7 Tips For Consolidating Debt On Poor Credit

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.