Most lenders check your credit record when you apply for a loan, but some are still willing to consider your application even if you have had problems managing your finances in the past.
We asked the experts to find out the best types of loans for consolidating debt for people with poor credit.
RATE SEARCH: Get Cash Using Your Home Equity A debt consolidation loan is a personal loan that pays off multiple debts, such as credit cards and student loans.
Please only apply if you are aged 18 to 65, employed or self employed with a income of more than £800 a month. UK credit is a specialist no fee guarantor loan provider, they can lend to you even if your guarantor is not a home owner.
If you have a guarantor who is tenant they can help you borrow from £1,000 - £6,000.
The loan is paid back with a single monthly payment at a fixed rate for a period of 24-60 months.
If you have debt with high interest rates you know that a large amount of your monthly payment goes towards interest. Debt consolidation loans are a great way for people to get a low interest loan to pay off high-interest debt.
However, federal PLUS loans do require that borrowers not have an adverse credit history, which is defined by Fin Aid as “being more than 90 days late on any debt, or having any Title IV debt within the past five years subjected to default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment or write-off.” For private lenders, your credit score is usually a key factor in determining not only student loan approval, but also the attached interest rate.
In other words, the better your score, the better your rate.
A debt consolidation loan may be a great option for you.