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Combining all of your debts into a single loan can be highly beneficial because it will reduce the number of payments.
Moreover, the various debts you have currently have their interest rates, and you have to pay them separately and carefully track them since one late payment will result in penalties.
Combining the payments into one loan is called debt consolidation, a prospect that has helped many people improve their repayment status and even increase their creditworthiness.
As payment history builds 35% of the FICO score, taking debt consolidation loans can solve the current financial difficulties but can also help the borrower slowly build up clean credit reports.
That being said, we offer you full reviews on the best online websites where you can search for credible lenders and apply for debt consolidation. In our reviews, you’ll find everything you need about the application process, the companies’ working methods, and the simplicity of their loan forms. Therefore, let’s discover more!
Additionally, the companies have straightforward loan forms that can be completed in about ten minutes. The platforms usually need a few minutes to find potential lenders for the applicants, and the entire application process is highly convenient and fast. Now, let’s find out more about the best providers and their features!
Best Debt Consolidation Loan Companies Of 2022
#1. MoneyMutual – Overall best debt consolidation loan to consolidate debt with bad credit
This lending platform has operated ever since 2010. After analyzing the Americans’ economy and financial situation, MoneyMutual’s founders decided to create a virtual bridge that would lead borrowers to potential lending companies and unions.
Over the years and constant work, the company has expanded its base to include over 100 credible lenders that offer various loan types, such as debt consolidation loans, personal loans, bad credit loans, payday loans, auto loans, etc.
The lenders from the network are willing to work even with borrowers with bad credit and offer them loans from $100 up to $5,000.
Multiple elements can be listed in this subsection, as MoneyMutual is a user-friendly lending platform, ready to help whenever possible. However, we’ll start with the website’s interface and MoneyMutual’s loan form.
Since the company appreciates its clients’ time the most, it has come up with a clever idea of how to make the application process easier. So, the founders concluded that the application procedure should include an easy-to-complete loan form that can be filled out in a few minutes.
MoneyMutual’s application form contains several questions about the borrower and their needs. Through this form, the borrower has to provide personal, financial, and contact information so that the lenders can determine whether they can work with the applicant.
According to the customer reviews, the loan form is clear and straightforward and can be completed in about ten minutes.
As we said earlier, MoneyMutual provides access to over 100 lenders. Therefore, almost all unsecured loan types can be found, including but not limited to personal loans, bad credit loans, debt consolidation, payday loans, emergency loans, and many others.
Furthermore, lender diversity allows bad credit borrowers to request a loan. Numerous lenders found through this portal are willing to work with clients even if they don’t have the perfect credit score.
MoneyMutual’s services are available only to:
MoneyMutual has operated like a middleman ever since the beginning. The services have not changed, meaning the company is not a creditor, broker, or loan provider. Therefore, MoneyMutual is not involved in the loan decisions, and meeting the above criteria doesn’t mean you’ll get the money.
It is also good to know that MoneyMutual’s services are free for borrowers. Therefore, if you don’t like the loan offer, you can reapply as often as necessary until you find what you need.
=> Click here to visit the official website of MoneyMutual
#2. BadCreditLoans – Online loans for consolidating debt while improving financial literacy
The second lending platform we will review is one of the best websites for finding bad credit loan lenders in the US. BadCreditLoans has been on the market for more than 15 years. The founders supported the idea that every person should have a choice to look for lenders online and not waste time driving to the companies in person.
This company is one of the best matchmakers in the digital era. It has expanded its lender network to include countless state-licensed and tribal lenders.
Even if no lender wants to work with the borrower, BadCredtiLoans will try to find a solution and connect the applicant with one of the other lending partners in its base that offers various credit-related services, such as lines of credit, credit monitoring, debt relief, etc.
BadCreditLoans has a fantastic website with the necessary information in the right places. No annoying ads will interrupt your application process. Moreover, you’ll be able to read new information and find useful recommendations on protecting yourself from scams and improving your credit.
When it comes to the loan form and the requirements, BadCreditLoans is an excellent, customer-centric lending platform that includes a straightforward loan application.
The loan form contains several questions. You’ll have to provide evidence of your citizenship, monthly income, income source, and credit score. You’ll also have to answer how much money you need and why you need it.
