Motorcycle dealers – Motostays http://motostays.com/ Tue, 01 Feb 2022 11:56:27 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://motostays.com/wp-content/uploads/2021/10/icon-1-120x120.png Motorcycle dealers – Motostays http://motostays.com/ 32 32 The Best Debt Consolidation Loans of January 2022 https://motostays.com/the-best-debt-consolidation-loans-of-january-2022/ Tue, 01 Feb 2022 11:47:41 +0000 https://motostays.com/?p=914 The best debt consolidation loans of 2022 Generally, you’ll need a personal loan for debt consolidation, which means replacing multiple loans with a single loan instead. Most personal loan lenders ask about loan purpose when starting the loan application process, and often, personal loans for debt consolidation have higher interest rates than other personal loans […]]]>



The best debt consolidation loans of 2022

Generally, you’ll need a personal loan for debt consolidation, which means replacing multiple loans with a single loan instead.

Most personal loan lenders ask about loan purpose when starting the loan application process, and often, personal loans for debt consolidation have higher interest rates than other personal loans and other loan types. 

PFI Best Wells Fargo Logo Banner



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Flexibility makes Wells Fargo a top contender for best personal loans for debt consolidation. Wells Fargo separates debt consolidation loans from personal loans, but the interest rates are the same.

Benefits include competitive interest rates and an autopay discount of 0.25% if payments are made from a Wells Fargo account. For unsecured personal loans, the most common type for debt consolidation, there are no origination or prepayment fees.

Wells Fargo can send your loan funds to your Wells Fargo bank account, or to a credit account outside of Wells Fargo to pay down your debts directly. 

Watch out for: Wells Fargo’s history with data security and compliance. The bank has faced several federal penalties for improper customer referrals to lending and insurance products, and security issues tied to creating fake accounts several years ago. 

Read Insider’s full review of Wells Fargo. 

Check Rates >>

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Lightstream is a highly regarded lender for many loan types, and has been a top pick across Insider’s coverage of the best personal loans and best auto loans. However, this lender only works with borrowers with good or better credit, with a minimum credit score requirement of 660. 

LightStream offers consistently competitive interest rates, though its minimum interest rate for debt consolidation is higher than its typical personal loan’s interest rates. However, this lender does not have any prepayment or origination fees. Same-day funding is available with LightStream. 

Watch out for: Varying loan terms between LightStream’s typical personal loans and debt consolidation loans. Only borrowers with excellent credit can borrow the $100,000 maximum, and anyone without excellent credit may not qualify for the full amount.

LightStream defines excellent credit history as an account with five or more years of credit history, stable and sufficient income for debts, and a variety of credit history with little or no credit card debt. If you’re looking for a debt consolidation loan, chances are you have a significant amount of debt, and may not fit these qualifications.

Additionally, LightStream doesn’t have a way to pre-qualify online. You’ll have to apply for the loan to find out exactly what your rates and terms could look like, which could make comparison shopping difficult. 

Read Insider’s full review of Lightstream.

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A SoFi personal loan is the best option for anyone with a high balance, as this lender makes debt consolidation loans of up to $100,000. Debt consolidation loans from this lender are comparable in rates to those offered by LightStream, but SoFi offers higher loan limits to all applicants, whereas LightStream only allows some borrowers to borrow up to $100,000. Similarly, SoFi doesn’t have any application, origination, or prepayment fees. 

SoFi offers unique features like unemployment protection, which could put loans in forbearance for up to three months if you find yourself out of work. 

Watch out for: Stringent requirements. SoFi personal loans have a minimum credit score of 680. According to NerdWallet, the average income among borrowers is over $100,000.

Read Insider’s full review of SoFi.

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In the fair credit range, it can be tough to qualify for a personal loan with reasonable interest rates — many lenders have a minimum of 660 or 680. However, a Payoff loan could be a good option for people with credit scores as low as 640. Interest rates are comparable to those offered by LightStream and SoFi, but this lender has less stringent requirements. 

Compared with competitors Prosper and Best Egg, which both have the same 640 minimum credit score requirement, Payoff’s interest rates are capped lower, and could have lower origination fees. 

Watch out for: Origination fees. Payoff offers loans with origination fees ranging from 0% to 5%. Competing lenders Prosper and Best Egg charge minimum 2.41% and 0.99% origination fees, respectively. The better deal will depend on your credit score, income, and repayment term.

Read Insider’s full review of Payoff.

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With bad credit, a personal loan for debt consolidation can be expensive, or hard to qualify for. An Avant personal loan is the best bet for borrowers with poor credit, requiring a minimum credit score of 600.

Compared to other personal loan lenders offering debt consolidation loans for bad credit borrowers, Avant’s terms are the most generous. While there is an administration fee, it could be lower than competitors’ fees with a cap at 4.75%. Avant also has the advantage of quick, next-day funding available.

Watch out for: High rates with a low credit score. While Avant is accessible to borrowers with poor credit scores, approval might go hand in hand with high interest rates on your loan.. 

Read Insider’s full review of Avant.

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Other personal loans we considered

  • LendingClub LendingClub Personal Loan: This lender has the potential for high origination fees that could add to the cost of borrowing. The average origination fee is 5.2%. Read Insider’s full review of LendingClub . 
  • Prosper Personal Loan: Prosper’s minimum credit score requirement is 640, but borrowers with this score could get lower interest rates and potentially lower fees from Payoff. Read Insider’s full review of Prosper. 
  • Best Egg Personal Loan: Like Prosper, borrowers with credit scores of 640 or above could get lower minimum interest rates and lower maximum fees from Payoff. In order to qualify for the lowest possible interest rates, borrowers need a minimum FICO score of 700 and an income of at least $100,000 per year. Only three-year and five-year loan terms are available, making these loans less flexible than other options. Read Insider’s full review of Best Egg. 
  • Discover personal loans: Discover’s personal loan rates start higher than other lenders’ loans, and borrowers who meet the minimum credit score requirements could get lower interest rates from LightStream, which cap lower. However, Discover makes payments directly to creditors, which could simplify your payoff process. Wells Fargo is the only other bank on our listing to offer that option. Read Insider’s full review of Discover. 
  • Marcus Personal Loan: Like Discover, borrowers who qualify for Marcus personal loans could find lower minimum interest rates with LightStream, SoFi, or Wells Fargo. Read Insider’s full review of Marcus. 
  • Axos personal loans: This lender’s personal loans require a minimum credit score of 720. For borrowers with this type of credit, lower interest rates can be found elsewhere. 
  • OneMain Financial Personal Loan: OneMain doesn’t have a minimum credit score required to apply, which could make it a viable option for people who don’t meet Avant’s 600 minimum. But interest rates range from a high 18% to 35.99%. Read Insider’s full review of OneMain Financial. 

Which lender is the most trustworthy?

We’ve compared each institution’s Better Business Bureau score to give you another piece of information to choose your lender. The BBB measures businesses based on factors like their responsiveness to customer complaints, honesty in advertising, and transparency about business practices. Here is each company’s score:

With the exception of Wells Fargo and Avant, our top picks are rated A+ by the BBB. Keep in mind that a high BBB score does not guarantee a positive relationship with a lender, and that you should continue to do research and talk to others who have used the company to get the most complete information possible. 

Avant’s business profile is currently being updated, so it doesn’t have a rating from the BBB. The BBB does not have a rating for Wells Fargo as the company responds to previously closed complaints. Previously, the organization gave Wells Fargo an F in trustworthiness. In the past few years:

  • The bank paid the city of Philadelphia $10 million as a result of the city’s claims that Wells Fargo was involved in predatory mortgage lending to racial minorities (2019).
  • The Consumer Financial Protection Bureau and Office of the Comptroller of the Currency charged Wells Fargo $1 billion for overcharging and selling extra products to consumers with auto and home loans (2018).

If you’re uncomfortable with this history, you may want to use one of the other personal loan lenders on our list.

Frequently asked questions

Why trust our recommendations? 

Personal Finance Insider’s mission is to help smart people make the best decisions with their money. We understand that “best” is often subjective, so in addition to highlighting the clear benefits of a financial product, we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don’t have to.

How did we choose the best debt consolidation loans? 

To find the best personal loans for debt consolidation, we combed through the fine print and terms of about a dozen personal loans to find the ones that were best suited to help with consolidating debt. We considered four main features: 

  • APR range: For the most help with debt payoff, a personal loan for debt consolidation needs to have lower interest rates than the credit card or other debts you’re consolidating. We looked for the loans that had the lowest rates possible for each credit range and purpose. The average credit card interest rate was 16.28% in 2020, so we focused on loans that had the potential to beat this. 
  • Appropriate loan amounts: We looked for personal loans that had the most variety in loan amounts. According to loan comparison site Credible, the median amount of debt consolidated in May 2020 was $18,000. To benefit the most borrowers, we included personal loans with maximum limits over $10,000. 
  • Minimum credit score requirements: Where available, we considered the minimum credit score requirements for each company. We considered loans for excellent, fair, and poor credit, grouping loans into categories based on these credit score requirements.
  • Fees: We considered fees like origination or administrative fees in our decisions, looking for loans with the fewest or lowest fees. None of the best loans listed have prepayment penalties. 
  • Nationwide availability: We only considered loans with availability in most or all 50 US states. 

What is debt consolidation? 

Debt consolidation takes all sorts of debts, including credit cards, medical debt, or typically any other type of unsecured debt, and rolls it into one loan. 

To consolidate debt, you get a loan from one lender for the total amount of debt you’d like to combine. Then, you use those funds to pay off the individual, smaller debts. At the end, you have all of your debt rolled into one monthly payment, one deadline for debt repayment, and a smaller interest rate. 

Can I use any personal loan for debt consolidation? 

Most personal loans allow a variety of uses, and while most include credit card consolidation or debt consolidation, not all do. Make sure to read the fine print of any personal loan you’re applying for, and make sure that debt consolidation is an acceptable use of your loan. All of the loans we considered had an option to use the loan for debt consolidation, if not a separate loan, which we included details for. 

