Best Debt Consolidation Loans

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 debt consolidation loan and not get ripped off.

Many Debt Consolidation Loan Ads are Scams

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

Before you read any further here, if you are unsure about the pros and cons of debt consolidation loans then I implore you to read my guide, The Ultimate Debt Consolidation Loan Guide: Getting Approved, Acting Smart, and Being Wise

Best Debt Consolidation Loan Program I’ve Found

The program I recommend is a peer-to-peer lending network. 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.

Companies like these 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.

See also  How to Make Money Helping People to Get Out of Debt

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, isn’t that the chance with any loan though, 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. You may be interested in this report which provided an analysis and review of peer-to-peer lenders.

The company I recommend is below.

Please feel free to check out other similar companies and review and maybe even apply at others 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.


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 your loan number is and I’ll even help to fund your loan as well.

LendingClub.com pays me an amount when you get a loan through them that I then in turn use to help fund your loan.

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 only choose one to go with, my priority choice is LendingClub.com – Click Here

Title: What a Great tip trying Lending Club is!

I was seeking a good way to clear out some emergency funding and your site had a recommendation for “Lending Club”. What a Super experience so far. Simple to apply, was fully funded in 24 hrs and they issued my loan in 3 business days.

Many Thanks Steve for all the Marvelous information you provide here! – Gary

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

See also  I'm Looking for Another Unsecured Debt Consolidation Loan to Get Out of Debt. - Carroll

Don’t forget to contact me with your LendingClub.com loan number so I can help fund it.



You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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137 thoughts on “Best Debt Consolidation Loans”

  1. Interest rates are based on a number of factors which create risk. Unsecured loans are riskier for the lender than secured loans because they have collateral to go after. People can have a 755 credit score but other criteria which can trigger lender risk and thus higher interest rates.

    But a lower rate secured loan also contains the same amount of risk but shifts part to the borrower through the risk of loss of their collateral.

    I believe you are talking about Lending Club and not Lending Tree. Lending Club is very transparent about their interest rates, which at the current time range from 5.32 to 28.99, again, based on risk. See https://www.lendingclub.com/public/rates-and-fees.action

    At a 20.5% rate it looks like they graded you as an E2 risk level for whatever reason. You’d need to get an answer from them why they graded you at that level. It might be due to debt to income ratio, or a wildly large number of factors.

    If the math doesn’t work for you based on the risk/interest rate they assigned to you then don’t take the loan out. Nobody is entitled to get the lowest rate unless they meet the requirements the lender assigns.

    Alternatively you could look at other P2P lenders like Prosper or SoFi to see what risk level they assign to you. And in order to compare, check what your local bank would offer you.

  2. Thanks Steve for the great info. I applied for a loan with LendingClub. They say it was approved and is awaiting fund. Could you help with that part? My loan number is 76273751. Thanks!!

  3. Dear Steve I have been trying to get help in getting my debt paid off. I owe around $3000.00 total. Bad part to all of this my credit score is 550. I need to get all of this pain off so I can get a home loan. I have lived in this home since 2009. And I have never missed a payment. A bank will not give a loan because of my score. I really need help on how I can get this fixed. Can you show me a way to get this done, I do have a good paying job as well.

    • I’m not really certain what the three scores together average. I have a score tracker but those aren’t usually real accurate. Going off of that my average of the three combined is 652. I didn’t realize the limit was 35,000. I guess it would have been pointless then. Thank you!!

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  5. Hello everyone, My name is Mrs. harry lilly and i am talking as the happiest person in the whole wild world today and i told myself that any lender that rescue my family from our poor situation, i will tell the name to the whole wild world and i am so happy to say that my family is back for good because i was in need a loan of $ 73,000 USD to start my life all over as i am a single mum with 2 kids and the whole world seemed like it was hanging on me until i met the GOD sent loan lender that changed my life and that of my family, a GOD fearing lender, Mr. Graham Jackson, Loan Financial , he was the saviour GOD sent to rescue my family and at first i thought it was not going to be possible until i received my loan of $ 73,000 USD and i will advise anyone who is in genuine need of a loan to contact Mr. Graham Jackson via email at. OR (ASYLUMLOANFIRM@AOL.COM ) because he is the most understanding and kind hearted lender.

