If you want to keep track of your debts easily, pay off big ones quickly, take advantage of lower interest rates and payment terms, and spend less time worrying about debt repayments, you need debt consolidation. It is a program that streamlines debt payments by letting you group your existing debts and then take up one loan to pay all of them.
Making it more convenient is the fact you have several best debt consolidation companies to count on. These include the following:
1. Lending Club
Lending Club follows a peer-to-peer system, which means other people fund your loan in exchange for some fees, among others. For this reason, interest rates can go very low as much as 5.99 percent APR. You can also fund your loan up to $40,000.
However, interest rates can go high to more than 30 percent APR, depending on your credit score. If you want the best deal, you need to have a score of 640 and above, which means you should possess a more established credit history. Be willing to wait as well since it may take about 5 to 7 working days to get your approval.
This website is actually not a lender but a broker. When you apply for a debt consolidation loan, it pulls up from its database of lenders who may be looking for clients like you. This can be a disadvantage since you won’t get an exact picture of your total loan, as well as other fees or charges, until you’ve chosen a lender.
On the upside, it has one of the biggest networks of lenders in the country. Besides banks and credit unions, you may also borrow from peer-to-peer lenders and those that accept payments on installment basis.
Applying for a personal loan is also quick and easy. Fill out the form and wait for the system to generate a list of lenders for you. You can then send your application to them. There’s no limit on how many lenders you want to choose. In fact, it’s helpful when you want to know who can give you the ideal debt consolidation loan program.
The service provided by the website is free. All your financial transactions are with the lender. Moreover, the broker can recommend to you some possible lenders regardless of your credit score, although options will be very limited the lower your score is.
3. One Main
If you have a fair to poor credit score, you may not be able to qualify for a debt consolidation loan quickly – but not with One Main. You are its target market. It doesn’t have a minimum credit score and can process your fund within the day. You can also choose between secured and unsecured loans.
Considering the risks, however, One Main has a lower maximum loanable amount of $25,000. The APR can also be quite high at around 12 percent to 35 percent. Moreover, if you have late payments, you’ll end up spending on penalties.
Fortunately, if you have collateral, you can go for secured loans and bring your APR down. You can also pay off your loan quickly and not pay any fee for doing so. If you are looking consolidate your debt, make sure you just deal with the best debt consolidation companies. Check out our review at loansconsolidation.co. Additionally, you can check https://www.in.gov/dfi/2618.htm for tips on how to properly consolidate debt.
When getting a debt consolidation loan, make sure you are only signing up with the best companies. We review the best ones at loansconsolidation.co so you can make an informed decision.