Need A Debt Consolidation Loan? Check Out These Lenders

Debt consolidation loans fall under the umbrella of personal loan products. With them, you can pool multiple types of high-interest debts into one affordable monthly bill. You can use a debt consolidation loan to cover several unsecured debts such as:

 

  • Credit card balances
  • Medical expenses
  • Other personal loans
  • Payday loans

 

Now that interest rates have hit an all-time low, you might consider an affordable debt consolidation loan to get out from under your debt. Because these loans have much lower interest rates than credit cards, you can pay your debt faster and with fewer interest payments. 

According to US News My Money, the lenders below offer some of the best debt consolidation loans on the market. One of these can be beneficial when you want to consolidate several types of debt. 

 

Best For Borrowers With Fair Credit

LendingClub

  • Minimum FICO credit score: 600
  • Loan amounts: $1,000 to $40,000
  • Repayment terms: 36 to 60 months
  • Better Business Bureau rating: not available

 

Since 2007, LendingClub has provided over $44 billion in loans. If you have average credit or higher, you can qualify for a loan as little as $1,000 or as much as $40,000. In addition, Lending Club also accepts joint applications. 

 

Best For Borrowers With Poor Credit

Peerform

  • Minimum FICO credit score: 600
  • Loan amounts: $4,000 to $25,000
  • Repayment terms: Not available
  • Better Business Bureau rating: A+

 

As a peer-to-peer lending platform, Peerform helps borrowers around the US find investors to finance their loans. If you have a minimum credit score of 600, you could be eligible for loans as much as $25,000. Peerform also has some of the best customer service offered by any lender on this list. And since the application process is online, getting a loan is quick and convenient.

 

Best Customer Service

Upstart

  • Minimum FICO credit score: 620
  • Loan amounts: $1,000 to $50,000
  • Repayment terms: 36 to 60 months
  • Better Business Bureau rating: A+

 

Since 20212, Upstart has issued over 500,000 loans to borrowers around the country. This online bank is also a peer-to-peer platform that uses AI to automate over two-thirds of its lending decisions. That means you can receive a decision even faster. Even if you are new to credit, Upstart’s AI program can determine your risk and give a more accurate picture of your ability to repay your loan.

 

If you have fair credit or better, you can qualify for loans as much as $50,000 or as low as $1,000. Additionally, Upstart offers a “financial fitness dashboard” that lets you change due dates and check your credit score.

 

Best Short-Term Loans

US Bank

  • Minimum FICO credit score: Not available
  • Loan amounts: $100 to $25,000
  • Repayment terms: three to 60 months
  • Better Business Bureau rating: A

 

When you apply for a debt consolidation loan from US Bank, you can qualify for a short- or long-term loan as much as $25,000. You’ll also get your money fast, making this lender convenient for those times when you’re in a jam. You can also enjoy fixed interest rates and zero fees for origination. If your credit needs a little work, US Bank accepts co-signers, which can potentially give you a better offer.

 

No Minimum Loan Amounts

PenFed Credit Union

  • Minimum FICO credit score: undisclosed
  • Loan amounts: up to $20,000
  • Repayment terms: up to 60 months
  • Better Business Bureau rating: A+

 

Even if you’re not a member of the military, you can still become a member at PenFed Credit Union. No matter where you live, qualifying applicants and co-borrowers can apply for debt consolidation loans with terms as long as 60 months. You don’t have to pay an origination fee, and you’ll get your money as soon as you are approved.

 

Most Affordable Loans

Discover

  • Minimum FICO credit score: 660
  • Loan amounts: $2,500 to $35,000
  • Repayment terms: 36 to 84 months
  • Better Business Bureau rating: A+

 

Discover doesn’t just offer great deals on its credit cards; it provides competitive rates for debt consolidation loans, too. Eligible borrowers can secure loans up to $35,000 at a fixed rate from anywhere in the country. And as long as you pay your bill on time each month, you never have to pay a thing. You can also monitor your FICO credit score online for free as a complimentary benefit from Discover. 

 

Source
  • Merritt, Jessica, and Bob Musinski. “Best Debt Consolidation Loans of 2020.” U.S. News & World Report, U.S. News & World Report, 1 Dec. 2020, loans.usnews.com/debt-consolidation.
Ian Schindler