  6. Hi friends, i can’t believe this. I just got a legitimate loan from a loan lender base in USA. I got their email when i was searching online for a loan. I found a comment who was narrating how she got her loan from them. initially i didn’t believe her because i have been scam several times by people claiming to be online loan lenders. But because i was in desperate need of money to pay off my bills, i decided to try again. so i email them. When i did, i was surprise the sum of $250,000 which i had earlier applied for was wired into my account even when i have bad credit. So i want to advice anyone who may be looking for where to get a legitimate loan from a legitimate loan company to email them via (jerryloanfirm1978@gmail.com) and you will get your loan and be free from all these scams parading the internet…..just hope this information might help someone in need of loan…..

  7. I need help. I owe $43,000 in credit card debt. I am not late on
    payments and I cannot get a loan due to the debt to credit ratio and too
    many accounts with balances. What I want to do is get an actual loan
    without using my house . I would be willing to close ALL my credit card
    accounts and leave just one open for emergencies. are there any
    programs that offer this. I don’t want to do a debt management because i
    am not late and don’t want to be late. Any advice would help.

    • You do not have to be late with payments to enroll in a debt management plan. And it is sometimes possible to keep a card out of the program.

      Call the hotline number on the screen and select a company to speak with about a lower monthly payment plan. Get a to the penny quote and see if it is affordable.

      What were some of the debt consolidation loans/lenders that turned you down?

  8. Hi Steve I just tried lendingclub.com and got approved do you still need the loan number? its 27622108
    let me know what else I need to do


  9. Hi Steve/Damon .. I’ve been taking BK seriously since you both brought it into my debt inquiry. With over a dozen (12+) creditors with varying amounts of debt ranging from $1000. to $4100. and no savings I am convinced that this is the best way to go now, If I can only convice my wife of that… I’ve requested a BK attorney in our area from this a Damon’s website .. waiting on a response (name/location) to initiate the contact. Thanks to you both.

  10. Steve, my wife and I are in credit card debt to the tune of about 35k. It’s a long story with many excuses however; it is a regretable learning experience which credit counceling has helped however; we now need to deal with it. We’ve closed/cancelled 85% of the credit cards, some with large others with lower balances, we’ve kept a few cards for food & emergency use but now I believe our best bet is a debt consolidation loan. I’m retired on social security and my wife earns 37k yearly, what do you think our chances are?

    • I’m not convinced that based on your age, income, and possible lack of assets that a debt consolidation loan is the best choice. You should consider all of your options, including bankruptcy.

      • I did explored that option several years ago and we were directed to an attorney who wanted a little over $2,000.00 to do that, back then we had funds but did not do it now, we have no funds at all. I did recently inquire or obtained a consolidation loan rate quote and it was disappointing to say the least so I’m back to square one. I’m really troubled by our situation how many or what other options are there?

  11. Good afternoon Steve. I don’t know how else to proceed and I was wondering if you had any additional sources. The source of my debt is that I was a single mother for almost 7 years and had to make the ends meet. I only have 5 open previous accounts on my credit and a recent open car loan. I have applied with Prosper and Lending Club and was denied on both due to credit score. I am trying to get a loan for 10k to pay off the last of the debt that I have so that I can start building credit to purchase a home in the next 2 years, My debt to income ratio is great, but I cannot get approved anywhere. Do you have any other sources that can be of assistance. Paying $100 here and $50 there on all these small balances is killing my budget and planning for the future. Any help would be appreciated. Thank you!

