Debt loan program

You are not required to enroll in autopay or direct deposits to receive a loan from SoFi. Neither SoFi nor its affiliates are a bank. With zero fees and customizable repayment terms, Marcus offers one of the best personal loans for borrowers with good credit. Offers direct payment to creditors for debt consolidation loans. No co-sign, joint or secured loan option.

May need to provide proof of income, including recent pay stubs or bank statements. A debt consolidation loan combines multiple unsecured debts — such as credit cards, medical bills and payday loans — into one fixed monthly payment. A debt consolidation loan is usually a good idea if the interest rate on the loan is lower than the combined rates on your existing debts.

You can use a debt consolidation calculator to estimate your interest savings and new monthly payment, and to compare various loan options. When deciding between debt consolidation loans, compare these factors. Annual percentage rates: The loan's APR represents its true annual cost, as it includes all fees and interest charges.

Rates vary based on your credit scores, income and debt-to-income ratio. Use APRs to compare multiple loans. Choose a low rate with monthly payments that fit your budget. Origination fees: Some lenders charge origination fees to cover the cost of processing your loan. Avoid loans that include this fee to keep costs down, unless the APR is lower than other no-fee loans. Lender features: Some lenders offer consumer-friendly features like direct payment to creditors, which means the lender pays off your old debts once your loan closes, saving you that task.

Other features to shop for include free credit score monitoring and hardship programs that temporarily reduce or suspend monthly payments if you face a financial setback, such as a job loss. Build your credit: Loan approval is based mainly on your credit score and ability to repay. It may be possible to get a debt consolidation loan with bad credit , but borrowers with excellent credit to FICO have more loan options and may qualify for lower rates.

If you have fair or bad credit below FICO , it can pay to build your credit before seeking a consolidation loan. There are risks to your co-signer , though, so that person will need to weigh their decision carefully. Shop around: Compare rates and terms at multiple lenders before applying for a debt consolidation loan. Most online lenders let you pre-qualify with a soft credit inquiry, which has no impact on your credit scores.

Plan ahead: Before your loan is funded, create a budget that allocates a percentage of your income toward debt repayment and track your progress with a budgeting and saving app. Canceling credit accounts can hurt your credit score. Most debt consolidation loans offer terms of two to seven years, so be prepared to stick to your monthly payments over that time period. Consolidating your debt with a personal loan can help — and hurt — your credit score.

When you use the loan to pay off your credit cards, you lower your credit utilization, which measures how much of your credit limit is tied up. Lowering your credit utilization can help your credit. On the other hand, applying for a loan requires a hard credit check, which can temporarily ding your credit score. And if you turn around and rack up new credit card debt, your credit score will suffer.

You can pre-qualify with multiple lenders on NerdWallet to compare offers and find the lowest rate. Credit counseling: Nonprofit organizations offer credit counseling , which includes helping you create a debt management plan.

Similar to other consolidation products, these plans roll your debts into one manageable payment at a reduced interest rate. The debt snowball and debt avalanche methods are two common strategies for paying off debt.

The snowball method focuses on paying off your smallest debt first, building momentum as you go. The avalanche focuses on paying off the debt with the highest interest rate first, then applying the savings elsewhere.

Both can boost your payoff speed. We collect over 45 data points from each lender, interview company representatives and compare the lender with others that seek the same customer or offer a similar personal loan product. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.

Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau.

NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines. Aside from a hard credit pull when you apply, just getting a debt consolidation loan won't hurt your credit.

Your credit score could be negatively impacted if you miss loan payments or pay late. Making on-time monthly payments and maintaining low balances on your credit cards will likely have a positive impact on your score. Debt consolidation loan interest rates can vary by lender.

Factors like your credit score, income and debt-to-income ratio help determine what interest rate you'll get on a loan. A debt consolidation loan is a good idea if you can get a lower annual percentage rate than what you're currently paying on your other debts. The best personal loan interest rates are reserved for borrowers with good or excellent credit or higher FICO score.

A debt consolidation calculator can help you understand if a loan is right for you. Upgrade: Best overall. LightStream: Best for low rates. Discover: Best for fast funding. Marcus, SoFi: Best for no fees. Upstart: Best for bad credit. Best Debt Consolidation Loans. Credit Score Learn More.

Get rate. Our pick for Best overall. APR 5. Credit Score View details. Key facts Customizable loan features and discount opportunities make Upgrade a strong option for fair- and bad-credit borrowers.

Pros Allows secured and joint loans. Cons Charges origination fee. No co-signed loan option. Qualifications Minimum credit score: ; borrower average is Minimum number of accounts on credit history: Two accounts. Available Term Lengths 2 to 7 years. Fees Origination fee: 2. Our pick for Paying off credit card debt.

Key facts If you can qualify for a low rate, Payoff is a smart way to consolidate high-interest credit card debt into one fixed monthly payment. Pros Competitive rates among online lenders. Offers direct payment to creditors.

No prepayment or late fees. No rate discount for autopay. Qualifications Minimum credit score: Minimum credit history: Three years. At least two open accounts on credit report. Zero credit delinquencies. Must be able to provide income verification.

No bankruptcies filed within the past two years. Must provide Social Security number. Available Term Lengths 2 to 5 years. Disclaimer This does not constitute an actual commitment to lend or an offer to extend credit.

Our pick for Low rates. APR 4. Pros No fees. Cons No option to pre-qualify on its website. Several years of credit history. Strong payment history with few or no delinquencies. Investments, retirement savings or other evidence of an ability to save money. Enough income to pay existing debts and a new LightStream loan. Fees Origination fee: None. Late fee: None. Disclaimer Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile.

