Best Debt Consolidation Loans

Best Debt Consolidation Loans Best Debt Consolidation Loan Programs debt articles

Finding a legitimate debt consolidation loan program can be frustrating, depressing and darn near impossible.

We’ve all seen the advertisements promising loans for people with bad credit or loans with no credit check. In my experience those companies are often high priced, that is if you actually get a loan.

Some of those outfits are actually advanced fee loan scams that ask you to send them an application fee or wire them money in hopes you will get the loan.

The bad credit overnight companies may sound professional and convincing but more often than not, people lose their advanced fees and get scammed, never getting the promised loan.

There was a time when Main Street banks actually did make unsecured debt consolidation loans, but these days they require near perfect credit or other criteria that is just out of reach of many people that could benefit from consolidating their debt.

The good news is that amongst all the unbelievable claims and scams out there, there are two companies people should actually look at when looking for a real debt consolidation loan at market or below market interest rates.

Best Debt Consolidation Loan Programs

The two programs I recommend at both peer-to-peer lending networks. That just means they are comprised of people just like you and me that lend to people just like you and me using a professional company to screen borrowers, organize the funding of the loan, and collect payments.

These networks are often able to help people get unsecured debt consolidation loans, at lower than Main Street bank rates simply because they have much lower overhead and expenses. They pass those savings on to the investor, in the form of higher rates of return, and to the borrower, in the form of lower interest rates.

For several years now I have been referring readers to peer-to-peer lenders and the only negative feedback I’ve heard is that sometimes people don’t get the loan, but those that do are very happy with the process and the funding of their loan. If you don’t get the loan I’m not aware of any expense you would have incurred.

Peer-to-peer lenders are the only solution that I recommend these days for people looking for a real debt consolidation loan.

The two companies I recommend are below.

I suggest you review both and maybe even apply at both to give yourself the best shot at getting an unsecured debt consolidation loan so you can wrap all your debt payments into one monthly payment. If you do pursue the debt consolidation loan option, pay close attention to not running the debt back up. A debt consolidation loan can be an effective tool when used correctly.

  • Lending Club


    Best Debt Consolidation Loans Best Debt Consolidation Loan Programs debt articles     I am more familiar with Lending Club and have even interviewed a borrower for this site in the past. Along with sending people to Lending Club who are looking for a debt consolidation loan, I am also an investor that helps to fund those loans.

    As an investor I’ve been very happy to help people get their debt consolidation loans funded and if you decide to go the Lending Club route then let me know what you loan number is in the comments field below and I’ll even help to fund your loan as well.

    I have found the people over at Lending Club to be kind, helpful, open and transparent about the process. I have no doubts that Lending Club is a legitimate company and place to find a loan.

    If you are interested in looking into a loan from Lending Club, click here.

  • Prosper

    Best Debt Consolidation Loans Best Debt Consolidation Loan Programs debt articles Prosper is another peer-to-peer lending network that is the major competition for Lending Club as far as being a lender in the unsecured debt consolidation loan space. I’d love for anyone that applies with Prosper to post feedback in the comments section below and let me know what they though of the process.

    Prosper claims to be America’s largest peer-to-peer lending marketplace and once loan requests are posted you can watch as dozens of Prosper members invest together to get you the money you need.

    If you have poor credit then Prosper might be the best first place to start. Prosper claims to lend to people with credit scores below 660.

    If you are interested in looking into a loan from Prosper, click here.

Please keep me posted in the comments section below about your experience with either company in securing your unsecured debt consolidation loan.

Best Debt Consolidation Loans Best Debt Consolidation Loan Programs debt articles
@GetOutOfDebtGuy

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  • Jen

    Super excited. Credit score of 631 gets me denied from posting on Prosper and thus holds me back from consolidating my sky high interest rates on my credit cards and being able to save thousands and pay these off so much faster. Makes sense.

  • Txgal

    I am not having luck getting approved either.  I have a credit score of 713, not 1 late payment or delinquency.  I just want to consolidate my $32k in credit card debt and stop making minimum payments on the 3 cards (my interest rates are all under 8%).  Lending Club didn’t even check my credit and just approved me for half of what I requested.  That is not helpful.  Any suggestions would be appreciated.

  • andrea

    Thanks for this great resource.  However, they have hard and fast limits on credit scores so there is no chance of even trying.  Any other way of possibly getting referred.  I am like the others, overwhelmed and stressed and just want to pay off everything to get out from under.  I have had my job for 17 years and make good money but due to circumstances had to get loans and other things that are drowning me and, of course, no bank help.  Thanks so much.  I am also considering CareOne and others but would really like to just consolidate and have one payment that is reasonable.  Looks like there’s not much choice out there for us.

