That’s why we have more than one top pick for the best debt consolidation lenders.
All three have reasonable APRs, fixed interest rates, and multiple options for loan amounts and payoff periods — exactly what you want in a lender.
But each caters to a different credit score range: Prosper, an online marketplace lender, is right in the middle with a credit score cutoff at 640; Avant is willing to go as low as 580; and the average So Fi borrower has a credit score of 700.
If you have the credit score to qualify for all three, we suggest finding out what rate you can get from each — because that’s the other thing that’s great about our top picks: Each will quote you a rate with a “soft pull” on your credit, so shopping around for the right lender for you won’t even ding your credit score. By that we mean, there’s no difference between a specific debt consolidation loan and a generic personal loan.
But he concedes that it sometimes makes a lot of sense, especially if you’re swamped with high-interest payments and can swing a better rate with a loan.
Borrowing money is also personal, and the rates and terms available to you will depend a lot on your financial history.
They may also use terms like installment loan or signature loan, but these all refer to the same thing: an unsecured personal loan.Good security for a debt consolidation loan will often be a newer model vehicle, boat, term deposit (non-RRSP) or another asset that can easily be sold or liquidated by the bank if you don't pay make your loan payments.For the past decade, banks have typically charged interest rates on debt consolidation loans of around 7% - 12%.Below are the most common reasons: To learn more about what debt consolidation is and how it works in Canada, click here.To consolidate all of your debts, your first option would typically be to approach your bank or credit union and see if they can help you.