Debt Consolidation is a way out of all your debt. Personal loans can be used to consolidate your debt and increase monthly cash. From the various opportunities, personal loans have to offer debt consolidation might be the most important.
A Debt Consolidation loan combines multiple debts of a single person with a payment amount and schedule.
It helps because instead of managing numerous due dates and high-interest rates from credit cards, debts consolidation loan companies can provide you with a single line of fixed-rate loan funds.
In this article, we will be listing the best personal loans for debt consolidation
Best Personal Loans For Debt Consolidation
Listed below is a list of the debt consolidation of 2022. Choosing can be a hassle so to make the process easier, we made a list of the best.
#1. Upgrade
Upgrade was established in 2017 by a team of Fintech executives. Its headquarters is located in San Francisco. Upgrade offers flexibility when it comes to loan repayment and amount.
Although it offers more competitive interest rates, the platform is still the best on this list with its acceptance of bad or fair credit scores.
The platform has accessible loan terms making it viable for countless borrowers.
Upgrade offers the easiest interface which you can submit your application using the Upgrade web portal and have it processed.
To qualify for an Upgrade loan, you have to meet the requirements such as a 560 minimum
credit and two or more accounts on credit history. The loan amount ranges from $10,000 to $50,000.
You can read this: How To Pay Off Credit Card Debt Fast | Best Strategies
#2. SoFi
Also known as Social Finance, Inc. It is a Fintech company established in 2011 by students at Stanford business school. SoFi offers student refinancing coupled with other services.
Application is fairly easy. It can be done online or through a phone call. You’ll need to pre-qualify for a loan stating your reason for applying as well as the amount needed.
Obtain funds in three days or less and enjoy rate discounts when you sign up for SoFi automatic payment program.
SoFi offers uncompetitive interest rates which means you can save even more money when you consolidate your debt with a personal loan. Qualified borrowers can enjoy an APR of between 5.24% and 19.88% significantly than the average APR on a credit card.
With SoFi you have the advantage of free financial counseling, unemployment protection, and flexible repayment terms without origination fees and prepayment penalties or late fees.
SoFi Credit score is undisclosed but research shows the minimum score to qualify is 680. Getting a loan through SoFi can be a great experience for the right borrower. With an all-online process and rate quotes available without a hard credit pull.
SoFi has efficient customer service. They are available and ready to receive your questions. You can also speak with a live agent
#3. Avant
Avant is an online lender that was founded in 2012 and is headquartered in Chicago Illinois.
It offers unsecured personal loans that can be employed to cover expenses and consolidate existing debt. The company is registered in 42 states across the United States.
Avant offers from $2,000 to $35,000. With Avant, you don’t need to worry about bad credit when applying.
The Web–Bank-Affiliated funding platform enables borrowers with fair or bad credit scores to obtain loans with competitive fees, fast funding, and repayment terms.
The best feature of Avant is it is accepting of low credit scores and personal loan refinancing.
Avant has a mobile App available for Android and IOS. It is very easy to apply for and manage your personal online.
The lender will approve an application within a day or two the provide funds the next business day. An origination fee of 4.75% is charged.
#4.lightStream
Lightstream has quite a few accolades to its name including best debt consolidation loans.
Also, Lightstream is a branch of Truist, it offers personal loans for basically any need which includes home renovations, credit card consolidation, auto refinancing, and medical bills, etc
Lightstream features are it offers individual and joint applications which you’ll need to disclose before application.
An application can be made online and after approval, you receive your loan funds in one day without fail.
Lightstream offers flexibility when choosing loan your loan amount and receiving funds. The minimum is $5000 and the highest is $800,000. You can choose to have your funds sent at the stipulated date or thirty days later.
Lightstream eligibility requirements are the factors that determine if you qualify for a loan. The lending platform is best suited for borrowers with good credit, proof of several years of credit history, proof of stable income.
#5. UpStart
UpStart is that loan provider that relies on artificial intelligence rather than the usual qualification such as credit history, credit utilization debt to income metrics.
