Many individuals look to debt consolidation loans as valuable strategies that combine their debt into a single expense. Like most loans, debt consolidation solutions can be challenging to obtain if your credit is low.
This article will answer the following question: “Can you get a debt consolidation loan with poor credit?” Continue reading to learn more.
Benefits of a Debt Consolidation Loan
Debt consolidation loans provide multiple benefits for your finances, including:
Simplified Finances
Debt consolidation loans combine all monthly expenses into one! With one lender and monthly invoice, borrowers seldom need to worry about tracking multiple accounts, allowing them to pay off debt more consistently.
You can also avoid missing payments, strengthening your credit history and boosting your credit score.
Fixed Payment
Most consolidation debt loans have set repayment terms and fixed interest rates meaning borrowers will have the same monthly payment every month.
By having a predictable monthly invoice, you can incorporate and track payments into your spending plan, making it easier to stay accountable and current on debt obligations.
Chances of Loan Approval With Poor Credit
In full transparency, obtaining a personal loan for debt consolidation isn’t as simple as you think; however, it isn’t impossible. Many financial lenders consider scores below 579 to be poor credit, affecting one’s chances of qualifying for a debt consolidation loan.
While every lender sets its unique requirements, we at Superior Financial don’t allow poor credit to keep borrowers from obtaining the assistance they need to pay off their debt.
Our team of experts considers debt consolidation loan applications from those with negative and below-average marks on their reports. We also provide same-day decisions, eliminating wait periods so that you can tackle your debt promptly.
How To Increase Your Chances of Approval
While it would be wise to have a credit score of 580 and above to solidify your chances of obtaining a debt consolidation loan, there are ways you can increase your chances of approval. Here are a few tips to improve your chances:
Improve Your Credit
One of the best solutions that can increase your chance of approval for a debt consolidation loan is to improve your credit. You can improve your credit history by paying monthly obligations on time for a few months.
Consider eliminating all non-essential expenses like subscriptions and restaurant dining so you can allocate more funding to your credit card balances.
Monitor Credit Score
Many lenders base chances of approval on the condition of a borrower’s credit. Typically, the lower the score, the higher the interest rates may be during financing.
Luckily, there are tools available that allow you to monitor your credit score so you can identify problem areas that could prevent a lender from working with you.
Good credit is a valuable asset and increases your chances of obtaining a debt consolidation loan. While you may be able to get a debt consolidation loan with poor credit, keep in mind that the decision may change depending on the lender you work with.
