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Best Debt Consolidation Loans of June 2024
- SoFi. Best Debt Consolidation Loan for Large Amounts
- Upgrade. Best Debt Consolidation Loan for Bad Credit
- Happy Money. Best Debt Consolidation Loan for Credit Card Debt
- Lending Club. Best Debt Consolidation Loan for Peer-to-Peer Lending
- Discover. Best Debt Consolidation Loan for Long Terms
- Universal Credit. Best Debt Consolidation Loan for Comparing Offers
- PNC Bank. Best Debt Consolidation Loan From a Brick-and-Mortar Bank
- Best Egg. Best Debt Consolidation Loan for Quick Funding
Best Debt Consolidation Loan for Large Amounts
SoFi®
5.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Minimum Credit Score
650
APR range
8.99% to 29.99%
with autopay
Loan amounts
$5,000 to $100,000
Via Credible.com’s Website
650
8.99% to 29.99%
with autopay
$5,000 to $100,000
Editor’s Take
SoFi is an online lender that offers debt consolidation loans from $5,000 to $100,000 with low rates and same-day funding for borrowers who meet requirements.
Why We Like It
Repayment terms range from two to seven years, making SoFi an incredibly flexible option for those with sufficient credit (at least 650) and annual income (at least $45,000).
What We Don’t Like
SoFi has a higher minimum credit score requirement than other lenders, which could make its loans less accessible to certain borrowers.
Who It’s Best For
SoFi personal loans are a great option for borrowers with excellent credit who want to consolidate a large sum.
Pros & Cons
- Prequalification without a hard inquiry
- Same-day approval possible
- Can pay off third-party creditors directly
- High credit score requirement
- Co-signers not permitted
Details
Eligibility:
- Minimum credit score required. 650
- Minimum annual income. $45,000
- Co-borrowers. Permitted
- Co-signers. Not permitted
Expert’s Take
What I find impressive about SoFi is its innovative approach to lending, with a focus on providing borrowers with personalized loan options tailored to their unique financial situations.
As a small business owner, I benefited from SoFi’s competitive rates and borrower-friendly terms, which include no origination fees or prepayment penalties. Also, SoFi’s member benefits, such as career coaching and financial planning resources, add value beyond just the loan itself, making it an attractive choice for entrepreneurs looking to grow their businesses while managing their finances responsibly.
— Michael Ashley, finance expert, Richiest.com
Best Debt Consolidation Loan for Bad Credit
Upgrade
4.9
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Minimum Credit Score
580
APR range
8.49% to 35.99%
Loan amounts
$1,000 to $50,000
Via Credible.com’s Website
580
8.49% to 35.99%
$1,000 to $50,000
Editor’s Take
Upgrade stands out for accepting borrowers with poor credit histories. The minimum credit score required to get a loan is much lower than many other lenders offering consolidation loans.
Why We Like It
Upgrade provides small and large loans to borrowers with credit scores as low as 580, and there’s no minimum income requirement.
What We Don’t Like
Interest rates on Upgrade loans are very high compared to other lenders. There’s also an origination fee of 1.85% and 9.99%.
Who It’s Best For
Although rates could be high, Upgrade personal loans may be a good option for borrowers with negative marks on their credit record who can’t qualify for other consolidation loans.
Pros & Cons
- Flexible eligibility requirements
- Can pay off creditors directly
- High loan amounts available
- High APR range
- Fees for late payments and insufficient funds
- Charges origination fees from 1.85% and 9.99%
Details
Eligibility:
- Minimum credit score. 580
- Minimum income. None
- Co-applicants. Permitted
Expert’s Take
Upgrade’s personal loans come with a unique feature—mandatory automatic payments. While this is an effective default prevention measure, it might not suit everyone, especially those with irregular income streams.
— Jonathan Feniak, general counsel and head of finance, LLC Attorney
Best Debt Consolidation Loan for Credit Card Debt
Happy Money
4.4
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Minimum Credit Score
640
APR range
11.72% to 17.99%
Loan amounts
$5,000 to $40,000
Via Credible.com’s Website
640
11.72% to 17.99%
$5,000 to $40,000
Editor’s Take
Happy Money specializes in consolidating high-interest credit card debt with low-interest loans for borrowers with decent credit.