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Student Loan Rehabilitation vs. Consolidation: Getting Out of Default https://motostays.com/student-loan-rehabilitation-vs-consolidation-getting-out-of-default/ Tue, 01 Feb 2022 11:46:19 +0000 https://motostays.com/?p=905 Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. 2.94%+ N/A 10, 15, 20 […]]]>




Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


2.94%+
N/A 10, 15, 20 $7,500 up to $200,000
(larger balances require special approval) Does not disclose
  • Fixed APR:

    2.94%+
  • Variable APR:
    N/A
  • Min. credit score:
    Does not disclose
  • Loan amount:
    $7,500 up to $500,000
  • Loan terms (years):
    10, 15, 20
  • Max. undergraduate loan balance:
    $250,000 – $500,000
  • Time to fund:
    4 months
  • Repayment options:
    Immediate repayment, forbearance, loans discharged upon death or disability
  • Fees:
    None
  • Discounts:
    Autopay
  • Eligibility:
    Must be a resident of Kentucky
  • Customer service:
    Phone
  • Soft credit check:
    No
  • Cosigner release:
    After 12 months
  • Loan servicer:
    Kentucky Higher Education Student Loan Corporation
  • Max. graduate loan balance:
    $250,000 – $500,000
  • Credible Review:
    Advantage Education Loan review
  • Offers Parent PLUS Refinancing :
    Yes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


2.15%+

1.83%+
5, 7, 10, 15, 20 $10,000 up to $250,000
(depending on degree) 690
  • Fixed APR:

    2.15%+
  • Variable APR:
    N/A
  • Min. credit score:
    Does not disclose
  • Loan amount:
    $10,000 to $400,000
  • Loan terms (years):
    5, 7, 10, 15, 20
  • Repayment options:
    Military deferment, forbearance
  • Fees:
    Late fee
  • Discounts:
    Autopay
  • Eligibility:
    Must have a credit score of at least 720, a minimum income of $60,000, and must be a resident of Texas
  • Customer service:
    Email, phone
  • Soft credit check:
    Does not disclose
  • Cosigner release:
    No
  • Loan servicer:
    Firstmark Services
  • Max. Undergraduate Loan Balance:
    $100,000 – $149,000
  • Max. Graduate Loan Balance:
    $200,000 – $400,000
  • Offers Parent PLUS Refinancing:
    Does not disclose


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


2.59%+1

1.99%+1
5, 7, 10, 15, 20 $10,000 to $500,000
(depending on degree and loan type) Does not disclose
  • Fixed APR:

    2.59%+1
  • Variable APR:

    1.99%+1
  • Min. credit score:
    Does not disclose
  • Loan amount:
    $10,000 to $750,000
  • Loan terms (years):
    5, 7, 10, 15, 20
  • Repayment options:
    Immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disability
  • Fees:
    Late fee
  • Discounts:
    Autopay, loyalty
  • Eligibility:
    Must be a U.S. citizen or permanent resident and have at least $10,000 in student loans
  • Customer service:
    Email, phone, chat
  • Soft credit check:
    Yes
  • Cosigner release:
    After 24 to 36 months
  • Loan servicer:
    Firstmark Services
  • Max. Undergraduate Loan Balance:
    $100,000 to $149,000
  • Max. Graduate Loan Balance:
    Less than $150,000
  • Offers Parent PLUS Refinancing:
    Yes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


2.99%+2

2.94%+2
5, 7, 10, 12, 15, 20 $5,000 to $300,000
(depending on degree type) Does not disclose
  • Fixed APR:

    2.99%+2
  • Variable APR:

    2.94%+2
  • Min. credit score:
    Does not disclose
  • Loan amount:
    $5,000 to $300,000
  • Loan terms (years):
    5, 7, 10, 12, 15
  • Repayment options:
    Military deferment, forbearance, loans discharged upon death or disability
  • Fees:
    Late fee
  • Discounts:
    Autopay
  • Eligibility:
    All states except for ME
  • Customer service:
    Email, phone, chat
  • Soft credit check:
    Yes
  • Cosigner release:
    After 24 to 36 months
  • Loan servicer:
    College Ave Servicing LLC
  • Max. Undergraduate Loan Balance:
    $100,000 to $149,000
  • Max. Graduate Loan Balance:
    Less than $300,000
  • Offers Parent PLUS Refinancing:
    Yes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


3.65%+

3.6%+
5, 7, 10, 15, 20 $5,000 to $500,000

680

  • Fixed rate:

    3.65%+
  • Variable rate:

    3.6%+
  • Min. credit score:
    680
  • Loan amount:
    $5,000 to $500,000
  • Cosigner release:
    Yes
  • Loan terms (years):
    5, 7, 10, 15, 20
  • Repayment options:
    Academic deferment, forbearance, loans discharged upon death or disability
  • Fees:
    Late fee
  • Discounts:
    Autopay
  • Eligibility:
    Available in all states, except MS and NV
  • Customer service:
    Email, phone, chat
  • Soft credit check:
    Yes
  • Loan servicer:
    FirstMark
  • Max. undergraduate loan balance:
    $500,000
  • Max. graduate loan balance:
    $500,000
  • Offers Parent PLUS refinancing:
    Yes
  • Min. income:
    $65,000 (for 15- and 20-year products)


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


2.91%+5

2.77%+5
5, 10, 15, 20 $1,000 to $250,000 700
  • Fixed APR:

    2.91%+5
  • Variable APR:

    2.77%+5
  • Min. credit score:
    700
  • Loan amount:
    $7,500 to $200,000
  • Loan terms (years):
    5, 10, 15, 20
  • Repayment options:
    Immediate repayment, academic deferment, forbearance, loans discharged upon death or disability
  • Fees:
    None
  • Discounts:
    Autopay
  • Eligibility:
    Must be a U.S. citizen or permanent resident and submit two personal references
  • Customer service:
    Email, phone
  • Soft credit check:
    Yes
  • Cosigner release:
    After 36 months
  • Loan servicer:
    Granite State Management & Resources (GSM&R)
  • Max. Undergraduate Loan Balance:
    $150,000 to $249,000
  • Max. Graduate Loan Balance:
    $150,000 to $199,000
  • Offers Parent PLUS Refinancing :
    Yes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


2.47%+3

1.86%+3
5, 7, 10, 12, 15, 20 $15,000 to $250,000 680
  • Fixed APR:

    2.47%+3
  • Variable APR:

    1.86%+3
  • Min. credit score:
    680
  • Loan amount:
    $15,000 to $250,000
  • Loan terms (years):
    5, 7, 10, 12, 15, 20
  • Repayment options:
    Forbearance
  • Fees:
    None
  • Discounts:
    None
  • Eligibility:
    Must be a U.S. citizen or permanent resident, have at least $15,000 in student loan debt, and have a bachelor’s degree or higher from an approved school
  • Customer service:
    Email, phone
  • Soft credit check:
    Yes
  • Cosigner release:
    No
  • Loan servicer:
    Mohela
  • Max. Undergraduate Loan Balance:
    $250,000
  • Max. Graduate Loan Balance:
    $250,000
  • Offers Parent PLUS Refinancing:
    Yes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


3.47%+4

2.44%+4
5, 10, 15, 20 $5,000 to $250,000 670
  • Fixed APR:

    3.47%+4
  • Variable APR:

    2.44%+4
  • Min. credit score:
    670
  • Loan amount:
    $5,000 to $250,000
  • Loan terms (years):
    5, 10, 15, 20
  • Repayment options:
    Academic deferment, military deferment, forbearance
  • Fees:
    Late fee
  • Discounts:
    Autopay
  • Eligibility:
    Must be U.S. citizen or permanent resident
  • Customer service:
    Email, phone, chat
  • Soft credit check:
    Yes
  • Cosigner release:
    Yes
  • Max undergraduate loan balance:
    $250,000
  • Max graduate loan balance:
    $250,000
  • Offers Parent PLUS refinancing:
    Yes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


2.44%+

7 N/A 5, 7, 10, 12, 15, 20 Up to $300,000 670
  • Fixed APR:

    2.44%+

    7
  • Variable APR:
    N/A
  • Min. credit score:
    670
  • Loan amount:
    Up to $300,000
  • Loan terms (years):
    5, 7, 10, 15, 20
  • Time to fund:
    Usually one business day
  • Repayment options:
    Academic deferral, military deferral, forbearance, death/disability discharge
  • Fees:
    None
  • Discounts:
    Autopay
  • Eligibility:
    Available in all 50 states
  • Customer service:
    Email, phone
  • Soft credit check:
    Yes
  • Cosigner release:
    After 24 months
  • Max. undergraduate loan balance:
    $300,000
  • Max. graduate balance:
    $300,000
  • Offers Parent PLUS loans:
    Yes
  • Min. income:
    None


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


2.49%+

1.9%+
5, 7, 10, 15 Up to $300,000 700
  • Fixed APR:

    2.49%+
  • Variable APR:

    1.9%+
  • Min. credit score:
    700
  • Loan amount:
    $5,000 to $300,000
  • Loan terms (years):
    5, 7, 10, 15
  • Max. undergraduate Loan Balance:
    $125,000
  • Time to Fund:
    10 to 30 days
  • Repayment options:
    Immediate repayment, forbearance
  • Fees:
    Late fee
  • Discounts:
    Autopay
  • Eligibility:
    Must be a U.S. citizen or permanent resident and have already graduated with at least an associate degree from an eligible institution
  • Customer service:
    Email, phone
  • Soft credit check:
    Yes
  • Cosigner release:
    After 12 months
  • Loan servicer:
    LendKey Technologies Inc.
  • Max. graduate Loan Balance:
    $175,000
  • Credible Review:
    LendKey Student Loans review
  • Offers Parent PLUS Refinancing:
    No


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


2.68%+
N/A 7, 10, 15 $10,000 up to the total amount of qualified education debt 670
  • Fixed APR:

    2.68%+
  • Variable APR:
    N/A
  • Min. credit score:
    670
  • Loan amount:
    $10,000 up to the total amount
  • Loan terms (years):
    7, 10, 15
  • Repayment options:
    Military deferment, loans discharged upon death or disability
  • Fees:
    None
  • Discounts:
    None
  • Eligibility:
    Must be a U.S. citizen or permanent resident and have at least $10,000 in student loans
  • Customer service:
    Email, phone
  • Soft credit check:
    Yes
  • Cosigner release:
    No
  • Loan servicer:
    AES
  • Max. Undergraduate Loan Balance:
    No maximum
  • Max. Gradaute Loan Balance:
    No maximum
  • Offers Parent PLUS Refinancing:
    Yes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


