9 of the best debt consolidation companies

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Lower your total cost or monthly payment with better terms and rates. (iStock)

You may have debt on multiple credit cards or have other forms of debt, like unexpected medical bills or home improvement projects. As interest rates have fallen, it may be time to take out a personal loan to consolidate your multiple forms of debt into one balance.

If you decide that debt consolidation is the right step, it’s important to research the best type of personal loan, the best rates, and the best terms. Fortunately, Credible makes it easy to compare loan rates and businesses.

By taking out a personal debt consolidation loan, you could reduce your monthly payments and your total cost by avoiding multiple interest rates and late fees. In fact, recent data from the Federal Reserve revealed that in the first quarter of 2020, the average credit card rate was 16.61%, while the average 24-month personal loan interest rate was 9.63%.

You can take advantage of an online personal loan calculator to determine the costs. Below is a list of some of the best lenders to consider.

1. Axos Bank

If you have good or excellent credit, you might want to consider Axos Bank, which offers unsecured loans and a variety of terms. Axos has no prepayment penalties and the funding is fast.

However, borrowers with a large amount of debt to refinance may need to keep looking. Axos limits loans to $ 35,000, which is lower than some other lenders. The lender also requires a minimum credit score of 740, which might exclude some borrowers.

Axos’ requires a smooth credit check. Terms can be up to five years with no prepayment penalty.

  • Amount of the loan: $ 5,000 to $ 35,000
  • Loan term (years): 1, 2, 3, 4, 5
  • Discounts: Nothing
  • It’s time to raise funds: Next working day

Compare the loans provided by Axos and other online lenders through Credible today.

2. LightStream

LightStream, the online lending division of SunTrust Bank, offers high loan limits to qualified borrowers, which can be useful if your debt is up to $ 100,000. The lender does not charge any fees and the financing is quick.

However, LightStream does not disclose its minimum income requirement, which makes it difficult to know if you will qualify. Additionally, loans are not available to residents of Rhode Island and Vermont.

LightStream requires a minimum credit score of 660. The lender does not require flexible credit and does not charge fees. Terms can be up to seven years.

  • Amount of the loan: $ 5,000 to $ 100,000
  • Loan term (years): 2, 3, 4, 5, 6, 7
  • Discounts: Automatic payment
  • It’s time to raise funds: From the same working day

Compare the loans provided by LightStream and other online lenders through Credible today.

3. Marcus

Marcus approves potential borrowers with a lot of information before you apply, which can help you determine if you will qualify. Borrowers need a minimum annual income of $ 30,000 and a credit score of 660. The lender does not charge fees and has relatively quick funding, compared to other institutions. They also operate in all 50 states, as well as in US territories, protectorates and armed forces abroad.

If you wanted to consolidate your debt with another person, however, Marcus does not offer joint requests.

Terms are available up to seven years. Marcus offers loans ranging from $ 3,500 to $ 40,000 at no cost.

  • Amount of the loan: $ 3,500 to $ 40,000
  • Loan term (years): 3, 4, 5, 6, 7
  • Discounts: Automatic payment
  • It’s time to raise funds: As little as five days

Compare the loans provided by Marcus and other online lenders through Credible today.

4. Refund

If you have more than one type of debt, Payoff may be a good lender for you. She specializes in debt consolidation, and their loans can only be used for this purpose. The lender offers competitive rates and no prepayment penalties.

If your debt is over $ 35,000, however, you will need to find another lender. The repayment is also slower to fund the loan than some other lenders, and they charge a set-up fee. Additionally, loans are not available to residents of Massachusetts, Maryland, Mississippi, Nebraska, Nevada, Ohio, and West Virginia.

To qualify for a Payoff loan, you need a minimum credit score of 640. The terms range from two to five years.

  • Amount of the loan: $ 5,000 to $ 35,000
  • Loan term (years): 2, 3, 4, 5
  • Discounts: Nothing
  • It’s time to raise funds: From 2 to 5 working days after verification

Compare the loans provided by Payoff and other online lenders through Credible today.

5. Thrive

Prosper is a unique type of lender. The peer-to-peer platform connects borrowers and investors. Once your loan is rated, investors can commit to financing it. If you do not receive your full amount after 14 days, no loan is granted. One of the biggest advantages of Prosper is that it does not require a minimum income and the required minimum credit score is only 640.

