How to Get a Debt Consolidation Loan with Poor Credit

Debt consolidation loans can be a good idea if you have a lot of different types of debts hanging over your head. Consolidating all your loans into a single lender and interest is often sought for. But the problem begins when you have a bad credit score. 

A FICO score (ranging between 300 and 850) below 579 is considered poor. When you have a credit score that’s bad or below average, your options for getting a debt consolidation load decreases. But there are always some options available and if you are looking for a credit card consolidation loan for poor credit, you can connect with us. We specialize in debt consolidation loans and weigh factors besides your credit scores in qualifying for a loan.

So, what to do when you have a bad credit score and you still want a debt consolidation loan. There are options available and we are going to discuss them here.

Check Your Credit Score

Typically, if you have a low credit score, be prepared to pay a high interest rate that the loan provider will ask for. The lender would have some credit score requirements which are typically in the range of mid-600 and if you qualify, you’ll get your required loan. Some lenders who deal with consolidation loans with bad credits can offer you a loan even with a score of as low as 580.

So, it’s always important to know what your credit score is. For that, you can use free tools that many banks provide. With these tools, you can easily check and monitor your credit score. Once you know your credit score, now it’s time to identify the lenders who are willing to work with you. Many lenders also list their credit score requirements on their websites. So, narrowing down your search would be easier. 

Look for Lenders

Do your research and compare loan amounts, terms of repayment, and the fees charged from multiple sources. Do your math carefully and narrow down your search for lenders who can help you best. This process will consume some time but it’s worth it. You may be able to save a lot when you know what you are doing. 

Consider a Secured Loan

Typically, debt consolidation loans come as unsecured loans meaning they don’t need collateral. But if you are having a hard time getting a loan with your poor credit, you can consider a secured loan. A secured loan is a loan that requires some sort of collateral, usually an asset of yours, like your house or vehicle. As the loan is tied to collateral, it’s easier to get a secured loan and you may even get better interest rates.

Improve Your Credit

It’s also a good move to wait for some time and improve your credit score. Within this period, you can make it your goal to pay your monthly debts in time and doing that multiple times in a row. You can also try to pay down credit card balances and eliminate all non-essential monthly expenses. 

This is how to get a debt consolidation loan even with bad credit. Usually, it’s a good idea to wait for some time and improve your credit score and then search for lenders who would not only look at your score but will also consider your recent efforts.

If you are looking for a credit card consolidation loan for poor credit, you can approach us. We specialize in debt consolidating loans and would hopefully be able to help you even if you have bad credit. 

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