Save thousands by applying for instant debt consolidation loan, pay off debts with a low fixed rate. There is no prepayment penalties.
Checking your rate won’t affect your credit score !
“Don’t quit, when the funds are low and the debts are high”.
Instant approval within minutes without affecting your credit score. Simple online debt consolidation application, easy drop down menus to fill in and submit.
Apply for debt consolidation loan quick today.
Best Debt Consolidation loan typically work like an installment loan with a fixed repayment period. When you make your monthly payment on time each month, this will help you in getting out of debt and also improve your credit score.
Debt consolidation is a way of paying off your debts without declaring bankruptcy instead of managing a few high interest rate loans like credit card bills, mortgage etc..
People can consolidate their debts using a home equity loan, balance transfer, and debt consolidation loan. Each debt consolidation requirements are different from other to qualify for.
Quick Tip 1: Debt consolidation loans are provided by banks, credit unions and recently P2P or peer to peer loans also offer consolidation loan. P2P lenders offer competitive rates & terms with low monthly payments because of the low overhead.
Quick Tip 2: Good, if you are working at the same job and staying in the same address for longer time.
To begin the process for consolidation loan you must enter your credit score in the application. Online application will have estimated credit score in ranges.
Example: If you have fair credit: 600 to 650 you need to click “fair credit score” & move to next step in the application page.
To get quick debt consolidation loan you must have a steady job with guaranteed income & credit score. Lenders will look at your credit history and present financial condition before they offer you a consolidation loan.
Basically you are applying for debt consolidation loan. Must have minimum fair credit score 600 above to qualify for a p2p debt consolidation loan.
Monthly income & credit score decides your exact loan amount & interest rates.
Debt to income ratio will be used to fix your monthly repayments & term. Lenders will offer what you can offer to pay not what you ask.
Peer to Peer Debt consolidation loans APR starts at 6% to 36%. APR includes origination fee which is to cover cost of your loan. Your APR is not only based on your credit score but also depends on your income & DTI.
Note: This is just an estimated APR. You must apply to know your exact APR. APR will be decided using several other factors as well. Checking your rate won’t hurt your credit score.
Anything less than 600 credit score mean a difficult in getting a loan approval. The interest rate on debt consolidation loan are higher than home equity loan but lower than credit cards, making a good choice to consolidate debt.
Quick Tip 3: There are several ways to pay off debts. It is wise to first ask your family or friends who are willing to lend for 0 to low rates.
One such scenario where you can get low interest debt consolidation loan is having low debt to income ratio. If you have low DTI and high monthly income with good credit score then you can expect lower rates guaranteed.
Here is an example of DTI band. With high monthly income and less expenses each month can attract your loan profile. Lenders view your profile or application and would like to give competitive rates better than banks.
You monthly repayments will be fixed till the life of the loan. Pay back in easy installments. If you want you can make additional payments towards your monthly repayment. Pay off your debt consolidation early. As there is no prepayment penalty.
Once debt consolidation loan with bad credit is approved, you can increase your credit score with regular monthly payments.
Note: This is just an estimate. Monthly payments and terms vary from one lender to another.
Check your rate, and get debt consolidation loan term and monthly payments from online lenders to see how much loan amount, repayment you qualify for.
Make monthly payments via ACH and avoid check processing fees.
Quick Tip 4: Like any other loan agreements with lender, defaulting on debt consolidation loan can damage credit score.
Lenders will verify both your employment status & income. They do send an email or give a call to your employer. For self-employed you must submit your business info like license, lease agreement, Tax ID, 1099 etc.
Be ready to submit docs like 3 months bank statements, paystub, and W-2 if you are working more than 1 year.
For Self employed: Must submit min 2 years tax paid history or 1099 along with 6 months bank statements.
Quick Tip 5: P2P lenders not only look at your credit history but also check debt to income ratio, stable employment history.
It’s your credit history that matters the most to the lenders to decide on your loan application.
They check your credit history to know your financial credibility & discipline. So the bottom line is you shouldn’t have any missed payments, late payments, other loan repayments defaults in your credit history.
What’s happening is in the last 10 years credit bureaus have come in and have become more and more strong. So we have lenders have a lot more data about the consumers in terms of the credit history that gives them a lot more confidence before lending to the consumer because they have a far better understanding of what are the chances of repayment which is the key criteria right.