Why We Like It
Happy Money lets you borrow from $5,000 to $40,000 with repayment terms of two to five years. It can also pay off creditors directly, making it easier to combine multiple card balances.
What We Don’t Like
Happy Money only consolidates credit card debt, doesn’t allow co-signers and charges origination fees of 0% to 5%.
Who It’s Best For
Happy Money personal loans are best for borrowers seeking to pay off multiple credit cards with a streamlined loan with one consistent payment and a predictable payoff schedule.
Pros & Cons
- Pays creditors directly
- Offers low rates
- No late fees, returned check fees or prepayment penalty fees
- Has origination fees
- Primarily consolidates credit card debt
- Doesn’t allow co-signers or co-borrowers
Details
Eligibility
- Minimum credit score. 640
- Minimum income. None
- Co-signers. Not permitted
- Co-borrowers. Not permitted
Expert’s Take
The best feature of Happy Money is its willingness to pay other creditors directly. At the point, you are consolidating credit with Happy Money, every day of interest matters. Happy Money is a solid option for someone with a good credit history but significantly over-levered. I have seen them work with a client who was laid off during the repayment period.
— Herman Thompson, Jr., advisory board member
Best Debt Consolidation Loan for Below Average Credit
LendingClub
4.4
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Minimum Credit Score
600
APR range
8.98% to 35.99%
Loan amounts
$1,000 to $40,000
Compare Rates
Via Credible.com’s Website
600
8.98% to 35.99%
$1,000 to $40,000
Editor’s Take
LendingClub stands out for offering loans to borrowers with limited credit. Once approved for a consolidation loan, LendingClub repays your creditors directly.
Why We Like It
LendingClub provides loan amounts of $1,000 to $40,000 and loan terms range from two to five years, giving borrowers the flexibility to customize repayment terms.
What We Don’t Like
LendingClub has a higher maximum APR than other lenders and does not advertise an interest rate discount for using autopay.
Who It’s Best For
LendingClub personal loans are ideal for borrowers with below-average credit. Borrowers with scores as low as 600 may be eligible for a debt consolidation loan.
Pros & Cons
- Available to borrowers with fair to excellent credit
- Balance transfer loans can directly pay off third-party creditors
- Co-applicants permitted
- Origination and late fees
- High APR cap
Details
Eligibility:
- Minimum credit score. 600
- Minimum income. Does not disclose
- Co-signers. Not permitted
- Co-borrowers. Permitted
Best Debt Consolidation Loan for Long Terms
Discover
4.2
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Minimum Credit Score
660
APR range
7.99% to 24.99%
Loan amounts
$2,500 to $40,000
Via Fiona.com’s Website
Editor’s Take
Discover offers longer-than-average loan terms with low interest rates for eligible borrowers. Like other lenders on this list, funds can be sent directly to your creditors to pay off balances.
Why We Like It
We like that Discover has no upfront origination fees and offers loan terms of three to seven years.
What We Don’t Like
Discover doesn’t advertise interest rate discounts for autopay, and you need good credit to qualify for loans.
Who It’s Best For
Discover personal loans are a good choice for borrowers with strong credit histories who want longer loan terms. Most lenders offer a maximum of five years, while Discover offers seven.
Pros & Cons
- No origination fees
- Low interest rates
- Funds can go directly to paying off credit lines
- No interest rate discount for autopay
- No co-signers or co-borrowers accepted
- Good credit needed to qualify
Details
Eligibility:
- Minimum credit score: 660
- Minimum income: $25,000
- Co-signers. Not permitted
- Co-borrowers. Not permitted
Best Debt Consolidation Loan for Comparing Offers
Universal Credit
4.2
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Minimum Credit Score
580
APR range
11.69% to 35.99%
Loan amounts
$1,000 to $50,000
Compare Rates
Via Credible.com’s Website
580
11.69% to 35.99%
$1,000 to $50,000
Editor’s Take
Universal Credit is a lending platform that may provide loans to borrowers who have high debt-to-income (DTI) ratios and bad credit.
Why We Like It
Borrowers with high balances, low income and poor credit history may be able to get loans through Universal Credit’s lending partners. Once approved, borrowers get access to free credit reporting, a tool that can be valuable when working to rebuild credit.
What We Don’t Like
Interest rates on Universal Credit loans range from 11.69% to 35.99%, which is higher than other lenders.
