Where Should You Get a Debt Consolidation Loan?

When applying for a personal loan, you have several options. The two most common are traditional financial institutions and private lenders. Which one you choose depends on your current financial situation, your credit score and how much money you’re looking for.

Traditional Lenders: Banks and Credit Unions

When most people think about getting a personal loan, they typically initially consider their daily financial institution. This is because banks and credit unions are known for having lower interest rates. Many financial institutions also offer lower rates for their customers who have multiple products with them. The lender also knows you quite well, so the loan approval may be more likely since they can vouch for you.

However, there are some downsides to getting a bank loan. Most traditional lenders require an in-person visit before approving you for a loan. This can be time-consuming and often results in long wait times before receiving the funds. Even if you’re not required to go into the bank, there’s usually a wait time of at least one week after approval before the loan proceeds are disbursed. Additionally, traditional lenders usually require a higher credit score.

Private Lenders

People choose to go with private online lenders for many reasons. The main one is that they receive the funds they’re looking for faster. Some online lenders like Spring Financial can distribute your loan funds the same day you apply or within 24-48 hours.

Many of these lenders are starting to offer more competitive rates that are the same as or only slightly higher than those of banks. For many people, the pros of getting their funds sooner outweigh the cons, especially if the loan gives them the option to pay it off early with no hidden fees or penalties.

Can You Consolidate Your Debt Online?

Debt consolidation can feel overwhelming, and you may not know where to start. Luckily, many lenders like Spring Financial now offer loans online without you ever having to step into a branch. You can still speak with an advisor or a representative, but you don’t have to leave your home to take care of your debt.

How Can You Consolidate Your Debt With Bad Credit?

If you’re struggling with your debt load but have a low credit score, know that getting yourself back on track is possible. How you choose to go about it depends on the types of debts you need to consolidate and how much money you want to borrow.

A lender like Spring Financial may be the way to go if you have a mixed compilation of debts such as payday loans, credit cards and multiple lines of credit. Spring can be more lenient with your credit score than traditional lenders and offer a more flexible application process. Once you’re approved for the loan, it’ll be up to you to pay off all your debts in full, and then make your monthly payment on the new loan.

While going with an online lender may result in a higher interest rate, it could still be much cheaper than paying the interest on payday loans and credit cards. An added bonus is that it may also help improve your credit score.

Get a Same-Day Personal Loan for Your Debt Consolidation Today

Living with a mountain of debt can be very stressful. It doesn’t have to be, though. No matter what your credit score is or how much you owe, there are plenty of options for you to take back control of your finances. You could take out a personal loan, a home equity loan (secured debt), a line of credit or even do a balance transfer credit card to save on interest.

Getting a loan in Canada is easier than ever before with online lenders such as Spring Financial. Spring Financial offers same-day personal loans for up to $35,000. Your answer for debt relief may be right here.