2.89%+
N/A 5, 8, 12, 15 $7,500 to $300,000 670
  • Fixed APR:

    2.89%+
  • Variable APR:
    N/A
  • Min. credit score:
    670
  • Loan amount:
    $7,500 to $300,000
  • Loan terms (years):
    5, 8, 12, 15
  • Repayment options:
    Does not disclose
  • Fees:
    None
  • Discounts:
    None
  • Eligibility:
    Must be a U.S. citizen and have and at least $7,500 in student loans
  • Customer service:
    Email, phone, chat
  • Soft credit check:
    Yes
  • Cosigner release:
    After 12 months
  • Loan servicer:
    PenFed
  • Max. Undergraduate Loan Balance:
    $300,000
  • Max. Graduate Loan Balance:
    $300,000
  • Offers Parent PLUS Refinancing:
    Yes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


2.69%+
N/A 5, 10, 15 $7,500 up to $250,000
(depending on highest degree earned) 680
  • Fixed APR:

    2.69%+
  • Variable APR:
    N/A
  • Min. credit score:
    680
  • Loan amount:
    $7,500 to $250,000
  • Loan terms (years):
    5, 10, 15
  • Repayment options:
    Academic deferment, military deferment, forbearance, loans discharged upon death or disability
  • Fees:
    None
  • Discounts:
    Autopay
  • Eligibility:
    Available in all 50 states; must also have at least $7,500 in student loans and a minimum income of $40,000
  • Customer service:
    Email, phone
  • Soft credit check:
    Does not disclose
  • Cosigner release:
    No
  • Loan servicer:
    Rhode Island Student Loan Authority
  • Max. Undergraduate Loan Balance:
    $150,000 – $249,000
  • Max. Graduate Loan Balance:
    $200,000 – $249,000
  • Offers Parent PLUS Refinancing:
    Yes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


2.49%+

6
1.74%+

6 5, 7, 10, 15, 20 $5,000 up to the full balance of your qualified education loans Does not disclose
  • Fixed APR:

    2.49%+

    6
  • Variable APR:

    1.74%+

    6
  • Min. credit score:
    Does not disclose
  • Loan amount:
    $5,000 up to the full balance
  • Loan terms (years):
    5, 7, 10, 15, 20
  • Repayment options:
    Academic deferment, military deferment
  • Fees:
    None
  • Discounts:
    Autopay, loyalty
  • Eligibility:
    Available in all 50 states
  • Customer service:
    Email, phone, chat
  • Soft credit check:
    Yes
  • Cosigner release:
    No
  • Max undergraduate loan balance:
    No maximum
  • Max graduate loan balance:
    No maximum
  • Offers Parent PLUS refinancing:
    Yes

All APRs reflect autopay and loyalty discounts where available | 1Citizens Disclosures | 2College Ave Disclosures | 5EDvestinU Disclosures | 3 ELFI Disclosures | 4INvestEd Disclosures | 7ISL Education Lending Disclosures | 6SoFi Disclosures

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]]>
Debt Consolidation Loan vs. Credit Card Refinancing: How To Choose https://motostays.com/debt-consolidation-loan-vs-credit-card-refinancing-how-to-choose/ Tue, 01 Feb 2022 11:28:34 +0000 https://motostays.com/?p=872 Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. 9.95% – 35.99% APR $2,000 […]]]>




Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


9.95% – 35.99% APR
$2,000 to $35,000** 550 2, 3, 4, 5*
  • Fixed APR:

    9.95% – 35.99% APR
  • Variable APR:
    N/A
  • Min. credit score:
    550
  • Loan amount:
    $2,000 to $35,000**
  • Loan terms (years):
    2, 3, 4, 5*
  • Time to fund:
    As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
  • Fees:
    Origination fee
  • Discounts:
    Autopay
  • Eligibility:
    Available in all states except CO, IA, HI, VT, NV NY, WV
  • Customer service:
    Phone, email
  • Soft credit check:
    Yes
  • Loan servicer:
    Avant
  • Loan Uses:
    Debt consolidation, emergency expense, life event, home improvement, and other purposes
  • Min. Income:
    $1,200 monthly


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


6.79% – 17.99% APR
$10,000 to $50,000 700 3, 4, 5, 6
  • Fixed APR:

    6.79% – 17.99% APR
  • Variable APR:
    N/A
  • Min. credit score:
    700
  • Loan amount:
    $10,000 to $50,000
  • Loan terms (years):
    3 to 6
  • Time to fund:
    Next business day
  • Fees:
    No prepayment penalty
  • Discounts:
    None
  • Eligibility:
    Available in all 50 states
  • Customer service:
    Phone
  • Soft credit check:
    Yes
  • Min. Income:
    Does not disclose
  • Loan Uses:
    Debt consolidation, home improvement, self-employment, and other purposes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


4.99% – 35.99% APR
$5,000 to $35,000 600 2, 3, 4, 5
  • Fixed APR:

    4.99% – 35.99% APR
  • Variable APR:
    N/A
  • Min. credit score:
    600
  • Loan amount:
    $2,000 to $50,000
  • Loan terms (years):
    2, 3, 4, 5
  • Time to fund:
    As soon as 1 – 3 business days after successful verification
  • Fees:
    Origination fee
  • Discounts:
    None
  • Eligibility:
    Available in all states except DC, IA, VT, and WV
  • Customer service:
    Phone
  • Soft credit check:
    Yes
  • Loan servicer:
    Best Egg and Blue Ridge Bank
  • Min. Income:
    None
  • Loan Uses:
    Credit card refinancing, debt consolidation, home improvement, and other purposes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


5.99% – 24.99% APR
$2,500 to $35,000 660 3, 4, 5, 6, 7
  • Fixed APR:

    5.99% – 24.99% APR
  • Min. credit score:
    660
  • Loan amount:
    $2,500 to $35,000
  • Loan terms (years):
    3, 4, 5, 6, 7
  • Time to fund:
    As soon as the next business day after acceptance
  • Fees:
    Late fee
  • Discounts:
    None
  • Eligibility:
     Available in all 50 states
  • Customer service:
    Phone
  • Soft credit check:
    Yes
  • Loan Uses:
    Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


7.99% – 29.99% APR
$10,000 to $50,000 Not disclosed by lender 2, 3, 4, 5
  • Fixed APR:

    7.99% – 29.99% APR
  • Min. credit score:
    Does not disclose
  • Loan amount:
    $10,000 to $50,000
  • Loan terms (years):
    2, 3, 4, 5
  • Time to fund:
    As soon as 2 business days
  • Fees:
    Origination fee
  • Discounts:
    No
  • Eligibility:
    Available in all states except CO, CT, HI, KS, NH, NY, ND, OR, VT, WV, WI, and WY
  • Customer service:
    Phone
  • Soft credit check:
    Yes
  • Min. Income:
    None
  • Loan Uses:
    Debt consolidation, home improvement, wedding, travel, medical expenses, and other purposes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


7.04% – 35.89% APR
$1,000 to $40,000 600 3, 5
  • Fixed APR:

    7.04% – 35.89% APR
  • Min. credit score:
    600
  • Loan amount:
    $1,000 to $40,000
  • Loan terms (years):
    3, 5
  • Time to fund:
    Usually takes about 2 days†
  • Fees:
    Origination fee
  • Discounts:
    None
  • Eligibility:
    Available in all 50 states
  • Customer service:
    Phone, email
  • Soft credit check:
    Yes
  • Loan servicer:
    LendingClub Bank
  • Min. Income:
    None
  • Loan Uses:
    Debt consolidation, paying off credit cards, home improvement, pool loans, vacations, and other purposes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


9.99% – 35.99% APR
$2,000 to $36,500 580 2, 3, 4
  • Fixed APR:

    9.99% – 35.99% APR
  • Min. credit score:
    580
  • Loan amount:
    $2,000 to $36,500
  • Loan terms (years):
    2, 3, 4
  • Time to fund:
    As soon as the next business day
  • Fees:
    Origination fee
  • Discounts:
    Autopay
  • Eligibility:
    Available in all states except NV and WV
  • Customer service:
    Phone, email
  • Soft credit check:
    Yes
  • Min. Income:
    $20,000
  • Loan Uses:
    Home improvement, consolidate debt, credit card refinancing, relocate, make a large purchase, and other purposes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


2.49% – 19.99% APR
$5,000 to $100,000 660 2, 3, 4, 5, 6, 7
(up to 12 years for home improvement loans)
  • Fixed APR:

    2.49% – 19.99% APR
  • Min. credit score:
    660
  • Loan amount:
    $5,000 to $100,000
  • Loan terms (years):
    2, 3, 4, 5, 6, 7*
  • Time to fund:
    As soon as the same business day
  • Fees:
    None
  • Discounts:
    Autopay
  • Eligibility:
    Available in all states except RI and VT
  • Customer service:
    Phone, email
  • Soft credit check:
    No
  • Loan servicer:
    LightStream
  • Min. Income:
    Does not disclose
  • Loan Uses:
    Credit card refinancing, debt consolidation, home improvement, and other purposes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


6.99% – 19.99% APR1
$3,500 to $40,0002 660
(TransUnion FICO®️ Score 9) 3, 4, 5, 6, 7
  • Fixed APR:

    6.99% – 19.99% APR1
  • Min. credit score:
    660
    (TransUnion FICO®️ Score 9)
  • Loan amount:
    $3,500 to $40,0002
  • Loan terms (years):
    3, 4, 5, 6
  • Time to fund:
    Many Marcus customers receive funds in as little as three days
  • Fees:
    None
  • Discounts:
    Autopay
  • Eligibility:
    Available in all 50 states
  • Customer service:
    Phone
  • Soft credit check:
    Yes
  • Loan servicer:
    Goldman Sachs
  • Min. Income:
    $30,000
  • Loan Uses:
    Credit card refinancing, debt consolidation, home improvement, major purchase, and other purposes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