Who It’s Best For
Universal Credit is a good consolidation option for borrowers with damaged credit because it allows you to compare multiple offers at once from different lender partners. Shopping around is the best way to find the most affordable loan you can get when your credit is poor.
Pros & Cons
- Flexible qualification requirements
- Next-day funding
- No prepayment penalty
- High APRs
- All personal loans charge a 5.25% to 9.99% origination fee
Details
Eligibility:
- Minimum credit score.580
- Minimum income requirement.Does not disclose
- Co-signers. Does not disclose
- Co-borrowers. Does not disclose
Best Debt Consolidation Loan From a Brick-and-Mortar Bank
PNC Bank
4.1
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Minimum Credit Score
Does not disclose
APR range
Rates may vary by ZIP code
Loan amounts
$1,000 to $35,000
Learn More
Read Our Full Review
Does not disclose
Rates may vary by ZIP code
$1,000 to $35,000
Editor’s Take
PNC Bank is a major brick-and-mortar financial institution that offers debt consolidation loans online with no collateral required.
Why We Like It
PNC Bank personal loans have no application or origination fees. Borrowers can lock in a 0.25% rate discount for making automatic loan payments from a PNC checking account.
What We Don’t Like
PNC Bank loans are only offered from $1,000 to $35,000, and that maximum is less than what you can borrow from other lenders.
Who It’s Best For
PNC Bank personal loans are best for borrowers with an established relationship with the bank or who want to apply for a loan with a co-borrower.
Pros & Cons
- Offers competitive rates
- Has no origination fees
- Offers autopay rate discounts
- Doesn’t clearly share eligibility requirements
- Loan amounts are low compared to other lenders
Details
Eligibility
- Minimum credit score. Does not disclose
- Minimum income. Does not disclose
- Co-borrowers. Permitted
Best Debt Consolidation Loan for Quick Funding
Best Egg
3.7
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Minimum Credit Score
640
APR range
8.99% to 35.99%
Loan amounts
$2,000 to $50,000
Via Credible.com’s Website
640
8.99% to 35.99%
$2,000 to $50,000
Editor’s Take
Best Egg offers personal loans from $2,000 to $50,000 (depending on your state) with fast funding, making it a potential option to consolidate large balances quickly.
Why We Like It
Best Egg has a Direct Pay feature you can use to apply loan funds directly to eligible credit card accounts. The lowest rates are also available to borrowers who apply with an income of at least $100,000 and a credit score of at least 700.
What We Don’t Like
Best Egg charges an origination fee ranging from 0.99% to 5.99%, and the maximum interest rate is high compared to other lenders.
Who It’s Best For
Best Egg is best for borrowers with at least fair credit who want to consolidate debt quickly. You can get approved in minutes, and loan funding can happen within 24 hours.
Pros & Cons
- Offers direct payment to third-party creditors
- Low minimum APR
- No prepayment penalty
- Charges an origination fee
- No co-signers or co-borrowers accepted
Details
Eligibility:
- Minimum credit score. 640 (700 for lowest APR)
- Minimum income. $100,000 for lowest APR
- Co-signers. Not permitted
- Co-borrowers. Not permitted
Personal loan interest rates depend on several factors, including the borrower’s creditworthiness, lender, loan amount and repayment term. Typically, however, personal loan interest rates range from around 5.99% to 36%, with the lowest rates reserved for borrowers with excellent credit.
