If you have multiple types of debt, it might be in your best interest to consolidate them all into one monthly repayment. One of the main advantages of doing so is that you have just a single monthly repayment to make. If you have a less than perfect credit score you might be looking for debt consolidation loans bad credit no guarantor. So is it possible to get debt consolidation for bad credit without the need for a guarantor?
Why Choose Debt Consolidation Loans
There are many benefits of debt consolidation loans and you might want to consider applying for such a loan in the following circumstances:
- If you can get a debt consolidation loan with a lower rate of interest than what you are paying on any current loans or credit cards;
- If you have more than two forms of debt on unsecured loans, credit cards or store cards;
- If you plan on cutting up any store cards or credit cards once you have transferred the debt to a consolidation loan. In other words, you will not start using the credit cards or store cards in the future;
- You can afford the repayments of a debt consolidation loan;
- You have taken into account any fees or charges that may be applicable. This could be for the new loan or by paying off the existing credit cards or loans early.
Reasons Where It Would Not Make Sense to Take Out Consolidation Loans
Just as there are many reasons above why it might make sense to take out a debt consolidation loan, there are factors where it would not make sense. These include:
- If you are unable to clear off all debts you owe with one consolidation loan;
- The APR on the loan is more expensive than what you are paying now;
- You would continue to use your credit cards or store cards to make purchases and rack up more debt on them;
- You need to take the loan out over a longer term than any of your current debts as this would add on more interest and you might end up paying more over the long run.
Is There Such a Thing As Debt Consolidation Loans Bad Credit No Guarantor?
By now, you should have worked out whether this type of loan is suitable for your needs. The next thing you might be wondering is whether it’s feasible to get a loan without a guarantor if you have a bad credit rating.
It may be possible to obtain a loan with a bad credit rating but there is never any guarantee. UK lenders do check everyone’s credit rating, as they have to do by law. However, some only make soft checks while others look into your credit file more deeply. While you might feel that this is not good news if you have a bad credit rating if you search for loans with our help we can match you with lenders who consider your current circumstances more than the past.
There is certainly such a thing as no guarantor loans. Guarantor loans can be intrusive on relationships and friendships. You can apply for a personal loan to consolidate your debts and pay one monthly sum to clear just one combined debt without the need to ask a guarantor.
Debt consolidation loans bad credit no guarantor are one way to become debt free by combining all of your existing debts into one affordable monthly repayment. We can help you find lenders who consider your verifiable income more than your credit rating. Our lenders offer numerous affordable loan options with competitive rates.