18.0% – 35.99% APR
$1,500 to $20,000 None 2, 3, 4, 5
  • Fixed APR:

    18.0% – 35.99% APR
  • Min. credit score:
    None
  • Loan amount:
    $1,500 to $20,000
  • Loan terms (years):
    2, 3, 4, 5
  • Time to fund:
    As soon as the same day, but usually requires a visit to a branch office
  • Fees:
    Origination fee
  • Discounts:
    None
  • Eligibility:
    Must have photo I.D. issued by U.S. federal, state or local government
  • Customer service:
    Phone, email
  • Soft credit check:
    Yes
  • Min. Income:
    Does not disclose


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


4.99% – 17.99% APR
$600 to $50,000
(depending on loan term) 660 1, 2, 3, 4, 5
  • Fixed APR:

    4.99% – 17.99% APR
  • Min. credit score:
    660
  • Loan amount:
    $600 to $50,000*
  • Loan terms (years):
    1, 2, 3, 4, 5
  • Time to fund:
    2 to 4 business days after verification
  • Fees:
    None
  • Discounts:
    None
  • Eligibility:
    Does not disclose
  • Customer service:
    Phone, email
  • Soft credit check:
    No
  • Min. Income:
    Does not disclose
  • Loan Uses:
    Debt consolidation, home improvement, transportation, medical, dental, life events


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


6.95% – 35.99% APR
$2,000 to $40,000 640 3, 5
  • Fixed APR:

    6.95% – 35.99% APR
  • Min. credit score:
    640
  • Loan amount:
    $2,000 to $40,000
  • Loan terms (years):
    3, 5
  • Time to fund:
    As soon as one business day
  • Fees:
    Origination fee
  • Discounts:
    None
  • Eligibility:
    Available in all states except IA, ND, WV
  • Customer service:
    Phone, email
  • Soft credit check:
    Yes
  • Min. Income:
    None
  • Loan Uses:
    Debt consolidation, home improvement, vehicles, small business, new baby expenses, and other purposes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


5.74% – 20.28% APR10
$5,000 to $100,000 Does not disclose 2, 3, 4, 5, 6, 7
  • Fixed APR:

    5.74% – 20.28% APR10
  • Min. credit score:
    Does not disclose
  • Loan amount:
    $5,000 to $100,000
  • Loan terms (years):
    2, 3, 4, 5, 6, 7
  • Time to fund:
    3 business days
  • Fees:
    None
  • Discounts:
    Autopay
  • Eligibility:
    Available in all states except MS
  • Customer service:
    Phone, email
  • Soft credit check:
    Yes
  • Min. Income:
    Does not disclose
  • Loan Uses:
    Solely for personal, family, or household uses


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


8.93% – 35.93% APR7
$1,000 to $50,000 560 3 to 5 years 8
  • Fixed APR:

    8.93% – 35.93% APR7
  • Min. credit score:
    560
  • Loan amount:
    $1,000 to $50,000
  • Loan terms:
    3 to 5 years 8
  • Time to fund:
    Within one day, once approved9
  • Loan types:
    Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
  • Fees:
    Origination fee
  • Discounts:
    Autopay
  • Eligibility:
    A U.S. citizen or permanent resident; not available in DC, SC, WV
  • Customer service:
    Phone, email
  • Soft credit check:
    Yes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


5.94% – 35.97% APR
$1,000 to $50,000 560 2, 3, 5, 6
  • Fixed APR:

    5.94% – 35.97% APR
  • Min. credit score:
    560
  • Loan amount:
    $1,000 to $50,000*
  • Loan terms (years):
    2, 3, 5, 6
  • Time to fund:
    Within a day of clearing necessary verifications
  • Fees:
    Origination fee
  • Discounts:
    Autopay
  • Eligibility:
    Available in all states except West Virginia
  • Customer service:
    Email
  • Soft credit check:
    Yes
  • Min. Income:
    Does not disclose
  • Loan Uses:
    Debt consolidation, credit card refinancing, home improvement, and other purposes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


4.37% – 35.99% APR4
$1,000 to $50,0005 580 3 to 5 years4
  • Fixed APR:

    4.37% – 35.99% APR4
  • Min. credit score:
    580
  • Loan amount:
    $1,000 to $50,0005
  • Loan terms (years):
    3 to 5 years4
  • Time to fund:
    As fast as 1 business day6
  • Fees:
    Origination fee
  • Discounts:
    None
  • Eligibility:
    Available in all 50 states
  • Customer service:
    Phone, email
  • Soft credit check:
    Yes
  • Min. Income:
    $12,000
  • Loan Uses:
    Payoff credit cards, consolidate debt, take a course or bootcamp, relocate, make a large purchase, and other purposes
Compare rates from these lenders without affecting your credit score. 100% free!
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All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | 10SoFi Disclosures | Read more about Rates and Terms



]]>
How To Get A Debt Consolidation Loan With Bad Credit https://motostays.com/how-to-get-a-debt-consolidation-loan-with-bad-credit/ Tue, 01 Feb 2022 11:26:27 +0000 https://motostays.com/?p=866 Debt consolidation is a debt management strategy that allows you to combine multiple debts into a single payment. Having one account can be easier to manage. Also, if you have higher than average interest rates due to bad credit or credit card debt, it could help you lower your average rate.  One of the most […]]]>



Debt consolidation is a debt management strategy that allows you to combine multiple debts into a single payment. Having one account can be easier to manage. Also, if you have higher than average interest rates due to bad credit or credit card debt, it could help you lower your average rate. 

One of the most common ways to consolidate debt is to take out a debt consolidation loan — a personal loan used to pay off multiple creditors. Although it may be tough to get this type of loan with bad credit, there are several actions you can take to increase your loan approval odds. Plus, there are alternative options to consider.

Benefits of a debt consolidation loan

Someone might get a debt consolidation loan for one of several reasons. The biggest benefits of a debt consolidation loan include:

  • Simplified finances: A debt consolidation loan rolls multiple monthly payments into one. Having only one lender and one monthly bill to worry about could help you pay off your debt more consistently and avoid missed payments, which lower your credit score.
  • Lower interest rate: It’s generally only wise to get a debt consolidation loan if you can get a better interest rate than what you’re paying on your debt now. If you’re paying an average of 16 percent to 20 percent on your credit cards and you can get a debt consolidation loan for 14 percent APR, you’ll save money overall.
  • Fixed payment: Most debt consolidation loans have fixed interest rates and a set repayment term, so your monthly payment will be the same every month — unlike monthly payments on credit cards.

How to qualify for a debt consolidation loan

Every lender sets its own requirements for borrowers looking for debt consolidation loans. However, every lender will look at your credit score, income and debt-to-income ratio to determine how capable you are of repaying your loan. Often you’ll need a credit score of around 650, although bad-credit debt consolidation lenders exist; these lenders may accept credit scores of 600 or even less. Just remember that the lower your credit score, the higher your interest rate.

4 steps to getting a debt consolidation loan for bad credit

If you’re struggling to get out of debt and think a debt consolidation loan can help, you’ll likely have to have a credit score in the mid-600s, a history of on-time payments and sufficient income to qualify. However, every lender has its own requirements. Start with the following steps to help you find the right personal loans for debt consolidation and boost your chances of approval.

1. Check and monitor your credit score

Lenders base loan decisions largely upon the condition of your credit. Generally, the lower your credit score, the higher the interest rates lenders will offer you on financing. To qualify for a debt consolidation loan, you’ll have to meet the lender’s minimum requirement. This is often in the mid-600 range, although some bad-credit lenders may accept scores as low as 580.

Many banks offer free tools that allow you to check and monitor your credit score. Once you know your credit score, it’s easier to identify lenders that may be willing to work with you. Not only are there lenders that specialize in loans for people who have bad credit, but many list credit score requirements on their websites.

Takeaway: Check with your bank or credit card issuer to see if it offers tools that allow you to check your credit score for free.

2. Shop around

It’s rarely a good idea to accept the first loan offer you see. Instead, do your research and compare loan amounts, repayment terms and fees from multiple sources, including local banks, national banks, credit unions and online lenders. This process can take time, but it might save you hundreds, if not thousands, of dollars.

The easiest starting point may be online lenders because you can often view your rates with a soft credit check, which won’t hurt your credit score. However, it may also be worthwhile to check offerings with your existing bank; if you have a good relationship with a bank or credit union, it may be more willing to overlook below-average credit.

Takeaway: Compare your loan options from multiple lenders to find the best debt consolidation loan for your needs. Go to each lender’s website to learn about its products and qualification requirements.

3. Consider a secured loan

Personal loans for debt consolidation are typically unsecured, meaning they don’t require collateral. If you’re having a hard time getting approved for an affordable unsecured debt consolidation loan, a secured loan might be worth considering.

Secured loans require some form of collateral, such as a vehicle, home or another asset. The collateral usually has to be worth enough to cover the loan amount if you default. Because of this, it’s typically easier to get approved for a secured loan than an unsecured one, and you may even qualify for a better interest rate.

Takeaway: To increase your loan approval odds and chances of landing a lower rate, shop around for a secured personal loan.

4. Wait and improve your credit

If you’ve tried everything and can’t find a loan that will help you save money, it may be best to hold off and take some time to establish a better credit score.

Make it a goal to pay your monthly debts on time every month for several months in a row. It’s also a good idea to focus on paying down credit card balances and eliminating all nonessential monthly expenses, such as subscriptions and eating out frequently.

“Make a short-term plan that ensures you’re consistently allocating money towards debt payments every month,” says Steve Sexton, CEO of Sexton Advisory Group. “Once you’ve built momentum for a month or two, request a meeting with your bank or credit union to review your efforts and apply for a debt consolidation loan. You’ll have better luck with a bank or credit union vs. an online lender because you can show that you’ve already started taking the steps to paying down your debt and correcting the issue.”

It’s also a good idea to get a copy of your three credit reports, which you can do for free once a year — or weekly through April 2022 through AnnualCreditReport.com — and check for errors. If you find any, you can dispute them with the three credit reporting agencies, Equifax, Experian and TransUnion.

Takeaway: To increase your chances of receiving a lower rate, take these steps to improve your credit score: Pay your debt on time, pay off as much credit card debt as possible and review your credit reports for errors.