The downside is that the process can take longer than other lenders. Additionally, Prosper charges an original fee of up to 5%, and residents of Iowa, North Dakota, and West Virginia cannot apply.

Prosper offers terms of three and five years. Eligibility requires a smooth credit check.

  • Amount of the loan: $ 2,000 to $ 40,000
  • Loan term (years): 3, 5
  • Discounts: Nothing
  • It’s time to raise funds: On average five days after accepting your offer

Compare the loans offered by Prosper and other online lenders through Credible today.

6. SoFi

SoFi is another option if you have significant debt. It offers loans of up to $ 100,000 for people with good or excellent credit. SoFi also offers benefits to its clients, including career coaching and member-only events. And the lender doesn’t charge any fees on their loans.

However, it may be more difficult to qualify for a loan from SoFi than from some other lenders because the company does not disclose its minimum credit rating or income requirements.

Terms are available for up to seven years, which can be a useful repayment period for large loans. In addition, SoFi requires a smooth credit check.

  • Amount of the loan: $ 5,000 to $ 100,000
  • Loan term (years): 2, 3, 4, 5, 6, 7
  • Discounts: Automatic payment
  • It’s time to raise funds: 3 working days

Compare the loans provided by SoFi and other online lenders through Credible today.

7. Upgrade

Borrowers with fair credit might consider upgrading. The online loan platform requires a credit score of 600 which is lower than some other lenders. Upgrade offers tools that can help you protect or improve your score, such as free credit monitoring, alerts, and financial education.

One downside to upgrading, however, is that it charges an origination fee of up to 6%. Additionally, customer service is only available by email. Additionally, residents of Connecticut, Colorado, Iowa, Maryland, Vermont, and West Virginia are not eligible.

The upgrade offers terms of three or five years. The upgrade requires a smooth credit check.

  • Amount of the loan: $ 1,000 to $ 35,000 ($ 3,005 minimum in GA; $ 6,005 minimum in MA)
  • Loan term (years): 3, 5
  • Discounts: Automatic payment
  • It’s time to raise funds: In the day following the clearance of the necessary verifications

Compare the loans provided by Upgrade and other online lenders through Credible today.

8. Before

If you are just starting your career, Avant is an online lending platform that has modest requirements. To qualify, borrowers need a minimum credit score of 580 and an annual income of $ 24,000. The lender also offers fast financing and no prepayment penalties

One of the downsides of Avant is that it charges an origination fee of up to 4.75%. And its services aren’t available everywhere: Residents of Colorado, Connecticut, Hawaii, Louisiana, Nevada, New York, South Carolina, Vermont, and West Virginia are not eligible. .

Avant offers terms ranging from two to five years. The rates here are some of the highest. You can get a discount if you use automatic payment.

  • Amount of the loan: $ 2,000 to $ 35,000
  • Loan term (years): 2, 3, 4, 5
  • Discounts: Automatic payment
  • It’s time to raise funds: From the next working day

Compare the loans provided by Avant and other online lenders through Credible today.

9. Arrived

Upstart is an online lending platform that guarantees loans through lending partners. The assessment process includes a smooth check of your credit score. The lender also reviews your education, major, and work history, which could be helpful for students and graduates.

Upstart has high origination fees, up to 8%. In addition, the lender does not offer any discounts to borrowers, for example for setting up automatic payment.

The terms offered range from three to five years. The upgrade does not charge a prepayment penalty.

  • Amount of the loan: $ 1,000 to $ 50,000
  • Loan term (years): 3 to 5 years
  • Discounts: Nothing
  • It’s time to raise funds: From 1 to 3 working days

Compare the loans provided by Upstart and other online lenders through Credible today.

Other personal lenders to consider

In addition to these lenders, there are nine more that you can consider for consolidating your debt. However, these lenders are not offered by Credible, which means that you cannot easily compare their rates as you can with Credible’s partner lenders.

  1. Citizen’s Bank
  2. Discover
  3. Serious
  4. HSBC
  5. Laurel route
  6. A principal financier
  7. PenFed Credit Union
  8. PNC
  9. Rocket loans

At the end of the line

Make sure you check out the rates, terms, and details like fees and benefits before signing on the dotted line for a new personal loan.

Doing your homework takes time, but Credible makes it easy to check rates from multiple lenders. Fill out one form to request quotes from multiple lenders. The process will not affect your credit score and you can compare offers to find the best lender. With the best rate and the best terms, you can work to eliminate your debt as quickly as possible.


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