If you’re struggling with debt, a debt consolidation loan might be a good idea. With this type of loan, you will be able to pay your current debts, and as a result, you will have only one. This way, you won’t have to make multiple payments, and then you will be more organized, and potentially pay fewer interest fees. You’ll find different rates, depending on your credit score, and your ability to find a co-signer. Here are the seven best debt consolidation loans of 2020:
What differentiates Personal Loans from others, is that they’re not a lender, but a marketplace that connects consumers to peer-to-peer, bank, and installment loans. There’s no minimum credit requirement, they welcome all kinds of credit scores. PersonalLoans is a large network that is available in all US states. People can borrow anywhere from $500 up to $100,000, depending on the lender, and if you get approved, you will receive the money in 24 hours.
In order to apply for a loan, you will need to have a fair credit score. Upgrade requires a minimum credit of 600, but they accept co-signers who meet the minimum criteria. You can borrow anywhere from $1,000 up to $35,000. Their estimated APR ranges from 7.99% up to 35.97%. Apart from debt consolidation, you can also borrow the money for funding home improvements and other large purchases. It’s not available for residents in Iowa, Vermont, and West Virginia.
Avant’s clients can borrow anywhere from $2,000 up to $35,000, and their APR is typically 9.95 – 35.99%. To qualify, you will need a minimum credit score of 580, and make at least $20,000 annually. One significant advantage of Avant is that they have a prequalification option available that won’t affect your credit score. If you get approved, you’ll receive the money as quickly as the next business day. In addition to that, Avant also reports to all major credit bureaus, helping to rebuild your credit score if you make all the payments on time.
Borrowers can ask for loans from $1,000 up to $35,000, and their APR rates vary between 5.99% and 35.99%. SignatureLoan does not require a perfect credit score in order to apply. They also have a great variety of lenders, which increases your chances of approval. In addition to debt consolidation, you can also use the money for medical bills, car repairs, or other emergency expenses. They have fast approval time, and you will know if you got approved in as little as five minutes.
Customers can apply for $1,000 up to $50,000, and if your application gets accepted, you will receive the funds in your account really fast. Their estimated APR is anywhere from 4.99 up to 35.99%. Upstart has some qualification requirements, such as a minimum credit score of 600, minimum annual income of $12,000, no recent bankruptcy, and you will need to have a full-time job or offer starting in six months, or another source of income.
6) OneMain Financial
OneMain Financial offers debt consolidation loans ranging from $1,500 up to $20,000. It’s an excellent option for people who have bad credit since they don’t have a minimum credit requirement. Their estimated APR is anywhere from 18.00% up to 35.99%. You can apply to their secured loans as well, in which you will need to provide collateral, but you will also get better rates. You can use the money for other reasons like weddings, medical expenses, or even home improvement projects.
7) PenFed Credit Union
PenFed is an established credit union, and one of the largest in business in the United States. It requires a minimum credit score of 600, but you can also apply with a co-signer if your credit is lower than that. PenFed also asks for some credit history and a stable job. They have one of the lowest APR rates in the market, ranging from 6.49% to 17.99%. Clients can borrow anywhere from $500 up to $20,000. You should keep in mind, however, that they don’t have an option to pre-qualify, so an application might hurt your credit score by a few points. If you’re approved, the money will be in your account in as little as 24 hours.