Debt Consolidation Loans for Bad Credit
Bad credit? No Problem
Avant is an online personal lending platform that provides access to unsecured loans. Whether you need to consolidate your debt, improve your home, or make a major purchase, Avant may be able provide you with access to the money you need. Checking your Loan Options will not affect your credit score | Easy online application. Avant branded credit products are issued by WebBank, member FDIC
Avant offers personal loans with lower qualification standards. According to their website, most of Avant’s customers have a credit score between 600 and 700.
Although Avant offers loans for people with a lower credit score, the interest rates are high, going up to 35.99%. The loan amounts are also more limited than some other options. Loans are limited to a maximum of $35,000 with a term between 24 and 60 months.
There are also origination or administrative fees that can cost between 1.5% and 4.75% according to the Avant website. However, that may be lower than some competitors.
This may still be an option to consider if your credit score is below 700, which Eric Rosenberg, a former bank manager and personal finance expert at Personal Profitability, says is generally the cutoff for many banks to approve people for a debt consolidation loan.
2464 Reviews(4.6 Of 5)
Rates range from 5.99%-35.89% APR. Best APR available to borrowers with excellent credit. Borrow up to $40,000. Fast and convenient process.
LendingClub is a peer-to-peer lending marketplace that offers personal loans that can be used for debt consolidation as well as other purposes. Loans from LendingClub are financed by private investors.
The interest rates on personal loans from LendingClub are between 5.99% and 35.89% based on your creditworthiness. The origination fee on a new loan is from 1% to 6%.
LendingClub does charge a fee of $7 if you decide to make your loan payments by check, but there is no fee if you pay with an automatic ACH payment from your bank account each month.
LendingClub makes it easy to shop around by using a “soft inquiry” when you inquire about interest rates, so it won’t affect your credit score unless you decide to move forward with the loan.
3845 Reviews(4.7 Of 5)
**Example: A $9,500 loan with a term length of 48 months and a 18.49% APR would have monthly payments of $281.50.
OneMain Financial offers personal loans ranging between $1,500 and $25,000, which can be used for a number of things, including debt consolidation. However, OneMain Financial has the highest interest rates of these three options with APRs between 17.59% and 35.99%.
A minimum credit score was not listed on OneMain Financial’s website.
Interest is accrued daily on a personal loan from OneMain Financial, which means that making any extra payments or making payments more frequently on a loan will help you accrue less interest.
2985 Reviews(4.3 Of 5)
*The Rates, APRs, Fees, and Monthly Amounts above are estimates only and are not guaranteed. The information provided is for illustrative purposes only and is merely a conditional quote subject to change, may not be available in all states and are based on loan amount requested and creditworthiness as determined by the lender selected. When you proceed with a lender, they will inquire into your credit and such inquiry will impact your credit score. Your financial information will be required to be verified and subject to formal credit approval by the lender selected. LendingTree receives payment from the lenders on a cost per click and/or closed loan fee, but provides its services free of charge to you to search and compare lenders.
Shopping around pays off
Before you apply for a debt consolidation loan, you should shop around for the best interest rates, lowest fees and terms for your situation. Especially if you have a credit score at or near 700, you may be able to qualify for a loan with better terms.
It’s also important that you ensure you can afford any debt consolidation loan you take on. The fees and penalties for late payments and non payments can be severe.
In addition to your credit score, some lenders will consider other factors to help you qualify for loans with a better term, such as your employment history and income information.