The best debt consolidation loan companies in 2020 all have one aim, and that is to make it easier for you to manage your debt while also reducing the interest rate. Whether it is to replace an auto, student, personal, home improvement or any other loan, then consolidation may be what you need. However, it could impact your personal credit score that is why you need one of the best out there to make it all worthwhile.
What is Loan Consolidation?
Loan consolidation is the addition of all the debt you have to form a new loan. The new loan comes with a lower interest rate compared to the former ones being owed. The consolidation is usually carried out by a private lender who is ready to replace your federal or private loan with a new one. Therefore, the goal is to cut back hundreds if not thousands of dollars that are paid as interest on a monthly basis.
Let’s take for instance you’re a student in a community college or undergoing a technical training, graduate, or undergraduate degrees, then it may not be uncommon to have applied for loans from different sources. You may have obtained both a Federal and private loan whose interest rates are on the high side. Alternatively, with the best student loan debt consolidation companies in 2020, you can always merge both.
Types of Loans
There are two major types of loans and these are the federal and private loans.
A federal loan is one issued by the government and they come with a fixed interest rate. They also have a better borrower protection.
Private loans are those issued by banks, online lenders, and even peer-to-peer lenders. They may have a fixed or variable interest rate, and your credit score is taken into consideration before such loans are released.
Nonetheless, you can still find the best debt consolidation loan companies for bad credit. The advantage they have over Federal loans is that you can find a lot of options to meet your needs.
Best Rated Debt Consolidation Loan Companies
Outlined below, are the best-rated debt consolidation loan companies in 2020. They can provide you with plans that will lift off a large chunk from the interest rate you’ve been paying. Likewise, your debt gets easier to manage and paid off with the numbers reduced to one.
1. Marcus by Goldman Sachs:
Goldman Sachs is a reputable financial institution in the U.S. and if they are offering to consolidate your loan, you can expect the best rate. Marcus requires that you have a minimum credit of 660 and in consideration; it does not make room for those who may have a fair or bad credit score. That may be its downside but there are perks to it if you have a good score or you’re ready to improve on it.
The company does not attach fees such as origination and prepayment to loans obtained. Thus, takes a load off your expenses to acquire it. It also has an interest rate between the range of 2.99% to 24.99% of its APR. As a student looking for a loan, you can obtain as little as $3,500, and high as $40,000 depending on what can cover your college cost.
2. OneMain Financial:
OneMain Financial has some good plans to look at and for starters, it offers secured loans. The latter means that collateral is tied to your loan if in any case, you’re unable to keep your side of the deal. It may not really go down well with some people, but for those with bad credit, this option can be likened to a ray of hope. The interest rate can also be lowered since you’ve given the lender security in terms of collateral which makes lending to you less risky.
OneMain Financial’s origination fee is not fixed and will vary depending on the State you reside in. Likewise, support has been provided for U.S. citizens residing in 44 states. The company’s interest rate, on the other hand, move from a range of 16.05% to 35.99%. You can also borrow between $1,500 to $30,000 to pay the principal within a loan term of two to five years.
3. Best Egg:
Best Egg in comparison with Marcus is also targeted at those with a clean slate having a high credit score of 640 or more. In the same vein, provision has also been made to cater to those with a fair score which means your chances of getting a loan are not as slim as you may expect. You can receive the loan in a day’s time if you’re in much of a hurry.
Best Egg has a fixed APR whose range goes from 5.99% to 29.99% and its origination fee ranges between 0.99% to 5.99%. Each of these is determined using your credit history. You can also receive funding ranging from $2,000 to $35,000.
The best personal loan companies for debt consolidation outlined above ensures that whether you’re a graduate or undergraduate trying to further school, or you’re looking for a new loan to replace the current one, it can be done with ease. Our three selections also come with some of the best interest rates you’ll find out there which helps to take out a large chunk of savings from monthly payments.