If you have numerous debts and a poor credit rating, you might think that consolidating your debts is out of reach. However, this might not be the case. There are lenders out there who do consider people with poor credit. If this sounds like something you might be interested in doing, you might consider applying for debt consolidation loans bad credit considered.
How to Improve Your Chances of Getting a Loan
Not all lenders are equal. The lenders on the high street generally will not give you the time of day if you have a poor credit rating so this is not the best approach for a loan.
Your chances of obtaining a consolidation loan may improve however if you look online for a loan. Again, there is a wrong and a right way to go about searching for a loan, or should we say an easy and hard way.
The More Difficult Way
The hard way would be to make a search for yourself. We think this is the more difficult way of obtaining a loan and the downsides include:
- You have to hope that you come across a lender who is willing to consider your application;
- Unless you are very lucky you might have to make multiple loan applications;
- You can spend a lot of time and time that is wasted;
- If you make multiple applications, they are noted on your credit file and can go against you.
An Easier Solution
An easier solution might be to go through us to find a loan. We do not lend money ourselves. Instead, we work with a panel of UK lenders who consider all circumstances. The benefits of allowing us to match you with a loan include:
- Make one application for us to search with multiple lenders, boosting your chances of finding approval;
- Making an online application is fast and easy;
- You get an instant decision;
- Lenders we work with will consider all circumstances including basing their decision on verifiable income;
- You get access to some of the most competitive rates on loans for your circumstances;
- If approved money could be paid into your bank account within hours.
Why Do Some Lenders Consider Offering Debt Consolidation Loans Bad Credit?
Some lenders, such as the ones on the panel we work alongside realise that your circumstances might now be a lot different to when you earned a bad credit rating.
They know that you might now be more financially responsible and be in a better position to repay a loan despite the fact that you still have a poor credit rating.
Perhaps you now have a good income paid monthly into your bank account and you know that you can afford the loan without issues. Some lenders will consider this and look into your income and outgoings to determine if the loan is affordable. They will still look into your credit rating but how deep they look depends on how much you want to borrow.
What Is A Debt Consolidation Loan?
A debt consolidation loan is a loan that can be taken out to cover existing debts and pay those debts off so you have just one monthly repayment to make.
You can combine many types of outstanding debt into just one loan, which makes life a lot easier than having to remember to have money in the bank to pay off several loans or credit cards each month.
Debts where a consolidation loan can be used, include credit card, store card, personal loans and other types of loans.
Before looking for debt consolidation loans bad credit considered, you do have to check to make sure that any debts you want to pay off do not have early repayment clauses in them. This is a clause where you would have to pay a fee to pay the debt off early. In this case, the fee might mean considering consolidation loans for bad credit is not a good idea.
Another thing to think about when considering a loan to clear other debts is the APR and the length of the loan.
You need a loan with an APR that is lower than your existing debts. If you take a loan out with a higher APR, it is going to cost you more to borrow.
The length of the loan is something to consider, as you do not want to take out a consolidation loan over more years than you would have paid any existing debts. Again, if you take a consolidation loan out over a longer-term, while the monthly repayments may be lower, you will pay more overall.
Do I Have to Meet Any Requirements?
All loan applications come with some basic requirements that people have to meet. These include:
- Having a regular monthly income;
- You need to be at least 18 to apply for a loan in the UK;
- You should hold a bank account;
- A debit card should be attached to the bank account;
- The bank account should accept direct debit repayments.
The Benefits of Consolidating Debts
There are many benefits of consolidating debts and here we are going to look at some of them.
- If you have several monthly repayments to make, at different times of the month, you might have to juggle money to repay them. This is not applicable to just one loan.
- If you forget about a repayment fees are added on along with a black mark on your credit rating. With a consolidation loan, you only have one repayment to make.
- With a consolidation loan, you use the money to pay off all other debts and have a single repayment to make each month. Life becomes less stressful.
- If the loan has a lower APR than your other existing loans, you can save month after combining all other debt and paying it off.
- Other debts show up on your credit file as being paid off, which is in your favour.
If you want to apply online for debt consolidation loans bad credit considered, apply with our help. We may be able to match you with a lender offering one of the best rates for your circumstances and affordable loan options. The lenders we work alongside will consider a verifiable income along with your credit score before making a decision.