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Find Answers to Common Questions About Personal Loans, Debt Consolidation, and Debt Modification

Welcome to our FAQ section! Here, you’ll find answers to frequently asked questions about our debt relief programs, including eligibility, benefits, and how they work. If you need more details, our experienced financial consultants are always ready to assist you.

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General FAQs

  • What credit score do I need to qualify?

    At Smart Path Capital, we believe your financial situation is more than just a credit score. While traditional lenders may have strict credit requirements, we work with a variety of clients—many with credit scores ranging from 400 to 700. If you’re unsure about your eligibility, we encourage you to apply risk-free and explore your options.

  • How soon will I get a decision?

    Most applicants receive a response within 24–48 hours. In some cases, we may contact you sooner to verify details and ensure we find the best solution for your financial needs.

  • What if I don’t like the terms offered?

    We offer multiple options with different terms and payment plans. If the initial offer doesn’t meet your needs, we can explore other available options. If none fit your budget, you are under no obligation to proceed. Feel free to reach out anytime to check for updated offers.

  • Will applying affect my credit score?

    No. Our application process includes a soft credit check, which means applying won’t impact your credit score. A hard credit inquiry is only conducted if you accept an offer.

  • Are there any fees to apply for a debt relief program?

    No, applying is completely free, and there are no upfront fees to explore your options.

  • Can I still qualify if I have late payments or accounts in collections?

    Yes, even if you have late payments or collection accounts, you may still be eligible for debt consolidation or modification programs.

  • What types of income do you consider for approval?

    We consider various income sources, including employment wages, self-employment income, Social Security, and other verifiable sources.

Debt Consolidation FAQs

  • Will consolidating debt affect my credit score?

    Debt consolidation can improve your credit over time by simplifying repayment and lowering your credit utilization. While the loan itself won’t immediately reduce your total debt, making on-time payments and reducing balances can positively impact your credit score.

  • Is it difficult to qualify for a debt consolidation loan?

    Eligibility depends on factors like credit score, income, and debt-to-income ratio. While banks may require excellent credit, many online lenders offer flexible options for individuals with fair or even poor credit.

  • How can I combine all my debts into one payment?

    A debt consolidation loan merges multiple unsecured debts—such as credit cards and medical bills—into a single loan with a fixed interest rate and a structured repayment schedule. This approach simplifies payments and can reduce interest costs.

  • What are the benefits of a debt consolidation loan?
    • Lower interest rates compared to credit cards
    • A single, fixed monthly payment instead of multiple bills
    • A clear payoff timeline, making it easier to become debt-free
    • Potential savings on interest and fees over time
  • How does a debt consolidation loan work?

    Debt consolidation allows you to pay off multiple debts by securing a fixed-rate loan that replaces your existing obligations. You’ll make one predictable payment each month, and with set repayment terms, you’ll know exactly when you’ll be debt-free.

  • Can I still use my credit cards after consolidating my debt?

    In most cases, once your balances are paid off through a consolidation loan, your existing credit lines will remain open. However, using them while repaying your loan could impact your debt-to-income ratio and ability to stay debt-free.

  • What happens if I miss a payment on my debt consolidation loan?

    Missing a payment could result in late fees and negatively affect your credit score. We recommend setting up automatic payments to avoid this.

  • Does consolidating debt stop collection calls?

    Once creditors are paid off through the consolidation loan, collection calls should stop. However, if you have accounts in collections that are not part of the debt consolidation, those creditors may still attempt to contact you.

Debt Modification FAQs

  • What is debt modification?

    Debt modification, also called debt negotiation, is a strategy that reduces what you owe on credit cards, medical bills, and personal loans by negotiating with creditors for a lower payoff amount.

  • How do I qualify for debt modification?

    You may qualify if you’re experiencing a financial hardship that prevents you from making your full payments. You’ll also need a steady income to contribute toward a modified repayment plan.

  • Can debt modification really help me?

    Yes! If you’re struggling with high-interest debt and unable to make progress due to overwhelming balances, debt modification could significantly reduce what you owe and help you regain financial stability.

  • How does the debt modification process work?

    We negotiate with your creditors to lower the total amount you owe. Instead of repaying the full balance, the creditor willmodify the terms of the contract allowing you to pay a reduced amount, potentially saving you thousands of dollars.

  • Is debt modification better than bankruptcy?

    In most cases, yes. Debt modification allows you to resolve your debts privately, without the long-term consequences of bankruptcy. Unlike bankruptcy, which stays on your credit report for up to 10 years, debt modification is not publicly recorded and has a much smaller impact on your credit score.

  • Are there upfront fees for debt modification?

    No. At Smart Path Capital, you pay nothing upfront. We only get paid after we successfully reduce your debt and secure a more affordable repayment plan.

  • Can credit card debt be negotiated?

    Yes! Credit card companies often accept lower payoff amounts through debt modification programs. Our team will work to secure the best possible reduction on your behalf.

  • How long does debt modification take?

    The negotiation process varies but typically takes 3 to 6 months to finalize the first settlement with creditors.

  • Will creditors continue to contact me during the negotiation process?

    Creditors may still attempt to contact you until a settlement is reached. However, once agreements are in place, collection efforts should stop.

  • Does debt modification affect my ability to get new credit?

    Debt modification can impact your credit score, but many people see improvement over time as they settle accounts and reduce overall debt.

Personal Loan FAQs

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REPRESENTATIVE EXAMPLE OF APR

If you borrow $30,000 over a term of 5 years (60 months) with an APR of 4.99% you will pay $566.00 each month. The total amount payable will be $33,959.97, with total interest of $3,959.97.

ANNUAL PERCENTAGE RATE (APR)

Annual Percentage Rate (APR) represents the annualized interest rate you are charged for borrowing. It is the combination of the nominal interest rate and some additional costs such as fees involved when incurring debt. Our lender offers APRs for personal loans, cash advance loans, installment loans and debt consolidation loans from 4.99% to 35.99%. Since New Start Capital does not directly issue loans, we cannot deliver any specifics or guarantee the APR you will be offered. The APR depends solely on your lender’s decision, based on various factors including your credit score, credit history, income, and some other information you supply in your request. For more information regarding the APR contact your lender.