Consolidation Loans for Bad Credit
Do you have a pile of debt and you are facing challenges keeping up with multiple debt providers? If your answer is yes, then you need to find a lender who will help you merge the debts. Many Americans are facing challenges when it comes to repaying their debts because they cannot access credit facilities from conventional lending systems. Bad credit consolidation is a feature that allows people with less than stellar credit history to access credit facilities.
Who is it suitable for?
Debt consolidation loans are suitable for borrowers who are making payments on several loans on a monthly basis. Many borrowers are facing challenges in dealing with such situations and cannot keep up with high interest loans from multiple creditors. A debt consolidation loan will coalesce all your debts into one and you can negotiate for an interest rate that you will manage to repay the entire loan without affecting your lifestyle. There are features that you should consider when looking for a debt consolidation company. These include:
- Wide range of loans – some lenders will give you a loan with a specific cap. This varies from one state to another and from one lender to another. However, look for a lender who will give you a wide array of loans and this makes it easy for you to repay the loan with manageable monthly repayments.
- Loan term- some lenders offer loans that you should repay within a fixed scheduled. Once you opt to choose a lender in our network, we will help you during the loan request process and your lender will guide you on the best terms and conditions of the loan. You should consider the state laws governing payday lending and the interest rates and caps in your state.
- Geographical reach – this is an essential aspect when choosing a bad credit consolidation loan. You should choose a loan that covers follows state regulations and you can repay the loan for an extended period with a lower interest rate.
Reasonable fees – the most important aspect when looking for a consolidation loan is interest rates and fees that are associated with the loan. You should ask as many questions as you can when requesting for the loan. This gives you a chance to understand all aspects of the loan. Your lender should give you a reasonable interest rate and allow you to repay within a manageable time.
- Transparency – this is an integral feature that you need to look out for when choosing a debt consolidation company. We will give you all information on the terms and conditions. You can consult your lender on the conditions of the loans, charges, interest rates and any other charges associated with the loan. You should borrow a loan that you can qualify for and can repay without affecting your current lifestyle.
What does it mean to merge debts?
When you opt to consolidate your debts, you are taking out a bigger loan to pay off existing small loans and this allows you to get a better interest rate, unlike the previous loans which are usually associated with high interest rates. Your monthly repayment will be lower compared to the existing loan because you will be monitoring only one loan. Your lender will negotiate on your behalf on the best loan plan and the interest rate that your creditors will charge you. When you get a good loan and interest rate from your creditor, he or she will give you a loan with manageable interest rate. It is important to note that you should have a solid long-term financial plan. This allows you to deal with the debts and live a regular lifestyle.
Advantages of bad credit consolidation
- Planning – When you consolidate your debt, it allows you to stay organized and keep track of one debt unlike when you are supposed to monitor several debts with high interest rates.
- Improve your credit score – repaying your loan on time means that you get a good rating from your lender. You will improve your credit score by repaying the loan within the stipulated time and have a chance to rebuild your credit history. Moreover, consolidation loans give the lender an opportunity to clear outstanding debts and find a good financial footing.
- Manageable – one feature of consolidation loans for bad credit is that the loan is manageable, the interest rate on the loan is lower than repaying several high small high interest loans.
Types of debt consolidation loans
There are various types of consolidation loans. These include:
1. Secured loans
This is a type of loan that has collateral attached to it, in most cases, it is a valuable asset that your lender can sell to recover the money. Common collateral include assets, cars or house. However, this type of loan is risky especially for people with bad credit. When you have bad credit and you do not have a sound financial plan, then there is a high chance that your creditor may take your assets to recover the loan. Moreover, the loan could have a longer repayment period.
2. Unsecured loans
This type of loan is very different from a secured loan. It is not attached to any asset or collateral. We connect borrowers to lenders in our network and you will be in a position to repay your loans on time and manage them effectively. Conventional lenders cannot offer you such loan especially if your credit history is tarnished. We understand the dynamics of the financial sector, credit crunch and other aspects that affect the economy.
How do I access poor credit consolidation loans?
If you are looking for a less than stellar credit consolidation loan, you should not be limited to brick and mortar stores. We give you an easy avenue to meet many lenders who will finance your loan request. All you have to do is visit our website and fill out a simple loan request form. Once this is done, your lender will evaluate the situation and give you the best plan. Moreover, they will negotiate with your creditors for better interest rates. This will lower the overall interest that you are required to pay.
- It is hard to convince conventional lenders to give you unsecured loans especially when you have a less than stellar credit history. Many conventional lenders will look at your credit score before they give you the loan. This means that if you have less than the recommended credit score, you will not get a loan. We have an exceptional customer support team who will help you during the loan request process and you can review the frequently asked questions for more information as well as contact our customer support team on other loan related issues. It is easier for you to budget your household finances when you consolidate your debts.