The Best Loan Options for Consolidating Credit Card Debt
Paying off multiple credit cards each month can be a game of Jenga - one wrong move and the entire structure crumbles.
Combining your debt into a single payment makes it much easier to manage your monthly debt expenses and stay on top of your finances.
If you're considering taking a personal loan to consolidate credit card debt, here are four lenders that can help you pay off your debt faster and at a lower interest rate.
- Minimum Credit Score: 629
- Loan Amount: Up to $50,00
- Loan Term: 3 months - 15 years
- APR range: 4.69% - 35.99%
Why go with LendingTree?LendingTree operates as a loan marketplace, matching borrowers with the most relevant loan providers within their network of more than 1,500 trusted lenders.
By far, the biggest advantage with LendingTree is that borrowers can submit one loan application and receive multiple offers - allowing anyone to easily shop around without having to wade through dozens of forms.
This consumer-focused model means loan providers are competing for your business, which in most cases leads to more favorable loan terms and amounts. Once you do find the right lender, the application continues with a loan advisor who ensures you’re fully informed of every step in the process
- Minimum Credit Score:N/A
- Loan Amount: Up to $40,00
- Loan Term: 2 months - 15 years
- APR range: 4.99% - 35.99%
Why go with AmOne ?AmOne is ideal if you want to fast track the loan application process and get funds quickly. AmOne works with a community of established loan providers, and the simple application is a great way to shop around without having to visit every lender individually.
Their network is not as extensive as LendingTree’s, but for applicants with bad credit, who need faster access to funds, AmOne is a good place to start.
- Minimum Credit Score: 600
- Loan Amount: Up to $25,00
- Loan Term: 2 months - 15 years
- APR range: 15.49% - 35.99%
Why go with LendingPoint? LendingPoint is a direct lender that works with borrowers who have average to bad credit.
They look beyond borrowers’ credit scores, grading creditworthiness on a range of other factors, such as employment status, debt to income ratio and credit history. And funding with LendingPoint is fast. Borrowers can receive the loan amount by the next business day, though in some cases it takes several days.
- Minimum Credit Score: N/A
- Loan Amount: Up to $35,00
- Loan Term: 3 months - 6 years
- APR range: 5.99% - 35.99%
Why go withLoansUnder36? Another loan marketplace, LoansUnder36 connects borrowers with a network of reliable lenders - mostly working with customers who have less than ideal credit. The 36 in the lender’s name refers to the annual interest rate - the company only works with lenders who offer loans under 36% APR. Lenders who offer interest rates above 36% should only be considered if you have poor credit.
Their network is not as large as LendingTree’s (100 lenders vs. LendingTree’s network of 1,500 lenders) but one key difference is that Loans Under 36 offers both short and long-term repayment solutions. This is a good option if you have fair credit and need fast access to cash.
Using a personal loan to pay off multiple debts is a smart way to get a handle on your finances, but it shouldn’t be the only step you take towards building a stronger financial future. Consider the cash injection as a launch pad to start a savings plan, budget and build up your credit score. And if you’re looking for more information on the top lenders of 2018, take a look at our expert reviews and helpful advice.