The Best Credit Card Consolidation Programs You Need to Know About
Your credit card debt is building up and you’re wondering if it’s time to start looking for the best credit card consolidation programs. Credit cards are great to have on hand in the event of an emergency. But if you get stuck in a pile of credit card debt, it’s extremely difficult to get out. High-interest and late fees add up quickly and falling behind with payments will affect your credit score negatively.
So, what should you do? The first thing on your checklist should be to gather all of your credit cards and put them away. You shouldn’t use them until you can control the debt.
The next thing you can do is to contact a credit card consolidation company. There are many programs available today that can help you balance your debt.
In this article, we’re discussing the best credit card consolidation programs. Keep reading to learn more.
Two Types of the Best Credit Card Consolidation Programs
Before you start your research, you need to know what you’re looking for. There are two different kinds of debt consolidation loan programs.
A secured loan will cost you collateral. One of the most common types of secured debt consolidation loans lies in an equity refinance. But if you don’t own your home, you can also use your car or other assets.
These loans are usually fairly easy to obtain because there is little risk to the lender. You can also find reasonable interest rates that might be tax-deductible.
With an unsecured loan, you won’t be forced to put up any collateral which makes the loan less risky to you. If you default on this type of loan, however, it will affect your credit score negatively.
Obtaining an unsecured loan is more difficult than getting a secured loan and loan amounts are likely to be smaller. You may also risk higher interest rates which could make the loan harder to pay off.
Best Credit Card Consolidation Programs
There are several pros and cons to finding the best credit card consolidation programs. On the upside, you’ll find short-term relief because you can lower your interest rate and reduce the amount you pay each month. A credit card consolidation loan can make it easier to stay organized and help you maintain your credit.
One of the cons of this type of loan, however, is risk. Whether you’re using collateral or not, if you have trouble with payments, it can affect you negatively.
It’s important to carefully weigh the pros and cons when considering the best credit card consolidation programs available. Here are seven lenders to help you decide.
With a minimum credit score of 640, you can consider a loan through Prosper. They provide unsecured personal loans from $2000 to $35000 with competitive interest rates.
Be prepared to pay an origination fee of 1% to 5% of your loan. And, you will be penalized 5% of your outstanding amount for late payments and $15 for unsuccessful payments.
If you don’t have good credit you might have better luck with OneMain. With the option to apply online or at one of their 1600 locations, you can find a secured loan with this lender in 44 states.
They have an A+ rating and they are accredited by the Better Business Bureau, or BBB.
LightStream is a division of SunTrust Bank. You can find flexible terms from 24 to 84 months without fees. But you’ll need to have good credit to qualify.
This lender offers debt consolidation loans starting at $5000 to $100,000 with low-interest rates. Interest rates are as low a 5.49% to 14.69%. You can also get an AutoPay discount.
This company accepts customers with a short credit history for loans from $1000 to $50,000. You’ll enjoy interest rates from 7.37% to 29.99% on three or five-year loans. Interest rates are determined by job history, educational major and even grades or test scores.
Avant is available in 46 states and the District of Columbia. They will allow you to borrow $2000 to $35,000 and your funds will be available as soon as the next business day. Avant has an A+ lender rating and they are accredited by the Better Business Bureau, or BBB.
You can access this loan with lower than average credit scores but you’ll probably pay higher interest rates.
PersonalLoans.com will connect you with lenders from all fifty states. Loans go up to $35,000 with APRs that range from 5.99% to 35.99%. Loans included may be peer-to-peer loans, bank loans, or installment loans.
Keep in mind that this is only a referral site which can make it difficult to know what type of interest rate you’ll get.
Find a loan with Lending Club from $1000 to $40,000 with interest rates from 5.99% to 35.89% depending on your credit history. But you can also ask this lender for peer-to-peer loans.
You will need a credit score of at least 600 with Lending Club. They have an A+ rating and are accredited by the BBB.
Make sure to do your research before jumping into any credit card consolidation loan. There are many lenders that fall into the category of scams and they can be difficult to detect.
Beware of debt management companies. These companies work to settle debt with your creditors and it can negatively impact your credit score. You should be the one to initiate contact with a lender so don’t allow a lender to push you into something that you’re not comfortable with.
There should be no need for upfront fees when dealing with a debt consolidation company. Also, beware of creditors that promise guarantees without knowing your income, credit score and/or other important personal information.
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