How A Personal Loan Can Help You Say Goodbye To Credit Card Debt
Some of the links on this page are from affiliate partners which earn us a commission. We only bring you things we think you’ll like.
The average American household owes a staggering $15,654 in credit card debt, according to a recent study. Digging yourself out of a hole of debt isn’t easy, but a personal loan can be a smart way to consolidate your payments at one fixed rate.
Before embarking on any research, you should always remember these tips: shop around for the best rate, never accept an interest rate higher than what you’re already paying your credit card companies, and never agree to a pre-payment penalty. Also, remember that some companies will charge a loan origination fee, so factor that into your comparison calculations.
Visit any of the companies below, and be told your rate in minutes. If you’re happy with the terms of the loan, press “accept,” receive your money in days, and be on your way to paying off those credit card bills for good.
Founded by former Google employees, Upstart offers loans ranging from $1,000 to $50,000. There’s no pre-payment penalty, which means you won’t be punished for aggressively paying back the loan. The site reports that its borrowers save an average of 25% compared to their credit card rates — a substantial amount, regardless of how much debt you have.
As with any lending scenario, a better credit score will get you a better rate. However, Upstart knows that you’re more than a number in a database. Because of this, it takes other factors into account when analyzing your application, such as your education and job history.
Borrowers will need a minimum FICO score of 620, although applicants who have an insufficient credit history and therefore do not have a FICO score can also be accepted. Loan duration can be three or five years, but no pre-payment penalty means you can pay it back anytime before then.
Upstart’s interest rates range from 9.48% to 29.99%, and origination fees fall anywhere between 0% and 8% of the loan amount.
Loans not available in: WV
This company’s mission is in its name. Payoff offers personal loans between $5,000 and $35,000. It prides itself in transparency, and clearly notes what is needed to be considered for a personal loan. Among those factors are a credit score of 640 or above, a debt-to-income ratio of 50% or less, and three years of good credit.
It offers fixed rates between 5.94% (8% APR) and 22.60% (25% APR). Payment plans range from two years to five years, but there’s no pre-payment penalty. Origination fees range from 2% to 5%, depending on the length of your loan (the shorter the duration, the lower the fee).
Payoff refers to itself as a “financial wellness company,” and employs a team of “member advocates” who will help you achieve your debt-free financial goals.
Loans not available in: AL, AZ, CT, DE, IA, KS, LA, MA, MD, MI, MN, MS, NC, NE, NH, NV, OH, OK, RI, SD, TN, VA, VT, WA, WI, or WV
If you’re in search of a loan in the amount of $25,000 or less, you may want to check out LendingPoint. It offers a decision in minutes, allowing you to receive the cash in your bank account as early as the next business day. Loan durations range from 24 to 48 months, and the smallest amount of money you can borrow is $2,000.
This lender is a great option for those with lower credit scores, as it only requires a score of 600. Those with smaller salaries can also take advantage, so long as they make $20,000 a year. You can still apply if you’ve filed for bankruptcy, if that filing was done at least 12 months ago.
The APR varies based on your individual profile, but the typical range is between 15.49% and 34.99%. There’s no pre-payment penalty.
Loans not available in: CO, CT, ID, IA, LA, ME, MD, MA, NV, NH, NY, ND, RI, SC, VT, WV, WI, or WY
Netcredit offers loans ranging from $1,000 to $10,000. The process is made simple, with borrowers logging onto the website and using the ‘My RightFit’ tool to determine the best plan for them. The website also offers a ‘ClearCost for Me’ tool, designed to let you know your exact terms so you’re not left with any surprises.
This lender also promises to consider more than just your credit score, instead opting to look at your “broader financial picture.”
Loan durations and APRs vary by state. You can click here to see the terms offered where you live. You’ll never be charged an origination fee or pre-payment penalty, no matter where you live.
Loans not available in: AK, CO, CT, HI, IA, ME, MD, MA, MN, NV, NH, NJ, NY, NC, OK, PA, RI, TN, VT, WV, or WY
These companies offer a variety of personal loans based on the diverse requirements of their customers. Be sure to research all your options before committing to a personal loan, as some companies will be better suited to your needs than others.
This website works with a network of lenders offering three types of personal loans – peer-to-peer loans, personal installment loans, and bank personal loans. Simply fill out an online loan request which is designed to connect you to lenders who can meet your needs. Once you accept an offer, you can receive your funds in as little as one business day.
According to the PersonalLoans.com website, peer-to-peer loans typically require borrowers to have a minimum credit score of 600 and a monthly income of $2,000. For personal installment loans, borrowers should have a minimum credit score of 580 and a monthly income of $2,000. A higher monthly income of $3,000 is typically needed for a bank personal loan, along with a minimum credit score of 580.
The terms vary from lender to lender, with loan durations ranging from 90 days to 72 months. APRs typically span from 5.99% to 35.99%, and loan amounts range from $1,000 to $35,000.
The specific lenders available to you will also vary, depending on your state of residence.