  12. Hello. I received information in the mail on Lending Tree and thought I would see if it was beneficial to consolidate my 30k in credit card debt. I pay $495/month just for minimum payments and can’t seem to get ahead. My Experian credit score is 753 so I thought I might have a chance to get a lower interest rate. When I entered my promo code and loan amt I was taken back at the approved amt of $20,950 and high interest rate of 22.15 with a monthly payment of $580.41. Is there anything more I can do to try to get a lower interest rate? Thanks so much!

  13. Good day I am Roger Dave by name and i live in united kingdom i will like to talk about the goodness of God in my life after so many months of trying to get a loan on the internet and was been scammed so i became desperate in getting a loan from a legit lender online then i saw a comment from a friend called Walter Chad and he talked about this legit loan company where he got his loan fast and easy without any stress so he introduced me to a man called Mr Majid Robin who controls a firm called Majid Robin Funds, So i applied for a loan sum of ($360,000.00usd) with low interest rate of 2% so the loan was approved and deposited into my bank account that was how i was able to get my loan to keep my broken business running and also to pay off my bills so i am advising everyone of you who is interested in getting a loan fast and easy to kindly contact them via email:(majidrobinfunds@hotmail.com) to get any kind of loan you need today, thanks as you read the greatest testimony of my life.

  14. Hey Steve, I am doing research on a consolidation loan and I appreciate what you have done here. I get mail from both LT and Prosper so your information here is great, although since you also fund loans one may consider it suspect 🙂

    Anyway, when I bought my house 5 years ago my credit score was in the low 700s, but since then I tried to open a business and jacked up a lot of credit cards which lowered my score to mid to upper 600s depending on who you ask because of my cards being close to maxed (60% – 70% credit used). Technically, if I get the loan and pay off on my cards, then shouldn’t my score jump back up or does these organization insist on paying off and closing the credit card accounts?

    • You should feel free to use any lender you want to. Eliminating your balances on the cards sounds like it will be replaced with a corresponding new loan on your credit. There are many factors that go into your credit score so you might want to consider using the free credit score calculator on CreditKarma.com to model how paying off the cards will change your score.

  15. I would like to get a loan to consolidate my outstanding credit card debts totaling approx 30k. I had decent credit score by just keeping up the min payments each month but then the debts never went down. I got fed up, went with a debt settlement program. Now my credit score has gone way down while i wait for settlements to come through. The company has made some progress but its going very slow. I want to consolidate the loans and have 1 monthly payment. We can probably afford 1000.00 a month payment or even higher. My husband and I are both working and are reliable to make the monthly payments but no one will give us a loan now. What choice do I have? Continue with the debt settlement company and watch my credit score plummet for the next years or so until everything gets settled? Please help! We want to move on!

  16. I got really excited when I found this information. Although I pay my debts on time, my debt to credit ratio, I’m told, is too high to get a debt consolidation loan. A part of the issue is co-signing on my son’s student loans. Applied to Lending Club just now and was denied for same reasons above. Any additional advice??

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  18. I truly have a good credit rating and both companies denied me right away, these companies are not what you are telling people. They denied me due to the balances on my credit cards.That reason they provided to me, indicates they will not help people whom need help. Please provide a company whom actually provides loans to people. If I was denied with a good credit rating, not many people whom need it will really receive any benefit. Please provide some company names that will actually gives loans to people whom need them. Thanks!

    • Kat, I’m sorry you were denied. These are the most legitimate lenders I am comfortable recommending who take risks on unsecured debt consolidation loans. Other lenders are out there, but then again are payday lenders and advance fee loan scams.

      If you are maxed out or have a poor credit score, it will be impossible to find a lender willing to risk that kind of loan. The best time to look for a debt consolidation loan is before you are backed into a corner.

      It might be time to look at other options, instead of just a loan. See https://getoutofdebt.org/31365/introducing-the-amazing-how-to-get-out-of-debt-calculator

  19. Are you a business man or woman? Are you in Any Financial stress or do you Need funds to start up your own business? Do You Need to settle your Debt loan or pay off your bills or start a nice business? Do you have a low credit score and you are Finding It Hard To obtain a loan from local banks and Other Financial institutes? Do you need a loan or for Any Reason contact us today for more details at lexingtonloanfirm@gmail.com


    Please, do provide us with the Following information if interested.

