Debt consolidation loan is the best solution for people who are in the midst of a bad credit situation. When you are looking for direct loan consolidation, you want a lender who will fund your loan request. When you consolidate loans, you are merging several loans into one and repaying all the existing loans using one consolidation loan. This can be done if you are looking for a better interest rate or don’t want to be keeping track of many small loans. In most cases, obtaining payday loans and other forms of loans can be easy for borrowers. However, they find themselves in vicious cycle of debt. High interest rates and an increased cost of living have caused many people to have poor credit scores. The annual percentage rate is the amount of interest charged to the loans and this is usually high for the small loans. There are aspects that you should consider when looking for direct loan consolidation.
Review Your Credit Report
When you are trying to get out of debt, the first thing that you have to put into consideration is your credit report. In conventional loan systems, you cannot qualify for a loan if you have poor credit score. However we connect borrowers to lenders who will fund their loan request. It is essential that you understand that lenders will report your nonpayment of loans such as payday loans to the credit bureaus. You do not have to ruin your credit score by being reported for failing to repay. Credit scores less than 600 are often considered as poor credit scores while above 720 are excellent.
Understand the terms and conditions of the loan
Every state in the United States of America has specific laws that regulate payday lending and other forms of credit lending. 13 states have banned the use of these lending programs. In other states, there are caps that have been imposed. It is imperative that you understand the caps and interest limits in your state to avoid any complications during the application process. Once you have looked into the laws, you can continue with the loan request. It is crucial that you review all the regulations about the loans and know if they are within the legally allowed limit.
Conduct Thorough Research
When it comes to consolidating loans, there are numerous options and it is imperative that you do your research before choosing a loan. The market is competitive and we will connect you to lenders who will finance your loan request and give you the loan. If you are happy with the interest rate that your lender will charge, the next step is to take out the loan from lenders who will give you a better rate and repayment period.
Your lender will give you a breakdown of the fees associated with the loan and from there you can calculate to determine if the loan is the right option for you. We do not charge any fees for loan request. However, your lender will give you the charges of the loan such as interest rates and other applicable charges. We understand the turmoil that many people undergo when dealing with loans. This is why we have come up with a wide array of financial facilities to help you overcome debts.
- The strategy of consolidating debt varies from one lender to another and you should consider all the terms and conditions offered by your lender. We promote responsible lending and if you feel that consolidating your loans is a challenge, leave it to the experts to help you through the consolidation process.
- Substituting several small loans with one larger loan is crucial in helping you overcome challenges that are associated with poor credit facilities. You can concentrate on paying one monthly payment.
- High interest rates charged on small loans is reduced considerably because your lender will negotiate for a better loan deal for you.
How will direct loan consolidation help you?
When you choose to consolidate your debt, you are combining all outstanding loans into a single lump sum amount. Your lender will negotiate for a better interest rate on your behalf. When this happens, you will repay the loans at a lower interest rate. Since your direct lender is offering your consolidation loan, the loan tenure is extended and it is easy to repay the loan in small monthly installments. This way, you make single payment per month and get a breather from burden of monitoring several debts. Another main feature that makes direct loan consolidation worth considering is that it comes in an unsecured from. This means that you do not have to put down any collateral for your loan.
- When you opt for direct loan consolidation, you get relief from credit card debts and other small loans which are some of the main contributors of vicious debt cycle. When you pay your consolidation on time, you can build your credit score because your lender will report you to credit bureaus. You should make a long-term financial plan to get out of debt. This is the only way that you can avoid regular debts.
- Once your lender has received all the information that you submitted, he will evaluated and give you immediate feedback. If you qualify for the loan, the money will be disbursed into your account.
How to pick a direct loan consolidation firm
Choosing the right direct loan consolidation company can be challenging. Use the following criteria to pick a lender from our network.
Term of the loan
This is crucial because it will determine how long you are required to repay the loan. The best lender will give you a considerable time plan and affordable interest rates. The time should be in tandem with the overall cost of the loan.
This is the most integral part of any loan application process because it will determine how much you are going to pay. Lenders who will give you a competitive rate are the best. If the charges are reasonable compared to other players in the market, you will be in a position to repay the loan with ease.
Transparency is an aspect you should look out when looking for a direct loan consolidation company. This way you will not be surprised by an increase or sudden charges. We strive to connect borrowers with lenders who will be transparent with their terms and conditions.
Credibility and reviews
This is a measure of how trusted a site can be. Experienced, reputable lenders have a wider reach. When making a decision, look at the reviews to see what other clients are saying about the website.