Summary: Best Debt Consolidation Loans of June 2024
| Company | Company - logo | Forbes Advisor Rating | Forbes Advisor Rating - Image | Minimum Credit Score | APR Range | Loan Amounts | Learn More CTA text | Learn more CTA below text | LEARN MORE |
|---|---|---|---|---|---|---|---|---|---|
| SoFi® |  | 5.0 |  | 650 | 8.99% to 29.99% | $5,000 to $100,000 | Compare Rates | Via Credible.com's Website | |
| Upgrade |  | 4.9 | | 580 | 8.49% to 35.99% | $1,000 to $50,000 | Compare Rates | Via Credible.com’s Website | |
| Happy Money |  | 4.4 |  | 640 | 11.72% to 17.99% | $5,000 to $40,000 | Compare Rates | Via Credible.com’s Website | |
| LendingClub |  | 4.4 | | 600 | 8.98% to 35.99% | $1,000 to $40,000 | Compare Rates | Via Credible.com’s Website | |
| Discover |  | 4.2 |  | 660 | 7.99% to 24.99% | $2,500 to $40,000 | Compare Rates | Via Fiona.com's Website | |
| Universal Credit |  | 4.2 |  | 580 | 11.69% to 35.99% | $1,000 to $50,000 | Compare Rates | Via Credible.com's Website | |
| PNC Bank |  | 4.1 | | Does not disclose | Rates may vary by ZIP code | $1,000 to $35,000 | Learn More | Read Our Full Review | |
| Best Egg |  | 3.7 |  | 640 | 8.99% to 35.99% | $2,000 to $50,000 | Compare Rates | Via Credible.com's Website |
How To Compare Best Debt Consolidation Loans
Personal loans often are available online through traditional banks, credit unions and alternative lending platforms so you can apply quickly and conveniently, without having to visit a bank branch. Many of these lenders also offer competitive interest rates and flexible repayment terms, meaning you may be able to save money by consolidating your other debts.
Consider these tips when comparing personal loans:
Where possible, prequalify
Consider the purpose of your loan
Keep an eye out for additional fees
Evaluate the lender’s customer support options
Pro Tip
Don’t settle for the first debt consolidation loan you come across. Shop around and compare interest rates, repayment terms, and any additional fees or charges. A slightly lower interest rate or more flexible terms can make a significant difference in the long run.
The Complete Guide to Debt Consolidation Loans
- What Is a Debt Consolidation Loan?
- Does Debt Consolidation Hurt Your Credit?
- Pros and Cons of Debt Consolidation Loans
- How To Qualify for a Debt Consolidation Loan
- How To Get a Debt Consolidation Loan
- Alternatives to Debt Consolidation Loans
- Is Debt Consolidation a Good Idea?
- Methodology
- FAQs
What Is a Debt Consolidation Loan?
Debt consolidation is when a borrower takes out a new loan, usually with more favorable terms (a lower interest rate, lower monthly payment or both) and then uses the loan proceeds to pay off their other individual debts. Debt consolidation loans are commonly used to help pay off credit card balances, auto loans and other personal loans.
How Does a Debt Consolidation Loan Work?
To start consolidating debt, apply for a personal loan through your bank or another lender. Once your lender approves you for a debt consolidation loan, it may offer to pay off your other debts automatically—or you will take the cash and pay them off yourself.
After your pre-existing debts are repaid with your new debt consolidation loan funds, you’ll make a single payment on your new loan every month. While debt consolidation often reduces your monthly payment, it accomplishes this by extending the loan period of the consolidated loans. Debt consolidation also streamlines payments and makes it easier to manage finances, like having a single monthly payment due date.
Pro Tip
Before consolidating your credit card debt, it’s important to come up with a plan for how you’ll manage credit cards moving forward. If you rack up new credit card debt after consolidating other balances, you could end up with two payments—one for your consolidation loan and another for your credit card bill. This can result in monthly debt payments that are difficult to manage.
Does Debt Consolidation Hurt Your Credit?
Debt consolidation loans can hurt your credit, but the impacts can be temporary. Applying for a loan requires a hard credit check, which can result in a small dip in your credit score. However, the impact of the inquiry on your score will decrease over time and disappear typically after two years. Your credit score may also decrease if you take out a debt consolidation loan, pay off your credit cards and then rack up more debt on those cards.
That said, consolidating loans can be a great way to streamline your payments, reduce your monthly debt service and build healthy financial habits through regular, on-time payments. For that reason, consolidation loans can actually help you improve your credit score over time. What’s more, some lenders even offer credit tools beyond regular lending services to help you manage your credit profile.
Pros and Cons of Debt Consolidation Loans
Debt consolidation loans are a finance tool. Like any tool, it can either help or hurt you, depending on how you use it. Before you submit an application to borrow money, make sure you’ve fully considered the pros and cons of debt consolidation loans.
