Top 3 Debt Consolidation Lenders
Credit card debt in the United States in 2017 has risen to approximately 931 billion dollars which is a 7 percent rise over 2016 levels. According to Nerd Wallet, the current average US household credit card balance is now $15,983. Debt consolidation lenders pay off existing debt and consolidate all outstanding debt into one account with one lender and one monthly payment. The purpose of a debt consolidation loan is to decrease the interest rates currently being paid, decrease the current monthly payment, increase the credit score and lower the credit utility rate (the percentage of a borrower’s total available credit currently being used). Consolidation loans can be used to pay off credit cards, medical bills, personal loans and payday loans. The top three debt consolidation lenders are Best Egg, Upstart and Avant. Keep reading to learn more about debt consolidation loans and the top three lenders, so you can choose the one that’s best for you.
Understanding Debt Consolidation
Most top debt consolidation Lenders require a FICO score of from 580 to 739 along with a debt to income ratio of 50 percent or less. Applicants should have a basically clean credit history with no bankruptcies, tax liens or foreclosures. Required annual income requirements are usually between $24,000 and $40,000 per year. Typical consolidation loans are from $1,000 to $50,000 payable over a two- to five-year period with an origination fee of from 1 to 5 percent. Approvals are usually accomplished quickly with fast closing of the loan and deposit to the applicant’s bank account within several days. Applicable fees and penalties apply. Disadvantages of debt consolidation loans include high rates of interest over the life of the loan, risk of losing an asset if the loan is secured and continuing to increase debt if old credit card accounts become usable again.
The first of the top three debt consolidation lenders is Best Egg lenders located in Wilmington, Delaware. The average APR for a consolidation loan from Best Egg is from 5.99% to 29.99% depending on credit rating. Payoff for a typical consolidation loan from Best Egg is in three to five years, with only one monthly payment required to cover all costs due. In a recent survey, over nine out of ten customers were satisfied with their consolidation loan from Best Egg. The application process for a loan is quick and simple and online applicants can check their loan interest rate immediately. Once the loan is approved, the loan proceeds can be wired into your account in as little as one day.
The second of the top three debt consolidation lenders is Upstart, based in Palo Alta, California. This debt consolidation lender was founded in 2012 by former employees of Google. Upstart prides themselves on considering much more than credit score before approving a loan and includes education level and job potential in their loan decision process. Borrowers save approximately 24 percent when compared to credit card rates and there is no prepayment penalty. Upstart also considers FICO score, years of credit, areas of study and job history when evaluating a consolidation loan applicant. They conduct a “soft” credit check when checking your lending rate which does not affect your credit score.
The third of the top debt consolidation lenders is Avant Lenders. Avant is based in Chicago, Illinois and currently has over 600,000 customers. They provide fast approval, a “soft” credit check, have no prepayment fees and the application process can be completed within minutes. The typical required credit score is from 600 to 700 and over 4 billion dollars in loans have been completed successfully. The online application process is securely protected and encrypted, and the yearly required income is at least $40,000. Typical APR for a consolidation loan is from 9.95% to 35.99%. The standard loan amount is from $2000 to $35,000 with a 1.5% to 4,74% origination fee. Most consolidation loans take two days to process and close with funds wired into your account within several days.