Debt Consolidation Loan

The Debt Consolidation Loan at Adventure Credit Union was designed with you in mind!  We want to help you live a better financial life in Grand Rapids, Lansing and other parts of Michigan.

Benefits of Consolidating Debts:

• Pay less interest: When you have credit card debt, you're likely paying high interest rates.  The average credit card rate in the United States is currently 21.07% APR*.  Adventure Credit Union's Debt Consolidation Loan features a fixed interest of just 11.49% APR.**  Having a lower interest rate means that more money from each payment goes towards the principal balance owed, and less towards interest charges.
  
  
• Pay off debt faster: Credit cards are revolving lines of credit.  Each month, a credit card statement tells you the minimum amount due, and your total balance.  When you opt to make only the minimum monthly payment, you're (usually) paying a percentage (e.g., 2% to 4%) of the balance outstanding.  Over time, as your balance goes down, so does your minimum monthly payment.  This payment model makes it take a long time to pay off your balance in full.
  Adventure Credit Union's Debt Consolidation Loan has a predefined term of your choice, ranging from 12 to 60 months.  Each month, you'll pay an equal installment of your original loan amount.  This means your monthly payment will always be the same, giving you consistency in your budget, and paying off your balance faster.  From day one with your Debt Consolidation Loan, you'll know when it will be paid in full.  Plus, you're welcome to pay off your loan early without any penalties.
  
  
• Lower monthly obligations:  While not guaranteed, it is possible that consolidating multiple debts into one Debt Consolidation Loan could actually result in a lower monthly payment.  Our Trusted Financial Guides in Michigan can look at your unique situation once your application is submitted.
  
  
• Simplify your finances: According to Experian, Americans have four credit cards on average***.  That potentially means four different balances, four different interest rates, and four different payment due dates.  To further complicate matters, credit cards often different fees and penalty APRs if a payment is missed.  You can simplify your finances by consolidating all of your credit card debts into one loan with a fixed interest rate.

*Accurate as of 9/20/2023.  Source: Creditcards.com

**APR = Annual Percentage Rate. Rate valid as of 9/25/2023, and subject to change without notice.  Rate is based on term and creditworthiness.  Not all members will qualify for the lowest rate.  Max. loan amount is $30,000.  Max. term is 60 months.  At 11.49%, repayment schedule is 60 monthly payments of $21.99 per $1,000 borrowed.

***Accurate as of 4/8/2021.  Source: Experian.com

If you are not yet a member of Adventure Credit Union, you are still welcome to apply for a Debt Consolidation Loan.  If your loan application is approved, you will need to join the credit union before your loan can be disbursed.  Don't worry, we'll walk you through the process, and it only requires a $5 deposit to your new share account.

Adventure Credit Union is open to anyone who lives, works, worships, or attends school in the following counties: Allegan, Barry, Clinton, Eaton, Ingham, Kent, Livingston, Newaygo, Ottawa, and Shiawassee.

Have questions for us?  Click the "Chat with Us!" button or text us at 800.323.2129 between 9am - 5pm, Monday - Friday.  After-hours, please call us at 800.323.2129.

Who is Adventure Credit Union?

Simply put, we're like a bank but better!  Like a bank, we offer financial services: personal loans, mortgages, savings accounts, checking accounts, and more.  Unlike a bank, we're a not-for-profit organization owned by our members.  This means, we work in the best interest of our members (i.e., accountholders) rather than investors.  Our non-profit status allows us offer low interest rates on our Holiday Loans and keep our account fees to the bare minimum.  When you open a share account with Adventure Credit Union, you'll never be charged a minimum balance fee or an account maintenance fee.

How do I join?

If you are seeking a Debt Consolidation Loan, we suggest following these steps.

1. Apply for your Debt Consolidation Loan
2. Wait for us to respond via email
3. We'll walk you through opening your new membership

Even if your Debt Consolidation Loan application is denied, you're still welcome to apply for membership at Adventure Credit Union.

Get Rate Rewards on your next loan by doing these everyday actions on your checking and savings accounts!

AutoPay Reward*  
 0.15% APR* rate discount for setting up an automatic payment from an Adventure share.

Usage Reward*
0.15% APR* rate discount for meeting the following usage requirements:
▶   10 debit card transactions within the last 30 days
▶   Membership enrolled in eStatements
▶   $100 direct deposit or mobile deposit within the last 30 days

If you meet both requirements you can lower the interest rate on most new loans by .30% APR*! There is no timeframe restrictions to qualify and the Rate Reward is good for the life of the loan. Rewards will be automatically applied to your loan.

_{*APR = Annual Percentage Rate. Not valid on all loans, ask an Adventure team member for more information. These Rate Rewards are a one-time discount and available only for loans opened after 10/5/2020. Loan payment will not change, discount impacts the interest that is being applied to the loan. Rate Rewards will be applied to loans automatically.}

Whenever you apply for a loan or a credit card the lender will need to complete a hard inquiry on your credit history.  According to FICO, a hard inquiry will initially drop your credit score by about 5 points, however this drop will be temporary.  However, consolidating debt has the potential to improve your credit score over time in two ways: 

The #1 factor that determines your credit score is paying your bills on time.  Consolidating multiple credit cards and other debts into one monthly payment (i.e., a debt consolidation loan) makes this easier.  Instead of keeping track of multiple payment amounts and due dates- you’ll just have one.  Plus, if you set up automatic monthly payments, and we’ll reward you with a 0.15% APR Rate Reward.

The #2 factor determining your credit score is something called “credit utilization ratio.”  This is simply a measure of how much of your available revolving credit that you’re currently using.  As an easy example: if you have two credit cards that each have a $5,000 limit, your total available revolving credit is $10,000.  If you owe $4,000 on each of your cards, you’re using a total of $8,000 or 80% of your available revolving credit.  Credit Bureaus like to see your “credit utilization” at 30% or less.

When you use a Debt Consolidation Loan to pay off your credit card balances, your credit utilization ratio could drop all the way to 0%.  This will boost your credit score over time.