Debt Consolidation Loans
Debt consolidation is a form of debt refinancing that includes taking out one loan to pay off many others including credit card debt.Generslly you get a lower overall interest rate, possible better terms,and the convenience of servicing only one loan or debt.Dealing with debt does not have to be complicated and our debt consolidation loan program can help you pay off your debt and reduce the stress of multiple bills.
How do Debt Consolidation Loans work?
In the debt consolidation process, multiple debts are combined into one through a personal loan.For example, if you have a credit debt of $5,000 and owe $4,000 in medical bills, you can pay off those balances with one $10,000 loan. This loan is called a debt consolidation loanand with the loan, you can pay off the debt with one monthly payment amount and one monthly due date.
A debt consolidation loan can make your finances easier to manage, saving you from stress and late fees with monthly payments.A bonus is the new monthly payment could be lower than your current monthly payments combined, freeing up a little extra money for other needs.
What Kind of Debts Can you Consolidate?
Common forms of debt you can consolidate include credit cards, household bills, and installment loans. The debt consolidation loan from LendingCapitalcan help you streamline your finances and make budgeting easier with predictable monthly payments.
What Should You Keep in Mind when Considering a Debt Consolidation Loan?
If you are considering applying for a loan to pay off or reduce existing loans/debts, it's important to consider the interest rate and monthly repayments.You should also consider the term of the new loan compared to the remaining term of your existing loans/debts.
Spreading your payments over a longer-term could mean you end up paying more overall than under your existing arrangements, even if the interest rate on this new loan is less than the rates you are currently paying.
Is it a Good Option to Get a Debt Consolidation Loan?
Debt consolidation loans can be a good way to take control of your borrowing, especially if you owe money to several different lenders. However, they aren’t right for everyone. If you only have a few debts on which you are already paying an attractive APR, it might be worth concentrating on sticking to your existing repayment plans.
What Information Will You Need to Apply for a Debt Consolidation Loan?
Before you apply for a debt consolidation loan with Lending Capital, you will need to provide the following information:
- Your residential address for the last 2 years
- Your (current) bank statements -at least 6 months
- Your current employer's details
- Copy of W2 wages
- Your current income and debt structure
What are the Eligibility Criteria for Debt Consolidation Loan?
- Over 21
- Employed or self-employed
- A credit beuareaureporet from all 3 crecit burausNo Judgments or bankruptcies
Do Debt Consolidation Loans Hurt Your Credit Score?
Debt consolidation can cause a temporary dip in your credit score but can improve your rating over time.This is because being accepted for a loan will require what’s known as a hard search, a type of credit check that will leave a record on your file which can lower your credit score and can be seen by other lenders.
However, over time, debt consolidation loans can help to improve your credit score. That’s because having one monthly repayment can make it easier for you to pay on time, every time.
Receiving a quote for a debt consolidation loan won’t affect your credit score as the record isn’t visible to anybody but you. You will only impact your credit score if you apply for the loan.
Why Should YouConsolidate Your Debt with Lending Capital?
LendingCapital understands that each customer and their debt is different. With a “no one size fits all” approach, their experts work with customers on a one-on-one basis to understand their needs and help them decide if a debt consolidation loan is right for them.
Pros of a Lending Capital’sDebt Consolidation Loan
- Several debts rolled into one loan
- Generally a Fixed interest rate
- Only one monthly payment to remember
- Turn multiple payments into a single payment
- Generally Lower interest rates
- Maintaining a good payment history can Improve Your Credit Score
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