Lenders will perform hard check only after you accept their pre approved APR. They do credit check from all the three major credit bureaus in USA.
Debt to income ratio is used to determine your monthly repayment capacity and also helps you to get lower interest rates.
If you have less than 45% can expect low interest rates. Lender assumes from your total monthly income some percentage goes towards monthly debts like paying off credit card bills, mortgage, rent & other bills etc.
Remaining is considered for living expenses and emergency funds. Some percentage can be used to pay your monthly payments of the new loan.
Apart from your principal and interest rates payment, there are certain fees to your debt consolidation loans.
A debt consolidation loan usually comes with an origination fee (one time), ranging from 1% to 5% of the loan amount. This origination fee will be deducted from your loan amount.
For instance, $10,000 borrowed with a 3% origination will only net $9,700 for the borrower. Yet you need to make repayment for $10,000.
Note: Origination fee depends on your loan term. Shorter the loan term lower the fee.
Late payment fee: if your monthly payment is more than 10 to 15 days late, then lenders will charge you with a late payment fee of $15 or 5% whichever is greater. This fee is applicable once for each late payment.
Check processing fee: Check process fee will cost you $7 each monthly payment. If you wish to pay off your loan early by check there is no fee.
Quick Tip 6: Use ACH to make your monthly payments from your back account.
With the help of p2p lending market place, consumers can check their rate without affecting their credit score. With one application you can find out which lenders are willing to offer you a debt consolidation for your credit score & income. This can be done online & takes few minutes to know your rates.
For every hard inquiry, your credit score may drop to 5 points. Don’t do multiple inquiries to find consolidation loan rates which will affect your credit score. It won’t affect much for good to excellent credit score consumers.
Also, if you have been checking rates too much it may raise red flag for lenders. Exact APR after hard inquiry will be 1 or 2% more or less then pre approved APR.
We advise consumers that if you have credit card outstanding across multiple cards which you are not able to handle or pay off immediately taking a debt consolidation loan and clearing off that debt is a very good idea.
Typically credit card interest rates are in the range of 24% to 36% APR. Which is pretty high & debt consolidation loan if you get one you will get it in the range between 13 and 18 percent depending on your credit profile and where you are employed and your salary. So in either of those scenarios it just makes sense to take a debt consolidation loan clear off debts and then have fixed monthly installments to pay off the consolidation loan.
There are many debt consolidation loan companies in US and only few are BBB accredited. Some of them offer home equity loan, p2p debt consolidation companies offer unsecured loan. For balance transfer you can prefer your own bank if you have excellent credit.
By using a debt consolidation loan you can pay off other high interest rate loans & start paying single fixed monthly repayment with a fixed term. It also makes things easier to manage instead of writing multiple checks to different financial institutions you write one.
You spend less on interest payments every month and you can reduce the loan amount by making extra payments towards monthly repayment.
By paying extra you can quickly pay off your consolidation loan & can save money on your total interest rates.
The main purpose of applying for a debt consolidation loan is to get lower interest rate. So let’s assume for a moment you have 3 debts and the average interest rate is 20 %.
Let’s think you have good credit score and estimated APR for good credit is around 12% to 15%.
List all your debts on paper including mortgages, car loans, credit cards etc. Write down the balance, total interest rates of the balance and time left for repayment.
Determine how much you’re paying each month whether you’re paying down the principal paying just the minimum payment or less and getting penalized.
If your current debt has lower interest rate & shorter repayment time then there is no need to apply for debt consolidation loan.
Figure out the total amount needed to pay off your loans using a calculator. If you get an affordable loan with a lower interest rate a debt consolidation loan might be for you.
You must calculate your total debts and interest rates you are paying now. What is the balance amount and time left to close the loan? Total interest rates of your balance are less than the new loan then there is no point in applying for consolidation loan.
With the help of p2p lending marketplace, consumers can check loan eligibility & rate before lenders do a hard pull.
Today, without affecting your credit score you can check your rate. Online direct lenders will do a soft full and give you an estimated APR based on your credit score you mention in the application.
Quick Tip 7: Some lenders may ask their consumers to purchase loan insurance policies in case of deaths or job losses. Such insurance is not permitted by law. Don’t forget to read the lenders lending disclosure before you e-sign.