Bad Credit Consolidation Loans Overview & Providers

September 23, 2011

Bad Credit Consolidation Loans

If you happen to have a bad credit score and are entrenched in debt and feel as if there is no escape, then a bad credit consolidation loan can be an excellent resource to help you out in many ways, like lower payments as well as the possibility of reducing your total loan debt. Below we will elaborate on the suject of bad credit consolidation loans like the process, benefits and how to obtain them, as well as provide you with 3 reputable companies that provide thiese bad credit consolidation loans. This way you can attain the knowledge you need on the subect as well as resource on how to get the process started if you choose to do so.

bad credit consolidation loans

Bad Credit Consolidation Loans Overview

How Does It Work?

Basically a consolidation loan is when you take out a large loan through a conslidation company and use it towards paying off all of your bills, which in turn means you only have one bill to pay on and that is the loan that the conslidation company gave you.


To make the process of learning about bad credit consolidation loans, we have made a bullet point list of different things that a consolidation provider can do for you if you have bad credit. Also, although that we are talking about band credit conslidation loans, you can also just consolidate one loan, you can still enjoy the benefits of consolidation.

  • First off they can lower your monthly payments where you can actually afford paying off your debt without having to fork your entire paycheck over each month. This is done by stretching out the repayment period from what you were paying on as well as the bad credit consolidation loans representatives contact each one of your creditors and try to negotiate both lower debt totals as well as lower interest.
  • Also, many people with bad credit consolidation loans find that their providers actually counsel them with ways of getting back in control of their finances, managing the debt that they have as well as avoiding more debt from piling up.
  • Bad credit consolidation loans allow you to only have to pay one single monthly payment, instead of having to worry about paying multiple payments each month.
  • You can also begin to build up your credit score as you will have a more manageable monthly payment that you can pay on time.
  • They payments are usually based off a percentage of your income, so you will know that you will be able to afford it each month.
  • You don not have to have any collateral to get bad credit consolidation loans.
  • Often times, conslidators will give you a grace period of anywhere from 3 to 6 months where you do not have to pay monthly payments during that time, leaving you with a chance to build up and emergency fund.
  • Probably the best of all when it comes to bad credit consolidation loans, you conslidation company deals with your creditors at all times, which means no more harassing calls.

How To Get Bad Credit Consolidation Loans

  • If you want to see if you will qualify for bad credit consolidation loans, you can do so by going to a consolidation companies website, or in person, and you will need to fill out some general personal information, information that will introduce to them your specific situation which is checked out and evaluated by their counseling professionals. They will then review all of your information and contact you when they have tailored out a plan for your situation.

Things To Keep In Mind

  • Bad credit consolidation loans provide people with lower monthly payments, which is great, but you will now have more money each month on what you saved on the lower monthly payment. Due to this, you must save and budget this money and not spend it, so that you don’t end up in the position you were in before consolidation.


The requirement to qualify for bad credit consolidation loans are:

  • You must be at least 18 years of age.
  • Be able to provide proof of your place of employment, as consolidation companies want to know that you have the financial resources to at least pay your monthl dues to them.
  • Proof that you are a US citizen or a citizen of whatever country your are applying for conslidation.

Bad Credit Consolidation Loans Providers

Also, before we get into bad credit consolidation loans providers, you can actually talk directly to your creditors to inquire about conslidation services to go through. This may sound weird, but creditors want to get paid off any way possible, so they know they are gauranteed to get paid if their client goes through conslidation.

As far as bad credit consolidation loans go, there are many great providers that can help you get out of a rut. Here are 3 providers who assist those who have bad credit with consolidation:

  1. LendersMark
  2. Direct Lending Solutions
  3. Choice Personal Loans
Category: Bad Credit Consolidation Loans

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