Poor Credit Debt Consolidation Loans

Woman looking stressed at her deskAre you losing control of your finances?

Are there multiple creditors knocking on your door?

Is your poor credit history making matters worse?

It can be real tough dealing with multiple sources of debt. A bad credit history can severely limit your options when looking for solutions to this problem, but this doesn’t have to be the case. Use a bad credit debt consolidation loan to combine all the various outstanding payments into one fixed rate repayment.

How Credit Scores are Calculated

Before we discuss how to manage your debts, you need to understand how your past credit history is taken into account. A credit rating is designed to tell a loan provider how risky it is to lend to an individual and how they have managed their finances in the past. It demonstrates your creditworthiness, so there are a number of factors that will have an impact on the rating. These factors include:

  • Late repayments
  • Employment history
  • Any lines of credit established

Trying to keep a clean record would be ideal, but sometimes you may be in a financial situation that is out of your control. If you do happen to default on a loan or filed for bankruptcy at some point, there are ways to get the much needed consolidation loan you need and to improve your credit rating. If you don’t know what your credit score is at the moment, there are many services that will let you check. Use a credit agency such as Equifax, Trans Union or Experian. Alternatively the loan provider you approach can help you in this regard.

The Power of Consolidation

The first step to receiving approval for your loan when you have bad credit is to find a trusted secured loans provider. It is important to secure the loan against a property you own for another of reasons.

Firstly, you need to be able to prove to the lender that you are not a big risk, and a bad credit history won’t be doing you any favours. Providing collateral for the loan can help get the approval you need.

Secondly, this is the best way of reducing the rate of interest payable on the consolidated loan. It is essential to try and get a lower rate than the average of all the multiple loans you currently have to pay. This will ensure a cheaper loan and a lower monthly bill which is easier to pay off.

Specialist Loan Providers

To get an even better deal and make up for the poor credit history, approaching a specialist provider of consolidation loans can really pay off. Lender such as appleloans.co.uk can tailor the loan to your exact needs and circumstances.

Another thing you should do is talk to a financial advisor, to get a better idea on the ideal solution that is suitable for your situation. Remember, taking out this kind of loan must be done with great care so that you can guarantee its success.

Related posts: