How To Get A Debt Consolidation Loan
Need to simplify your debt? Approved Cash can help you.
What Does Debt Consolidation Mean?
The debt consolidation process involves getting a new, large loan to pay off several existing unsecured loans (loans without collateral) you have. By doing this, you’re able to combine several loans into one convenient monthly payment.
In some cases, you can get a lower rate on your new loan compared to the average interest you were paying on the old loans.
Do I Need a Debt Consolidation Loan?
Debt consolidation loans are an excellent loan option if you have several loans and credit card balances and you’re having trouble keeping track of them all.
See, if you miss debt payments, your lenders will charge late fees and interest. Your credit score may take a hit, too.
When you have to track numerous loans and credit cards, the chances of you forgetting to make a payment increase.
A debt consolidation loan would make this easier by turning your loans into one easy monthly payment.
How Does the Debt Consolidation Process Work?
First, pick all of the debts that you’ll consolidate. Add up their amounts and write down the total. This is the amount of debt consolidation loan you want to take out.
Then, visit our site and submit your request through our form using that amount. Make sure to specify that you want a debt consolidation loan.
Our system will match you with a lender within 24 hours.
Once you go through us to get matched with a local lender, you will speak to your lender about your loan. After finalizing your loan terms with the lender, they will send the loan funds to you via check or direct deposit into your bank account — whichever way you prefer.
Finally, put your funds towards the debts you want to consolidate. You’ll then start paying back your lender on your debt consolidation loan monthly.
What Do I Need to Get a Debt Consolidation Loan?
To apply for a debt consolidation loan, you’ll need to provide your Social Security number and proof of your income. You can use pay stubs for proof of income — and in some cases, tax returns work as well.
You may also need to provide proof of employment. In some cases, pay stubs can be enough to prove your employment. However, your lender may want to see a proof of employment letter from your workplace.
Check your credit before you get a debt consolidation loan so you can better understand what types of rates and loan terms you might receive.
Since debt consolidation loans are typically unsecured, you may need strong credit to qualify. Secured debt consolidation loans have better approval chances and lower interest rates.
However, you do not need to send your lender a copy of your credit report. They can access that when they are making their lending decision.
Lastly, if you have poor credit, you’ll likely need a cosigner. Cosigners are trusted family members that sign on the loan with you. They agree to cover any loan payments if you can’t.
What Benefits Do Debt Consolidation Loans Offer?
Debt consolidation loans let you combine several debts that are hard to keep track of into one simple monthly payment.
You’ll have fewer loans to keep track of — AND your payment remains the same each month. You’ll know exactly how much you need to pay, as well as the date when you’ll make your final payment.
There is a chance you may also get a lower interest rate, saving you a lot of money over the long run.
If you’re receiving calls and letters from collections agencies, consolidating your debt and staying on top of your debt consolidation loan payments can cut down on these communications.
What Are the Benefits of Consolidating My Debt Through Approved Cash?
Approved Cash makes it easy to find lenders in your area that offer great rates on debt consolidation loans. All you have to do is fill out our form with your name, contact information, and details about your loan (loan type and amount). Our system handles the rest for you.
We only give your request to 3 lenders, all of which will be in your local area. That way, you won’t be bombarded with phone calls, but the lenders will still be driven to compete with each other for your business.
Submitting a request for a debt consolidation loan on our site will not hurt your credit score.