If you have several credit cards with high balances, you can combine them into a single monthly payment with debt consolidation. A debt consolidation loan is a loan that allows you to pay off all your old loans or debts. Applying for a new credit impacts your credit score negatively; hence, you need to research and get the best options so that your credit score does not take several hits.
If your debt consolidation is successful, you will save on interest rates and also avoid the stress of making multiple payments at the end of the month. It all boils down to your approach. When choosing the right consolidating loan, consider the origination fees, interest rates, credit score, and early payoff fees. We have researched and picked out the best debt consolidation loans for you. You may find one that meets your needs.
Goldman Sachs offers a personal loan that is excellent for consolidating loans. This loan has competitive interest rates and no origination fees. This loan option is on top of our list because they did not charge any origination fees. Almost all top lenders charge this fee, and with Marcus, you can at least save some money.
They do not charge late fees as well, but that does not mean that you should not pay the loan on time. The company charges an interest rate of 6.99% to 28.99% on this loan. They have a special offer for New York residents; the rate for these residents range from 6.99% to 24.99%.
You will need a minimum FICO 9 credit score of 690 and a Vantage 3.0 score of 580 to qualify for this loan. People with poor credit scores will not be eligible for this loan, and even if they do, the interest rate may not be as low as they will want it to be. If you get a better rate elsewhere, you will be better off there. You can borrow an amount that ranges from $3,500 to $40,000. Marcus, by Goldman Sachs, will offer you the loan within four days.
OneMain Financial does not restrict people with regards to their credit score. People with low credit scores can access funds to consolidate their loans. They charge origination fees, and the interest rate ranges from 16.05% to 35.99%.
Although OneMain Financial’s interest rates are on the high side, they will offer you a loan when other lenders will not. OneMain Financial has 44 physical branches, and you can walk into any of these branches to apply for a loan. The company will offer you a loan that ranges from $1,500 to $30,000 with a loan term that ranges from 2 to 5 years.
This lender can offer you a loan on the same day. Apart from unsecured loans, they offer secured loans. Loans that you can back with your car title or house. When you stop making payments for secured loans, you will lose the property you used in backing the loan.
Discover offers loans at competitive rates to people with good credit scores. The interest rate ranges from 6.99% to 24.99%. These loans do not come with origination fees, and you can access a loan amount that ranges from $2,500 to $35,000.
You will need a minimum credit score of 660 to obtain a loan. The loan term varies from three years to seven years. The loan and funding process can take up to one week, but it is worth it if you access a loan with low rates and no origination fees.
Best Eggs is one of the lenders that offer the best interest rate in the industry. People with high credit scores can get the best rate here. Even people with low credit scores stand a good chance of accessing better rates from this lender compared to other lenders.
The company charges a fixed APR ranging from 5.99% to 29.99%. The rate they will offer you will depend on your credit score and history. You will be allowed a loan term that ranges from three to five years. Ideally, you should have a minimum credit score of 640 to qualify for a loan from Best Eggs.
Best Egg will charge you a 0.99% to 5.99% origination fee for loans that range from $2,000 to $35,000. They fund their loans quickly; you can get access to the funds in one day.
With Lending Club, you do not get the loan from a single lender. The platform acts as a marketplace where several people can fund your loan until it is fully funded. The platform is the largest marketplace, and it has funded over $38million loans over the years.
You can access a loan amount between $999 and $40,001 for a maximum loan term of 5 years. You need a minimum credit score of 600 to qualify for loans at Lending Club. The minimum interest rate is 6.95%, and the maximum is 35.89%. The company’s origination fees depend on your credit score, and it ranges from 1% to 6%.
Sometimes, you may not get a good debt consolidation loan with your financial history. The loans you may get may offer the loans at rates that are way too high. If you find yourself in that situation, you can try to access loans from FreedomPlus instead. The company offers loans for people who can present co-signers with high credit scores. The co-signer will act as a guarantor and will be responsible for the loan.
In most cases, the only people who will be willing to guarantee family and close friends. You need a minimum credit score of 640 to qualify for a loan amount that ranges from $7,500 to $40,000. The origination fee is based on your credit, and it ranges from 0% to 5%. The loan term also varies, but the maximum is five years. The rates offered on this platform varies from 5.99% to 29.99%.
Payoff helps debtors to create a personal debt payoff plan that will help them to clear their debts easily. They will help you to consolidate your debt and then help you to clear them. You will need a minimum credit score of 640 to be eligible for their services. This company charges an origination fee that ranges from 2% to 5%. The fee will depend on your credit score and loan term. Loans available range from $5,000 to $35,000.
SoFi started as a lender that specializes in offering student loans to students. The company now offers personal loans for debt consolidation. When reviewing individuals for loans, the company considers your educational and career background.
You will need a minimum credit score of 680 to access a loan amount that ranges from $5,000 to $100,000. You will pay between 5.99% and 17.67% as interest rate, but the rate depends on your credit score and the loan term. The available loan term is from two to seven years. The good thing about SoFi loans is that you don’t need to worry about origination fees or late fees. They do not charge any of these.
The overall debt consolidation loan is the personal loan offer by Marcus.
Best Egg offers the best rates for debt consolidation loans. Their rate ranges from 5.99% to 29.99%.
As we mentioned earlier, Marcus offers the best personal loan for debt consolidation.