    • http://GetOutOfDebt.org Steve Rhode

      What are your credit scores?

      • andrea

        I applied with both of your suggested loan sites and one said 643 and the other was in the 500′s.  I’m not sure if the first one put an inquiry on my report, thus bringing down the score that much for the next company or if they just checked it differently or different credit bureau, really not sure.  It’s odd that the only amount I need is $5,000 or less which would give me a really good monthly payment compared to what my monthly payments are now.  What a savings I would have and be so manageable.  Right now I feel like I’m drowning and paying out more than I can handle.  Just wish there were something for us.

      • http://GetOutOfDebt.org Steve Rhode

        The inquiry would not have hit you that much. I suspect they are just using different bureaus.

        I don’t know anything about your situation.

        What kind of debt do you have and how much?

        Is the problem the monthly payment or the interest rate?

        Did you receive something from the inquiry that said why you were rejected besides of the score? What is on your credit report that is bringing your score down, do we know for a fact what it is?

      • andrea

        Both responses listed a few things beside the score.  A few dilinquencies, etc.  I’ll get them and let you know.  I do have some medical and some payday loans unfortunately which are the big culprits in the monthly payments (and some bi-weekly).  I’m almost at the last resort for those that are not payday loans which is credit consolidation companies which I really don’t want to do but then leaves me with the payday loans so the monthly problem will still be there.

      • andrea

        This is from Prosper:

        Thank you for attempting to post a loan listing on Prosper. We are
        unable to accept your listing because your Experian Scorex PLUSSM
        credit score was below 640. A score of at least 640 is required for you
        to be eligible to post a listing in the Prosper marketplace.

        Prosper uses a credit scoring system that assigns a numerical
        value to the various items of information from your credit history.
        These numerical values are based upon the results of analyses of
        repayment histories of large numbers of consumers. The information in
        your credit history resulted in an Experian Scorex PLUSSM credit score that was below the minimum score needed to post a listing.

        The most important factors affecting your credit score were:
        Number of recently delinquent accounts.Number of delinquent or derogatory accounts.Presence of delinquent or derogatory revolving accounts.Available credit on open revolving accounts.

        In evaluating your application, Experian, a consumer reporting
        agency, provided us with information that in whole or in part influenced
        our decision. The Experian Scorex PLUSSM credit score is a
        proprietary credit score developed and provided to us by Experian.
        Experian played no part in our decision and is unable to supply specific
        reasons why we were unable to accept your listing. You have a right
        under the Fair Credit Reporting Act to know the information contained in
        your credit file at Experian. You also have a right to a free copy of
        your report from Experian, if you request it no later than 60 days after
        you receive this notice. It can be obtained by contacting Experian at http://www.experian.com, 701 Experian Parkway, P.O. Box 2002, Allen, TX 75013, toll-free telephone no. 1-888-397-3742.
        In addition, if you find that any information contained in the report
        you receive is inaccurate or incomplete, you have the right to dispute
        the matter with the reporting agency, Experian.

        We also obtained your credit score from this consumer reporting
        agency and used it in making our credit decision. Your credit score is a
        number that reflects the information in your consumer report. Your
        credit score can change, depending on how the information in your
        consumer report changes.

        Your credit score: 509

        Date: 8/22/2011

        The Experian Scorex PLUSSM credit score ranges from a low of 300 to a high of 900.

        Key factors that adversely affected your credit score:
        Number of recently delinquent accounts.Number of delinquent or derogatory accounts.Presence of delinquent or derogatory revolving accounts.Available credit on open revolving accounts.Number of recent inquiries.

        Loans originated through the Prosper marketplace are
        underwritten and made by WebBank, Salt Lake City, UT, member FDIC.
        Prosper is also providing this notification to you on behalf of WebBank.
        Please contact Prosper at the address shown below if you have any
        questions about this letter:

        Prosper Marketplace, Inc.

        111 Sutter Street, 22nd Floor

        San Francisco, CA 94104

        Telephone (866) 615-6319

        Facsimile (415) 869-2877

        [email protected]

      • http://GetOutOfDebt.org Steve Rhode

        Thank you for posting this. It is very helpful.

        It appears that your recent credit scores are going to hold you away from any legitimate lender.

        How much total debt do you owe?

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