You can get a debt consolidation loan in Mississippi from Upgrade, Prosper and LendingPoint, among other banks, credit unions and online lenders. The most important thing to consider when applying for a debt consolidation loan in Mississippi is the loan's APR. It should be lower than the rates on your existing debts in order for you to save money. Other important factors are the loan's origination fee, funding amount, and payoff period.
Best Places to Get a Debt Consolidation Loan in Mississippi
When you get a debt consolidation loan, you use the loan to pay off multiple existing debts, combining them into one balance with a single monthly payment. Getting a debt consolidation loan in Mississippi isn't much different from getting one in any other state because all of the best lenders nationally are available in Mississippi.
Once you get a debt consolidation loan in Mississippi, you should make sure to manage it responsibly so that you can become debt free as soon as possible and improve your credit score.
To get a debt consolidation loan, you must be at least 18 years old and have a steady income as well as a credit score of at least 660. Not all debt consolidation loans will require a 660+ credit score, but it’s unlikely you’ll get rates that are worthwhile for consolidation with a lower score. People who meet the general requirements for a debt consolidation loan will find the process of getting approved to be pretty easy. It really comes down to comparing offers in order to find the right one for your specific needs.… read full answer
Depending on the lender, you may be able to apply for a debt consolidation loan online, by phone or in person. You can expect to receive a decision within a few business days, if not instantly. Applicants typically receive their funds within 7 business days of being approved. Using those funds to pay off existing debts and consolidate what you owe can take another few days to a few weeks, depending on the lenders you owe and how you choose to pay them.
Now that you know the basics of getting a debt consolidation loan, it’s time to learn about the specifics of each step in the process.
How to Get a Debt Consolidation Loan
Compare personal loan offers
The most important factor when comparing personal loans is the APR. You’ll want the lowest rate possible to help you pay off your existing debts faster. However, you should also take into account how much each loan charges in fees, how much you’re able to borrow, and how long you can take to pay the loan off.
Identify lenders that work for your situation
Lenders have a minimum credit score that they require for approval – often 660. And unless you have good or excellent credit, you’re not likely to get rates that are worthwhile. In addition, not all lenders will allow you to consolidate all kinds of debt. For example, many don’t allow student loan consolidation, and some lenders specialize in only one type of consolidation (e.g. Payoff and credit cards).
Pre-qualification doesn’t guarantee approval, but it will give you a sense of how likely you are to be approved as well as what rates you might receive. If you want to pre-qualify for multiple lenders at once, rather than one at a time, you can use WalletHub’s pre-qualification tool.
Submit an application
After you settle on a debt consolidation loan offer with a low enough APR and a high enough loan amount, you can submit an application online. You may also be able to do it over the phone or in person. Make sure you fill out the application accurately and truthfully.
Wait for a decision and funding
Often, applicants for debt consolidation loans will receive a decision instantly. But that won’t always be the case. You should expect to wait around 7 business days for the entire decision and funding process to finish. Your wait could be shorter than that, or as long as a month, depending on the lender and your personal situation.
Once you receive your debt consolidation loan, you’ll use the money to pay off your creditors. From that point on, you’ll owe all of the debt to the company that issued the consolidation loan. Make sure to submit your monthly installments on time to ensure that the lender reports positive information to the credit bureaus each month.
Debt consolidation loan rates usually range from 6% to 36%, depending on the lender. The best debt consolidation loan rate is 5.95%, from LightStream (a division of SunTrust Bank), with its personal loan offer. Only the most qualified applicants will receive a rate that low, but even LightStream’s maximum APR is relatively low, at 17.29%.… read full answer
Most lenders don’t offer loans specifically for debt consolidation. Rather, they offer general personal loans that can be used for any purpose, including consolidating debts. The average rate is around 10%, according to the Federal Reserve Bank of St. Louis. So if you can get a lower rate than that, you’re on the right track.
Let’s take a look at some popular personal loans that can be used for debt consolidation, along with their rates.
Debt Consolidation Loan Rates by Lender
LightStream: 5.95% - 17.29%
Payoff: 5.99% - 24.99%
Best Egg: 5.99% - 29.99%
FreedomPlus: 5.99% - 29.99%
LendingClub: 6.95% - 35.89%
Prosper: 6.95% - 35.99%
Avant: 9.95% - 35.99%
LendingPoint: 9.99% - 35.99%
American Express: 6.90% - 19.98%
Discover: 6.99% - 24.99%
Wells Fargo: 5.24% - 22.99%
Marcus by Goldman Sachs: 6.99% - 28.99%
There’s a way that you can estimate your debt consolidation loan rates before applying. If you use WalletHub’s free personal loan pre-qualification tool, you’ll see your odds of being approved with various lenders, along with what rates you might qualify for.
Debt consolidation is a good idea for borrowers with high-interest debts owed to multiple lenders. Whether or not debt consolidation is wise depends largely on if you can get a new loan or credit card that will save you money compared to the current cost of your debts. The simplicity of a single payment can be helpful, too.… read full answer
How Much You Can Save With Debt Consolidation
Typical Debt Consolidation Loan
Number of Debts
* Interest rates are from WalletHub data and total interest is calculated on a 2-year basis.
When Debt Consolidation Is a Good Idea
When it gets you lower rates
If you’re able to qualify for a new loan or line of credit with a lower APR than your current creditors are charging, consolidating the debts will reduce the overall cost of what you owe by slowing down the rate at which interest accrues. That in turn will help you pay off what you owe more quickly.
When you’re having trouble managing your payments
If you find yourself with too many individual debts that are hard to keep track of, and you risk missing monthly due dates as a result, consolidating can help simplify your finances.
When the fees aren’t excessive
If you have a credit score of 660+, you should be able to qualify for a personal loan with no origination fee. And some balance transfer credit cards for scores of 700+ have no balance transfer fees. Other loans and cards may charge fees that increase what you owe by 1% to 8%, which might make debt consolidation a bad idea.
When you can get enough funding
Depending on how much you owe and how high your credit score and income are, you might not qualify for a large enough loan or credit limit to accommodate all your existing debts. In that case, you might consider consolidating partially, or you might decide that opening a new account isn’t a good idea.
When you’re not about to make a major financial decision
In the long run, debt consolidation can help you get debt-free more quickly and raise your credit score. But it will cause short-term credit score damage from the hard inquiry required to open a loan or credit card. This could affect your approval odds or the rates you get for things like auto loans or mortgages for up to a year.
In conclusion, debt consolidation is a good idea when it helps you get organized and obtain better rates. You can click on the button below to compare the best debt consolidation loan offers on WalletHub.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub.
Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.