Many of us have a
mound of debt that we don’t know how to repay, and it can be hard finding a
debt consolidation solution when you have bad credit. If you have problems
repaying your debts, you may have done damage to your credit score, and it’s
for this reason you need a consolidation loan – but this could also be the
reason that you are battling to get one. Let’s look at a few resources that can
help.
Credit Scores and Debt
Consolidation Loans
Did you know that you
can use debt
consolidation loans from Debt Fix to pay off your debts and replace them with just a
single loan? By doing so, you can lower your monthly payments or even seek a
cheaper interest rate. However, qualifying
for another loan when you have poor credit can be tricky. You may need to
accept a few trade-offs to secure your loan, such as loan fees, higher interest
rates, or limited options in terms of loan types.
Consolidating Student Loans
If you
are trying to consolidate your student loans, you are in luck. Overall, these
loans are harder to get rid of compared to other debts, and it makes them a lot
less risky for lenders. For borrowers, it means more flexible and often lower credit
requirements to qualify for a consolidation loan.
Lenders that offer lower credit score minimums
If
you’re looking to consolidate
your loans, and you have a poor
credit rating, take note that different lenders usually have different credit
requirements and there are many who may be willing to consider you.
Secure a Co-signer
Many
lenders out there will not offer consolidation loans for people with poor
credit, but they may well approve your loan application if you have a
co-applicant who has good credit. In order to get a co-signer for your loan,
you will need someone who is willing to co-sign for you, and a lender who
accepts co-signers. Ask your partner, or a family member who has good credit to
co-sign the loan for you and you may have a much better chance of approval for
your debt consolidation loan.
Talk to a credit union
Credit
unions at considered not-for-profit financial institutions at serve the
community. The unions often offer debt consolidation loans for people with poor
credit ratings, and you may well secure a low rate.
Non-profit consolidation
There
are a few non-profit organisations that help people get out of debt when their
credit rating is bad. They usually offer free debt assistance and credit
counselling.
A secured loan
If you
have a few assets, consider borrowing against them with the help of a secured
loan in order to consolidate your debts. With such a loan, your asset, like
your car, is collateral the lender uses to guarantee your loan.
Try again later
Finally,
spend the time repairing your credit rating and then try again for a debt
consolidation loan. If you’re able to raise your score even a few points, you
may improve your chances of approval for a loan.
Those are tips on how
you can consolidate your debts even when you have bad credit score. Don’t
hesitate to consult experts about your financial situation.
