The lender has low fixed and variable interest rates.Borrowers typically have solid credit histories and enough cash flow to cover their loan payments.A personal loan to consolidate debt makes sense only if you receive a lower interest rate than you have on your existing debt or if it helps you pay off your debt faster.
• Loan amount: $5,000 to $100,000 • Loan terms: 3, 5 and 7 years • Minimum credit score: 660, but typically 700 • Time to funding: A few business days • Fees: No origination fee. Installment loans demand more discipline than credit cards.
Payoff takes that discipline a step further: It accepts only borrowers with good credit who are paying off credit card debt.
If you’re not sure you can, though, the personal loan may be the better bet.” In addition, a personal loan may improve your credit score by moving credit-card debt over to the installment loan column.
The way credit scores are figured, borrowers who use all or most of the available credit on their cards get hit with a significant penalty.
Personal loans also frequently carry fees of 1% to 6%, called origination fees.
You may pay less by simply tackling your existing debts in a systematic way, rather than consolidating.
Each borrower is assigned a point person who will learn the customer’s financial habits and guide him or her out of credit card debt.
• APR: 8% to 25% fixed • Loan amount: ,000 to ,000 • Loan terms: 2 to 5 years • Minimum credit score: 660 • Time to funding: 2 to 5 business days • Fees: Payoff charges a “Payoff Platform Fee” that ranges from 2% to 5% of the loan amount, depending on term, included in APR. Freedom Plus is a smart choice if you have people with good credit willing to help you pay down debt.
Light Stream tailors interest rates based on a borrower’s intent, so a debt consolidation loan will have a higher rate than say, a home improvement loan.