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9 Oct 2019

Are Debt Consolidation Loans Bad Credit no Guarantor Needed Hard To Find?

Having several different types of credit to juggle each month can make life stressful. Luckily, you can merge different forms of credit into one affordable loan to make life much easier. However, what if your credit rating is less than perfect. Are debt consolidation loans bad credit no guarantor needed hard to find? Let us look at the options.

The Types of Debt You Can Consolidate

The types of debt that can usually be consolidated include:

  • Credit cards;
  • Store cards;
  • Loans.

By consolidating outstanding debts that have a high APR you can save money providing you take out a loan with a lower APR and repay the loan over a shorter period than your existing debts.

Your Credit Rating, Loan Affordability and Verifiable Income

If you want to borrow a large sum of money to clear off debts, lenders will want to look at your credit rating. You cannot get around this fact. However, at the same time lenders will take into account:

  1. You now might be in a better financial situation than when you obtained your poor credit score.
  2. You might now have a regular monthly income and a loan might be affordable.

Therefore, lenders will also consider loan affordability and verifiable income alongside your credit rating.

How easy it is to get a consolidation loan with bad credit is going to depend on how much you need to borrow. Lenders are more likely to offer smaller sums of money than larger ones to someone with a less than perfect credit score.

Types of Debt Consolidation Loans Bad Credit No Guarantor Required

There are a couple of different loan options available if you need a loan without a guarantor and your credit rating is poor. The most suitable will depend on how much you want to borrow. They are:

  • Secured Loans;
  • Short-term loans.

Secured Loans for Borrowing Large Sums

If you have many thousands of pounds in outstanding debts, you might be able to cover them with a secured loan. You might be able to get an unsecured loan, generally called a personal loan, if your credit rating is not too poor but this would be down to the lender.

With the secured loan, you put something of value up against the loan, such as your home or vehicle and this is collateral in case you fail to make the loan repayments. The risk is of course that you can lose your collateral if you cannot pay the loan off.

The loan can be spread out over several years but you do need to make sure that you do not spread the loan out for longer than any of your existing debts and the APR is lower than that of existing debts.

Short-term Loans for Lower Sums

If you have relatively small debts that you want to consolidate, that do not add up to more than £1,000, you might be able to apply for a short-term loan.

Short-term loans do not need a guarantor and they do not need anything secured against the money you want to borrow. This type of loan is usually easier to find approval for with a poor credit rating due to lenders considering it only a small sum of money.

Applying Online Is Fast and Easy

Applying for a loan online is the fastest and easiest way to apply for any loan.

We work alongside a large panel of lenders who offer numerous loan options and who do consider verifiable income not just credit ratings. The benefits of applying with our help are:

  • It takes minutes to make an application;
  • You access a large panel of ethical lenders;
  • Lenders offer competitive rates;
  • You get an instant decision;
  • The whole application is made online;
  • You can compared loans;
  • You can check the details of a loan before signing up;
  • The money from the loan is paid into your bank account.

Make your online application for debt consolidation loans bad credit no guarantor required today to enjoy all of the above benefits and more.