Not sure what to choose? Look at what we got for you Best Debt Consolidation Credit Card.
Best Debt Consolidation Credit Card
Credit cards have made our shopping, thus life, easy. As every coin has two sides this has led to excessive, mindless shopping leading to accumulated debts. Debt consolidation is a method to escape this dark cloud of debt.
When you take a fresh loan to pay off the other liabilities like consumer debts (generally unsecured ones) it is known as Debt consolidation. Taking a larger loan with favorable payoff terms will aid you to pay off multiple debts faster, making debt consolidation a very popular method. Debt consolidation is useful when the loan is not tied to an asset, like education loans, personal loans, or the quantity owed on credit cards. By using this you can save money on interest and debt consolidation is easier than paying multiple small loans.
Some of the most successful ways to pay off credit debts are consolidated with a personal plan, which is to borrow money from a lender to pay off your credit card debt. Refinance with a balance transfer credit card that is moving your credit card balance into another. Or you can tap home equity. Or you can always start a debt management plan.
Now let’s look into some of the possibilities available for debt consolidation for your credit cards.
It is an online broker especially useful for people who want to abolish or decrease credit card debts with high-interest rates. The payOff has a grid of partners who offer personal loans with fixed-rates for the purpose of credit card debt consolidation. They offer reimbursement terms of two to five years though, the lowest loan amount may change based on your current living status. Usually, they offer loans in amounts of $4,500 to $36,000. They have a very friendly interaction with their clients, helping them with one-on-one support, regular calls, and monthly check-ins as they work through their credit card debts.
We now will walk through some important points, which we have to consider before choosing PayOff for your debt consolidation.
The payOff doesn’t provide direct payment for debt consolidation. If you think you may be enticed to use that money for some other purpose, you may want to consider other lenders on the market, who offer to send the money directly to your creditors.
PayOff offers a prequalification application. By filling this application you will be able to see the estimated loan terms, interest rate, the total amount, etc. that you might qualify for.
PyOff does require an origination fee. That is if you are approved for a loan say, for $50,000, with an origination fee of 5% you will receive $47,500, not the full amount. But they do not take any fees like lateness fee, annual fee, or return check fee.
2. Marcus Goldman Sachs
Marcus allows you to borrow amounts up to $40,000 without any kind of fees. They don’t require any origination fee. Not even any lateness fee. One of the best features of Marcus is their low annual percentage rates (6.99%-19.99%). Once you are qualified, you will get the fund in a very short time period; say in less than 4 working days. And their application procedure is very easy. All these together make Marcus by Goldman Sachs single best debt consolidations out in the market.
But they do need relatively good credit to make you certify for the loans. They offer long term, that is up to six years.
They are best familiar as the credit card provider. But they also issue amazing credit card debt consolidation loans. They have complete online operations. With this, you can take advantage of their free educational tools. They also have a personal loan calculator that will help you calculate the loan details. Along with the debt consolidation calculator, these features will help you to a great extent.
Many of their loans don’t have any origination fees. This is remarkable as you can save hundreds and from time-to-time much greater saves. They have very personalizable payment terms. Many of their competitor lenders offer a maximum of 5 years but with Discover, you can get loans with reimbursement terms up to 84 months. They don’t have a late fee.
A few drawbacks Discover has are they are customized to borrowers with excellent credit that is you should hold a credit score of above 700 to qualify for a decent loan plan.
And there are no co-signers. Some other lenders allow adding a co-signer in case your credit score is shallow, but not Discover.
Their usual loan amount is $2,600 to $36,000 with an APR of 6.98% to 24.98%. Once qualified, you will receive the fund within one business day. Pretty fast, right?
One very unique feature Discover provides is a 30-day money-back policy. If you were to find another lender with more agreeable terms within the window of 30 days, you can give back Discover’s loan. They will not charge you with any fines or interest charges.
LendingClub is a San Francisco based company that offers personal loans for debt consolidation. It is a peer-to-peer lender offering loans to be used for credit card debt consolidation or any other such requirements.
They usually offer loans totaling from $1,500 to $41,000. You will have to pay an origination fee though, they don’t charge any application fee or prepayment fee. The origination fee may range from 1% – 7% depending upon your credit score. This origination fee will deduce from your total loan amount. They will also charge you with a 5% late fee. If you are 15 days late on the payment, you will be required to pay 5% of the payment or $15, whichever is higher.
LendingClub allows co-borrowers. You can apply along with another person. This may enable you to get lower rates. They also provide direct payment for debt consolidation. A part of your loan or all of it, as directed by your choice, will be directly sent for debt consolidation.
One major drawback of LendingClub is that they only offer two loan terms for repayment. You can choose between 36 months or 60 months, but that is it. This is very restricting. Many other personal loan brokers out there offer more flexible reimbursement terms.
Also, LendingClub may not be suited for you if you require a quick fund. They may take up to 5 working days to issue a loan.
5. Best Eggs
If you have a fairly high credit score Best Eggs may be your right choice. But they do need a six-figure salary and good credit history. Their personal loans are ideal for credit card debt consolidation. They offer quick loans for up to $36,000 with rates of 5.99% to 29.99%. Usually, the reimbursement term is between 3 to 5 years but they are flexible. Once qualified, you will get the fund almost instantly. As they operate on an online platform, applying for loans is a very easy job. Also, they offer very low-interest rates. They also charge lesser fees in comparison to other competing lenders.
1. Can I save money with a debt consolidation credit card?
Yes, you can definitely save money by using debt consolidation. Consolidating all your debt into a single payment will be less than the total of monthly minimum payments. This will also lower interest rates. With debt consolidation, you can make better progress in paying off your debts while hanging on to more of your income.
2. How to find the best company for credit card debt consolidation loans?
Well, there are many options out in the market with a wide variety of features. In this article, we have discussed a few of the best credit card consolidation loan lenders like PayOff, Discover, Marcus, LendingClub, and BestEggs. Go through all the features carefully before deciding which company you want to work with.
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