Getting a Chance to Get Out of Debt
It can be extremely difficult to get a loan if you have a lot of debt, especially if you have bad credit. All of us are looking for a few simple ways to get out of the bad credit abyss. But you might ask how that’s done if you have bad credit. There’s still a way; one of the easiest ways in fact – through debt consolidation loans.
What is a Debt Consolidation Loan with Bad Credit?
A debt consolidation loan allows you to pay all of your debts off and repay at a lower interest rate than what your paying. For example the interest rate on your credit card may be around the 19% mark where as a debt consolidation loan will be much lower, thus saving you money. Instead of paying multiple debts, you will only be paying for one. The only problem now is, well, you have a poor credit rating. You must be wondering how you can qualify for debt consolidation loans if you have a bad credit.
Actually, there are many financial lenders that offer bad credit debt consolidation loan. Even if you have a poor credit rating you may still get a chance to pay off your multiple debts AND have only one debt left to pay (which is the debt consolidation loan). That is if you’re really qualified and appear to have “bad credit”.
To be considered as having bad credit, check the following to confirm if you have bad credit:
- Frequent regular calls from the collections department.
- You’re using one of your credit card’s cash advance features to pay for another debt.
- Frequent late payments
- You usually left behind some monthly bills (house rent, car loans, etc.)
- Missing loan payments
- You only pay part of your bills at a time
- You always have excuses on why you’re not be able to make a payment.
If any of the above statements are true or currently apply to you, there’s a good chance that you have bad credit. In this case, you may be eligible to apply for a bad credit debt consolidation loan.
Taking Advantage of Debt Consolidation Loans Even With Bad Credit
To know your chance of getting approved for bad credit debt consolidation loans, you may want to contact your bank or other credit union and find out their specific requirements and other things you will need to look into to apply. You may also apply for this loan through an online lender; however, applying online has more risks so make sure that the said lender is not asking you for a down payment or cash before they approve your loan application.
Also, you have to remember that any loans for bad credit have greater risks on the part of the lender. For this reason, they have higher interest rates compared to those with good credit scores. They might also require some form of collateral or you might need to have a co-signer for a greater chance of becoming approved.
When it comes to applying for bad credit debt consolidation loans always make sure that you know who you’re dealing with. Don’t be afraid to try to apply to some major banks as you’ll never know whether you will get approved. What’s more important is that you keep all of your possible options open and you’ve at least made the attempt. Don’t just assume that you’ll get rejected, apply and take your chances. Please click the apply now link below to start the debt consolidation process.
A debt consolidation loan is definitely worth considering if you have multiple debts. However, you might also want to consider your other options such as filing a bankruptcy or getting credit counseling before you decide. This is to make sure that you’ll not be paying for more debt than you can handle and just end up with having an overall higher amount of debt in the future.