This company has an impressive number of satisfied clients. While reading their reviews, we found that most of them completed the loan in approximately ten minutes.
BadCreditLoans is regularly visited by borrowers interested in bad credit loans. The company collaborates with various state-licensed and tribal lenders willing to send loan offers even to those with abysmal credit scores.
Through BadCreditLoans, users can apply for various loan types, including auto loans, student loans, debt consolidation, mortgage loans, personal loans, credit cards, business loans, etc.
The lenders give loans from $500 up to $10,000. If you apply for a personal loan, you may get an offer with APRs from 5.99% to 35.99% and a loan repayment term from 90 days to 72 months.
BadCreditLoans serves only borrowers who:
BadCreditLoans is not a loan provider. Therefore, the company can’t know whether you’ll receive an offer. However, you can use the websites as many times as you need to find a suitable offer.
=> Click here to visit the official website of BadCreditLoan
#3. CashUSA – Best home equity loan to improve your credit score with fair credit
We are also going to introduce you to CashUSA, one of the best and most trusted resources for personal loans in the country. This company was established more than 20 years ago to provide safe, hassle-free access to state and tribal lenders that offer personal loans.
The company has a reputation that is no less than a stellar one, and it is widely known, especially among those who need fast cash to consolidate debt, remodel their homes, buy or repair their cars, take vacations, or cover emergency expenses.
Its lender base is one of the most extended in the industry, with lenders that are ready to collaborate 24/7, even with those with less-then-bright credit, and give them personal loans of up to $10,000.
If we follow the well-known rule, “less is more,” CashUSA is one of the most user-friendly lending platforms you’ll find. We guess that more than 20 years in business has prepared the company and given it the knowledge to determine what is important to the borrower.
The simplicity of the website allows visitors to find everything they need to begin their loan application. Speaking of that, you will probably need around ten minutes to complete it, a statement supported by hundreds of people who have already used CashUSA to get a loan.
In addition, CashUSA has developed a comprehensive education center. You can read articles about loan types, fees, scam alerts, and many other loan-related topics.
The lending companies and unions found through CashUSA work with personal loans, as this loan type is one of the most, if not the most, versatile types. Moreover, personal loans are considered the best choice for consolidating debts.
The lenders offer loans up to $10,000, and most of them have offers with APRs from 5.99% to 35.99%. Most lenders give loans with terms from 90 days to 72 months. They are willing to work with bad credit borrowers. However, the score may affect the offer and be the factor that determines whether the applicant will get approval.
CashUSA serves only applicants who:
CashUSA is not a loan provider and can’t guarantee approval. However, if you don’t like the offer, you can always go back to the platform and reapply to get another loan offer.
⇒ Visit the Official Website of CashUSA
#4. PersonalLoans – Best personal loan interest rate on a debt consolidation loan
Lastly, if you are interested in getting a loan for debt consolidation, we recommend you visit PersonalLoans. This is another company with extended experience and an excellent reputation among customers as well as the other companies in the online lending industry.
PersonalLoans has operated for over 20 years, acting as a safe virtual bridge between potential borrowers and potential lenders. The company collaborates with countless credible state-licensed lenders, Tribal lenders, lending unions, and banks. It has built an enormous base with companies ready to send a loan offer anytime.
With a highly-responsive website that can be optimized to fit any device with internet access, PersonalLoans has one of the most user-friendly interfaces. The pages are easy to browse, load quickly, and don’t contain unnecessary information.
Furthermore, this company has developed a hassle-free loan form. According to the customer reviews, most applicants completed and submitted the request in about ten minutes.
Of course, those who have already applied before will not need much time. They can sign in to their account and only make the necessary adjustments before submitting the loan request.
Since it collaborates with countless lenders, lending unions, and banks, PersonalLoans allows its clients to apply for various loan types. You can request money for emergencies, debt consolidation, credit card refinances, vacations, student-related situations, education, major purchases, special occasions, rent, taxes, mortgage, business, moving, debt relief, auto purchase, medical bills, etc.
Lenders offer loans from $1,000 up to $35,000. Most lenders offer personal loans with APRs from 5.99% to 35.99% and loan terms from 90 days and 72 months.
