How To Get Consolidation Loans With Bad Credit

November 24, 2011

Consolidation Loans With Bad Credit

For those looking to obtain consolidation loans with bad credit, good news is that it is very possible to do so, enabling you to get help with your debt without having to have an awesome credit card score, or get a cosigner that has a good credit score. The other benefits of consolidating can be; a lower interest rate, less money owed, more flexible repayment terms as well as the convenience of only having to pay one payment to one company. Being that you only have one payment now, that means that the consolidation company that you received your consolidation loan through actually paid off all of your debt with the different companies that you were in debt with, resulting in a positive “paid off in full” note reported to credit bureaus which can equate to a boost to your  credit score.

consolidation loans with bad credit


How To Get Consolidation Loans With Bad Credit

There are various ways to get consolidation loans for bad credit, below are a couple ways that have proved to be the best ways possible:

  1. You can search online for different consolidation companies and compare interest rates, and go with the one who has the lowest interest rate, which will save you a lot of money in both the short run and the long run. Going with a consolidation company when looking for bad credit consolidation loans is often the best idea as these companies can often times negotiate lower total debts because they are paying off the debt in full, which you could end up owing up to 40 percent less.
  2. You can also arrange a loan through your credit union, who will give consolidation loans for those who have poor credit, as well as fairly low interest rates if you agree that they can take the monthly dues out of your pay check each month. This can be a great option if you have steady job as you are gauranteed to make on time payments each month, avoiding late fees.
  3. If you happen to own a home, you can consider using the equity on your home and go about applying for a brand new mortgage. If you choose to do things this way, you can pay off your loan debt which then you will just be paying on a secured loan which come with lower interest rates because of the fact that if you happen to defualt on your payments, the lender can choose to sell your property. But the good side t0 this situation is that equity loans have a repayment term that can go as high as 30 years, which drops the monthlty total on your dues as well as comes with lower interest rates because you will be paying interest longer. If you choose to pay off the equity loan faster, which you will avoid paying more in interest, you will only have to pay a one time pre payment penalty, which can be worth it in the amount you will have saved in interest payments.

Methods 2 and 3 would provide you with the money you would need to pay off your loan debt to the different companies, whereas if you choose to go wth a credit card cosolidation company, they would do all the leg work for you.

Reputable Comapnies That Offer Consolidation Loans With Bad Credit

  • Direct Lending Solutions
  • Lenders Mark Financial Network
  • Bad Credit Alliance
Category: Credit Card Consolidation

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