Where to get a debt consolidation loan with bad credit

With so many lenders out there, it can be overwhelming trying to decide where to begin. Here are some good places to start your search.

Credit unions and local banks

Local banks and credit unions will typically check your credit when you apply for a personal loan, just like any other lender. Yet these local financial institutions may be willing to offer you more leeway if your credit isn’t in great shape, particularly if you’ve already built a positive relationship with them.

If you’re a customer of a local bank or a member of a credit union, you can talk to a loan officer about whether you qualify for a personal loan — and what the rate and terms are, if you do. The institution may look beyond your low credit score and take into account your entire financial history, personal circumstances and relationship with the bank or credit union.

Online lenders

Online lenders are good places to look for debt consolidation loans if you have bad credit, as they may be more likely to approve you for a bad-credit loan than a traditional brick-and-mortar bank.

With an online lender, you can often:

  • Compare rates without impacting your credit score.
  • Apply quickly and easily, without lots of paperwork or the need to visit a branch in person.
  • Get funds within a week, or even in as little as one business day.

“Most online lenders will be more flexible in providing these types of loans,” says Ash Exantus, director of financial education at BankMobile, an online bank.

With that said, online lenders frequently charge high APRs for bad-credit debt consolidation loans. You also have to watch out for origination fees that could add to your overall cost of financing and cut into your loan proceeds.

In particular, when reviewing online lenders for a potential debt consolidation loan, it’s important to know whether the company you’re considering is a direct lender or a third-party lender, Sexton says. “Working with a third-party lender can sometimes involve additional costs and fees, so it could benefit you to seek a direct lender to avoid these costs.”

If you’re considering debt consolidation loans for bad credit, here are some online lenders you may want to check out:

  • LendingClub doesn’t state a minimum credit score requirement, but does offer the ability to apply with a co-borrower. APRs range from 7.04 percent to 35.89 percent on debt consolidation loans from $1,000 to $40,000.
  • Upstart does not have a minimum credit score requirement. Qualified borrowers may be able to take out loans from $1,000 to $50,000 with an APR range of 3.22 percent to 35.99 percent.
  • Avant doesn’t state a minimum credit score. However, the company says that most customers who receive loans have a score above 600. If you qualify for financing, you may be able to borrow $2,000 to $35,000 at an APR between 9.95 percent and 35.99 percent.
  • OneMain Financial doesn’t specify a minimum credit score on its website, but it has a track record of working with borrowers who have fair and poor credit. The APR range on debt consolidation loans with OneMain Financial is 18 percent to 35.99 percent, and borrowers may qualify for loans from $1,500 up to $20,000.

Summary of the best bad-credit debt consolidation loan options

Lender Minimum credit score APR range
LendingClub Not specified 7.04%–35.89%
Upstart No minimum requirement 3.22%–35.99%
Avant Around 600 9.95%–35.99%
OneMain Financial Not specified 18%–35.99%

How to manage your debt consolidation loan

Once you’ve obtained the funds from a debt consolidation loan, it’s important to manage the money responsibly. Here are some ways to help pay off your debt consolidation loan without racking up new debt.

Create a budget

After being approved for a loan, draft a budget outlining how you will repay the money each month, ensuring that you’ll be capable of doing so.

“Know ahead of time how much you’re going to have to pay each month,” Exantus says. “If the amount that you’re going to pay is not conducive to your current budget, then it would not make sense to proceed with a debt consolidation loan.”

Alternatively, you may want to immediately reduce some of your current discretionary expenses to ensure that you have enough cash on hand to repay your loan each month.

Pay off all debt immediately

Once the funds from the consolidation loan have arrived in your account, the first thing you should do is pay off all of your debt.

“Some people will receive the money and proceed to use it for other purposes, or will fail to pay off the entirety of their debt,” says James Lambridis, CEO of DebtMD. “This will only put you in a worse off financial situation.”

Set up automatic payments

Once you have your debt consolidation loan, see if your lender offers autopay. Many do, and some will even give you a discount for setting it up. It’s a good way to potentially lower your interest payments if your poor credit resulted in a high rate. It will also help keep you on track — especially important for your credit, since making timely payments on your loan is one of the best ways to raise your credit score.

Resolve any spending issues

Finally, you’ll need to acknowledge and resolve any ongoing spending issues you may have. Without addressing the behavioral money patterns that caused the problem in the first place, it’s easy to fall right back into debt, Sexton says.

This includes trying not to reach for those credit cards again once they’ve been paid off, as you don’t want to end up back at square one.

Alternatives to a debt consolidation loan

Debt consolidation may not be the best option for everyone. If you can’t qualify for a debt consolidation loan with a lower interest rate than you’re currently paying, you might want to consider some of these alternatives instead.

Do-it-yourself fixes

There are a few ways to alter your financial plan without involving third parties. To start tackling your debt, you can:

  • Overhaul your budget. Compare how much you’re spending with how much you earn and see where you can cut costs to free up more money for debt elimination.
  • Renegotiate the terms of your debt. If you’re struggling to meet your minimum payments, your lenders might be willing to lower your interest rate or work with you in other ways.
  • Ask for a due-date adjustment. You might be able to schedule all of your payment due dates near the same day. While this isn’t the same as consolidating your debt, it may help you keep track of your obligations more easily.

Debt management plan (DMP)

The National Foundation for Credit Counseling (NFCC) is a nonprofit financial counseling organization with member agencies around the country that offer debt management plans (DMPs).

In a way, DMPs are another type of debt consolidation for bad credit. While in the program, you make one lump-sum monthly payment to your credit counseling agency that covers multiple bills for the month.

The agency, in turn, pays each of your creditors on your behalf (generally at a lower negotiated interest rate). Most debt management plans take three to five years to complete.

That said, going through this process typically results in a notation on your credit report that you’re on a debt management plan. Though the notation will not impact your credit score, new lenders may be hesitant to offer you new lines of credit.

Home equity

If you own a home and have significant equity in it, you may be able to take out a home equity loan to consolidate your debt. A home equity loan isn’t technically a debt consolidation loan, but it might help you score a low interest rate, because the loan is secured by your home.

Just keep in mind that while using your home’s equity may help you qualify for financing and possibly secure a lower interest rate, there’s significant risk involved as well. If you can’t keep up with the payments, you could risk losing your home to foreclosure. It’s best to pursue this option only if you’re certain that you won’t have problems repaying the debt.

Ways to leverage your home equity for financing include:

  • Home equity loan. Sometimes called a second mortgage, a home equity loan is a lump-sum, fixed-rate loan that homeowners can take out using the equity in their homes as collateral.
  • Home equity line of credit (HELOC). A HELOC is another type of financing that is secured by the value of your home. Rather than borrowing a lump sum at a fixed interest rate, you take out a line of credit — similar to a credit card. This gives you access to funds whenever you need them, up to a maximum borrowing limit. As you pay down your balance, you can borrow up to that limit again.
  • Cash-out refinance. With a cash-out refinance, you take out a new mortgage for more than you currently owe on your home. From there, you can use the leftover funds to pay off your debt.

What to do if your situation is dire

Debt consolidation loans and the alternatives noted above are best for people who can qualify for a low interest rate. If you’re drowning in debt and can’t afford your monthly payments, it might be wise to consider credit counseling, debt settlement or bankruptcy.

While these options aren’t ideal, they may be your ticket to getting some relief.

Credit counseling

A credit counseling agency can help by acting as a middleman between you and your creditors. A credit counselor can help you understand your credit report and suggest steps for improving your credit score and achieving financial stability. Some credit counseling agencies even offer limited services for free.

If you’re struggling to manage your debt, credit counselors can also set you up with a debt management plan. Credit counseling agencies typically have contracts with creditors with lower interest rates than what you may be currently paying.

Debt settlement

Debt settlement goes one step further than debt management. Debt settlement companies like National Debt Relief and Freedom Debt Relief work with you to settle your debt for less than what you owe.

The caveat is that you typically need to pay enough into an account with the debt settlement company before it will begin negotiations with your creditors — often at the expense of making your regular monthly payments, forcing you to default.

If you default on your debts, it could damage your credit score even further, which can take a long time to rebuild.

However, there are also some positives to consider when proceeding with debt settlement, Exantus says. “If your credit is bad already, then allowing your current debt to stay delinquent is not a negative thing because eventually, it will save you money because you’re paying a lower amount to your creditor than what you originally would have paid if the debt consolidation company didn’t intervene.”

Remember, however, that reaching a zero balance on your debt won’t make past late payments or other derogatory notations disappear from your credit report. You’ll still be stuck with the negative account on your credit report for up to seven years from when it went into default (though it should impact your score less and less over time).

Debt settlement services also come with fees, sometimes regardless of whether the company is successful at negotiating down your debt.

Bankruptcy

If you’re experiencing financial hardship and even debt settlement doesn’t sound possible, bankruptcy may be your only option. Depending on the type of bankruptcy you file, you may need to place your assets under control of a bankruptcy court and agree to give up most or all of your wealth.

Note that declaring bankruptcy doesn’t discharge all types of debt — for example, you still have to pay student loans and child support debt. Bankruptcy will also remain on your credit report for up to seven to 10 years. Because of this, it could be years before you’ll qualify for certain types of credit again.

That being said, filing for bankruptcy can give you a second chance to rebuild your finances. With diligence, your credit can eventually recover as well.

If you’re considering bankruptcy, consult with a bankruptcy attorney to get advice about your best path forward.

Watch out for predatory lenders

If you’re considering a debt consolidation loan, keep in mind that some lenders are predatory in nature. This is especially true of lenders that work with people who have low credit scores. They’ll often charge exorbitantly high interest rates and a variety of additional fees.

Online companies like OppLoans, for instance, charge triple-digit APRs. That said, it’s nowhere near as pricey as payday loans, which can charge APRs of up to 1251.43 percent.

Accepting a loan with such a steep interest rate can be extremely expensive and may cause you to go deeper into debt. Plus, using a predatory lender defeats the purpose of a debt consolidation loan, which is to make it easier to pay down your debt.

