4 companies that can help with loan consolidation
Debt consolidation involves simplifying your monthly payments and modifying the loan terms via a debt-relief program or bank loan. It helps the borrowers lower the interest rates to manageable levels and reduce the time spent juggling between different credit accounts. Lumping eligible debts in one payment can simplify your life and help you manage your debt more efficiently. But what are the best loan consolidation programs? Read below to find out.
A Goldman Sachs subsidiary, Marcus offers personal loans between $3500 and $40,000. Beyond providing flexible loans available for three-six year terms, Marcus also has one of the best loan consolidation programs wherein third-party creditors receive direct payments. In addition, borrowers can also benefit through their flexible payment dates and on-time payment reward.
What’s more? The borrowers do not have to bear any additional fee, such as prepayment penalty or origination fee, making Marcus a pocket-friendly medium to consolidate the debt sans any extra cost. Further, applicants can prequalify via a soft credit pull, simplifying how you shop for the consolidation rates sans any impact on the credit score. As a current or prospective borrower, you will have access to their responsive support team all seven days of the week from 9 AM to 7 PM EST.
SoFi has some of the most lucrative loan consolidation programs in the market. However, they demand a good credit score for you to qualify. With SoFi, you can get a loan between $5000 and $100000. Hence, it is an excellent pick for borrowers seeking a larger loan. Their APRs start from 7.99 percent and go up to 23.43 percent. The approval process is straightforward but might take up to three days, so it cannot be the go-to option if you wish to get a loan instantly.
In addition, SoFi provides multiple features that make debt consolidation a standout. They directly pay your creditors, taking away the burden from you. There is no origination, prepayment, or late payment fee. Beyond this, there are other beneficial features too. The company accepts cosigners and offers a 0.25 percent discount if you activate automatic payments. You can download their app for effective loan management. They also have an unemployment protection plan that provides relief if you lose your job.
It is an indirect lending platform wherein you can get your personal loans underwritten by MetaBank or Cross River Bank. FreedomPlus has been around since 2014 and is one of the top choices for loan consolidation programs because of their flexible loan amounts (ranging from $7500 – $40,000) and loan terms (2-5 years). These attributes simplify the loan consolidation process, especially if your amount is more.
Like most other companies, even FreedomPlus offers direct payments to creditors. Borrowers who put eighty-five percent of their complete loan amount toward consolidation via direct payment have a better chance of loan qualification. But, their high charges make it difficult for you to save money by consolidating. Their origination fee ranges between 1.99-4.99 percent of the loan amount, making it an expensive option. So if you go with them for debt consolidation, do your math before it all.
Unfortunately, many people seeking debt consolidation do not have excellent credit scores. If you are one of them, you can opt for loan consolidation programs from Upstart. Of course, you will not get the interest rate you could have received if you had better credit, but you will most likely receive a lower credit than you were paying on multiple credit card balances.
Upstart is a loan broker that passes your application to the lenders in its network, meaning you can get multiple loan offers with one application. It would help if your credit score is over 600, but Upstart assists borrowers with no credit history. Their loans range between $1000 and $50,000 for three to five-year terms, and rates range from 5.55 to 35.99 percent. The rate levied depends on your credit score, among other factors, such as job history and education. They do not have any prepayment penalty, but an origination fee is levied. It is deducted from the loan proceeds. In addition, the late fee might also be applicable.
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