I Need a Debt Consolidation Loan

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If your FICO® credit score is below 580, managing your finances with debt consolidation might be difficult. How do I get a debt consolidation loan?

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June 8, 2020 10:27 PM

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debt consolidation loan, it can be an easy way to lower your monthly payments, reduce the number of creditors you owe and shorten the time it takes to pay off your debt. Debt consolidation is a method of taking out a new loan to pay off the high-interest debt in an effort to streamline monthly payments and save money over time.

June 8, 2020 10:29 PM

While there are debt consolidation options available for people with "poor" scores, they often come with high-interest rates that may be higher than the rates of your current loans. A good option would be to look at online lenders like Upstart—which is an Experian personal loan partner. Upstart looks at alternative data, beyond credit reports and scores, to determine whether a person qualifies for a loan. Factors like job history, income and education influence whether a candidate qualifies for a loan and a lower rate.

June 8, 2020 10:31 PM

LendingPoint offers loans to those with credit scores in the "fair" range that can be anywhere from $2,000 to $25,000. LendingPoint allows you to check your rate before you apply and doesn't ding your credit score for doing so. In addition to your credit score, LendingPoint also considers factors such as your job history and income when deciding your loan terms.

June 8, 2020 10:33 PM

If your credit scores are in the good to exceptional range, SoFi provides loans from $5,000 to $100,000 without charging application or origination fees. SoFi is a great option if you need a large loan and can stand to wait a few days for your funds to arrive.

June 8, 2020 10:36 PM

One of the main advantages of a debt consolidation loan is eliminating the task of paying multiple lenders each month. When you consolidate all your existing debt into one new loan, you only have to make payments to your new lender. Making only one payment is not only easier, but it can save you from dealing with late and missed payments—which can occur when juggling multiple different payments each month.

June 8, 2020 10:37 PM