Do I need a good credit score to get a debt consolidation loan?
When it comes to borrowing money, your credit score is an important factor in determining the type of deal you are likely to be offered. If your credit history is spotless, you`ll probably have access to the very best deals; if you have struggled in the past, then you may have more difficulty.
However, a bad credit score doesn`t automatically mean you won`t be able to get a debt consolidation loan. You may have to settle on a deal with a higher interest rate than other deals might offer - but there are loans available for people whose credit score is less than perfect.
How can a debt consolidation loan help me?
It can reduce your month-to-month outgoings
A lot of people who take out a debt consolidation loan choose to pay it back over a longer period of time than their original debts, making each repayment smaller.
This can make your debt more manageable, but keep in mind that you may end up paying more overall, because you`ll be paying interest for longer too.
However, many people find this acceptable as long as their monthly outgoings are lower.
It can make your finances simpler
Because you`ll effectively be combining multiple monthly payments into just one, you`ll find it easier to keep track of what`s going out of your bank account each month. You should find it easier to budget - to make sure you`re setting aside enough money for all your financial commitments every month.
Debt consolidation with bad credit
It`s likely that you`ll find it more difficult to get a debt consolidation loan if you have a bad credit rating, and some people may find it impossible in the current climate. But by speaking with an expert loans adviser, you can improve your chances of finding a debt consolidation loan deal that suits your circumstances.
For more information, click here or speak to one of our friendly advisers on 0800 195 2911.