    1) Full Name:………
    2) Gender:………
    3) Loan Amount Needed:………
    4) Loan Duration:………
    5) Country:………
    6) Home Address:………
    7) Mobile Number:………

    Thanks and Best Regards.

    Mr John Bills

  20. Are you a business man or woman? Are you in Any Financial stress or do you Need funds to start up your own business? Do You Need to settle your Debt loan or pay off your bills or start a nice business? Do you have a low credit score and you are Finding It Hard To obtain a loan from local banks and Other Financial institutes? Do you need a loan or for Any Reason contact us today for more details at lexingtonloanfirm@gmail.com


    Please, do provide us with the Following information if interested.

    1) Full Name:………
    2) Gender:………
    3) Loan Amount Needed:………
    4) Loan Duration:………
    5) Country:………
    6) Home Address:………
    7) Mobile Number:………

    Thanks and Best Regards.

    Mr John Bills

  21. Just three years ago I had near perfect credit, After going through a divorce 4 years ago and paying for it, I now owe so much it has caused my score to fall. I have always paid my bills and I still pay them now even if my family is starting to suffer from no extra money after bills are paid. I wish these companies would look at the person and not just the number. Just two years ago my credit was good enough for me to get one of the lowest interest rates for a new truck…..now I can’t get the much needed help we so desperately need. I owe about $30000 in credit card debt. (never had so much before) I re-married two years ago and we were doing great till she lost her job. The stress and worry is killing us. I have worked in the same place for over 25 years…..lived in the same house for longer than that. I have always paid any loans and debts off on time….. But yet, because I have such a high number owed on my accounts my credit score is below 700 and no one will help me. Is there no other options???

  22. I was not approved through either of these companies. I just had a run of bad luck and am having a hard time getting back to where I was making minimum payments. What else do you recommend

  23. Just found this site, but I gotta say, I’m impressed Mr. Rhode. Not only do you suggest lenders to help people with their debt, but you even offer to help fund a complete stranger’s loans. You Sir, have a kind heart and albeit amazing karma.

  24. Hello Steve!

    I have enjoyed reading your book on eliminating debt like a pro. I am very grateful and appreciative to you for sharing your skills and insights. I have my plans A, B, C, and D ready to go.
    After reviewing your information and advice in your website, I researched Lending Club and amazingly was approved. I am excited to get this ball rolling…finally! My loan # is 4536982.

    Thank you, thank you, thank you. Your encouragement has helped me realize that I need to start somewhere and just keep at it until my goals have been reached

  25. Hello Steve,

    I stumbeled upon your site while trying to research options to get rid of some debt. I read several of your articles and tried Lending Club. I have a loan out there, number 4275364. We will see what happens. Thank you for your support and advice!

  26. Steve I am in more than desperate need of help. I was in awesome financial situation 18 months ago then a depressive state caused by a failed back surgery and seperation from my husband, caused me to plundge into 35000 of credit card debt. I wasnt working, therefore had to borrow money from the credit cards to pay my bills, I shopped and I didnt care what I spent and I was a mess. Now, 18 months later, the interest is starting to accrue and while I am paying over 1300 a month on 6 credit cards, the balances are not going down. All I am paying is interest. No one will give me a loan because my cedit is 675 because my cards are all maxed out. I have the money to pay a loan, it would prbably be LESS than what I am paying a month now. No one will help me. This is effecting my physical and mental health. I am up all night literally crying over this. i feel like I am drowning even though I can swim. Does that make sense? I am praying that someone, somewhere can help. All I need is someone to trust me. I am a hard-working woman with a good job and a great heart. I want to be out of debt so bad and I will work so hard to continue to find a solution. There has to be someone out there that will help me. I am begging you Steve. I have read all these testimonials and you seem to be an angel. I hope you are my angel. I pray, oh my do I pray, that you will help me. Please email me at marybethscialabba@yahoo.com or call me anytime between 5am-12midnight eastern time at 412 337 1832. If anyone else reading this knows how to help me or can help me, I ask you to contact me. God Bless you ALL