“Sometimes it’s hard to spot who are predatory lenders as it relates to the consolidation loans, especially when you have bad credit,” Exantus says. “Anybody who offers you anything may seem like a win. The important thing is to read the fine print. Do not get into any agreement without fully understanding what that is going to cost you.”

Predatory loans are those that benefit the lender at the borrower’s expense, Sexton adds. The warning signs include:

  • The interest for your credit rating seems too good to be true.
  • The lender is pressuring you to act quickly.
  • The lender is pressuring you to take out a risky or expensive loan.
  • The lender is asking you to lie on your application.
  • The fees or terms suddenly change at closing.

The bottom line

Regardless of how you get rid of your debt, it’s important to have a plan for accomplishing your goal. It can be discouraging if you can’t find a good debt consolidation loan or if you’re faced with the prospect of debt settlement or bankruptcy. But don’t let that discouragement stop you from taking action. If you can avoid letting an account go to collections while you decide, do so.

Also, keep in mind that debt consolidation loans are a temporary fix. They don’t address the core problem of how you got into debt in the first place. If you opt for a debt consolidation loan, be sure to take additional steps toward financial stability, like creating a budget, curbing your overspending and looking for additional income opportunities. You should also avoid racking up new balances on accounts you just paid off.

Finally, be cautious about jumping on any loan you can qualify for just to pay off your debt quickly. Taking out a predatory loan to pay off your current debt is exchanging one problem for another.

Learn more:



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Is 2022 for BNPL Consolidation? (ASX: Z1P) https://motostays.com/is-2022-for-bnpl-consolidation-asx-z1p/ Tue, 25 Jan 2022 06:12:52 +0000 https://motostays.com/is-2022-for-bnpl-consolidation-asx-z1p/ Zip Co Ltd [ASX:Z1P] and Sezzle Inc. [ASX:SZL] confirmed today that they are discussing a potential acquisition, as the depressed BNPL sector considers consolidation. Source: Tradingview.com At the time of writing, SZL shares were up 10%. Z1P shares were stable, however. Zip and Sezzle confirm merger talks A week after releasing its December quarterly – […]]]>



Zip Co Ltd [ASX:Z1P] and Sezzle Inc. [ASX:SZL] confirmed today that they are discussing a potential acquisition, as the depressed BNPL sector considers consolidation.

Source: Tradingview.com

At the time of writing, SZL shares were up 10%. Z1P shares were stable, however.

Zip and Sezzle confirm merger talks

A week after releasing its December quarterly – showing record trading volume and revenue – Zip confirmed today that it is in talks with Sezzle about a possible acquisition.

Monday, The Australian reported that Zip and Sezzle have reignited talks in recent weeks, with a certificate acquisition front and center.

Zip and Sezzle had similar discussions a few months ago, but the talks broke down when Zip reportedly backed off from SZL’s asking price.

Like the Australian Noted:

DataRoom has learned that exclusive negotiations have again taken place in which suggestions have been made which Zip could pay a premium of up to 50% for its smaller competitor.

Goldman Sachs, Bank of America and Jarden are understood to be involved in the deal, with the latter two parties known to have been close to Zip Co.

Today, Zip and SZL responded to media speculation by issuing brief statements to the ASX.

Z1P has confirmed that it is in talks with Sezzle regarding a potential acquisition.

However, BNPL action said ongoing discussions are “preliminary in nature and there is no certainty that the discussions will result in a transaction of any kind.’

Sezzle echoed his counterpart’s cautious language, emphasizing the preliminary nature of the talks:

No definitive agreement has been reached between the parties regarding any transaction. There is no certainty at this time that these discussions will result in a transaction.

Is this the qualified language of two listed companies perfectly aware of their information obligations?

Or can the emphasis on uncertainty and the preliminary nature of these talks reveal anything substantial about how these talks are unfolding?

Zip and Sezzle follow Latitude and Humm

However, Zip and SZL aren’t the only BNPL stocks considering joining forces.

Earlier this month, Latitude Group Holdings Ltd [ASX:LFS] made an offer of $335 million for Humm Group Ltd.it is [ASX:HUM] credit cards and BNPL.

For LFS, the strategic rationale was clear.

80% of Latitude’s personal loans come from cross-selling to its BNPL customers. The acquisition of HUM’s BNPL business would double its potential customer base.

But what is the strategic logic behind Zip’s acquisition of Sezzle?

Why is Zip targeting Sezzle?

Unlike Latitude, Zip doesn’t have an explicit personal loan product it can cross-sell to.

Z1P and SZL earn revenue from processing BNPL transactions and charging merchants and customers fees from late fees, or monthly membership fees in the case of Zip.

zipper Is it that have Zip Money, which is an installment option for purchases over $1,000.

Zip Money offers a three-month interest-free period. But any outstanding balance at the end of the interest-free period will accumulate a ‘standard annual interest rate, currently 19.9%‘.

Would acquiring Sezzle’s customer base help direct more users to Zip Money? And would that move the needle in terms of profitability?

It is difficult to answer these questions using the current data available.

Perhaps if the talks between Sezzle and Zip grow, the two BNPL stocks would release more information on the benefits of the merger.

But one of the biggest benefits analysts can see right now is critical mass – getting enough customers to grow trading volume to a standalone level.

Addressing the Sydney Morning HeraldTribeca Investment Partners portfolio manager Jun Bei Liu said an SZL/Z1P merger was logical growth ground.

Zip and Sezzle need to grow to stay competitive against big players Affirm, Klarna and Block’s Afterpay…

Especially with traditional players like PayPal and Commonwealth Bank joining the fray.

But Jun Bei Liu thinks that even if the merger goes through, the new entity will still be ‘rather small’ compared to market leaders.

In its most recent quarter, Sezzle had 3.19 million active consumers. And in its last quarterly, Zip had 9.9 million.

In FY21, Afterpay had over 16 million customers.

Growing competition is another important reason for recent merger talks in the BNPL space.

As Morningstar analyst Shaun Ler put it:

I feel like all of these BNPL companies are somehow in a situation where they have to do forced mergers.’

Now, if you are interested in fintech and want to learn more, I suggest you read our latest fintech report for 2022.

It presents three promising fintechs. Coincidentally, one of them is the only profitable BNPL stock in Australia.

Greetings,

Kiryll Prakapenka,
For silver morning

PS: Our Money Morning publication is a fantastic place to start your investing journey. We talk about the big trends driving the ASX’s most innovative stocks. Learn everything here



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What is a Direct Consolidation Loan? https://motostays.com/what-is-a-direct-consolidation-loan/ Fri, 21 Jan 2022 08:00:00 +0000 https://motostays.com/what-is-a-direct-consolidation-loan/ Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, which we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to herein as “Credible”. Many students leave school with multiple student loans – […]]]>



Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, which we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to herein as “Credible”.

Many students leave school with multiple student loans – usually eight to 12, depending on the program. Managing so many loans can be overwhelming, but luckily there are strategies that could help simplify your repayment.

For example, if you have federal student loans, you can consolidate them into a direct consolidation loan. This process will leave you with one loan and one payment to follow.

Here’s what you need to know about direct consolidation loans:

What is a Direct Consolidation Loan?

You can consolidate multiple federal student loans into one direct consolidation loan, leaving you with just one monthly payment to follow.

If you’re thinking about consolidating your federal student loans, here are some important things to consider:

  • Interest rate: Your interest rate on a direct consolidation loan will be the weighted average of the rates of the loans you wish to consolidate, rounded up to one-eighth of a percent. If some of your loans have high interest rates, you could end up paying a lot more interest.
  • Repayment schedule: With a direct consolidation loan, you can extend the repayment term of your loan for up to 30 years, which could significantly reduce your monthly payments. Remember that you will pay more interest over time with a longer term.
  • Loan balances: Any unpaid interest on your loans will be added to your principal balance upon consolidation. This means you could end up paying interest on a higher balance than you started with.

Keep in mind: Federal student loan consolidation is not available for private student loans. However, there are other options that might help you repay your private loans more easily, such as student loan refinancing.

Learn more: Consolidation of private student loans

How to Apply for a Direct Consolidation Loan

If you decide to consolidate your federal student loans, follow these four steps:

1. Review your loans

Before you begin the application process, you’ll need to decide which loans you want to include in the consolidation. You can consult your federal loans via the National Student Loan Data System (NSLDS).

The following loans are eligible for federal consolidation:

  • Federal Subsidized Stafford Loans
  • Unsubsidized and Unsubsidized Federal Stafford Loans
  • PLUS loans from the Federal Family Education Loan Program (FFEL)
  • Additional Student Loans
  • Perkins Federal Loans
  • Nursing Student Loans
  • Nursing College Loans
  • Health Education Loans
  • Student loans for health professions
  • Loans for disadvantaged students
  • Subsidized direct loans
  • Direct unsubsidized loans
  • Direct Loans PLUS
  • FFEL Consolidation Loans and Direct Consolidation Loans (only under certain conditions)
  • Federal Insured Student Loans
  • Guaranteed student loans
  • Direct National Student Loans
  • National Defense Student Loans
  • Parent loans for undergraduate students
  • Auxiliary loans to help students

2. Gather your documents

To complete the application, you will need a Federal Student Aid (FSA) ID. If you do not have an FSA ID, you can create one at StudentAid.gov – you will just need a mobile phone number, an email address and your social security number.

Also be prepared to provide the following in your Direct Consoidation loan application:

  • Personal informationssuch as your address and telephone number
  • Financial informationlike your employer and income
  • Information about each of the loans you want to consolidatesuch as the repairer and the estimated amount of the gain

3. Complete the application

Once you have gathered your information, you will need to complete the Direct Consolidation Loan Application. Completing the application usually takes about 30 minutes.

Point: You can complete the online application at StudentAid.govor you can submit a paper application to the federal loan officer of your choice.

4. Manage your payments

It usually takes 30-45 days to complete the consolidation. During this time, be sure to track all of your loan repayments.

Then start making payments on your new direct consolidation loan. You might consider signing up for automatic payment to avoid missing payments in the future – many services offer a rate reduction for borrowers who opt for automatic payments.

Keep in mind: You cannot consolidate federal loans while you are enrolled in school at least half-time. To be eligible, you must graduate, leave school, or drop below halftime.

