Consolidating loans with bad credit
With so many ways to consolidate, there’s bound to be a solution for your unique situation. Debt consolidation is the process of combining your debts into one loan with a lower interest rate.
Instead of having multiple debt payments each month, you’ll only have one.
They require you to get a loan from a bank, credit union, or peer-to-peer lender who will agree to consolidate some or all of your debts (usually credit card balances) into one new loan.
If the interest rate on this new personal loan is lower than the interest rates on the different credit cards that you are consolidating, you'll save money.
Applying for a personal loan online can be a fast and easy process. If you are, then the funds will likely be available in a few days.
You should also be aware that there are some fraudsters out there who prey on people that need money quickly.
In addition, you'll have a fixed payment schedule that requires you to pay back the debt in 2 - 5 years (depending on the terms of the loan).
That can help you avoid the minimum payment trap that can keep you in debt for years to come.
This compensation may impact how and where products appear on this site (including, for example, the order in which they appear).By transferring your various debt balances into a single loan, you can simplify the management of that debt and often get a lower interest rate.When debt consolidation is used as part of an overall commitment to reduce debt, it can be a key ingredient for improving your credit rating.Loan applicants will need a credit score in the mid-600s or higher for easy approval and low rates.With a credit score below that, it will take some work to find loans for which you qualify.
You have a mound of debt and you’re not sure how to repay it.