  27. Well, I applied & as I feared, I was rejected…twice. By two different people. That’s why I don’t apply because it is just way to embarrassing to know that no matter where I go, I will never receive the help that my family so desperately needs right now. I’m sorry I wasted your time. We need the help so bad right now & I allowed myself to think there was hope when I know there really is none at all and there never will be. I’m so very frustrated because I know my plan to pay this back & it would relieve so much stress…stress that has put me on the hospital! I knew I would nit be approved & I am angry with myself for thinking otherwise & allowing hope to be crushed. Now, my score will go down more bc it was checked twice.
    Just very disappointed & hurt. 🙁

  28. Steve – you have a lot of great advice on this site. But it seems that there is a conflict of interest here, if you are advising people to get debt consolidation loans that you are funding. Are you making money off of this? If so, you should disclose it.

    I am not a big fan of debt consolidation loans. Usually, by the time the person applies, their credit score is so damaged they don’t qualify for anything but the worst rates.

    And often, the sleazy ones will offer high rates, but lower the monthly payment by extending the term.

    The debtor then gets some more “breathing room” and congratulates themselves on their financial acumen by going out and running up more credit card debt.

    I know this, because my friends and I all did this in the 1990’s and 2000’s with home equity loans – and we know how well that worked out.

    I finally realized that borrowing more and more was not the answer – cutting SPENDING was. And I was borrowing money while at the same time spending $100 a month on Cable TV and $100 on a cell phone – and paying $5 for a cup of coffee at Starbucks. And of course, I had a hobby car in the garage, right?

    I got rid of all the “stuff” in my life and those toxic monthly subscription services that were all being auto-charged to my credit card. I easily knocked $500 a month off my bills.

    And life without cable TV has been a blessing. I use a $100-a-year cell phone (1000 minutes) and don’t even use all the minutes I have.

    Like with our national debt and budget issues, there are two ways to look at this – refinance the loans (Democrats) or cut spending (Republicans). I think in order to get out of debt, you have to do a little of both.

    Just my 2 cents. Love your site, even if the stories are sometimes depressing.

    • This lending club thing is interesting. I may invest in it, although it sounds, well, too good to be true.

      I presume you have had good luck with it?

    • Robert,

      I do my best to be very transparent about the site relationships. In fact I bet you’ll find that we do a much better job at this than most other sites and certainly nearly all sites in the debt world. I invite you to take 15 minutes and read through the site terms at https://getoutofdebt.org//terms/

      The reason I suggest Lending Club and Prosper is because I feel they are different than the other type of loans you mention. In fact they are much better than a credit union loan with their stinker cross-collaterization terms that trap consumers.

      A debt consolidation loan can be used as successfully as other strategies. And like other debt reduction strategies it depends on the person not going back into debt. But don’t they all to be effective?

      You sound like you were able to make fundamental changes to the way you lived your life and that should be applauded. But others that have reached that teachable moment can do so as well even if the path they elect is credit counseling, bankruptcy, debt settlement, or budgeting.

      The ultimate best tool to use for someone is not a one size fits all but one that fits inside their life and changes they are willing to make.

      Both Lending Club and Prosper will lend down to around 660 credit scores but by that time the rates get pretty high, but often lower than what the consumer is currently paying.

      I’ve interviewed Lending Club customers and those that have successfully paid off their debt with the loan and learned their lesson.

      I’ve also written about my experience as a lender back at the start of 2012 in this post https://getoutofdebt.org//34265/unsecured-debt-consolidation-and-personal-loans-being-handed-out-at-record-rates

  29. i need a loan and have been geeting denied all over my credit is terrible and need to pay off a lot of people do u think you could help me get a loan

    • If your credit score is lower than 660 I’d say the chances of getting approved by a legitimate lender are zero. If you don’t know what your credit score is you can find out for free at CreditKarma.com

  30. I’m not getting approved because I have too many inquires and because my balances are too high. I’ve never paid anything late but I have to many high intrest maxed out credit cards. The reasosn they are not approving me is because the balances are too high well how are you going to get your balances paid off if know one will give you a consolodated loan? Help Please.