Our pick for Bad credit. APR 3. Credit Score None. Pros Accepts borrowers new to credit. Cons Borrowers can choose from only two repayment term options. Charges origination fee. No mobile app to manage the loan. Qualifications Minimum credit score: None. Must be at least 18 years old. Valid email account required. Personal bank account with U. Available Term Lengths 3 to 5 years. Disclaimer Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application.

Our pick for Secured loan option. Best Egg. Key facts Best Egg personal loans are available to borrowers who want to consolidate debt and secure a loan, but they lack some features offered by other lenders. Pros Offers wide range of loan amounts. Minimum credit history: 3 years and 3 accounts.

Employment: Must provide proof of income; part-time employees are eligible. Must provide valid U. Fees Origination fee: 0. Our pick for Fast funding. Pros No origination fee. Offers mobile app to manage loan.

Cons Charges late fee. Must be a U. Available Term Lengths 3 to 7 years. Disclaimer This is not a commitment to lend from Discover Personal Loans.

Our picks for No fees. SoFi Personal Loan. Key facts Qualified borrowers will find few lenders better than SoFi, thanks to its zero fees and thoughtful perks like unemployment protection and free financial advising. Offers unemployment protection.

Cons No secured loan option. Qualifications Must legally be an adult in your state. Disclaimer Fixed rates from 4. Marcus by Goldman Sachs.

APR 6. Key facts With zero fees and customizable repayment terms, Marcus offers one of the best personal loans for borrowers with good credit. Cons No co-sign, joint or secured loan option. Available Term Lengths 3 to 6 years. Disclaimer Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. What is a debt consolidation loan?

This includes personal loans, medical expenditures, and mortgages. The sad truth is that many individuals are buried in debt due to their poor credit card management. Debt relief programs are a great way to reduce your debt and help you improve your financial situation.

Debt relief programs are a type of program that helps individuals reduce the amount of unsecured debt they owe. This includes credit card debt, medical bills, personal loans, and more. Fortunately, several debt relief alternatives are available for those struggling to repay their debt.

Debt consolidation loans, debt settlement debt negotiation , consumer credit counseling, and balance transfers are the most frequent debt-relief alternatives. Declaring bankruptcy is the most serious of all options for resolving debts, yet it is the most common kind of debt relief. Debt consolidation is a debt relief loan that allows you to combine your different debts into one loan.

Debt consolidation is usually done by taking out a new personal loan from the bank and using it to pay off all your credit card bills. Debt consolidation can be very helpful if you have multiple unpaid debts, making it a great option to resolve credit card debt.

Debt consolidation loans may also have lower interest rates than your original debts, which means you will save money on the overall amount of interest paid overtime. Sometimes, individuals use debt consolidation loans to repay old personal loans with high-interest rates.

This can increase your debt and make it harder to pay off in the long run. Debt consolidation loans may also have shorter repayment periods, so you might end up paying more money overall.

Debt settlement is a negotiation between you and your creditors to resolve your debt. Perhaps the major benefit of debt settlement is that it allows you to repay a percentage of the total debt amount you owe. This means that if you meet the debt relief qualifications you will not have to pay back the entire debt.

This can be a great relief for those struggling to make ends meet. Debt settlement also allows you to avoid bankruptcy and its negative consequences. The major downside of debt settlement is that it can damage your credit score if not done correctly. Debt settlement is also a non-binding agreement that the creditor may refuse to honor in court if you need it for legal reasons.

Credit counseling for consumers is a sort of debt relief that gives expert assistance in managing your obligations. With the help of a credit counseling agency, the counselor in consultation with you will devise an individual budget and payback plan. Consumer credit counseling can reduce the amount of interest payments on your debts. This means you will save more money in the long run therefore improving your overall financial health.

In addition, consumer debt counseling is less risky than debt negotiation and can provide legal protection if necessary. The biggest downside of consumer credit counseling is that it can be very time consuming. Debt settlement with credit counseling can also take up to five years to complete, making it an unfavorable solution for those who want a quick fix.

Declaring bankruptcy legally eliminates all or most of your debt. That means you will not have to pay it back, which can be a great relief for those struggling to make ends meet. It also allows you to start fresh and rebuild your credit score. The major downside of declaring bankruptcy is that it damages your credit score for up to seven years. Consequently, you will have a hard time getting new loans and credit cards during this time.

Declaring bankruptcy can also be very stressful and might not even solve your debt problems in the long run. Unsecured debt is a debt that does not have any collateral attached to it.

It includes credit card debts, medical bills, and personal loans. Debt relief programs are not available for those who owe secured debts, such as mortgages or car loans. Debt relief programs require you to make monthly payments, so you must be able to do this. Debt relief programs are not available to those who cannot pay their debts every month because it will make the repayment process much more difficult for you in the long run.

Debt relief qualifications for debt settlement, debt negotiation, debt consolidation, and bankruptcy also require good credit scores to qualify. If your credit score is lower than this, consider other debt-relief options, such as consumer credit counseling or Debt Management Plans. Take advantage of a free credit score report online, or schedule an initial consultation phone call with an agency today.

Debt relief programs are available to those who can show that they are experiencing financial hardships. Debt collectors must verify this before approving you for a debt relief program. Financial difficulties could include job loss, medical expenses, or divorce.

When you meet all the qualifications above, you are likely a suitable candidate for a debt relief program. Debt relief programs are a great way to reduce your debt.