Also, it is a lending platform co, -founded in 2012 by a former Google employee. The company’s headquarters is located in San Mateo, CA. UpStart offers fixed-rate personal loans that can be employed to cover expenses.
Also, this loan provider offers substantial flexibility cost with its loan terms. Upstart personal loan borrowers enjoy relatively competitive APRs and no prepayment penalties which means you can pay off loans faster. You can also adjust the payment date to suit your schedule.
Also, you can check this: Is it Better to Save or Pay Off Debt? in 2022
#6. BestEgg
Best Egg is another lending platform that offers loans for several purposes including debt consolidation, home improvement, medical expenses, relocation, wedding, and other expenses.
This platform was founded in 2014. It is an online platform operated by the financial services company Marlette Funding. It is available in 47 states except for Iowa, Vermont, West Virginia, Washington, D.C., or U.S territories.
BestEgg cannot be used for post-secondary education expenses, purchasing, and illegal activities
To qualify for this loan borrowers will need a minimum credit score of 700 and ideally, a debt to income ratio. A hard credit inquiry will be conducted before you accept a loan.
One-day funding. If a borrower decides to use their debit for consolidation then their funds will be sent to third-party creditors the borrower identifies during the application process.
#7. PayOff
Payoff was founded in 2009. It is a branch of Happy Money, inc that works with lending partners to provide credit card consolidation loans.
The company headquarters is located in Tustin, California, and Payoff loans are available in every state except Massachusetts and Nevada.
To consolidate credit card debt with Payoff be sure to get pre-qualified and check your rate. After this selection, the loan best works for you. The payoff may ask you to provide proof of identity, employment, and income.
It takes seven days for the payoff to review the application and request additional documentation.
Payoff customer service is available from Monday through Friday from 6 am to 6 pm and Saturday through Sunday from 6 am to 3 pm.
They can be reached by phone, searched in an email, and online chat. The payoff cannot be used for home improvement, large purchases to cover emergency expenses.
#8. Prosper
This is a peer-to-peer lending platform that was founded in 2005 and is headquartered in San Francisco, California.
Prosper offers fixed-rate personal loans that are funded by institutions and individual investors.
Also, this loan provider offers a variety of personal loans that can be used for medical expenses, home improvement, debt consolidation but they cannot be used to pay for post-secondary education.
The requirement is a credit score of at least 640, no bankruptcy filed within the last year, a minimum of three accounts listed on your credit report, and fewer than five hard credit inquiries within the last six months.
To apply for a prosperous personal loan, make sure to complete the loan application online this includes sharing personal information. Funds are disbursed.
#9. LendingClub
The LendingClub was created in 2006 and is headquartered in San Francisco, California. The company functions in all 50 U.S. states and is one of the largest providers of unsecured personal loans with an average balance of $991.
You can apply online but submit a form online with basic information. Submit loan application online in it should be personal information and income.
Lastly, check your application status and wait for the approval. It could be sent directly to your bank account or sent to your creditors.
#10. Marcus By Goldman Sachs
It is an affiliate of the 150-year-old Wall Street investment bank Goldman Sachs launched in 2016.
Marcus by Goldman is fairly popular for being an online-only bank offering high yield savings accounts, no origination or prepayment fee.
It offers unsecured personal loans for various purposes such as consolidating debt, paying off credit card debts at lower interest rates, home improvement projects, or other expenses.
Marcus’s loan amount ranges from $35,000 to $40,000 with APR from 6.99% to 19.99% with loan terms ranging from 36 to 72.
After you accept the loan terms, Marcus will transfer the funds to your bank account or pay your creditors directly, making it easier than ever to consolidate high-interest bills.
You can pay off your loans as quickly as you want, too, without running into any prepayment penalties.
Conclusion
Are you considering borrowing a loan in 2022? Here are the best loan lenders of 2022. They do not all offer the same type of loans. Make sure to research and choose the best suited for you.
References
- https://www.sfgate.com/market/article/best-debt-consolidation-loans-16707685.php
- Bankrate – Debt
- https://www.investopedia.com/best-personal-loans-for-debt-consolidation-4779764
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