SunTrust Debt Consolidation Review

SunTrust is a popular banking institution with branches in 11 states across America. Though it’s in the process of implementing a merger with BB&T, creating Truist Bank, services at SunTrust are still available. Together, they offer banking and lending services to thousands of individuals and associations around the country.

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    Rather than struggle with various outstanding debts, see if you can bring them all together into one affordable monthly payment.

    Terms, Fees, and Rates 2020

    Loan Amounts

    $100,000

    Loan Terms

    Between 24 and 84 Months

    Rates APR

    Between 3.49% to 19.99%

    Min. Credit Score

    660

    Late Payment Fee

    N/A

    Origination Fee

    N/A

    Pros

    • Very quick application process. You could be approved and have your debts consolidated on the day you apply
    • No fees are charged for consolidation
    • Consolidate up to $100,000 of debt
    • Satisfaction guarantee. If you’re not completely happy, SunTrust will give you $100 cashback
    • Flexible rates and repayment options

    Cons

    • Strict credit score criteria. As well as needing a minimum 660 score, it has a number of additional credit requirements you’ll need to meet
    • Some interest rate offers can be quite high

    Why Should you Consolidate Your Loans with SunTrust

    If you’re struggling with the interest rates on your current debts and are looking to consolidate, you’ll be in a safe pair of hands. The bank has been in operation since 1891, and now has a subsidiary company dedicated to personal loans and debt consolidation, meaning your case will be handled by specialists.

    It even provides free resources and advice on debt consolidation and a debt calculator via its website. This way you’ll be able to check that consolidation is the right step for you and whether you can save money or not. You can expect the following terms when you consolidate with SunTrust:

    • Interest rates between 5.95% and 20.49%
    • Repayment terms between 24 and 84 months
    • No fees
    • Same day funding available on some applications
    • Consolidate between $5,000 and $100,000
    • A 0.25% reduction to your interest rate if you repay your debt from a checking account
    • If you choose to be invoiced for monthly payments, you’ll have multiple repayment options available
    • SunTrust aims to beat any interest rate offered by a rival lender by at least 0.10%
    • Satisfaction Guarantee - If you’re not completely happy with the debt consolidation process, it’ll give you $100 cashback

    Before you consolidate your debts you should use the rate calculator to check if you’ll actually be saving money. It’s sometimes the case with debt consolidation that even if you get a lower rate, you might be paying more in the long run.

    The rates will change depending on how much you want to consolidate and for how long. 

    For example, to get the lowest rates you’ll need an excellent credit score, must consolidate between $10,000 and $24,999, and repay the debt in full within 36 months. These terms can be difficult for some to meet, so we’d recommend talking to customer services before you apply if you’ve got any concerns.

    We’d recommend not only looking at your current monthly payments but also how much you still need to pay over the lifetime of all of your loans. Then, put the total amount into the calculator to see if you’ll be saving money, and can afford the new terms.

    It’s also worth shopping around for other rates, as SunTrust runs a Rate Beat Program, meaning it’ll better any offer you might find with another lender by 0.10%, guaranteeing you cheaper payments.

    LightStream consolidation loans by SunTrust

    Anyone in need of a consolidation loan will be directed to the LightStream website, which handles all online lending as a division of the Truist merger. Though it’s a separate entity, you get great service and support from one of the most popular banking institutions in the US. The loans are ideal for anyone that needs to combine multiple debts into one manageable monthly payment. Some key features of lending through LightStream include:

    • Low interest rates
    • Flexible lending terms
    • No early repayment/origination fees
    • No missed payment charges

    What are the Eligibility Requirements

    The lender doesn’t have a lot of hard requirements; as long as you’re a US citizen and aged 18 or over, you can apply. However, the service is catered towards those with good credit and you’ll find the following strict criteria:

    • A minimum credit score of 660
    • Good payment history with no delinquencies
    • A long history of good credit. You’ll need to evidence at least five years’ worth of good credit to get the lowest rates
    • Evidence of your ability to save. This can be from a retirement pot or a general savings account
    • Multiple different types of accounts in your credit history. e.g. mortgage, credit cards, auto loans, etc
    • Evidence that you have enough income to pay your existing debts. This will come from your recent pay stubs

    These terms might be a little restrictive for some people. It can often be the case that those looking to consolidate their debts have poor credit or are in financial trouble. The reason many seek to consolidate is that they are stuck with a high interest rate from another lender due to a poor credit score.