PersonalLoans serves only clients who:
PersonalLoans is free to use. You can apply as many times as you need until you find the lender that will send you a loan offer that suits your needs. If you agree with a lender and sign a contract, you may receive the money as soon as the next business day.
Additionally, it is important to remember that PersonalLoans is not a loan provider, broker, or creditor. The company isn’t involved in the loan decisions, can’t guarantee approvals, and can’t provide information on whether you’ll receive an offer or not.
=> Click here to visit the official website of Personal Loans
How Did We Choose These Loan Companies For Debt Consolidation Loans for Bad Credit?
Before we begin, we feel obligated to our readers to discuss several crucial criteria during our research. Before composing this article, we spent time analyzing the lending industry with special attention to the online platforms that provide these services.
It didn’t take long to discover that many companies don’t follow the simplest rules. Therefore, they don’t meet the lowest industry standards. However, they still operate, and many clients are disappointed by their daily services.
That was the point when our thorough research began. We made a list of the most prominent lending companies and searched for additional information. We followed lenders and lending unions to see whether they work with online platforms or not.
The initial list was, of course, much bigger than the one we included here. We spent hours eliminating the unworthy sites, those with suspicious backgrounds and the ones with mediocre quality.
Our final choice was based on numerous criteria collected through expert consultation and customer reviews. The companies on our list met all required standards, and you can find some of those requirements in the following subsections.
We know that some good companies try their best to work properly and provide quality services. However, when it comes to finances, primarily debts, clients can’t take risks and go to a young company that has yet to learn how to handle the business.
We looked for serious, already-proven lending platforms established by reputable companies. We selected online loan marketplaces that have numerous years of experience. The youngest company on our list has over ten years of experience, which is very impressive.
If we order a shirt online and it doesn’t arrive, or it does, but it is a different size, it won’t be such a problem. However, when it comes to getting a loan and repaying debts, things are serious, and small mistakes can lead to big problems.
Again, the seriousness of the finances, debts, repayments, and loans differs from other services we use. The nature of the problem requires special treatment, and we must be careful when giving information to online lenders.
Therefore, the level of transparency one lending platform has is the ultimate indicator of professionalism, efficiency, and quality.
The companies we selected for this article are highly transparent, responsible, and reliable. They collaborate with credible lenders and lending unions that respect and follow lending regulations set by the state where they are located.
The accessibility of the services was very significant for us during our research. While there are many lending platforms across the country, most are accessible only to the borrowers of several states.
Of course, it is rare to find a lending platform that operates in all states, mostly because the regulations and laws in the states vary. However, some businesses manage to comply with the criteria of most of the states.
The platforms we reviewed have a wide range of accessibility. Some offer their services in all states, while others are not available only for a few places.
All borrowers who want to use online lending platforms make this choice because it is more convenient and faster. They don’t want to spend money and time driving to the lenders in person and don’t have time to wait in lines for their turn.
Therefore, a borrower looking for a lending platform will want to find a website that offers fast services and procedures. Unfortunately, not all loan marketplaces have quick responses. Moreover, many don’t work around the clock or on non-business days.
Our lending platforms are run by efficient companies that work 24/7. Their customer teams are always available to answer customer questions, and their loan forms are accessible at night.
While borrowers will still have to wait until the next business day to get the money, they will have the opportunity to search for lenders during weekends or holidays. They can browse offers and reapply multiple times for free until they find the most suitable loan offer.
Buying Guide: Factors to Consider When Taking a Debt Consolidation Loans For Bad Credit
While some people are new to debt consolidation loans, they are already familiar with regular loans, credit cards, interest rates, and lender’s fees. We assume that’s the reason you are reading our article right now.
We talked about the best lending websites where you can find these loan types. However, we believe that you should consider several factors when looking for a suitable platform and applying for these loans.
Paying attention to these factors may help you make the right choice. They are a part of the rule collection we followed to create this article and are based on expert opinions and customer requirements and experiences.
First, we’ll talk about the benefits of taking a debt consolidation loan and the most important elements to which you should pay attention. Then, we’ll share a simple strategy built on recommendations that may help you speed up the search process, find a reliable platform, and apply for a loan.
Benefits of using a debt consolidation loan
For starters, the possibility of combining all debts into one and making repayments once per month is very convenient.
