Credit card debt has risen in the United States (in 2017, it increased to roughly 931 billion), and there’s a possibility that it will continue to now and then over the coming years. That’s why, however, debt consolidation lenders exist as they pay off existing debt, consolidating all outstanding debt into one standalone account. This account has one monthly payment and one lender. Overall, a debt consolidation loan works to decrease the current monthly amount, increase credit score, and decrease the interest rates being paid. Individuals can use consolidation loans to pay off the following: personal loans, medical bills, credit cards, and payday loans.
In this article, we will explore three top debt consolidation lenders. Keep in mind that to apply for this type of loan, individuals have to have a clean credit history. That means no tax liens, bankruptcies, or foreclosures.
1. Upstart
Based in California, Upstart is a debt consolidation lender that does more than just considering credit score before approving a loan. It also takes into consideration job potential and education level. They do, however, carry out a “soft” credit check, which doesn’t affect your score, but there is no prepayment penalty with this company.
2. Best Egg
Best Egg is based in Delaware, and for a consolidation loan from this service, the average APR is from 5.99% to 29.99%. Of course, this APR value depends on the credit rating. With this service, the payoff for a consolidation loan is in roughly three to five years. Note, however, that there is only one monthly payment that is required to cover all costs owed. One of the best parts of this service is that applying for a loan process is a quick process and applicants can check their loan interest rates online.
3. Avant
Avant is another top debt consolidation lender, based in Chicago. The service has more than 600,000 customers, and while it does a “soft” credit check, it does not have prepayment fees, and the process of applying is quick and simple, done within minutes. The process is also encrypted and protected, making this a reputable lender to consider. The average APR for a consolidation loan from Avant is from 9.95% to 35.99%. Typically, the standard loan is anywhere from $2000 to $35,000. These loans tend to have a 1.5% to 4.75% origination fee.
Takeaway
Before applying for a debt consolidation loan, make sure you do your research and ensure you fit the requirements of certain services.
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