our Questionnaire
- Compare Solutions
- Cash Out Refinance
- Home Equity Loans
- Home Equity Line of Credit
- Personal Loans
- Home Equity Alternative Solutions
- Connect with Providers
Features of a Quicken Loans personal loan
Online application
If you’d rather not speak with a loan officer, Quicken Loans might be a good option. You can apply for a personal loan or debt consolidation loan completely online without ever speaking to a person.
Interest rates will vary
The interest rate assigned to your Quicken Loans personal loan will vary. The company says it looks at your credit score, income, and other financial factors when determining your rate. The higher your credit score and the lower your debts, the more likely you are to qualify for a lower interest rate. Quicken Loans says its minimum APR for personal loans is 9.116%, and its maximum APR is 29.99%. Remember, APR measures your loan's total cost, including your loan’s interest rate and any fees charged by your lender.
Flexibility
You can use the money from your debt consolidation or personal loan however you’d like, whether you use the dollars to throw your wedding, pay for home renovations, or pay off high-interest-rate credit card debt.
Two repayment options
You can choose a loan term of either 36 months – three years – or 60 months – five years. If you choose the shorter-term 36-month option, you’ll pay less in interest over time, making your personal loan less expensive. But your monthly payment will be higher because you will be paying back what you borrowed in two fewer years. If you choose the five-year option, your monthly payment will be lower, but you will pay more in interest.
Unsecured loans
Quicken Loans debt consolidation and personal loans are unsecured, meaning that Quicken Loans won’t be able to take any of your assets – including your home or car – if you fail to make your payments. If you instead apply for a home equity loan or cash-out refinance, you could lose your home if you stop making payments. These loans are secured, with your home serving as collateral. It’s why home equity loans and cash-out refinances typically have lower interest rates than unsecured personal loans: Lenders consider them less risky.
Pros and cons
Pros
- You can choose either a 36-month or 60-month term.
- The loan process is entirely online.
- You can receive your money on the same day on which you apply.
- Quicken Loans personal loans come with lower interest rates than you’ll usually get with credit cards.
Cons
- Quicken Loans charges an origination fee of 9% of whatever you borrow.
- You’ll need a FICO credit score of at least 640 to qualify.
- You can only borrow a maximum of $45,000 with a Quicken Loans debt consolidation or personal loan.
- Quicken Loans does not operate in Nevada or Iowa. You can’t apply for a personal loan if you live in either of those two states.
Who should apply for a Quicken Loans personal or debt consolidation loan?
Borrowers with at least a solid credit score. You’ll need a FICO credit score of at least 640 to qualify for a personal loan from Quicken Loans.
Borrowers with a significant amount of credit card debt. A personal loan from Quicken Loans can help if you are struggling to pay off credit card debt that comes with high interest rates. That’s because the rates with personal loans, including those from Quicken, are typically lower than credit card interest rates, which can often rise as high as 29%.
Borrowers who face a financial emergency. A personal loan can help if you are facing a financial emergency, such as a car that won’t start or a burst hot water heater. With Quicken Loans, you’ll often receive your money on the same day you apply for your loan.
Who should not apply for a Quicken Loans personal loan?
Borrowers with a low credit score. If your FICO credit score is under 640, you will unlikely qualify for a debt consolidation loan from Quicken Loans. And even if you do, you might be hit with a high interest rate. Quicken Loans says it looks at your credit and other financial information when determining the interest rate to assign your loan. Hence, if you have bad credit, it is best to look elsewhere.
Borrowers who need a lot of money. Quicken Loans personal loans are limited to a maximum of $45,000. If you need more money, you should consider a different lender.
- Complete Our Questionnaire
- Compare Solutions
- Cash Out Refinance
- Home Equity Loans
- Home Equity Line of Credit
- Personal Loans
- Home Equity Alternative Solutions
- Connect with Providers
Quicken Loans vs. competitors
Lender | Origination fees | Borrowing limit | APR range |
Quicken Loans | Up to 9% of the amount that you borrow. | Can borrow up to $45,000. | 9.116% to 29.99% |
SoFi | No fees. | Can borrow from $5,000 to $100,000. | APR varies, but can range from 8.99% to 29.49%. |
Upstart | The origination fee ranges from 0% to 12% of the amount you are borrowing. | Can borrow from $1,000 to $50,000. | APR ranges from 7.8% to 35.99%. |
SoFi
As with Quicken Loans, you can apply for a loan with SoFi completely online. You might also receive your money on the same day your loan is approved. Unlike Quicken Loans, SoFi charges no origination fee for personal loans. SoFi also allows you to borrow a greater amount of money: You can borrow up to $100,000. You must apply for a personal loan of at least $5,000.
Your loan APR will vary depending on your credit, income, and other financial factors. But SoFi says that its APRs range from a low of 8.99% to a high of 29.49%.
Upstart
Another online lender, Upstart offers personal loans with terms of 36, 60 or 85 months. The longer your term, the lower your monthly payment but the more you’ll pay in interest. Upstart also promises that it can deposit your loan amount into your bank account on the same day on which it approves your application.
Upstart’s origination fee can range from 0% to 12% of your loan amount, depending on your credit. You can borrow from $1,000 to $50,000 with an Upstart personal loan.
Your APR will vary according to your credit, but Upstart says APRs on loans range from 7.8% to 35.99%.
The bottom line
A personal loan from Quicken Loans can help you consolidate your high-interest-rate debt, pay off your credit card debt, or cover the costs of an emergency. Remember, though, that a personal loan will not eliminate your existing debt. If your goal is to consolidate your debts into one monthly payment, make sure to use your Quicken Loans personal loan to pay off your other debts and not on other expenses. Then, make your monthly payments on time to avoid late fees or hits to your credit score.
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Writer
Dan Rafter is a freelance writer who has more than 20 years experience covering personal finance. He's written for the Chicago Tribune, Washington Post, Bankrate, CreditCards.com, Rocket Mortgage, NortonLifeLock and several others.
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