Debt consolidation is basically refinancing existing debt using a new loan to pay off your credit card, bills, unsecured debts. With one single loan payment to make each month with lower interest rates.
Lot of times consolidating debt with a loan is a good idea and in many situations you can get financial freedom, less stress.
Example: Retail credit cards are often as much higher rate may be 20% to 24%, by doing consolidation at lower rates you can save lot of money.
Not just a credit score, direct lenders also consider repayment capacity, character, how long have you been in the job, also in the same home or moving around.
Apply for easy to get debt consolidation loan online to pay off all of your revolving high-interest debt, an existing loan, refinance mortgage and lower your payments, consolidate bills, pull out cash.
Debt consolidation loan lenders are specialize in providing a loan for every type of borrowers – whether you have a bad credit score or a lower than average one.
Get quick approval and consolidate all of your debts with fixed monthly payment. Compare consolidation loans from various companies with no hard credit check and get best rates & terms in a few steps online.
Save thousands on your interest rates, find your lowest rate from competing lenders Loans up to $100K. Debt consolidation interest rates today starts from 5.99 % Checking rates won’t affect your credit score.
Pay off loan early, there is no prepayment penalties. It takes less than 10 minutes to get pre approval.
Checking your rate won’t affect your credit score !
“Don’t quit, when the funds are low and the debts are high”.
Applying online for debt consolidation loan eliminates high pressure sales tactics. You can complete the deal from the comfort of your home or office.
Getting consolidation loans online is simply a matter of knowing how much loan you want and completing the application form. Everything is right at your fingertips from applying, comparing rates, options & term, to obtaining financing.
Going forward, kindly note this information before you apply online:
How Online debt consolidation loans lending works?
Guaranteed debt consolidation loan typically work like an installment loan with a fixed repayment period. When you make your monthly payment on time each month, this will help you in getting out of debt and also improve your credit score.
For individuals who are struggling to keep up with their repayments on their loans or lines of credit, a debt consolidation loan can be a real lifeline.
Click below & apply online. Fill in the application with basic information about yourself, work, credit score, loan amount etc.. and submit. Wait for the online lenders to review your application in real time.
It’s easy to apply for a loan through pickalender.com(loan marketplace) – It’s application form takes less than 5 minutes and you should be able to get an instant decision.
Average debt consolidation loans APR starts at 5.99% to 36% includes origination fee. Your APR is not only based on your credit score but also depends on your loan term, income & DTI.
Note: This is just an estimated APR. You must apply to know your exact APR. APR will be decided using several other factors as well. Checking your rate won’t hurt your credit score.
The interest rate on debt consolidation loan are higher than home equity loan but lower than credit cards, making a good choice to consolidate debt.
1. Quick Tip: There are several ways to pay off debts. It is wise to first ask your family or friends who are willing to lend for 0 to low rates.
There are many debt consolidation companies in US and few are BBB accredited. Some of them offer home equity loan, p2p debt consolidation companies offer unsecured loan. For balance transfer you can prefer your own bank if you have excellent credit.
Debt consolidation loans guaranteed approval for bad to excellent credit. Today, you can get lower interest rates, higher loan amount with flexible terms & with no to low origination fee. In some cases, your loan can be prequalify, approved and funded within 24 hours.
With the help of these companies, consumers can pay off debts with better rates & terms. You can check loan eligibility & rate without affecting your credit score.
Direct loan online companies will do a soft full and give you an estimated APR based on your credit score you mention in the application.
Don’t forget to read the lending disclosure before you e-sign.
Some of the best companies that can be used for credit card consolidation are as follows: These loan companies provide several benefits for their consumers like co-sign option, autopay option, pay directly to creditors, no prepayment penalties, and low fixed monthly payments.
without origination fee available for min 660 credit score & above:
These reputable consolidation loan lenders we present to you have an easy approval process and may be able to provide you with the finances you need by the next business day.
To get an online debt consolidation loan from direct lenders, you must have a steady job with guaranteed income & credit score. Lenders will look at your credit history and present financial condition before they offer you a consolidation loan.
Watch Loan Companies Review Video(3 minutes) on Youtube:
Monthly income & credit score decides your exact loan amount & interest rates.
And Debt to income ratio will be used to fix your monthly repayments & term. Lenders will offer what you can offer to pay not what you ask.
2.Quick Tip: Good, if you have a stable job and staying in the same residence for a longer time.
