Here's the situation:
You need to consolidate debt in a MAJOR way, paying out too much interest is killing your financial flexibility and future. You know that consolidating your debt could free up money to pay off bills months, even years ahead of time and allow you to invest in your future instead of drowning in embarrassing debt.
There's a problem to getting your loan though, you don't own a home.
Debt consolidation loans for non-homeowners are often hard to get your hands on, traditional banks and lenders often don't want to be bothered if you don't have a home to offer as collateral.
In the past, many non-homeowners have gotten screwed over because of this. Either because they were rejected for loans left and right, forced to pay off super-high interest debt and overpay thousands of dollars that could have been used on their family and future, or they unwisely got mixed up with shady "fly by night" loan companies that didn't have any standards because they were only looking to trap debtors and tie them up into even worse financial agreements.
The results for the borrower? Horrible.
Many loan companies billing themselves as aides to consumers actually are scams requiring extremely high payments for their "debt crisis services".
You need to be on the lookout for the typical red flags, such as lenders demanding you include all of your current loans in their repayment plan, regardless of whether that's what you need or not. Also stay away from loan companies that don't willingly disclose all of their fees. Credible lenders have nothing to hide and you'll be able to find that information rather easily.
Why P2P Debt Consolidation Loans Work For Non-Homeowners
Getting debt consolidation loans for non-homeowners from major peer-to-peer lending networks is becoming a popular solution for people who don't own homes. Peer-to-peer lenders like Prosper Loans and Lending Club cut traditional banks out of the equation and set up loan agreements directly between private lenders and borrowers based on matching criteria, such as the desired loan amount and the time frame for repayment.
Borrowers without collateral who are looking for a debt consolidation loan are often able to find much better interest through online lenders than they would from a traditional bank. And sticking with the two major peer lending companies helps potential borrowers avoid the shady lenders that look to trap desperate borrowers.
Getting a quick loan from Prosper or Lending Club is also very convenient because they both offer secure web portals where borrowers can make payments, getting debt consolidation loans for non-homeowners is easier then ever. The well-known peer-to-peer lending sites also report timely payments to the credit bureaus, improving your credit while you pay back your low-interest debt consolidation loan.
Reasons to consider P2P debt consolidation loans for non-homeowners:
- Applying is very easy - Put in a few pieces of personal information into an on-line application and you can be approved literally within minutes. Apply anywhere you have computer access and upon approval wait for you loan to fund.
- Money-saving fixed interest rates - the two largest P2P lenders quote rates of approximately 5.99% for their best customers.
- Flexible payback timelines (1,3 or 5 years)
- How fast the loans get into your account - P2P loans are often deposited to your bank account in less than 14 days, many times in less than a week after approval.
- High funding limits - Both Lending Club and Prosper offer unsecured personal loans up to $35,000.
- No hidden fees and red tape you often get with other types of loans.
Unsecured Debt Consolidation Loans For Bad Credit Borrowers?
There is a catch with the major and most credible peer-to-peer lending sites, if you're seeking unsecured debt consolidation loans, bad credit will likely be a problem. Even though they give debt consolidation loans for non-homeowners they still have certain standards.
If you have good credit, you're a perfect candidate for a personal loan through Prosper and Lending Club's peer-to-peer lending marketplaces. Even fair credit (640+) can help them connect you with the debt consolidation loans you need.
Unfortunately, unsecured debt consolidation loans for bad credit borrowers isn't an option through these lenders right now, one reason is that they work hard to protect the everyday Americans that invest money in lending to borrowers through their peer-to-peer lending sites. Return on investments through these P2P lending sites is consistently good and they plan on keeping it that way, so bad credit borrowers may suffer rejection because of that.
But all is not lost if you have poor credit and need a debt consolidation loan for non-homeowners...
Last Resort Measures To Get a Loan Outside of P2P Lending
As you've seen. Debt consolidation loans for non-homeowners is very simple to get through peer-to-peer lending sites. But if poor credit stops you from being able to take advantage of P2P loans don't give up.
You could be eligible for a debt consolidation loan....
If you've taken up some measures like credit counseling. Fixed a budget and can prove that you've learned to stick to it.
1. If you have life insurance coverage for which you have paid the premiums regularly for last 10 years or more than this is often considered to be an asset. This kind of insurance builds cash value over time. These policies can often serve as collateral that you can loan against.
2. If you can find a co-signer who can vouch for you if you default. If he/she is a person with good credit and assets that exceed the amount of your desired loan amount then you are eligible to get a debt consolidation loan.
3. If you own any other mobile assets like motor homes, boats, motorcycles, RVs, old coins or stamps or other assets like stocks, bonds, etc. that have a value equal to more than the loan amount you need then you can get a debt consolidation loan from the agency you have applied to.
4. If you have exhausted all other options bankruptcy could be a last resort to get a debt counseling service if you don't own a home to offer as collateral. You can also try to negotiate with your current lender to agree on an easier repayment option. Debt negotiation is done through the help of a professional counselor and a financial advisor.
So the issue practically boils down to placing collateral that the agencies look at before they'll grant you the debt consolidation loan. This collateral is the way to protect themselves from their risks in case your loan defaults or goes delinquent. If you lose your ability to pay back the collateral is pledged to compensate for this loss.
How to Qualify for an Unsecured Debt Consolidation Loan From Avant
A new Avant borrower must be a U.S. resident in a state where Avant loans are available, and must have a bank account, a Social Security number, and a credit score of at least 580. Avant uses Experian to get borrower credit scores. Depending on your qualifications, approved borrowers can request unsecured loans from $1,000 to $35,000. Getting a loan quote is very simple, they pay out loans in up to 24 hours and you can have a loan quote in less than 5 minutes.