Best Debt Consolidation Loans
Updated September 01, 2018 Are you stuck under an overwhelming pile of consumer debt? Do you feel like it might be impossible to get out? Fortunately, there are tools that can help you get out of debt faster. Debt consolidation loans could be a good answer. With a debt consolidation loan, you would use the loan … Continue reading Best Debt Consolidation LoansThe post Best Debt Consolidation Loans appeared first on MagnifyMoney.
Posted — UpdatedUpdated September 01, 2018
Are you stuck under an overwhelming pile of consumer debt? Do you feel like it might be impossible to get out? Fortunately, there are tools that can help you get out of debt faster.
Debt consolidation loans could be a good answer. With a debt consolidation loan, you would use the loan proceeds to pay off credit card debt, medical debt or any other form of debt. You would then have a loan at a fixed interest rate and a fixed term.
Note: If you have a credit score less than 640, struggling to make monthly debt payments and would like to explore your options to reduce your debt by up to 50%, then please click our option below to customize a personal debt relief plan.
Personal Loans to Consolidate Credit Card Debt
Start Shopping Here – [LendingTreePL]LendingTree[/LendingTreePL]
At LendingTree, you can make dozens of personal loan companies compete for your business with a single online form. When you fill out the form, LendingTree will do a soft pull – which means your score will not be negatively impacted. Dozens of lenders will compete and you may be matched with lenders who want your business. You may be able to compare and save in just a few minutes. We recommend starting here. You can always apply directly to other lenders – but many of the lenders we recommend already participate in the LendingTree personal loan online tool. (Note: LendingTree owns MagnifyMoney)
Terms24 to 60months
Below are some leading lenders you could also consider:
[SoFiPL]SoFi[/SoFiPL] – [SoFiCreditScore]Excellent, Good Credit Required[/SoFiCreditScore]
You can borrow between $5,000 and $100,000, which is the most out of the personal loans recommended here. The fixed APR ranges from 6.99% to 14.87% if enrolled in autopay. You can choose a term of 36 to 84 months. [SoFiAPR]Variable interest rates range from 5.83% – 14.37% APR[/SoFiAPR]. Although [SoFiPL]SoFi[/SoFiPL] does not use FICO, you need to be “prime” or “super-prime” to qualify. That means you must be current on all of your obligations and must never have filed for bankruptcy. There is No origination fee or [SoFiPrepayFee]prepayment penalty[/SoFiPrepayFee] associated with a personal loan from [SoFiPL]SoFi[/SoFiPL].
Terms36 to 84months
Advertiser Disclosure
Some of the leading lenders for people with less than perfect credit include:
[LendingClubPL]LendingClub[/LendingClubPL] – Minimum FICO of 600
This is a peer-to-peer platform, which means individual investors are contributing to your loan. You can borrow between $1,000 to $40,000with [LendingClubPL]LendingClub[/LendingClubPL], and its APR ranges from 6.16% – 35.89%, depending on the type of loan grade you’re eligible for. Be aware there are origination fees (ranging from 1.00% - 6.00%) associated with this personal loan, but there are [LendingClubPrepayFee]no prepayment penalties[/LendingClubPrepayFee]. You can borrow on terms 36 or 60 months. The minimum credit score needed is 600. [LendingClubPL]LendingClub[/LendingClubPL] is not available in Iowa or West Virginia.
Terms36 or 60months
Prosper – Minimum FICO of 640
[ProsperPL]Prosper[/ProsperPL] offers loans from $2,000 to $40,000, and APR ranges from 6.95% to 35.99% . It offers loans terms of either 36 or 60 months. Your APR is determined during the application process, and is based on a credit rating score created by [ProsperPL]Prosper[/ProsperPL]. Your score is then shown with your loan listing to give potential lenders an idea of your creditworthiness. Origination fees range from 2.41% - 5.00% and are based on your Prosper score. In order to qualify, you must:
Prosper is a flexible alternative with a low-end APR that usually beats a credit card.
Terms36 or 60months
Advertiser Disclosure
For example, a three-year $10,000 loan with a Prosper Rating of AA would have an interest rate of 5.31% and a 2.41% origination fee for an annual percentage rate (APR) of 6.95% APR. You would receive $9,759 and make 36 scheduled monthly payments of $301.10. A five-year $10,000 loan with a Prosper Rating of A would have an interest rate of 8.39% and a 5.00% origination fee with a 10.59% APR. You would receive $9,500 and make 60 scheduled monthly payments of $204.64. Origination fees vary between 2.41%-5%. APRs through Prosper range from 6.95% (AA) to 35.99% (HR) for first-time borrowers, with the lowest rates for the most creditworthy borrowers. Eligibility for loans up to $40,000 depends on the information provided by the applicant in the application form. Eligibility is not guaranteed, and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. Refer to Borrower Registration Agreement for details and all terms and conditions. All loans made by WebBank, member FDIC.
A Loan or a Credit Card to Consolidate Debt?
Wait: I Have Student Loan Debt
If you’re thinking about refinancing or consolidating your student loans, there are a couple of things to know.
First, what’s the difference between refinancing and consolidating?
- Private Loan Consolidation: This involves combining all your loans into one loan so you only owe one lender and have to make one simple payment.
- Federal Loan Consolidation (Direct Consolidation Loan): Only have Federal student loans? You can combine them through a Direct Consolidation Loan with the government. According to studentaid.ed.gov, “The fixed rate is based on the weighted average of the interest rates on the loans being consolidated.” This doesn’t save you much money, but your payments will be more manageable. For a complete list of Federal loans that can be consolidated, check here.
- Refinancing: This is when you apply to a completely new lender for new terms – you’ll have a new loan, and your new lender will pay off your old loan.
The difference isn’t all that big – when you consolidate private (or private and Federal) student loans, you’re essentially going through the refinancing process.
If you have private student loans, you can also check with your lender to see if it offers payment assistance. Many lenders are making improvements to their student loan refinance programs and including forbearance and deferment options.
Also, once you consolidate or refinance your student loans, there’s no going back. This applies to the Direct Consolidation Loan as well.
Shopping Around is a Must When Consolidating or Refinancing
The goal of refinancing or consolidating is to ultimately make your debt less of a burden on you. That means getting the best rates and terms offered. The easiest way to accomplish this is to shop around with different lenders. If you do so within a 45-day window, FICO will not punish you for shopping around. All of your student loan inquiries in the 45-day period will only count as one inquiry. Plus, there are many lenders out there who will give you rates with just a soft credit inquiry (though a hard inquiry is required to move forward with a loan). Always put yourself first, as you’re never obligated to sign for a loan you’re approved for.
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