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Legitimate Debt Consolidation Loans (BBB Accredited)

Do you want to get a new loan that will help you save money, pay off your existing debt faster, obtain a lower interest rate, or reduce your overall monthly payment amounts?

Working with legitimate, law-abiding and trustworthy lenders is the best way to avoid the risks of being exploited, overcharged, scammed, or ripped off.

The following list provides information about debt consolidation loan providers that were approved by the Better Business Bureau, after being thoroughly reviewed by the national consumer organization and successfully meeting all their strict requirements.

Legitimate Debt Consolidation Loans (BBB Accredited)

Upstart

Payoff

Prosper

LendingClub

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Overview

Throughout the course of their lives, many individuals accumulate debt with a variety of creditors.
Common types of such financial obligations may include outstanding credit card balances, medical bills, payday loans, and other unsecured debts.

Debt consolidation is the process of borrowing one bigger loan to pay off multiple, smaller loans, in order to save money, becoming better organized and getting back on the right track towards better financial health.
The central idea behind this strategy is to combine — or consolidate — several high-interest loans with different terms (often from different lenders) into a single one, preferably with more favorable terms.

The key benefits of consolidating debts are single monthly payments and fixed interest rates, which make this loan much simpler to track and manage effectively.
Additionally, the new loan can potentially offer lower monthly payments by acquiring a longer term length.

Since more and more people have trouble getting a debt consolidation loan through conventional channels, such as banks and credit unions, many look for good alternative options online.
One of the popular ways to bypass this hurdle and borrow money in order to handle a complex web of bills is by taking a private debt consolidation loan, obtained in the free market.

Consumer Tips: How to Avoid Debt Consolidation Loan Scams Online

Just like any other field that involves consumers who are under a heavy burden of debt and commercial financial services, the debt consolidation sector also has its fair share of scammers, fraudsters and cybercriminals that operate online and look for potential victims.

Scammers use a variety of illegal, unethical or other dishonest ways to take advantage of people who are desperate to get out of debt, conning them out of their money.

Some of these fraudulent operations are running typical advanced fee loan scams that ask unsuspecting applicants for some sort of upfront payment (sometimes described as “processing fees”) before the loan is approved.
Needless to say, the loan is never approved and the scammers simply take the borrower’s money and run.

Other companies mislead their clients and claim to offer them debt consolidation services.
However, instead, they aggressively push debt management and debt settlement solutions – counting on the consumer’s lack of sufficient financial knowledge.

Taking the following steps will help you find credible and reliable companies and handle your debt in a safer way:

Be Wary of “Too Good to Be True” Claims or Guarantees

Legitimate lenders simply can’t guarantee that applicants will qualify for a loan without analyzing their financial information first.
This individual information includes income, credit score, and other personal financial data.
If you see such a guarantee, move elsewhere.

Investigate the Debt Consolidation Lender BBB Record

Check the company’s record on the Better Business Bureau’s website.
What you’ll find there, will help you to evaluate whether it’s a legitimate lending business that deserves your money and trust or if you need to look elsewhere.

Look for the current BBB rating, customer reviews, complaints, warnings and alerts on their business profile.
In addition, learn how long it has been in business – a potential indicator of experience and reputation.

If the business is not even listed with the BBB, this is a very bad sign.
On the other hand, if the company is certified as a BBB Accredited Business, it’s an important positive signal.

Pay Close Attention to Red Flags

Learn how to better protect yourself when ordering goods and services on the internet, in order to avoid scammers and keep safe in general.
Knowing how to check if a website is legitimate or not is the first line of defense.