    • To confirm you should contact Lending Club and ask about a prepayment penalty. I’ve never heard of one and nobody has ever mentioned to me that there was any such restriction.

      • I read lending club’s FAQ and they set up monthly withdrawals directly from your account. So I’m not sure how paying additional principle is even possible. if my payment is 250 a month, I’d like to pay 500 with the additional 250 going towards principle and not interest

        • Well that works out better. Setup the second payment to be sent by your bank. That way in case something unexpected comes up you can put a halt on it temporarily. Seems like the perfect solution rather than committing yourself to a higher payment each month.

  31. I checked to see what my rate would be if I consolidated a bunch of credit card debt, and the interest rate would be higher than what I pay on my credit cards. I am completely current with a FICO of 660 (according to the bank after I applied for a mortgage but had too much revolving debt). I suppose my best bet would be to try the snowball method for a while and try again? Also, my debt-to-income ratio is 13:19. It’s amazing that the credit card companies would give a college student so much credit and it’s equally amazing that I used it!

  32. Thank you for all the articles on getting out of debt. Sometimes life just throws you curveballs. In the last 2 years we had to move, get some expensive dental work done, had a really sick kitty that needed some MAJOR care and I cut my finger and had to have surgery. We only had about 3,000 at the time, but it skyrocketed up to over 32,000. I am now working to get this all paid off. Just got approved for a Lending Club loan and I am hoping for the best. My loan number is 2309820.

    In the middle of all this I was also trying to go to school. Well, that has been put on hold till I can get this money situation under control. Thankfully I am paying all my bills on time and we are not in the rears at all, in fact I try and pay extra on some. Just need that extra help to get everything into one manageable bill.

  33. the lending club turned me down for a 35K loan after sending me a ” pre-approved” letter in the mail. so much for help huh?

  34. Hi Steve,
    After reading your post I decided it was time to take care of my finances and debt which I accrued during my time as an undergrad student. I chose Lending Club. Loan# 1603631.
    Whether it be due to my inexperience as a young adult or due to the fact that I worked but only part time and tried to maintain paying for my college, or even possibly helping my mother when she was in the hospital, whatever reason I built up this debt and I am looking to finally clear it out. I am a PhD student currently and now maintain a consistent salary, which although low it’s still much more then I have ever made.
    So this loan will help me consolidate my debt and pay it off quickly and easily.
    Any help is appreciated.
    Thank you,

      • Hi Steve,

        Thank you again, I really appreciate your encouragement and help. I will be sure NOT to run up my debt again, I am planning out my monthly expenses and making cuts where I can.



  35. Thanks for all the great articles on your site.  I just applied for a loan through Lending Club and it would be great to have you as an investor.  Loan #1587676

  36. Hi Steve,
      I was surfing the web to find the “best” lending institutions for unsecured consolidation loans and came upon your site here. I have read the comments and was excited to read that so many people like myself are finding ways to put themselves in a better financial path. My wife and I have accumulated approximately $37,000 in debt after starting a family 12 years ago; neither of us had more than a car loan for debt before marriage. We were a struggling “young” family for years and had to use credit cards at times for essentials. My wife started a business last year that is doing very well, with some of the start-up costs also being part of our debt. She currently has 4 employees and owns a hair salon business. The business sustains itself and her income has increased considerably. Our children are older and I am able to work more over-time than ever before, We are paying more money towards are credit card debt than ever before, approximately $2300- per month; more than the minimum payment due.Unfortunately there is no “end in sight”with $600- of that being “INTEREST”. Our credit score last I knew was 700-725 and our household income is approximately $150,000-$175,000. We own our own home but don’t have enough equity anymore to take out a home equity loan. What advice, if any, do you have regarding a consolidation loan for our current situation? Any advice would be appreciated…

    Thank you,

  37. With all the P2P lending options requiring a FICO score of 640 to 660 or higher, this isn’t really helpful for most who need help.  What I’m wondering about is the loan ratings…   what makes you a D rated loan instead of an A rated loan if everyone is above a 640 credit score?