    This means that if you still have poor credit, it won’t be for you. It’s always worth speaking to the customer helpline to see if there’s anything that can be done. Bear in mind, though, that if you apply for a loan, you’ll be subject to a hard pull on your credit report, which could make your score worse if you get rejected.

    How to Apply for a SunTrust Debt Consolidation Loan

    The application process is incredibly easy to follow and can be completed online in just a few steps. In most cases, it’s able to give instant approvals and you’ll be funded on the same day. If you’d prefer to apply in person, you can also arrange an appointment at one of 1,400 branches located across the South Eastern United States. The application steps are as follows:

    Step 1

    Fill in some basic information on the loan amount and how long you want to consolidate. This will give you an estimated rate.

    Step 2

    Add your personal details, including home address and social security number.

    Step 3

    Confirm your employment and income details.

    Step 4

    Fill out your monthly costs.

    Step 5

    Include how much you have in other savings accounts.

    Once you click submit, you’ll be subject to a hard credit check, so make sure you meet all of the strict credit requirements before you apply. If you’re still unsure, Suntrust links to its requirements at the start of the application form.

    The application can be completed in just a few minutes, and you could have your debts consolidated and transferred within the hour. 

    Customer Service

    There’s a resource center section on the website that has a number of articles on personal finance advice if you have any initial questions on debt consolidation.

    The lender also has a help center with comprehensive FAQs and troubleshooting sections on all aspects of its services. If you can’t find the answers you’re looking for, you can call directly through its helpline.

    You can also sign up for online and mobile banking where you can manage your loan and contact via email if you need to.

    What Types of Debt can be Consolidated with SunTrust 

    Consolidation loans are typically used to refinance credit card debts, and this is the most popular option. However, you’re not limited to credit cards and can consolidate almost any type of personal debt, including auto loans, home improvement loans, medical bills, and general personal loans.

    Many people that consolidate will have debts from multiple sources. The idea is that they can get a better interest rate overall by pooling them all into one monthly payment. 

    As an alternative to debt consolidation, SunTrust also offers home equity lines of credit (HELOC). This type of loan allows you to borrow against the remaining equity in your house, which can then be used to pay off your existing debts. That way, you’ll only be repaying off one loan instead of multiple ones.

    This won’t be an option for you if you still have a large outstanding mortgage on the property since the lender will only offer a maximum loan to value of 70%. You should also be aware that if you choose to refinance using a HELOC, your home will be used as collateral and will be at risk if you don’t keep up the payments. 

    The Bottom Line

    Consolidating your debts is a great way to help save you money and better manage your finances. Applications are hassle-free and can be completed, approved, and finalized all on the same day. You’ll also be able to consolidate just about every type of personal loan debt you can think of since SunTrust offers flexible interest and repayment options to choose from.

    It’s ideal if you have debts from multiple different sources and are looking to simplify your finances with one monthly payment.

    The only downside is its very strict credit criteria. It will only lend to those it feels have a very high likelihood of paying off the loan in full. At the very least, you’ll need a good credit rating but even then, you may not meet the other criteria. If you have poor credit or are unable to evidence any other types of savings, it won’t be for you.

    Frequently Asked Questions (FAQ)

    What is the difference between SunTrust and LightStream?

    LightStream is a division of SunTrust, which recently merged with BB&T to create Truist. LightStream is the bank’s online lending arm.

    Can I consolidate a student loan with SunTrust?

    Student loans are just one of the many forms of debt that can be consolidated through SunTrust.

    Can I apply for a SunTrust debt consolidation loan online?

    SunTrust offers a pain-free lending experience since all loans can be applied for online via the LightStream website.

    How long does it usually take to get a decision?

    All applicants will have their decision within a few minutes and payments can be deposited on the same day.