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Consolidation Loan Misconceptions: “You need a good credit score to get a Consolidation Loan”

We often hear people say that Consolidation Loans are only available to people who have good/decent credit at the time of application, however, this is a myth. There are companies in the UK that offer Consolidation Loans to people with all kinds of credit histories, good or bad.

What is a debt consolidation loan?

Before we can discuss how some loan companies offer consolidation loans to people with poor credit, we must first understand what a consolidation loan is…

Debt consolidation loans are designed to help you get rid of your debt by taking out one lump sum to pay off the companies you owe money to. From this, you may only have to then make one monthly payment to one creditor, rather than multiple payments to multiple creditors. By consolidating your existing debts, your monthly debt repayment total may reduce, and you may find it much easier to keep track of your money.

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Are debt consolidation loans available for people with bad credit?

Although it is true that trying to get any type of loan with poor credit may be difficult, it is important to note that it is not impossible. Therefore, even though maybe slightly more challenging for someone with poor credit to be approved for a consolidation loan, it can be done.

The reason some companies, such as ourselves, still consider people with poor credit for debt consolidation loans is that we believe it is unfair to judge someone based on their credit file alone. As a result, our team of experts chat to all our customers about their current financial situation. This allows us to confidently assess if someone is suitable for a consolidation loan.

We always ensure that our loans are affordable for our clients before we accept them for a loan.

To put it simply, yes there are consolidation loans available for people with bad credit. Here at Consolidation Express, we consider all credit histories for consolidation loans because other factors can help us to determine if a debt consolidation loan is the right debt solution for someone.

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Would a debt consolidation loan make my credit score worse?

Providing you keep up with your loan repayments and pay them on time a Consolidation Loan should not harm your credit score.

If you are looking for ways to improve your credit rating, we have some top tips for you here.

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Further reading