    • I agree there are limits and that those with the lowest credit scores have the least amount of access to funds because of risk scoring.

      You can always work to bring your score up and then seek a loan if that is appropriate to do.

  38. Really appreciate the information in this article!  I applied and my loan number is 1513396.  Any funding would be greatly appreciated.

  39. Steve,

    Thank you for your article. As someone struggling to get out of debt, and no mortgage for a bank to use as collateral, I have been finding it difficult to find someplace willing to lend money for this at a reasonable rate. I just applied, was approved, and my loan will post in the morning. My loan number is 1478150 if your offer to invest is still open.

    Thanks again!

      •   i’m  about $16000 in debt with just credit cards and a credit score of 612. Not sure how i can get out of debt if i can’t get approved for debt consolidation loans. I also have a mortgage and 2 other personal loans and make about $45000 a year. I was denied by lending club, Maybe i need to do bankruptcy. So frustrating.

  40. Hi Steve,

    With your advise I applied and was approved for a loan on Lending Club.  Loan#  1415202.  I seemed to have a lot of interest the first couple of days but now it has stalled a bit.  Only I know my ability to pay, what I say is accurate and it is a risk for individuals to invest…but is there anything I can note on my loan to help investors feel more assured? 

    I have worked for the same company since graduating college…9 yrs ago. I work for a very solid company, that is in the Forbes Top 10 of most valuable global companies.  I only have made one late payment in the history of my credit and it was in Jan when I was in the hospital having an emergency C-Section.  It was for $75 and was paid as soon as it was brought to my attention.  My credit score has always been in the 780+ but most recently has gone from 670-720 depending on what credit agency you go to…part of the issue is high balance to limit ratios. 

    Unfortunately, we put a lot of my husbands college tuition on 0% intro rate cards and are paying for it now. We also put more on our cards then we should of when we were helping my mother-in-law during a period when she was unemployed.

    So anyways, in my long winded situation, are there any suggestions in making your loan more reassuring for investors?  I believe almost all of the details could be verified in my credit report and credit history but not sure what investors have access to…

  41. Hi Steve…great article…just applied and was approved. My loan is 1415202 and will be posted tomorrow. Thanks!

  42. Steve,
    Thank you so much for your website. You helped us get past denial and anger several months ago. We have really got ourselves organized now and applied for a Lending Club loan, which is well on its way to being funded. Please invest in us if you can. Loan #1403050

  43. This is a very helpful resource.  Thank you so much.  I ended up going with Lending Club over Prosper, and I look forward to one day being an investor.  My wife and I are trying to pay off our credit card debt that we each accrued before marriage so that we can start a family in a financially responsible manner.  Lending Club seems like the right way for us to do so, given the high interest rates on our credit cards.  Our loan number is 1403569, and we’d appreciate any help you’d be willing to offer!  Thanks.

  44. Steve
    Thanks for your pointed and honest advise within you website. I’ve applied at Lending Club and would really appreciate any assistance you could offer in funding my loan 1390262.

  45. I applied and this is what I got as a response:Proportion of balances to credit limits is too high on bank revolving or other revolving accountsLength of time revolving accounts have been establishedProportion of loan balances to loan amounts is too highToo many accounts with balances

    Yep, that is why I was applying for a debt consolidation loan in the first place.

    Anyway… Are you able to advise on anything else out there? I have NEVER made a late payment, and with my DTI I dont think I will qualify for a home equity loan even though I do have equity in my home. My credit score is 659 now due to my high DTI. I am able to repay the balances I have monthly, but see no light at the end of the tunnel. I have 2 inquiries in to 2 different debt consolidation companies, but I dont want to negotiate by debt any lower, I obtained my balances, and want to pay off every dollar, not negotiate lower amounts, and hurt my credit in doing so. Any direction would be greatly appreciated.


