Debt Consolidation Loan is a better option to control multiple lending reduce different interest rates and offset bad credit.
A borrower can reduce the number of lenders by opting for a debt consolidation loan that will be easier to repay.
A credit score is very important when getting a debt consolidation loan because it will be checked before a loan is issued.
A borrower with a bad credit record finds it difficult to get a debt consolidation or might have to get a secured debt consolidation loan which is risky.
Several consolidation loan companies are ready to issue loans consolidated to debtors with a bad credit history that you might consider if you are in such a situation.
Let us discuss the best debt consolidation loan for bad credit.
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Best Debt Consolidation Loan For Bad Credit
The following are the best debt consolidation loans for bad credit:
1. Lending Club
Lending Club is one of the best debt consolidation loans for bad credit. They offer their loan services online and can grant loan Consolidation to borrowers with bad credit history.
Their interest rate is not so high compared to other loan consolidation companies.
Some of the lending club’s best features are:
- They have a flexible repayment plan of 36 or 60 months.
- The following are what you should take note of:
- They can grant a loan of $1,000
- You can borrow up to $40,000
- They maintain a loan period of 3 years to 5 years.
- Your loan can be processed in less than 3 days of application
- They have no minimum credit score.
2. Onemain Financial
Onemain Financial is one of the best debt consolidation loan companies that offer loans to those with bad credit scores.
Although their interest rate may be high if the credit score history is high, you can still get your debt consolidated.
Onemain Financial operates online in states with no branches available, but if their branches are available in your state, you may consider visiting to get a loan.
The following are what to take note of:
- You can borrow from $1,500 to $20,000.
- Annual percentage rate of 18.00% to 35.99%
- They maintain a loan period of 2 to 5 years.
- Applicable fees are 1% to 10%
- No registration fees are required.
- Loan processes take 24 hrs or less.
3. Upgrade Debt Consolidation Loan Company
The Upgrade is also one of the best debt consolidation loan companies you should opt for if you have a bad credit score.
Over the years, borrowers using Upgrade have rated it 5 stars which makes it trusted by many.
This company offers the following:
- You can borrow from $1,000 to $50,000.
- Annual percentage rate of 5.94% to 35.97%
- They maintain a loan period of 2 to 7 years.
- Applicable fees are 2% to 8%
- No registration fees are required.
- Loan processes take 24 hrs or less.
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4. Avant Loan Company
Avant Loan Company is also a good choice for debt consolidation for bad credit. They allow borrowers to get loan Consolidation without a minimum credit score.
Before granting loan Consolidation, they check your repayment status and financial status to ensure the borrower is eligible to borrow and pay back.
Although you might pay a high interest rate due to bad credit, you can benefit from their registration fee.
The following are what a borrower should take note of:
- You can borrow from $2,000 to $35,000
- Fixed Annual percentage rate of 9.95% to 35.99%
- They maintain a loan period of 2 to 5 years.
- You can enjoy a 4.75% administration fee
- Their repayment policy is friendly, and there is no extra charge for late repayment.
- The loan can be processed 24 hours from the time of application.
5. Happy Money
Happy Money offers debt consolidation loans with a focus on providing transparent information about its lending requirements.
The following are what a borrower should take note of:
- Minimum credit score requirement: 640
- APR range: 11.72% – 17.99%
- Loan length: 24 to 60 months
- Loan amount: $5,000 to $40,000
- Origination fee: 1.50% – 5.50%
- No delinquent payments for loan approval
- Transparent requirements on the website
- No application or late fees
6. LendingPoint
LendingPoint is known for offering debt consolidation loans to consumers with credit scores starting at 660.
The following are what a borrower should take note of:
- Minimum credit score requirement: 660
- APR range: 7.99% – 35.99%
- Loan length: 24 to 72 months
- Loan amount: $2,000 to $36,500
- Origination fee: Up to 10%
- Lower APR rates for higher credit scores
- Limited eligibility for lower APR with lower credit scores
7. OneMain
OneMain Financial provides loans, including debt consolidation, with a flexible approach and a focus on smaller loan amounts.
The following are what a borrower should take note of:
- Minimum credit score not specified
- APR range: 18.00% – 35.99%
- Loan length: 24 to 60 months
- Loan amount: $1,500 to $20,000
- Origination fee: 1.00% – 10.00%
- Best for small loans
- Higher APR rates compared to other lenders
- APR rates may be lower than predatory lenders
8. Prosper
Prosper operates as a peer-to-peer lending marketplace, facilitating loans for a range of purposes, including debt consolidation.
The following are what a borrower should take note of:
- Minimum credit score requirement: 560
- APR range: 6.99% – 35.99%
- Loan length: 24 to 60 months
- Loan amount: $2,000 to $50,000
- Origination fee: 1.00% – 7.99%
- Peer-to-peer loan marketplace
- Quick funding process
- Wide range of possible APRs
9. Upstart
Upstart is an online lending platform that utilizes artificial intelligence and machine learning to assess creditworthiness beyond traditional credit scores.
Founded in 2012, the company aims to make credit more accessible and affordable.
The following are what a borrower should take note of:
- Minimum credit score requirement: 300
- APR range: 6.40% – 35.99%
- Loan length: 36 and 60 months
- Loan amount: $1,000 to $50,000
- Origination fee: 0.00% – 12.00%
- Quick funding within one business day
- No joint loans offered
- Borrowers with credit below 300 may not qualify
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Final Thought
Above-listed companies allow borrowers to access loans with good interest loan even with a bad credit score.
Individuals should follow the rules and regulations listed on various sites to access this debt consolidation. You should check all the above listed to pick one to subscribe to.
This article doesn’t in any way suggest that there are no other options but to bring out the best in the industry.
We hope you get the best debt consolidation loan services.
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