Even though this may not seem like a problem, juggling several installments from different loans and repaying credit cards with different due dates can be challenging. Unless you pay a professional planner to keep track of your repayment dates, you may forget one credit card or one installment, which usually leads to expensive penalties.
Therefore, debt consolidation allows you to melt those loans in one and save you time. You’ll only have to make sure to take care of one loan and repay it on time.
Each loan comes with an interest rate. Consolidating multiple debts into a single loan may benefit you by lowering the interest rate you pay on all the loans combined. Of course, these loans have interest rates that can be high.
However, a single loan with an interest rate of around 10% or less may save you much money, unlike repaying multiple loans and their interest rates individually.
Consolidating debts indicates that you have a plan. People who want to make improvements often choose these loan types. For instance, they have many loans, credit card debt, and a bad credit score.
Of course, repaying everything and improving the credit score takes time and patience, especially because sometimes negative items can still be present on your report even after you repay debt.
However, with payments before the due date and regular checking on the report at one of the credit bureaus, you can show responsible behavior and eventually increase the digits.
Another benefit of taking a debt consolidation loan is that you can take secured or unsecured loans. This means that if you have something valuable, you can offer it as collateral to your lender. Thus, you’ll take a secured loan at probably lower rates.
However, keep in mind that loans with collateral can be risky. If you aren’t responsible and don’t repay the installments on time, the lender will have to collect the collateral.
Typical usage of these loans
Loans that are taken for debt consolidation are quite versatile. They can be used for various reasons and cover different expenses, depending on the lender as well as the borrower’s financial situation.
Usually, clients take these loan types to cover credit card debts. Clients can get a loan from a lender with a lower interest rate and refinance their credit cards. The most common loan type used for this strategy is the personal loan, which often has much lower interest rates than those of the credit card.
Furthermore, many people want to consolidate debts accumulated from multiple student loans. With a single monthly payment, clients repay their student debt after taking loans that often have much lower interest rates than regular student loans.
Additionally, borrowers use loans for debt consolidation for many reasons. Whether they have huge medical debts or have accumulated debt from multiple credit cards over the years, the loan types are an excellent choice for more straightforward and convenient repayments that often come at lower rates.
How to find the best lending website for debt consolidation?
If you don’t want to waste money and time traveling from lender to lender, you can benefit from using an online lending platform that works as a bridge between you and a potential lender. However, as we said earlier, not all lending platforms are made equal.
To help you find the platform that suits your needs, we assembled several recommendations you can consider before choosing a website and requesting a loan.
We assume you are looking for an online lending platform because you are tired of waiting in links at your local bank or lender’s office, carrying all that documentation, and waiting for a response to your application for weeks.
Logically, choosing an online lending platform that works slowly like a turtle, is a waste of time and, thus, money. Therefore we recommend researching the application as soon as possible. Thus, when you have to apply, you’ll know what to expect.
The best and most reliable lending platforms have straightforward loan applications. They don’t ask unnecessary questions and request only the needed information so that the lenders can determine whether they will work with you.
Furthermore, the best loan marketplaces have huge lender networks. They work 24/7 and may connect you with a lender in a few minutes after you apply.
We highly recommend you read as many customer reviews as possible regarding the lending platform you want to use. Browse through unbiased review platforms, blogs, forums, and social media profiles to see what people say about the company.
Usually, people describe their experiences, good or bad, to help other potential clients who want to use the same service. You can find information about the platform’s support team, its loan form, its lender network, and the credibility and transparency of the company.
Moreover, pay attention to the comments about efficiency. If most people say they were connected with a lender in a few minutes, the company is effective and fast.
Customer reviews can be valuable in determining the quality of the service. However, you must remember that every client is different. If a review says that the client isn’t satisfied, it doesn’t necessarily mean that you won’t be too. They may not get what they expected because of other factors, such as not meeting the lender’s criteria.
Even if the lending platform is efficient and has many votes on reviewing platforms, it may still not work for you. It may have the best support team, the easiest-to-do loan form, and the best service you’ll ever find, and still not be able to help you because of your state regulations.
For instance, according to the research, MoneyMutual is the best lending platform. However, the services are not available for borrowers in New York because of the state’s regulations regarding interest rates.
