Debt consolidation loans can be a useful tool for individuals struggling with multiple debts and high-interest rates. By consolidating multiple debts into one loan, borrowers can simplify their finances and potentially save money on interest. However, borrowers with bad credit may have difficulty finding a debt consolidation loan with favourable terms. In this article, we will review the top 10 best debt consolidation loans for bad credit taking into account factors such as interest rates, loan terms, fees and borrower eligibility requirements.
OneMain Financial is a lender that specializes in providing personal loans including debt consolidation loans. Borrowers can apply loan online or at company’s branch locations. OneMain Financial offers loan starting from $1,500 to $20,000 with interest rates from 18.00% to 35.99%. The interest rates are high, OneMain Financial may be a good option for borrowers with bad credit as the company considers factors beyond credit score when evaluating loan applications. However, borrowers should be aware of the high fees associated with OneMain Financial loans, including origination fees and late payment fees.
Avant is an online lender that offers personal loans, including debt consolidation loans. Borrowers can apply loan online and receive funds as soon as the next business day. Avant offers loans starting from $2,000 to $35,000 with interest rates between 9.95% to 35.99%.The interest rates are high for borrowers with bad credit, Avant does not charge any prepayment penalties, making it a flexible option for borrowers who want to pay off their loan early.
The peer-to-peer lending network LendingClub enables users to apply for both personal loans and loans for debt consolidation. Borrowers can apply for a loan online and receive funds within a few days if approved. LendingClub loan offers starting from $1,000 to $40,000 with interest rates ranging from 8.05% to 35.89%. While LendingClub charges fee up to 6% of the loan amount, the company does not charge any prepayment penalties, making it a flexible option for borrowers who want to pay off their loan early.
Upgrade is an online lender that offers personal loans, including debt consolidation loans. Borrowers can apply for a loan online and receive funds within a few days if approved. Upgrade loans offers starting from $1,000 to $50,000 and interest rates are from 6.94% to 35.97%. Upgrade charges fee up to 8% of the loan amount, the company does not charge any prepayment penalties, making it a flexible option for borrowers who want to pay off their loan early.
NetCredit is an online lender that specializes in providing personal loans to borrowers with bad credit. Borrowers can apply for a loan online and receive funds as soon as the next business day if approved. NetCredit loans offers starting from $1,000 to $10,000 with interest rates ranging from 34.00% to 155.00%. The interest rates are high and NetCredit may be a good option for borrowers with bad credit who are unable to obtain a loan from traditional lenders.
Prosper is a peer-to-peer lending platform that allows borrowers to apply for personal loans, including debt consolidation loans. Borrowers can apply for a loan online and receive funds within a few days if approved. Prosper loans offers starting from $2,000 to $40,000 and interest rates ranging from 7.95% to 35.99%. While Prosper charges fee up to 5% of the loan amount, the company does not charge any prepayment penalties, making it a flexible option for borrowers who want to pay off their loan early. Prosper also offers a feature called “Prosper Rating” which assigns a grade to each loan based on the borrower’s creditworthiness and making it easier for investors to evaluate loan risk.
Upstart is an online lender that uses artificial intelligence to evaluate loan applications. Borrowers can apply for a loan online and receive funds within a few days if approved. Upstart loans offers starting from $1,000 to $50,000 and interest rates ranging from 8.13% to 35.99%. While Upstart charges fee up to 8% of the loan amount, the company does not charge any prepayment penalties, making it a flexible option for borrowers who want to pay off their loan early. Upstart also considers factors beyond credit score, such as education and job history, when evaluating loan applications.
Best Egg is an online lender that specializes in providing personal loans, including debt consolidation loans. Borrowers can apply for a loan online and receive funds within a few days if approved. Best Egg loan offers is starting from $2,000 to $35,000 and interest rates ranging from 5.99% to 29.99%. While Best Egg charges fee up to 5.99% of the loan amount, the company does not charge any prepayment penalties, making it a flexible option for borrowers who want to pay off their loan early.
Peerform is a peer-to-peer lending platform that allows borrowers to apply for personal loans, including debt consolidation loans. Borrowers can apply for a loan online and receive funds within a few days if approved. Peerform loan offers is starting from $4,000 to $25,000 and interest rates ranging from 5.99% to 29.99%. Peerform charges fee up to 5% of the loan amount, the company does not charge any prepayment penalties, making it a flexible option for borrowers who want to pay off their loan early.
BadCreditLoans.com is a loan aggregator that connects borrowers with lenders that specialize in providing loans to individuals with bad credit. Borrowers can apply for a loan online and receive funds within a few days if approved. Loan amounts offered by BadCreditLoans.com range from $500 to $10,000 with interest rates between 5.99% and 35.99%.Poor credit borrowers pay hefty interest rates. Borrowers with poor credit who are unable to get a loan from a traditional lender may find BadCreditLoans.com to be a decent choice.
Conclusion
There are several options available for individuals with bad credit who are looking to consolidate their debts. While the interest rates may be higher than for borrowers with good credit, debt consolidation loans can still be a useful tool for simplifying finances and potentially saving money on interest. It’s important for the borrowers to carefully analyse their options and choose a lender that offers favourable terms and fits their individual needs. By doing so, borrowers can take a step towards achieving financial stability and reducing their debt burden.
