How To Get Bad Credit Debt Consolidation Loans

December 4, 2011

Bad Credit Debt Consolidation Loans

If you are looking to consolidate your credit card bills or any other bills for that matter, but have credit that is a bit down in the dumps, you can still get bad credit debt consolidation loans. For those of you who aren’t familiar with the term consolidation loan, it is essentially when a company pays off your bills or pays your bills for you an then you pay them back in the form of one cumulative loan that is equal to the total of all the debt have. Often times these companies will renegotiate better terms as well lower debt totals, which can equate to you paying less interest as well as owing less, not to mention only having one payment to worry about instead of multiple.

bad credit debt consolidation loans

You can apply for a consolidation loan with bad credit, and often times companies with accept your business on good faith, but it comes with a price, and that is a higher interest rate as well as the possiblity of stricter repayment terms as well as not being able to enjoy other discounts you would enjoy with good credit. Below are alternative methods you can consider when looking for bad credit debt consolidation loans.

How  To Get Bad Credit Debt Consolidation Loans

1.)  The first method that is used most often when trying to attain a bad credit debt consolidation loan is to get a co-signer who has good credit. Now a tip to follow if you choose this method is to try to get a co-signer with a score of at least 750, if not higher. This will enable you to have better chances in getting a loan, as well as will most likely mean you getting a lower interest rate on the repayment terms. This also means that you must make payments as if you don’t your co-signers credit will be affected, but later on, usually about 24 months into the repayment on your consolidation loan with bad credit, you will be able to tranfer the debt into your name if you have made on time payments each month, enabling your to be able to build your credit score back up.

2.) If you have a home or car or other valuable assets, and are willing to use them as collateral, which is basically saying if you do not make the payment they can take the asset, then this will offer your a much better chance in qualifying for bad credit debt consolidation loans.

Alternative Options For Bad Credit Debt Consolidation Loans

While you are looking for bad credit debt consolidation loan lenders, you can consider and alternative option in the meantime, which you can consider:

  • Using a credit card to consolidate debt if you have bad credit. The benefit of this can be enjoyed when credit card companies offer low or no interest rates for a period of time, which then you would tranfer the balance of the debt in which you pay the highest interest on which will allow you to save money on interest payments for a short period of time.
  • The other option worth considering when looking for bad credit debt consolidation loans is taking out equity loan on your home to pay off your debt, which then you will only be paying on one debt total, the equity debt which is similar to paying a consolidation loan, as well as can come with lower interest rates because these loans are secured loans.
Category: Credit Card Consolidation

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