    • There is always Proper.com which is a similar company.

      Let’s start with the basics.

      I’d suggest you first read How to Get Out of Debt. The Honest and Unvarnished Truth and The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy. They will give you a great overview of what we need to deal with to get you moving in the right direction.

      Then use the free How to Get Out of Debt Calculator to review your options.

      After that, come back here and comment about what seems to make the most sense and let’s discuss that.

      Does that sound like a reasonable approach?


      • I tried prosper.com and unfortunately they pull from Experian. My credit score is over 100 points lower on experian than transunion for some reason.

        So back to square 1. I collected a TON of new information from your site! Last night was the first time I have ever been on your site, and I am hooked!

        I already knew a debt settlement program was definately NOT what I wanted to do..The next option being a debt management program, but now I have collected a lot more information about a DMP’s. I used your debt calculator and am trying to figure out how to proceed.
        I can afford the monthly estimate on a DMP, it would probably lower my monthly amount slightly but the main benefit I see is actually having a term set on a repayment time (the light at the end of the tunnel I am hoping for). I am extremely hesitant though with how this truly works, and your article showing the lack of information on success rates, etc. is disturbing.

        I feel bankruptcy for me would be premature, although I obviously have a ton of debt, I have never made a late payment and and I can afford my minimum monthly payments as is, but it will take me 203 months to pay it all off (is that all…ha!)
        Along with that its just me, I am young (24 years old) and I have no kids, which I feel is a blessing that time is on my side, but if I dont do something about it now it will get the best of me. I should have tried a consolidation loan before when my credit score was higher, but hindsight is 20/20…

        The option I strive for is to get into a position where I can follow the micro payment plan. That is oviously ideal, but I would need an additional $240/month to get there. My debts havent been late, but as is already I am finding a way to live off of $300/mo for gas, groceries, utilities etc, so I definately cant squeeze it out of that budget, at least not right now..

        The reason I got into such debt in the first place was just an impulsive, bad investment that I didnt follow through with, which greatly encouraged to ‘leverage’… This is the hard lesson I am learning from it. Of course that wasnt how I acquired ALL of my debt, but that is how I acquired the bulk of it, putting it at a pretty darn close to unmanagable level.

        I appreciate your response and I am greatful for all of the advice and direction you offer!!!
        If you are willing to advise me on anymore from this novel it would be greatly appreciated!!!

        • When evaluating bankruptcy if you are current you might want to think about if you consider it reasonable that you’d be able to repay your current debt and save money at the same time. If not then you most likely need some for of intervention to deal with the past debt and move forward safely.

          Bankruptcy should not be emotionally discounted because it is the only legal intervention tool that gives you protections from your creditors.

          By all means try the micropayment approach and make sure you are saving money at the same time. If that doesn’t work for you then we can talk about a Plan B.

  46. Hello Steve.  Thank you for the information. I was able to get approved today. # 1383951. I would appreciate any funding you would be willing to give.

  47. Hi Steve! Thank you so much for your helpful advice! I signed up for a loan through Lending Club and wanted to share my loan reference number in case you are looking for an investment right now: 1360250. Also, do you have any suggestions on smart ways to name or describe the loan so that investors are interested and will help to fund it?

  48. i have about 12k of loans  out…. one loan at 18% interest!  i make 55k a year but have a low enough credit score that prosper and lending club would not lend to me…. i own no home and no car note to pay….the loans total over $600 in monthly pmts which would be cut in half i believe with a loan…. can u or someone out there help me?  

    • I logged in to help fund it but it looks like it’s not available for funding just yet. Let me know when it opens up for funding and I’ll go back and invest in you.

  49. 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.

  50. 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.

  51. 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.

      • 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.

        • 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?

          • 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.

          • 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


          • 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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