Undeniably, debt can feel like a heavy burden, especially when combining multiple high-interest credit card bills or personal loans. Fortunately, debt consolidation may offer some relief. By rolling multiple debts into one new loan, you can simplify payments and potentially save money on interest.
Lendmark is one lender that provides consolidation loans to borrowers looking to take control of debt. But how does Lendmark debt consolidation work, and could it be right for your situation? This post will cover the key details on Lendmark consolidation loans to help you decide.
What is Lendmark?
Lendmark Financial Services is a subsidiary of Banco Popular that specializes in installment loans and debt consolidation options. Headquartered in Georgia, Lendmark operates about 280 branches across 20 states.
The company focuses on serving borrowers with less-than-perfect credit who want to improve their financial health. Along with loans, Lendmark provides credit education and counseling to help clients gain financial independence.
Lendmark Debt Consolidation Loan Options
One of Lendmark’s flagship products is their debt consolidation loan. This type of loan lets you roll multiple unsecured debts into one new loan with Lendmark.
Some key features of Lendmark consolidation loans include:
- The Loan amounts you can borrow is from $2,000 to $25,000 with a Lendmark consolidation loan.
- Interest rates range from 7.99% to 35.99% APR, depending on your credit profile. Loan terms are available from 24 to 60 months.
- You can consolidated you debts into one single monthly payment. By consolidating debts into one loan, you’ll have a single monthly bill to pay to Lendmark instead of multiple payments to different creditors. This can simplify the repayment process.
- If you’re able to qualify for a rate below what you currently pay, particularly on credit card balances, a Lendmark consolidation loan could save you money on interest charges.
- You enjoy improve credit with time. Making on-time payments on the new loan may also help boost your credit score over time.
What Are The Requirements?
To qualify for a Lendmark consolidation loan, there are a few requirements to meet:
- The minimum credit score varies by state, but often borrowers need a FICO score of 550 or higher. Those with very poor credit are unlikely to qualify.
- You must have steady income from employment, benefits, retirement, or other sources. Debt-to-income ratios are typically capped at 50%.
- To take out a loan, you must be a U.S. citizen or permanent resident, at least 18 years old, and have a valid ID, checking account, and contact information.
Meeting the minimum standards above is no guarantee of approval. Lendmark will closely evaluate your income, existing debts, and credit history when making a decision.
How to Apply for a Lendmark Debt Consolidation Loan
You can choose from three options to apply for a debt consolidation loan with Lendmark:
- Online – Complete the application form on Lendmark’s website. You’ll need to provide contact info, employment details, income, and expenses.
- By phone – Call 866-934-7554 to apply over the phone. Have your financial information handy.
- In branch – Visit a Lendmark branch near you to apply in person. Over 280 locations are available across 20 states.
No matter how you start the process, Lendmark will request documents to verify your identity, income, and current debts. This may include recent pay stubs, W2s, account statements from creditors, a valid government-issued ID, and bank statements.
Many branch applicants receive a lending decision the same day. Online and phone applications typically get a decision within 1-2 business days.
What Can Lendmark Debt Consolidation Loans Be Used For?
These loans are designed to consolidate multiple unsecured debts that meet eligibility requirements, such as:
- Credit card balances.
- Payday loans.
- Personal loans from banks/online lenders.
- Medical bills.
- Utility bills.
However, Lendmark consolidation loans cannot be used for just any expense.
Ineligible uses include:
- Federal or private student loans
- Auto loans or leases
- Mortgages or home equity loans
- Business expenses
The goal is to specifically help consumers combine high-interest, short-term debts into an affordable long-term loan with a single monthly payment.
Pros and Cons of Lendmark Debt Consolidation
Before applying for a Lendmark consolidation loan, weigh the potential benefits and drawbacks:
Pros
- Lower interest rate – Depending on your current debts, your new loan could have a much lower rate, saving substantially on interest.
- Simplify payments – Make one monthly payment to Lendmark instead of keeping track of multiple bills.
- Improve credit – Making on-time payments shows creditworthiness and may boost your credit scores.
- Fixed regular payments – Your monthly bill stays consistent over the loan term, which helps budgeting.
Cons
- Origination fees – Lendmark charges origination fees of around 6% of the total loan amount.
- Credit check required – Applying involves a hard inquiry on your credit report.
- Collateral may be required – For larger loans, Lendmark may request you put up collateral.
- High rates for some – If credit is poor, an APR over 20% is possible. Other lenders may offer lower rates.
As with any financial product, there are tradeoffs to evaluate. Make sure the pros outweigh the cons for your situation.
Lendmark Debt Consolidation Reviews
Feedback on Lendmark is mixed, based on customer reviews on sites like Trustpilot. Here are some common themes:
- Interest rates are high for some borrowers, especially those with poor credit. This results in higher payments.
- Meeting Lendmark’s credit score and income requirements can be challenging for applicants with troubled finances.
- Many customers highlight Lendmark’s helpful and friendly customer service. The loan process is generally smooth.
- Numerous reviewers say the consolidation loan significantly simplified juggling multiple monthly bills.
While experiences vary, many Lendmark customers achieve their goal of consolidating debts into one manageable payment. Interest rates are often lower than credit card rates but higher than top lenders. Review loan costs carefully before committing.
Lendmark Debt Consolidation Alternatives
Lendmark isn’t the only option for debt consolidation loans. Some top alternatives to consider include:
- Avant
Offers unsecured personal loans up to $35,000 with APRs from 9.95% to 35.99% and terms up to 60 months. Minimum credit score is 580.
- Lightstream
Provides consolidation loans up to $100,000 with fixed rates from 5.49% to 19.49% APR and flexible loan terms. Requires good to excellent credit for approval.
- Upgrade
Unsecured loans up to $50,000 are available with APRs ranging from 5.94% to 35.97% and 24- to 84-month terms. Credit score requirements start at 560.
Other potential debt payoff strategies include balance transfer credit cards, nonprofit credit counseling, or enrolling in a debt management plan. Evaluate all options to pick your best course of action.
Conclusion
Rolling high-interest debts into a Lendmark consolidation loan can simplify payments and potentially save on interest charges. However, understand loan costs, credit impact, eligibility, and alternatives before moving forward.
Carefully weighing the pros and cons will help determine if Lendmark debt consolidation is the right debt relief option for your needs. To start the pre-qualification process and view customized rates, visit Lendmark’s website or stop by a branch today.
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