To verify: What happens when you fail to repay a student loan

Benefits of a Direct Consolidation Loan

Although consolidating federal loans with a direct consolidation loan may be a good decision for some borrowers, it is not the right choice for everyone.

Here are some potential benefits to consider when evaluating your options:

  • Could reduce your payments: With a direct consolidation loan, you can extend your repayment term for up to 30 years. This could lower your monthly payments and reduce the strain on your budget, but remember it also means you’ll pay more interest over time.
  • Combine several loans: A direct consolidation loan allows you to combine your federal student loans, which can help simplify repayment.
  • Could make you eligible for loan forgiveness: If you have Direct PLUS loans, consolidating them will make you eligible for income-contingent repayment (IDR). It could also qualify you for federal student loan forgiveness programs, such as the Public Service Loan Forgiveness (PSLF).

Learn more: Best Parent Student Loans: Choose Private or PLUS Loans

Disadvantages of a Direct Consolidation Loan

And here are some possible downsides to keep in mind:

  • Higher interest costs: If you choose to extend your repayment term with a direct consolidation loan, your overall loan cost will likely increase due to additional interest charges. Also, any unpaid interest will be added to your main balance after consolidation, which means you could end up paying interest on a higher loan amount.
  • Will reset the forgiveness timeline: Consolidating your loans resets the clock when it comes to getting approved for programs like PSLF. If you have already made qualifying payments, they will no longer count towards the 10 years of payments required by PSLF.
  • Could lose your grace period: Most federal loans have a six-month grace period. If you consolidate your loans before the end of this grace period, you must begin making payments within 60 days of the consolidation being processed.

To verify: How to refinance your student loans

Is it better to refinance or consolidate student loans?

Whether it’s best to refinance privately or consolidate your student loans federally will depend on your personal circumstances and financial goals. Depending on your credit, refinancing a student loan may get you a lower interest rate, which could save you money on interest and potentially help you pay off your loans faster.

Keep in mind: Refinancing federal loans will cost you access to federal benefits and protections, such as IDR plans and student loan forgiveness programs.

For this reason, consolidation might be a better choice in some cases, especially if you plan to repay your loans over a long period.

If you decide to refinance your student loans, be sure to consider as many lenders as possible to find the right loan for you. Credible makes it easy – you can compare your prequalified rates from multiple lenders in two minutes.

Find out if refinancing is right for you

  • Compare actual rates, not rough estimates – Unlock rates from multiple lenders in about 2 minutes
  • Will not affect credit rating – Checking rates on Credible will not impact your credit score
  • Data Privacy – We do not sell your information, so you will not receive calls or emails from multiple lenders

See your refinancing options
Credible is 100% free!

Direct Consolidation Loans: Frequently Asked Questions

Here are the answers to some frequently asked questions about direct consolidation loans:

How long does it take for a direct consolidation loan to pay off old loans?

Once you submit a direct consolidation loan application, it usually takes 30-45 days for it to be processed and your old loans to be paid off. You can usually expect to start making payments on the new direct consolidation loan within two months.

Point: To avoid delays, make sure all the information you provide in the application is as accurate as possible.

What is the interest rate for a direct consolidation loan?

Your interest rate on a direct consolidation loan will be the weighted average of the rates of the loans you choose to consolidate, rounded to the nearest eighth of 1%.

For example: Suppose you are consolidating a $2,000 loan with an interest rate of 4.45% and a $3,000 loan with an interest rate of 6%. The blended interest rate between these two loans is 5.38% – then rounded to the nearest eighth of 1%, the rate will be 5.5%.

Can you cancel a direct consolidation loan?

Yes, if your loan consolidation request has not been processed, you can cancel it. To do this, you will need to contact the repairer who received the request.

However, if your application has already been processed and the funds have been disbursed, you will not be able to cancel the new loan.

Keep reading: Student Loan Consolidation vs. Student Loan Refinance

About the Author

Angela Brown

Angela Brown is a personal finance, student loan and real estate authority and contributor to Credible. His work has appeared in Fox Business, LendingTree and FinanceBuzz.

Read more



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Debt Solutions – Forbes Advisor UK https://motostays.com/debt-solutions-forbes-advisor-uk/ Sun, 16 Jan 2022 08:00:00 +0000 https://motostays.com/debt-solutions-forbes-advisor-uk/ A money transfer credit card allows you to transfer funds directly from your credit card to your bank account. You can then use these funds to pay off your existing debt, provided the credit limit is high enough. If you choose a 0% money transfer credit card, you won’t have to pay interest for a […]]]>



A money transfer credit card allows you to transfer funds directly from your credit card to your bank account. You can then use these funds to pay off your existing debt, provided the credit limit is high enough.

If you choose a 0% money transfer credit card, you won’t have to pay interest for a fixed period of time. However, as with balance transfer cards, there is usually a transfer fee to pay (often around 4% of the sum involved) and once the 0% transaction is complete interest kicks in.

Secure loan

A secured loan usually allows you to borrow a larger amount than a personal loan (often £25,000 or more) and you can often repay it over a much longer period (up to 25 years). Interest rates can also be lower than personal loans.

However, the big downside is that secured loans are secured by your home – meaning if you can’t keep up with your repayments, you risk losing it. They should therefore only be considered if you have considered all other options and are confident that you can make your repayments each month.

This type of secured loan is sometimes called a “second mortgage” because it is actually a separate loan that is added to your main mortgage.

This can be a useful option if you don’t want to remortgage (see below) as this would incur prepayment charges on your existing mortgage.

Unlock the equity in your home

Another option is to re-mortgage and release the equity in your property – this is usually best done if your current mortgage agreement is coming due, otherwise you may have to pay prepayment charges.

If the value of your property – and therefore the amount of equity in your home – has increased, you can choose to take out a new, larger mortgage and use some of the equity to pay off your other debts.

However, keep in mind that your mortgage amount will increase and your monthly payments will also increase, even if you get a mortgage with a lower interest rate.

Plus, since you’ll be borrowing for a longer period compared to a personal loan or credit card, you’ll end up paying more interest.

Also be aware that if house prices fall, your home equity is also likely to fall. This could potentially leave you with negative equity, where the size of your mortgage is greater than the value of your property.



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Jumio: 2021 was the year of consolidation https://motostays.com/jumio-2021-was-the-year-of-consolidation/ Fri, 14 Jan 2022 08:00:00 +0000 https://motostays.com/jumio-2021-was-the-year-of-consolidation/ Companies have started to strengthen their identity verification protections against the increase in security threats from hackers and fraud in 2021, says Bala Kumar, chief product officer at Jumio. This year, seek them out to consolidate the information they now get from multiple vendors into a single, comprehensive platform. Read his thoughts in the PYMNTS […]]]>



Companies have started to strengthen their identity verification protections against the increase in security threats from hackers and fraud in 2021, says Bala Kumar, chief product officer at Jumio. This year, seek them out to consolidate the information they now get from multiple vendors into a single, comprehensive platform. Read his thoughts in the PYMNTS Ebook“In a nutshell: 50 thought leaders sum up 2021.”

We’ve seen fraudsters become increasingly sophisticated in 2021, taking advantage of vulnerabilities and the inadequate security perimeter of remote working. Due to these growing threats, companies are now layering countless risk signals from multiple Know Your Customer (KYC) providers to protect their ecosystems from hacking. These factors have made 2021 “the year of consolidation” for the identity verification industry.

Enterprises are now moving towards a single, comprehensive platform that consolidates these capabilities to confirm user identities and maintain compliance effectively and efficiently. It is expected that by 2023, 75% of organizations will leverage a single vendor with strong identity verification capabilities and connections instead of using various other third-party solutions for identity verification and affirmation. identity, an increase from less than 15% in 2020.

In the past, organizations used countless solutions to verify the identity of users, review their identification and supporting documents, authenticate them after each visit, ensure that they are not on any watchlists by performing checks ongoing, managing investigations, monitoring their transactions and reporting suspicious activity. However, this approach is not only costly and complicated, but also fails to properly detect financial crime and properly verify the user’s identity. Data remains fractured across business unit silos and valuable insights are not shared across customer touchpoints.

By using multiple vendors for verification, organizations may face risks of non-compliance with regulations such as KYC, Anti-Money Laundering (AML), Data Privacy and Markets Directive. financial instruments (MiFID). These regulations require companies to identify and report illegal activities such as terrorist financing or money laundering to regulatory agencies. Businesses with non-compliant identity verification and transaction monitoring solutions can lose customer trust, fall victim to fraud, and face costly fines.

Leveraging a consolidated vendor allows companies to orchestrate the controls and assurances needed to know and trust their end users, and helps them achieve high capture rates and low false positives. More importantly, it also links related transactions, underlying attributes, and risk signals to provide a holistic view of every individual and transaction at every customer touchpoint.

Additionally, it provides a more seamless user experience that verifies consumer or employee data, while providing enhanced authentication using a document such as a government-issued ID. There are also unified platforms that not only assess an individual’s risk, but also the devices associated with them, the credentials they provide, and their facial biometrics, all through a single layer of programming interface. application (API). Given these benefits, we can expect to see even more vendor consolidation in KYC in 2022 and beyond.

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NEW PYMNTS DATA: 70% OF BNPL USERS USE BANK PAYMENT OPTIONS, IF AVAILABLE

On: Seventy percent of BNPL users say they would prefer to use the installment plans offered by their banks – if only they were made available. PYMNTS’ Banking On Buy Now, Pay Later: Installment Payments and the Untapped Opportunity of FIssurveyed over 2,200 US consumers to better understand how consumers view banks as BNPL providers in a sea of ​​BNPL pure-players.



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BNPL industry consolidation: what does it mean? https://motostays.com/bnpl-industry-consolidation-what-does-it-mean/ Tue, 11 Jan 2022 08:00:00 +0000 https://motostays.com/bnpl-industry-consolidation-what-does-it-mean/ Buy Now Pay Later (BNPL) services have grown significantly, especially since the onset of COVID-19, which has accelerated digitalization, merchant adoption and consumer demand. Collaboration can be mutually beneficial for banks, financial institutions and fintechs With customers opting for new ways to pay online, more online and in-store merchants are partnering with BNPL platforms. Additionally, […]]]>



Buy Now Pay Later (BNPL) services have grown significantly, especially since the onset of COVID-19, which has accelerated digitalization, merchant adoption and consumer demand.

