Consolidate Your Debts

Consolidation Express will always help where we can – regardless of your credit history. Some companies may reject you for a personal loan if you have bad credit, but we believe this is unfair. Personal circumstances or a poor credit history shouldn’t stop you from resolving your debts, so we will always consider you.

However, to get the lowest interest rates on consolidation loans, you will usually need a good credit score. As a result, you could still receive the funds you require, but will need to pay higher interest rates compared to someone with a good credit rating.

Debt consolidation loans work by paying off your debts with a lump sum, allowing you to pay a single monthly repayment, instead of multiple. Your credit rating should improve, so long as your monthly repayments are on time. Applying for a debt consolidation loan will involve an in-depth search of your report though, which can temporarily lower your credit score, but it should bounce back quickly on the condition that you don’t apply for credit regularly.

Yes, you can, but using your credit card afterwards does raise the risk of repeating the problem you began with, so it is a good idea to keep your credit card balance at zero.

Bear in mind too that the longer you keep your credit card at a zero balance while the account is open, the more your credit rating will improve.

Debt consolidation will stay on your credit report for a considerable amount of time, but this is not necessarily a bad thing, assuming your personal loan payments were made in full and on time.

Hard searches will be wiped from your credit history after a year, but most negative information (i.e., if you default on a loan or make late payments) typically stay on credit reports for seven years.

It will be very difficult to consolidate debt without hurting your credit rating, but the negative effects should only be temporary and should quickly improve once you start to pay off creditors on time.

Additionally, a decline in credit score from consolidation loans shouldn’t be as bad compared to alternative debt solutions.

It takes just minutes to apply for a consolidation loan with our quick and easy online application. Once completed, our advisors will do all the hard work and be in touch with your options to deal with your loan amount shortly.

If your application is approved, the money will be paid straight into your account!

A debt consolidation loan lets you take out a sum equal to, or greater than, the overall cost of all your existing debts. Once you have received an approved loan, outstanding debts can be paid off one by one.

This leaves you with just one loan to manage, which can be repaid through one affordable single monthly repayment. Consolidation loans are a simple way of dealing with existing debts, and converting them into a single, manageable debt.

There are three main reasons why you have been rejected for a debt consolidation loan:

• Low income - the lender doesn’t think you can afford the repayments to repay your existing loan amount
• Too much existing credit card debt - they don't want to put you into further financial difficulty if your credit card debt is too high
• Low credit score - they think it is too risky to lend to you

Don’t despair and lose hope if you are rejected for a new loan though. There are still many other options available to you, and there could be something that you can do to improve your chances of being approved for a debt consolidation loan.

An unsecured debt consolidation loan is a type of personal loan that can be used to consolidate multiple debts into a single, monthly payment. Unlike a secured loan (which requires collateral), unsecured loans do not require any form of collateral. This makes them a good option for those who do not have any assets to use as collateral.

There are many different types of unsecured debt consolidation loans available, including fixed-rate loans, variable-rate loans, and line of credit products. The best type of debt consolidation loan for you will depend on your individual financial situation, including your existing loans, credit rating and more.

A secured debt consolidation loan is a type of loan that uses collateral to secure the loan. Collateral is an asset that can be used to repay the loan if you default on the payments. The most common type of collateral for a secured consolidation loan is a home equity line of credit (HELOC). Other types of collateral include vehicles, savings accounts, and certificate of deposits (CDs).

A personal loan won’t reduce or write off your debts – you just end up paying a different organisation instead. This means that the same consequences still apply if your repayments aren’t approved, leaving you with the risk of defaulting on the loan.

It can often be useful to compare debt consolidation loans, allowing you to find your exact interest rate, and what the actual debt consolidation loan cost will be in your circumstances.

It depends. Even if you have a debt consolidation loan, you can still buy a car outright with savings, but receiving car finance becomes difficult with debts to your name. Lenders look at a range of factors, though, and consider a range of eligibility criteria, so buying a car is still doable.

There are also steps you can take to improve your chances of success.

Consolidation Express is a broker, not a lender. We work with a panel of lenders who consider all credit scores, and we usually match our clients with a lender best suited for their unique circumstances. Partnering with our panel, our goal is to provide our clients with the right loan to make debt more manageable.

Consolidation Express is fully regulated by the FCA which means that we can provide clients with free initial advice around debt and finances. Complete an application on our website so we can assess your case and determine if a consolidation loan might be the right solution for you.