Pros of Debt Consolidation
- Simplifies your debt repayment
- Rates may be lower than the rates on credit card debt
- Helps you pay down debt faster if you opt for shorter-term loans
- Can improve your credit score, especially if you’re consolidating credit card debt
- Lowers your payment if you opt for long-term and/or lower-rate loans
Cons of Debt Consolidation
- Can damage your credit if you miss any loan payments
- Your options may be more limited if you have bad credit
- Can be somewhat confusing, especially as your old debts are being paid off
- Can tempt you to run up your credit cards again once they’re paid off
How To Qualify for a Debt Consolidation Loan
Qualifying for a debt consolidation loan is similar to any other personal loan.
Shop around for lenders where you meet the minimum qualifications. If you don’t meet the credit score requirements, take steps toimprove your credit score. This can include correcting mistakes on your credit report, paying credit card debt or paying down any past-due accounts.
Getting preapproval for a debt consolidation loan can verify that you’ll qualify for the loan when you submit an official loan application.
How To Get a Debt Consolidation Loan
While the process varies by lender, follow these general steps to get adebt consolidation loan:
- Check your credit score.Check your credit score for free through yourcredit cardissuer or another website that offers free scores. This will help you understand your creditworthiness and qualification chances. Aim for a score of at least 610; however, a score of at least 720 will yield the most favorable terms.
- If necessary, take steps to improve your credit score.If your score falls below 610 or you want to boost your score to receive the best terms possible, take time to improve your score before applying, such as lowering your credit usage or paying off unpaid debts.
- Determine how much debt you need to consolidate.Once you check your credit score, calculate how much money you need to borrow to consolidate all of your debts. Remember, though, you’ll receive your money as a lump sum, and you’ll have to pay interest on the entire amount—so only borrow what you need.
- Shop around for the best terms and interest rates.Many lenders will let you prequalify prior to submitting your application, which lets you see the terms of your loan with just a soft credit inquiry. A soft credit inquiry has no impact on your credit score.
- Submit a formal application and await a lending decision.After you find a lender that offers you the best terms for your situation, submit your application online or in person. Depending on the lender, this process can take a few hours to a few days.
ASK AN EXPERT
What steps should you take before applying for a debt consolidation loan to get the most favorable terms?
Joel Larsgaard
Advisory Board Member
Taylor Medine
Mortgages & Loans Writer
Jordan Tarver
Lead Editor, Mortgages & Loans
The first question to ask is, “Should I consolidate my debt?” Or, “Would I be better off making a list of all the debts I owe and creating an order of urgency, paying them down one by one?”
Debt payoff isn’t just about getting the best terms possible. You don’t want to be shifting deckchairs around on the Titanic.
Debt consolidation might still be the best choice for you and could reduce the length of time it will take to pay off your debt. To get the best rate and terms, pay close attention to your credit score. The higher the score, the better off you’ll be when shopping around with various lenders.
Joel Larsgaard
Advisory Board Member
Cleaning up your credit is a key first step since your credit score directly affects your interest rates and loan costs.
The higher your score, the more money you’ll save on interest. Disputing incorrect records on your credit report is one way to raise your score if you can’t reduce your balances.
It’s also important to consider multiple loan term lengths—long, short or medium. This will help you find a loan with a manageable payment and reasonable payoff timeline that gets rid of debt sooner rather than later.
Finally, before applying for a loan, check the institutions where you’re currently banking for loans. You never know—the bank holding your mortgage or a nearby credit union might offer you the best deal on a loan. Try giving them a call!
Taylor Medine
Mortgages & Loans Writer
When it comes to getting the most favorable terms, prospective borrowers must focus on becoming a low risk in the eyes of the lenders.
With that in mind, I recommend following these simple steps before applying:
- Take a hard look at your credit. Before applying for any new account, it’s crucial to look at your credit and be honest with yourself. Is it lacking? Do you need to shape it up a bit? Or, are you in a good spot? If you’re aiming for the most favorable terms, we recommend a score of at least 700 to 720.
- Take action and improve your score. If your credit score is a wake-up call for you, it’s best to hold off on applying until you get it into shape. Repaying existing debt and removing any errors from your credit report can help boost your score.
- Apply with a co-signer. If your credit is limited and you don’t have the time to improve your credit score, applying with a co-signer can help you land better terms. The co-signer’s credit score will be used when evaluating the application. However, this means if you fall behind on payments, it could ding their credit score in addition to yours.