Collaboration can be mutually beneficial for banks, financial institutions and fintechs

With customers opting for new ways to pay online, more online and in-store merchants are partnering with BNPL platforms. Additionally, BNPL’s financial sector is heating up as more young people turn to these services, with 36% of 21-25 year olds using BNPL in the US, according to Forbes.

With BNPL’s growing sector largely unregulated and debt accumulation untraceable, the regulator is sitting up and taking notice. Regulation is inevitable and will alter the entire BNPL space, leaving a void in the market for compliant providers. There’s a window of opportunity to fill that void, and that’s where collaboration comes in.

According to data from McKinsey’s Consumer Lending Pools, fintechs currently hold the majority of BNPL’s market share and have already captured around $8-10 billion in annual consumer finance revenue.

However, banks have been actively moving into space. Since they are already compliant with financial regulations, they just need a way to bring their competitive consumer finance programs to the point of sale (POS), i.e. when looking to collaborate with fintechs.

Consolidation will therefore be driven by banks and financial institutions looking to leverage fintech technology solutions to become strong BNPL players, not just fintechs rushing to partner with banks to come into compliance.

Growing benefits for both parties are driving cross-industry consolidations and partnerships. Successful partnerships are not just those that enable regulatory compliance, but those that are based on aligning values ​​and enhancing each party’s strengths.

The arrival of acquisitions

Mergers and acquisitions (M&A) typically involve an entity realizing that another company brings value and potential. This often results in one company swallowing another. In my view, however, the real power of consolidation lies in recognizing and retaining the true nature of each business to help drive mutual growth.

For example, the acquisition can be burdensome since the entire mission of the secondary entity often serves the purpose of the main company instead of serving its own innovation and growth objectives.

Real partnerships are formed

On the other hand, in the case of partnerships, the collaborating companies also benefit from the audience and the reach of the other. Instead of inhibiting each other’s growth, a true partnership stimulates growth and encourages cross-pollination from one to the other. I have always found that true collaboration is based on mutually beneficial partnerships and shared values.

An example of such a partnership is Klarna and Stripe, two of the largest private fintech companies in the world, which have teamed up but kept their own independent identities. Stripe has entered into a strategic partnership with Klarna to bring the Swedish company’s BNPL payment method to its merchants without acquiring the company.

Without these kinds of mutually beneficial partnerships between banks and fintechs in the BNPL space, banks will not only lose out on lending volume, but also on consumers by turning away from fintech companies. Through partnerships with fintech providers, not necessarily through acquisitions, banks can find and keep their consumers close and strengthen customer relationship, value and experience.

Global expansion for victory

Recently, Global Processing Services raised over $300 million to accelerate the global technology and fintech revolution, showing the important role of the fintech industry globally.

While some may argue that the most successful fintechs maintain a niche in terms of markets and products, others favor expansion.

Global expansion into different markets, through consolidations and partnerships, fuels innovation and out-of-the-box thinking as companies face new challenges and must find solutions to the demands of different markets. It also means companies can apply fundamental learnings from one market to another and expand their customer base by partnering with entities with a global presence.

As traditional financial barriers crumble and the world simultaneously becomes more interconnected, new cross-border collaborations and partnerships between fintech firms and banks will be critical for the future of the financial services industry and technology sector.

COVID-19 has also proven that large corporations and financial institutions are not the only ones who can adapt to a “digital first” approach. In fact, their timelines for new product introductions need to accelerate dramatically, which can be achieved through partnerships forged overnight. Expect to see many more happening – very soon.



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What is debt consolidation and is it a good idea? https://motostays.com/what-is-debt-consolidation-and-is-it-a-good-idea/ Fri, 07 Jan 2022 08:00:00 +0000 https://motostays.com/what-is-debt-consolidation-and-is-it-a-good-idea/ CNN Underscored reviews financial products such as credit cards and bank accounts based on their overall value. We may receive a commission from the LendingTree Affiliate Network if you apply and are approved for a product, but our reporting is always independent and objective. According to Experian’s 2021 Credit Status ReportUS consumers with credit card […]]]>



CNN Underscored reviews financial products such as credit cards and bank accounts based on their overall value. We may receive a commission from the LendingTree Affiliate Network if you apply and are approved for a product, but our reporting is always independent and objective.

According to Experian’s 2021 Credit Status ReportUS consumers with credit card debt have an average balance of $5,525, while the average credit card interest rate currently sits at well over 16%.

For people who fall into arrears, high debt and a high annual percentage rate (APR) can combine in the worst possible way, often creating a cycle of high-interest debt repayments that consumers cannot afford. escape. And even for those who can meet their monthly payments, too much credit card debt can prevent them from achieving other financial goals, such as saving for the future.

Either way, debt consolidation offers a way out of credit card debt that is far less serious than bankruptcy. You just need to be ready to create a plan and stick to it until you are debt free. If you want to get rid of your debt for good, read on to find out how debt consolidation can help you.

If you’ve tried budgeting to get out of debt or make more money, but nothing seems to be working, debt consolidation might be the solution you’ve been looking for. With debt consolidation, you will essentially be swapping the loans and credit card balances you have for a new loan product with better rates and terms, thus lowering your monthly payments or making it easier to use more of your money to reduce the principal on the debt, or both.

Essentially, with debt consolidation, you take out a new loan and use the proceeds from that new loan to pay off all your old debts, then make monthly payments on just the new loan. Generally speaking, there are three financial products that consumers use for debt consolidation:

  • Debt consolidation loansalso called personal loans, allow you to refinance your debts into a new loan with a fixed rate and a fixed repayment term.
  • Credit cards with balance transfer lets you consolidate your debt on a new credit card that offers 0% annual interest for a limited time.
  • Home Equity Loans can help you consolidate your debt into a new loan product secured by the value of your home.

Whatever product you decide to use, remember that debt consolidation only really works if you stop taking on more debt. If you’re consolidating your debt with a personal loan or a balance transfer credit card and you keep charging more purchases on other lines of credit, debt consolidation is probably a waste of time.

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Debt consolidation may or may not be a good idea. It all depends on how serious you take the process and how disciplined you are in carrying it out.

As an example, let’s say you currently have credit card debt of $5,525 at an APR of 19%. In this scenario, you could be paying $100 a month for this debt for 133 months, or more than 11 years, before it is paid off. During this period, you will pay more than $7,701 in interest.

But what if you consolidate that $5,525 debt into one personal loan? Although personal loans vary, most allow you to borrow money for two to seven years. Personal loans also come with fixed interest rates, fixed repayment terms and fixed monthly payments.

In this example, you may qualify for a 60 month personal loan with an interest rate of 7%. In this case, you would pay off your balance with a monthly payment of $109 for five years (60 months). During this period, you will pay approximately $1,039 in interest payments. That’s a huge savings of over $6,000.

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You can also consolidate your debts with a credit card. However, it is important to note that while balance transfer credit cards offer an initial APR of 0% on transferred balances, the longest possible term currently offered is 21 months. After that, your interest rate will revert to the regular APR, which will still be high.

For this reason, a credit card balance transfer is only a good idea when you have an amount of debt that you can pay off during the card’s introductory period. If you need more time to get your debt under control than a balance transfer allows, you should consider a personal loan instead.

Finally, you can also consolidate your debts with a home equity loan that uses your home as collateral. In many cases, this can be a good idea since home equity loans can come with low fixed rates as well as a fixed monthly payment and a fixed repayment term. Remember that you need good credit to get a home equity loan, and you can lose your home if you default.

But, in any of these cases, if after consolidating your debt, you overspend and rack up an additional $5,000 in debt on the same credit card you used before and can only afford to pay $100 in monthly payments on this debt, you end up paying an additional $4,985 in interest. Add that interest to the extra $5,000 in debt and you’ll be worse off than you started out. That’s why it’s so important to stay disciplined and not keep spending more than you have when pursuing debt consolidation.

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There are other debt consolidation options you can consider, some of which offer help from third-party companies. For example, you might consider signing up for a debt management plan (DMP), which takes place when a credit repair agency helps you negotiate interest rates and pay off your debts over a period of determined time.

Just note that DMPs aren’t for everyone, and credit repair agencies that offer DMPs can’t do anything you can’t do yourself. Also, a number of credit repair agencies have gotten a bad reputation, so be sure to do plenty of research before going this route.

Another alternative is debt settlement, which is a process that helps you settle your debts for less than you owe. However, it is crucial to know that debt settlement companies ask you to stop making payments on your debts while they are working on your behalf. Unsurprisingly, this can cause massive damage to your credit score that can last for years.

See if you qualify for a personal loan at LendingTree even if you have bad credit.

Debt management becomes considerably easier when you have a reasonable interest rate and a monthly payment that matches your income. Essentially, that’s what debt consolidation does – it helps you transfer debts with high interest rates to a new financial product with better terms.

Debt consolidation also has the advantage of allowing you to reduce the monthly payments you make. If you’re currently trying to cope with five or six credit card bills, debt consolidation with a personal loan company or peer-to-peer lender can help you get down to one payment a month.

With that in mind, several factors can determine whether debt consolidation is right for you. These include:

  • Your creditworthiness: You will need good credit or better to qualify for a personal loan with the best rates and terms. If your credit is poor, you may not qualify for a new loan with better rates than you currently have.
  • Your desire to repay debt: Debt management takes time and effort, and full debt repayment can take years. If you’re not serious about debt consolidation, a debt consolidation loan may not make you better off.
  • Your ability to avoid further debt: To be successful in your debt consolidation, you must stop taking on more debt. While you are repaying your debt consolidation loan, you should only use cash or debit. At the very least, you should use credit sparingly.

So, should you consolidate your debts? If you pay off credit cards with high APRs, debt consolidation may be just what you need. Remember that you will only pay off your debts if you make a plan and, most importantly, stick to it. If you take out a personal loan and continue to rack up debt on your credit cards, you could end up worse off in the long run.

Find personal loan offers from multiple lenders now on LendingTree.

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