Best Debt Consolidation Loans for Bad Credit

10 Best Debt Consolidation Loans for Bad Credit

With the aid of a debt consolidation loan, a borrower can put together multiple debts that have high interest into a single payment. It is good to opt for a combination debt loan if the interest on the loan is lower than the combined rates on your existing debts. In the course of this article, we have put together a combo of the 10 best consolidation loans for any borrower in our readership to compare.

1. SoFi

This is a debt consolidation loan that is suited for persons with a minimum credit score of 680. They are a lending platform that offers a fixed rate personal loan to persons in any state in the United States of America except Mississippi.

The SoFi loan is available between $5,00 and $100,000, making it a  good option for persons with a good credit score to borrow a large sum of money. When you apply for a SoFi loan and qualify, you can get your funds in as little as one to two days.

Another interesting perk of SoFi loans is that they offer high loan amounts and lengthy terms. One major downside of SoFi loans is that the use of Co-signers to obtain a loan is not allowed.

2. Upgrade

Upgrade is a lender that is based in the United States of America. Other than lending, Upgrade also offers mobile credit and banking services in all the states in the USA apart from Vermont, West Virginia, and Iowa. If you want to take a debt consolidation loan from Upgrade, it is important to note that their offer starts from $1,000 and goes up to $35, 000.

If you are looking for a way to consolidate high-interest debt, then make Upgrade a must-choose. One interesting perk of the Upgrade loan service is that they have a low minimum credit score, and also offer direct lender payoff. One major downside of the Upgrade debt consolidation loan is that they have a high APR range.

3. LendingClub

LendingClub is a peer-to-peer loan provider that offers debt consolidation loans to customers that we used in the United States of America. Although LendingClub does not offer fast funding time, they directly pay the applicant’s creditors.

If you want to qualify for a personal loan with LendingClub, you need to have a minimum credit score of 600, and minimum credit history of three years. Also worth noting is that applicants need to have a debt to income ratio that is less than 40% for single applicants. The platform places a restriction on using their funds to purchase investments, gamble, or engage in illegal activities.

4. FreedomPlus

This is a popular indirect lending platform in the United States of America. If you are looking for a loan provider that will offer you a debt consolidation loan, FreedomPlus is a good pick. The loan amounts offered by FreedomPlus range from $7,500 to $40,000. With their offer, it is easier to consolidate a large debt while spreading out your payments through a lengthy period of time and also reducing monthly payments.

Other interesting perks include; funding in less than 48 hours, flexible repayment terms, and allowing co-borrowers. One major downside of the FreedomPlus loan is that the application is not entirely online.

5. Payoff

Payoff is an online lender that connects borrowers with debt consolidation loans in all the states in the USA apart from Mississippi, Nebraska, Nevada, and Massachusetts.

With the aid of the payoff platform, you can cancel out high-interest debts and enjoy financial freedom. You need to have a minimum credit score of 640 to be able to qualify for a payoff loan.

Some interesting perks of Payoff debt consolidation loan include; being able to pay third-party creditors and a competitive APR. As for their downsides, they charge an origination fee and have limited repayment terms.

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6. Best Egg

Best Egg is an online lending platform that offers borrowers who are based in the United States Of America loans ranging from $2,000 to $35,000. A loan from Best Egg can be used for loan consolidation, and the terms of payment last from 3 to 5 years.

To qualify for a Best Egg loan, you need to have a minimum credit score of 640. One interesting thing about the best Egg lending platform is that they do not have a prepayment penalty.

7. Marcus

Marcus is a lending platform that is based in the USA. They help borrowers who need a debt consolidation loan by directly paying their third-party creditors. If you are a borrower, you can also benefit from their on-time funding.

Also worth noting is that they do not charge any origination fees or prepayment penalties. It is important to note that to be able to apply for a Marcus debt consolidation loan, you need to have a minimum credit score of 660.

8. Discover

Discover is a brand that offers financial services such as banking, credit cards, and retirement solutions. They offer loan services in all the 50 states of the USA. Discover offers debt consolidation loans from $2,500 and $35,000. They offer borrowers an opportunity to pay off creditors directly. There are no origination fees or prepayment penalties.

9. Upstart

This is a lending service that offers customers loans meant for debt consolidation that range from $1,000 and $50,000. They make use of artificial intelligence and a machine learning-based approach to qualify borrowers. The best perk of the upstart debt consolidation loan is that borrowers can choose a custom payment date.

10. Avant

This is a consumer lending financial company that gives loans through a bank known as WebBank. The loans of the Avant lending platform are targeted at low-income borrowers who have a minimum credit score of 580. Their loan offer ranges from $2,000 to $35,000.

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