This is why researching your state’s laws is of the utmost significance. The most transparent and trustworthy loan companies include their accessibility on their websites. Thus, the clients know whether they should apply for a loan or not.
Furthermore, you should also consider the accessibility of the lender. This is why the lending platforms request your address to connect you to a lender that offers loans in your area.
However, sometimes mistakes happen, and you may be connected to a lender that doesn’t operate in your state. In this case, you must talk to the lender or find the information on its website once the lending platform redirects you.
Finally, borrowers who apply for a debt consolidation loan usually have not-so-bright credit scores. Either they want to cover one debt with another at lower rates or combine multiple loans into one to make repayment more straightforward.
Be as it may, not all lending platforms serve people with poor or bad credit scores. Therefore, you must ensure that you meet the application criteria before applying.
To increase your chances, we recommend you use an online lending platform with reasonable demands, like the companies we reviewed above. If the application criteria are lower, you will have more chances to find a suitable lender and get the loan faster.
Debt Consolidation Loans FAQs
Q1. Can a personal loan consolidate debt?
A personal loan and a debt consolidation loan are not the same types. The former is suitable for various purposes, including fast cash, emergencies, credit cards, car repair, weddings, holidays, etc. A debt consolidation loan is a type of loan specifically designed to cover other debts and combine them into one loan.
Even though these loan types are different, personal loans are quite versatile. Therefore, they can be suitable loans to consolidate debts into one payment. They can be used to consolidate student loans, medical bills, multiple small unsecured loans, credit card debt, etc.
Q2. Can debt consolidation hurt my credit?
Since the loan you’ll take to consolidate debts will be bigger than the other smaller loans you want to combine into one, this strategy may hurt your credit initially. Logically, you’ll open another line of credit for a bigger loan, which will be considered in your report. Moreover, most lenders will conduct a hard pull to approve a loan.
However, the temporary drawback can change in a while. If you show responsible behavior and your lender regularly reports to the bureaus that you are making payments on time, your score can improve.
Additionally, if you cover multiple small loans and credit card debts and repay them, multiple negative items will be removed from your credit score. Debt consolidation can be beneficial in the long run if you are responsible and patient.
Q3. What is the minimum score for taking a debt consolidation loan?
Although the credit score affects the loan offer borrowers receive, it won’t stop them from taking a debt consolidation loan. Almost all clients who apply for debt consolidation have bad credit scores, and they are willing to work on that and improve them.
Therefore, even with bad credit, you can still apply for debt consolidation, combine your debts into one loan, repay on time, and eventually improve your financial file.
Q4. What are the risks of debt consolidation?
Like with any other loan type, there are potential risks in taking a debt consolidation loan. For starters, if you think that you can’t repay the installments on time, it is better not to take the loan because, in that case, you’ll just open another line of credit and lower your credit digits.
Another risk is taking a loan at higher rates. Even though it may be beneficial for your credit score in the future, the installments can be high. That’s why you have to be careful and make a plan before taking the money.
Additionally, if you take a secured loan with collateral and don’t make payments on time, you may lose the collateral you initially provided.
Q5. Can debt consolidation help with multiple payday loans?
Given the fact that payday loans usually have the highest interest rates, any installment loan would be better. Payday loans are expensive even when they are repaid on time. However, the worst scenario is when the borrower doesn’t repay the payday loan on time.
In that case, the borrower takes another loan or adjusts the agreement with the lender to prolong the due date. The later the borrower repays, the more money they spend, which is how many clients get stuck in a never-ending cycle of debts.
Therefore, debt consolidation can be very helpful. With the money, the client will repay the payday loans and thus, free themselves from the interest rates. They will only have to pay interest rates for one loan, which is much more affordable.
Conclusion: Is debt consolidation loan right for you?
Well, we have come to the very end of this article, and we hope it has provided you with helpful information.
Debt consolidation loans can be beneficial, especially for borrowers with bad credit scores and many credit cards or other debts. These loans can combine all debts into one loan, which may cost less in interest rates.
We have offered you our thorough reviews on the best online lending platforms. These platforms collaborate with credible lenders that may provide you with a debt consolidation loan, help you manage your finances, and eventually improve your credit score.