Prosper is a huge market leader in p2p loan—a popular online lending alternative to traditional loans and investing. Prosper cuts out the middleman to connect people who need money with those who have money to invest.
Borrowers choose a loan amount, purpose and post a loan listing. Investors review loan listings and invest in listings that meet their criteria. Once the process is complete, borrowers make fixed monthly payments and investors receive a portion of those payments directly to their Prosper account.
It targets borrowers who are both high-income and have good credit. Like Lending Club, it’s a central clearinghouse that matches interested individuals or financial institutions to your request.
You’ll need a minimum FICO of 640 to be approved. They offer their customers low origination fees, ranging from 1% to 5%, but the APR range is a more standard 5% to 36%.
Prosper terms and conditions:
Upstart allows consumers a quick and easy personal loan for debt consolidation from $1,000 to $50,000. Upstart have simplified the process and created tools to give you a hassle-free experience with your personal loan.
If you’re struggling with debt, you’ve probably been tempted by the debt consolidation loan which is so popular among the people with good credit. Upstart helps you in transferring your credit card debt into one lower interest consolidated loan.
In less than 5 minutes, borrowers can get rates and receive the funds the next business day. With fixed-rate APRs starting at 4.68%, Upstart offers competitive loans with no prepayment penalties or hidden fees.
Upstart Funding Reviews:
Loans are issued in all 50 states (except: West Virginia, Guam, U.S. Virgin Islands, Puerto Rico, American Samoa, Northern Mariana Islands) by Cross River Bank, a federally insured New Jersey commercial bank.
Upstart debt consolidation can be a real lifeline. However, before you dive straight into the upstart loan for debt consolidation, it is important to compare loan rates with other lenders as well.
Visit pickalender.com a loan marketplace helps you to compare rates of upstart, Marcus, avant, prosper, sofi, lightstream, lendingclub etc., and allow you to choose the best loan options based on your requirement for free !!
Checking and comparing rates won’t affect your credit score.
LP won’t offer the best terms, but can be approved with a FICO as low as 620 and an annual salary of $30,000. Your APR will be between 15.5% and 35%.
You may pay an origination fee 0% to 6%, but some loans are not subject to this fee. Loan amounts range from $2,000 to $25,000 over a payback period of two to four years.
Lending Point was founded in September 2014 and introduced its personal loan product to the market in December 2014.
It is a consumer finance company focusing on an overlooked customer base underserved by traditional lenders. Lending Point’s customer base is typically in the 620-699 FICO score range.
LendingPoint terms and conditions:
Alabama, Alaska, Arizona, Arkansas, California, Delaware, Florida, Georgia,Hawaii Idaho, Illinois, Iowa, Indiana, Kansas, Kentucky, Louisiana, Michigan, Minnesota.
Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, South Carolina, Tennessee, Texas, Utah, Virginia, Washington
Best Egg targets borrowers who aren’t necessarily high-income, but who have a good established credit history. You’ll need a minimum FICO score of 640 to be approved.
Best Egg loans terms and conditions:
The APR rate ranges from 6% to 30%, and you can borrow from $2,000 to $35,000. Interestingly, BestEgg only lets you select a repayment term of either three or five years. Origination fees range from 1% to 6%.
Most loans are funded within 24 hours of approval, and nearly all within 48 hours
Lending Club matches a mix of financial institutions and individual investors to their loan customers. The company acts as a middleman and handles your payments and enforcement of the terms.
It is more of an “upmarket” option, targeting customers with an annual income over $50,000 and with a credit score around 700 (though they will accept scores as low as 620).
They feature the widest range of APR options (from 6.95% to 35.89%) and loan amounts ($1,000 to $40,000). The origination fee can range from 1% to 6%.
Lending Club terms and conditions:
Because Lending Club has to match your application with interested investors, the total time to get your money is a little longer than with other lenders. Expect to wait at least a week after applying to see money in your account.
Marcus is a Goldman Sachs division that covers a wide range of lending needs, but they have a personal loan option that is ideal for credit card consolidation. It’s available to borrowers with FICO scores in the “good” range (usually at least 690). The biggest benefit of this loan is that there’s no origination fee whatsoever.
The APR range is also very competitive at 5.99% to 29%. Loans are from $3,500 to $40,000 for three to six years.
Marcus Loan terms and conditions:
After 12 months of on-time payments, you can opt to “defer” one payment – basically skipping the payment and adding a month to the back end of the loan, with the interest for the skipped month waived.
