Are you searching for the best debt consolidation companies? Perhaps you have amassed considerable debts across multiple cards. Some unexpected home repair projects or medical bills may also contribute to outstanding debts. At this point, you can be pretty concerned about the obligations and wondering how to get rid of yourself from the debts. You don’t have to worry. Considering that the interest rate is dropping in recent times, it’s recommendable to consider some personal loans as debt consolidations. By so doing, you can easily balance your debt when applied in the right way.
Best Debt Consolidation Companies
What Can You Expect From The Best Debt Consolidation Companies?
The reality is that not every loan or debt consolidation company offers a good deal to help you. If you don’t care, you might even land yourself in extra financial troubles. For this reason, performing due diligence when it comes to choosing a debt consolidation company to deal with is non-negotiable. However, to help your effort and reduce stress, we have collated seven credible companies to consider. Read further to learn about them.
How To Choose The Best Debt Consolidation Company
However, to choose the best loans to consolidate your debt, you need to look at a few more details. When shopping for a good debt consolidation loan, pay attention to the amount of credit that fits your needs. This behavior means you should carefully consider all the options available to find the best debt consolidation loan company. The following list shows the specific attributes of the lenders, and you have to pick the right one for your financial situation.
Find The Best Interest Rate
To be sure which loan to consolidate your debt offers the best deal, you need to get interest rate estimates. One of the essential steps in finding a suitable loan to consolidate debt is collecting and comparing the APR offered by multiple lenders. Remember that using credit cards to pay off existing credit card debts reduces your credit load. For most help paying off your debt, a personal loan to consolidate debt must have a lower interest rate than a credit card loan with a higher APR.
Lowering monthly payments and paying down debt faster is key to qualifying for a low-interest loan from one of the best credit consolidation companies. If you pay lower interest rates on credit cards and other debts, you can also reduce your monthly payment and pay off the debt faster. In some cases, debt-financed consolidation loans can be a good move if you do not want to use the equity in your home to manage your unsecured debt.
Debt Consolidation From Your Bank
Another showed option is a particular debt consolidation loan from your bank or debt consolidation company. You can also take out a personal loan to pay off your debts and consolidate them. Loans to consolidate debt will typically offer a lower interest rate than credit card loans with a higher APR. If a loan for debt consolidation does not suit you well, Clark-approved options exist to consolidate your credit card debt.
Your Credit Score
You usually need a good to excellent credit rating to get a loan from one of the best debt consolidation companies. The best debt consolidation lenders require credit scores of 580 or higher, but some have lower interest rates and higher APR rates than other lenders, such as credit cards.
Seven Best Debt Consolidation Companies
LightStream
Debt Consolidation
Lightstream is an online branch of SunTrust Bank that offers a considerable amount of loan limits. As long as you are qualified, you can request as much as $100,000. A significant requirement to secure a loan from LightStream is that you need to have at least a 660 credit score.
However, the interesting fact about the debt consolidation company is that they do not charge fees, and the loan term can span over seven years.
More so, the funding doesn’t take much time as it is possible to get the loan on the same day. The critical point is that LightStream doesn’t provide loans to Vermont and Rhode Island residents.
Upgrade
Debt Consolidation
Another debt consolidation company that offers loans to borrowers with a fair credit score of 600 is Upgrade. The online lending platform provides tools that can help increase your score or protect it. For instance, you can use the free credit monitoring system and financial education tools on the website.
What Is The Amount You Can Borrow?
An attractive quality of getting a loan from Upgrade is that the refund period can span over three to five years.
You can also request an amount that ranges from $1000 to $35,000. As a potential borrower, you can get the fund within a day, as long as they checked out your documents.
What Are The Drawbacks?
The drawback of using Upgrade is that it features an origination fee worth six percent. More so, if you dwell in Connecticut, Colorado, Vermont, West Virginia, Iowa, and Maryland, Upgrade is not a debt consolidation company for you. However, anyone outside this region can request a loan from the company.
Axos Bank
Personal Loan
By collaborating with Axos Bank, you can get unsecured loans if you have a fair or excellent credit score, at least a 740 credit score. Depending on your loan agreement, the repayment period can spread over five years. Each applicant can request as low as a $5000 loan and as high as $35,000. No discount applies to loan collected from Axos Bank. However, there is no prepayment penalty attached, while the funding period takes only 24 to 48 hours.
Marcus
Debt Consolidation
Not many debt consolidation companies are as credible and far-reaching as Marcus. The branch operates in 50 states within the US. Also, they are available in different protectorates and regions outside the country.
Among the requirements for getting a loan at Marcus are a minimum credit score of 660 and a minimum annual income of $30,000.
Bear in mind that no charges apply to obtaining funds from Marcus, and the period of getting the loan doesn’t take more than five days.
Furthermore, you can request a loan from $3,500 to $40,000. Depending on the loan term, the refund period may spread over seven years. Advisably, if you can provide a lot of information, it will help your application process. Take note that Marcus doesn’t allow joint applications for the loan.
Avant
Debt Consolidation
For those who have a less admirable financial record to boast of, Avant is your best bet.
With a credit score as low as 580 and an annual income of $24,000, you can get quick funding from the debt consolidation company.
As a borrower, you can spread the repayment period over five years. Once you submit the necessary information, the balance should be available by the next business day.
Avant is not without its cons. For instance, people dwelling in Louisiana, Nevada, New York, South Carolina, Connecticut, Colorado, West Virginia, and Vermont cannot get funding from Avant. Bear in mind that you might be entitled to a discount if your autopay.
Payoff
Debt consolidation
Here is another widespread debt consolidation company worth considering. The Payoff comes in handy for resolving multiple debts because they specialize in debt consolidation.
Thus, it is not surprising that Payoff offers one of the most competitive loan rates. Besides, no prepayment penalty applies to the loan. Any borrower who doesn’t live in Maryland, Mississippi, Nebraska, Ohio, West Virginia, Nevada, or Massachusetts can request a $35,000 loan. The loan term can last for two to five years.
You can also request a loan as long as you have a minimum credit score of 640.
However, at Payoff, it takes about five working days to verify the loan applicant’s details. Furthermore, there is no discount.
Prosper
Debt Consolidation
As the name suggests, this debt consolidation company wants its members to prosper. They can achieve their aims by peering suitable borrowers with relevant investors. After getting the necessary details from the application, the investors may choose to fund it. If the investors made no changes to your loan request within 14 days, no loan was made available.
A notable advantage of using Prosper is that it doesn’t set the minimum income. The loan term may also span from three to five years, while you can request as much as $40,000.
However, the company charges an origination fee of about five percent. Also, people within North Dakota, West Virginia, and Iowa are not eligible for the loan. Remember, with Prosper. You need a minimum credit score of 640.
The Bottom Line
All the debt consolidation companies are renowned and credible to deal with; As long as you meet your preferred company’s requirements, you can get the loan within a short period. An important tip is to always read the loan agreement terms carefully before making a final decision.
