Common Terms to Know

Evaluating the fee structure and implied charges of debt consolidation loans helps you make sound financial decisions. Understand the following breakdown:

• Origination fee: Different financial institutes charge varying amounts of origination fee. Some, like PNC, Discover, LightStream, and SoFi do not charge origination fees.
• Outgoing wire transfer fee: Banks charge a fee every time you initiate outgoing wire transfers.
• Late fee: Surely delayed monthly payments reflect on your credit score but people often overlook that it hurts your pockets in more than one way.
• Overdraft fee: If the balance in your bank is lower than the overdraft fee and you've activated overdraft protection feature, you will be levied no fee. If this option is disabled yet you don't have sufficient balance, the fee transaction will still be declined.

Eligibilty

• Age: You must be of legal age to meet the eligibility criteria for personal loans. The minimum age limit to qualify for any offers is 18

• Residency: U.S. residency is a must when applying for debt consolidation loans. You need to be a citizen of the U.S. to be eligible

• Credit score: Upgrade has the lowest credit score on this list, 560. The runner-ups are LendingClub, 600, and Happy Money, 640

• ‍DTI: Most lenders set a minimum debt-to-income ratio for those who wish to qualify for loans. It should be at least 28%

Documents Required

• National Insurance Slip: The national insurance slip of the U.S. health insurance provisions is required

• Pay check: Your income slip is vital to verification. It assures the lender of your repayment capability

• U.SResidential Status: Whether or not you're a permanent citizen of the US, your address is proof

• Valid Driving License: Solid Identity proof, such as a driving license, is necessary to attain a Universal Loan. It confirms your eligibility and U.S. citizenship

• ‍Tax Credit Data: Credit data includes your credit browsing history, existing loans, and repayment patterns. Lenders evaluate these factors to approve or reject your application

How to Apply?

• Review FICO score: Check your credit score before you get at the bottom of applications. As per your credit score, you can make an informed decision on whether your credit score needs aid, in which case you can opt for a joint loan option.

• Pre-qualify APR: See where you fall in the APR range of 7.49% to 36%. To do so, enter your income, contact details, name, and address. It will run a soft credit pull, leaving your credit score untouched.

• Choose offer: Browse customized loan terms, amounts, APRs, monthly payments, and interest rates. Select the offer that aligns the most with your requirements.

• Confirm personal details: Fill out the application form correctly. To stay on the safer side, recheck all details before submitting.

• Funding: LendingClub is reported to approve loans within 2 hours. The funds will be credited to your account within 3 to 7 business days.

• ‍Repay monthly: Pay a fixed amount every month. Ensure that you don't miss or skip payments.

Terms and Conditions

Terms and conditions form the backbone of financial aid. When leaning on personal debt consolidation loans, check if its terms and conditions align with you.

• CD early withdrawal: PNC charges people with cash deposits an early withdrawal fee if they withdraw before the predetermined period is up. If the cash deposit term was between less than 3 months and 11 months, holders would be charged interest rates of 3 months. If it was a year or more, six-month interest rates would be applied.

• Co-borrowers terms: Co-borrowers share the responsibility of loan repayment. What's more, signing joint loans can improve a bad credit score.

• Understand rates: APR and interest rates help you make a financially sound decision. Compare these with those of different lenders to avail the best ones. Lenders aim to provide rates parallel to your creditworthiness.

• ‍Direct pay discount: To encourage direct payments to the creditors, Achieve adds an appealing discount. If the borrower redirects at least 85% of the funds to the creditor, they can enjoy 4% points off their rates.