Millions of people today are finding themselves in a good amount of debt. Before you know it, your credit card bills are getting out of control, and the interest rates are high. You only can afford the minimum payment, so it will take many years to completely pay off your debt. In cases like this, a debt consolidation loan from Lending Club might be your best option.
What is a Debt Consolidation Loan?
If you want to eliminate your high interest debt and lower your monthly payments, a debt consolidation loan can help you accomplish that. You can consolidate your debt into one lower monthly payment. Therefore, rather than paying multiple lenders, you make one payment. This can greatly help you manage your finances.
Advantages of a Debt Consolidation Loan
A debt consolidation loan can offer you many benefits. Some of the advantages of a loan include:
· One single payment: You will take out a loan to pay off your existing accounts, and you will make one payment to Lending Club. You probably have several cards with account balances. By obtaining a loan, you do not have to worry about all of the deadlines that are quickly approaching. You will only have one payment. Most of the time, your monthly payment will be much lower than what you were originally paying.
· Less Anxiety: Having high credit card balances can cause a lot of stress and anxiety. Getting a debt consolidation loan can help alleviate this stress so you can stop worrying about your bills.
· End Collection Calls: If you are behind on your payments, you probably have creditors calling you at all hours of the day. If you pay off these bills, the creditors will get off your back and stop harassing you. This will also help eliminate your stress level.
· Lower Interest Rate: The interest rate on credit cards can be very high. With a loan from Lending Club, your interest rate will be significantly reduced. It will take you a long time to pay off these high interest cards, so a debt consolidation loan will help you save a significant amount of money.
· Raise Your Credit Score: Having a good credit score means a better interest rate; therefore, you want to have a high score. If your credit cards are maxed out, it will probably lower your score. Your score will also go down if you get behind on your payments. A debt consolidation loan can help you build your credit score
· Pay off Debt Faster: With your credit cards with high interest, it could take you the rest of your life to pay them off if you only pay the minimum payment. The debt consolidation loan cost will be much lower, and you could be out of debt within just a few years. Then you can use your hard-earned money for anything you wish.
Lending Club Debt Consolidation Loans Fees
The debt consolidation loan fees with Lending Club will depend on your income and your credit. You will be given a loan grade. The higher the grade, the better interest rate you will be offered. Interest rates range from just over 5% to 30%. The lender has no hidden fees or added costs. Investors receive the money from the lenders, and then they pay Lending Club. A fixed rate comes will all loans. A $15.00 charge will be applied if a payment does not go through. If you fail to make a payment, there will be a 15-day grace period with no penalty. If you wish to make your payment with a check, you may choose this option, but there is a $7 processing fee.
Pre Pay and Save Money
You can repay your loan anytime you wish. The will reduce the debt consolidation loan cost. You can also make additional payments to get the cost down. Lending Club also allows you to change your payment date to one that is more convenient for you.
Lending Club Savings
The savings with a debt consolidation loan will vary depending how much money you borrow. For example, if you take out a $15,000 loan with Lending Club, the debt consolidation cost could be around 7%. You could save at least $6,000 in interest. Your monthly payment will be $468 for a 36-month loan. For a 60-month loan, you will pay $302, and you will save just over $5000 in interest, depending what your interest rates are with your creditors. You can ask for a 36-month loan, or you can ask for a 60-month loan. If you take out a $15,000 loan, the total cost that you will pay for a 36-month loan will be $16.848. For a 60-month loan, the total cost will be 18,120. As you can see, the debt consolidation cost of a 36-month loan is a little lower.
Requirements for a Debt Consolidation Loan
Lending Club caters to individuals who have good to excellent credit. The average credit score is in the high 600s, and the company likes for people to have at least a 660. Most people who apply do not have any late payments within the last two years, and you need to make a sizable income. If you do not meet these requirements, you might want to get your credit score up before you apply for a loan. The good news is that you can check your rate for a loan without impacting your credit score. Therefore, there is no risk involved to check your rate on a loan.
Debt Consolidation Loan Application Process
With Lending Club, the application process is quick and easy. Your personal information is safe and secure, so you do not worry about it getting into the wrong hands. You fill out a simple pre-approval application. You will need to provide your name, address, and email, as well as a valid phone number and social security number. We will also need the name and contact information of your employer, and the amount of income you make. If you are qualified to receive a loan, you will be presented with all of the options, and you can see what is best for you. The money can be deposited straight into your checking account. It is that simple.
The bottom line is that getting a debt consolidation loan can save you money, so it is a wise choice. The cost and fees will be much lower than what you are currently paying, so you can save an enormous amount of money.