Company Payoff specializes exclusively in credit card debt consolidation loans. The service focuses on borrowers who have large amounts of debt, but also have good credit they want to preserve.
Minimum FICO to qualify is usually 640, a little higher than most other lenders. The minimum loan amount is also larger than usual at $5,000 (with a maximum of $35,000). APRs are among the more favorable at 5.99% to 25%, with an origination fee of 0% to 5%.
Payoff loan terms and conditions:
All borrowers have access to a team of “member advocates” for financial advice, and who will work with you to create a repayment plan if there is an emergency.
You are also given free monthly access to your “big three” FICO scores with every loan.
They have a team of financial services professionals, research and clinical psychologists, data scientists, neuroscientists, Member Advocates and technology experts working together to better understand and accelerate people’s journey toward financial wellness.
One such scenario where you can get low interest debt consolidation loan is having low debt to income ratio. If you have low DTI and high monthly income with good credit score then you can expect lower rates guaranteed.
Here is an example of DTI band. With high monthly income and less expenses each month can attract your loan profile. Lenders view your profile or application and would like to give competitive rates better than banks.
You monthly repayments will be fixed till the life of the loan. Pay back in easy installments. If you want you can make additional payments towards your monthly repayment. Pay off your debt consolidation early. As there is no prepayment penalty.
Once debt consolidation loan with bad credit is approved, you can increase your credit score with regular monthly payments.
Note: This is just an estimate. Monthly payments and terms vary from one lender to another.
Check your rate, and get debt consolidation loan term and monthly payments from online lenders to see how much loan amount, repayment you qualify for.
Make monthly payments via ACH and avoid check processing fees.
3. Quick Tip: Like any other loan agreements with lender, defaulting on debt consolidation loan can damage credit score.
Lenders will verify both your employment status & income. They do send an email or give a call to your employer. For self-employed you must submit your business info like license, lease agreement, Tax ID, 1099 etc.
Be ready to submit docs like 3 months bank statements, paystub, and W-2 if you are working more than 1 year.
For Self employed: Must submit min 2 years tax paid history or 1099 along with 6 months bank statements.
4. Quick Tip: P2P lenders not only look at your credit history but also check debt to income ratio, stable employment history.
It’s your credit history that matters the most to the lenders to decide on your loan application.
They check your credit history to know your financial credibility & discipline. So the bottom line is you shouldn’t have any missed payments, late payments, other loan repayments defaults in your credit history.
What’s happening is in the last 10 years credit bureaus have come in and have become more and more strong.
So we have lenders, have a lot more data about the consumers in terms of the credit history that gives them a lot more confidence before lending to the consumer because they have a far better understanding of what are the chances of repayment which is the key criteria right.
Lenders will perform hard check only after you accept their pre approved APR. They do credit check from all the three major credit bureaus in USA.
Debt to income ratio is used to determine your monthly repayment capacity and also helps you to get lower interest rates.
If you have less than 45% can expect low interest rates. Lender assumes from your total monthly income some percentage goes towards monthly debts like paying off credit card bills, mortgage, rent & other bills etc.
Remaining is considered for living expenses and emergency funds. Some percentage can be used to pay your monthly payments of the new loan.
Apart from your principal and interest rates payment, there are certain fees to your debt consolidation loans.
A debt consolidation loan usually comes with an origination fee (one time), ranging from 1% to 5% of the loan amount. This origination fee will be deducted from your loan amount.
For instance, $10,000 borrowed with a 3% origination will only net $9,700 for the borrower. Yet you need to make repayment for $10,000.
Note: Origination fee depends on your loan term. Shorter the loan term, lower will be the fee.
Late payment fee: if your monthly payment is more than 10 to 15 days late, then lenders will charge you with a late payment fee of $15 or 5% whichever is greater. This fee is applicable once for each late payment.
Check processing fee: Check process fee will cost you $7 each monthly payment. If you wish to pay off your loan early by check there is no fee.
5. Quick Tip: Use ACH to make your monthly payments from your bank account.
We advise consumers that if you have credit card outstanding across multiple cards which you are not able to handle or pay off immediately taking a debt consolidation loan and clearing off that debt is a very good idea.
Typically credit card interest rates are in the range of 18 % to 36% APR. Which is pretty high & debt consolidation loan if you get in the range between 5 percent and 18 percent depending on your credit profile and where you are employed and your salary.
So in either of those scenarios it just makes sense to take a debt consolidation loan clear off debts and then have fixed monthly installments to pay off the consolidation loan.