Jordan Tarver
Lead Editor, Mortgages & Loans
How To Get a Debt Consolidation Loan With Bad Credit
If you have bad credit, you can strengthen your application by improving your DTI ratio. You can do this by increasing your income—with a side hustle or otherwise—or by paying off some of your smaller, more manageable debts. If you choose to pay down some of your debts, this could also help improve your credit score, accomplishing two things at once.
There are debt consolidation loans for bad credit if you can’t improve your credit score enough to qualify for other loans. You may also have better luck applying for secured loans, which are more accessible to applicants with bad credit because they reduce the lender’s risk and often come with lower interest rates.
Alternatives to Debt Consolidation Loans
If you don’t qualify for a traditional debt consolidation loan or want to compare other available options, consider alternatives, including:
1. Balance Transfer Credit Cards
Some credit card providers offer cards that let you move—or transfer—existing credit card debt to a new card with a 0% introductory APR, often for a percentage fee. As long as you repay your debt within the introductory period, which can range up to 21 months, you can avoid paying interest. Any unpaid balances after the introductory period ends will begin to accrue interest.
2. Home Equity Loan
If you have sufficient equity in your home, typically at least 15% to 20%, you may be eligible to borrow up to 85% of your equity. Funds are disbursed as a lump-sum payment, which you can use to repay high-interest debts, and interest is owed on the full loan amount. Home equity loans are secured by your home, which means the lender can repossess the property if you default on the debt.
3. Home Equity Line of Credit
Similar to a home equity loan, a HELOC also gives you access to funds through your home equity. However, instead of receiving funds as a lump-sum payment, you’ll have access to a credit line you can use as needed, and reuse as you repay your balance during the draw period. You’ll also only pay interest on the amount you borrow, not the entire approved amount.
Find the Best Balance Transfer Credit Cards Of 2024
Learn More
Is Debt Consolidation a Good Idea?
Determining whether debt consolidation is a good idea for you depends on your credit score and whether you’re taking other steps to improve your financial habits. Debt consolidation may benefit you if:
- You’re committed to paying off the full amount of your debt consolidation loan
- You have enough cash flow to cover all of your debt payments
- You’re okay with repaying your loans over a longer period of time
- You’ve improved your credit score since you took out your original loans
- You have a financial plan to avoid running up your debts again
Pro Tip
The key to taking out a personal loan and consolidating debt without doing more harm to your finances is to create a debt payoff plan and stick to it. So many people think that a different financial product with a lower interest rate is the solution. But the real answer is to make changes to how you spend, avoiding the worst forms of debt in the first place.
— Joel Larsgaard, advisory board member
Methodology
We reviewed 26 popular lenders based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the best lenders based on the weighting assigned to each category:
- Loan cost. 35%
- Loan details. 20%
- Eligibility and accessibility. 20%
- Customer experience. 15%
- Application process. 10%
- Bonus points. 15 points for lenders who pay creditors directly
Within each category, we also considered several characteristics, including available loan amounts, repayment terms, APR ranges and applicable fees. We also looked at minimum credit score requirements, whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated the availability of each provider’s customer support team.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our.
How long are the terms of a debt consolidation loan?
The most common term for debt consolidation loans ranges between three and five years. You may be able to find lenders offering different term lengths ranging from one year to 10 years, however.
How much can I save with debt consolidation?
How much you can save depends on the amount you’re paying off, your interest rates and your term length. A debt consolidation loan can have lower interest rates than your current debt, and in some cases, shortening your loan term can also save you money on interest.
Adebt consolidation calculatorcan help you understand how much you’ll save with a debt consolidation loan.
Is there debt consolidation for veterans?
Veterans who have Veterans Affairs (VA) loans may qualify for a Military Debt Consolidation Loan (MDCL), also known as a VA Consolidation Loan. This acts as a cash-out refinance. Veterans who don’t have VA loans can rely on traditional personal loans to consolidate their debts.
How long does it take to get approved for a consolidation loan?
Approval turnaround times typically vary per institution. For example, some online lenders may approve your loan within a matter of minutes, while banks may take a few days or up to a week to process. Once your loan is approved, funding can arrive within 24 to 48 hours or up to one week, depending on your lender.
Also, keep in mind that once you are approved for a debt consolidation loan, it might take several weeks to pay off your existing debts, depending on the lender. They will likely still hold you responsible for any payment due dates within that waiting period.
Best Ofs
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