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Debt Consolidation Loans for Bad Credit

Got bad or poor credit? Not a problem

With a debt consolidation loan, you can take multiple debts and consolidate them under one affordable monthly payment. This can effectively pay your lenders immediately and just leaves you with one company to repay – making your money situation much easier to manage.

We believe your financial history shouldn’t get in the way of your application. This means, even if you have bad or poor credit, we’ll still consider you for a loan.

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Why choose us?

You could have the money in as little as two hours

Our online application takes minutes to complete

Focus on one monthly payment

You won’t pay any upfront fees

Got bad credit? No problem. You will always be considered

We have a team of experienced advisors

What is a debt consolidation loan?

Through debt consolidation, you borrow an amount of money equal to – or exceeding – the total value of how much you owe. These funds are then used to repay your creditors while leaving you with one monthly payment instead of several.

This moves your debt onto one lender. This means you only have one interest rate, one payment, and one account to manage. For this reason, the main appeal behind a debt consolidation loan is often management – restoring control and helping make your life easier.

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What is a debt consolidation loan?

Through debt consolidation, you borrow an amount of money equal to – or exceeding – the total value of how much you owe. These funds are then used to repay your creditors while leaving you with one monthly payment instead of several.

This moves your debt onto one lender. This means you only have one interest rate, one payment, and one account to manage. For this reason, the main appeal behind a debt consolidation loan is often management – restoring control and helping make your life easier.

Apply Now

"He found something that was both beneficial to us financially and for the future."

How much can I borrow?

With a debt consolidation loan, you can borrow anywhere between £5,000 and £75,000.

Representative 12.9% APR. Representative Example: Borrowing £7,500 over 60 months, repaying £167.57 per month, total repayable £10,054.20. Total cost of credit £2,554.20. Interest rate 12.9% (variable). The lenders on our panel offer loans for 12-120 months, with rates from 4.4% APR t o 49.9% APR.

Why you should apply for debt consolidation with bad credit

Debt consolidation is certainly open to you if you have poor or bad credit. All scores are considered and you’ve got nothing to lose by getting in touch. All you have to do is use our quick application form, tell us a little bit about yourself, and you could have the funds you need in just a couple of hours.

Other companies may turn you away. However, we believe your financial history should never get in the way of what you’re trying to do – restoring control over your debts.

How does a debt consolidation loan work?

When you apply for debt consolidation, one of our advisors will identify whether this solution is right for you. Assuming you have a sustainable source of income to make loan repayments and you’re a UK resident, you may qualify. Then comes the choice between a secured or unsecured loan.

Secured or unsecured loan?

When choosing between a secured and unsecured loan, you should be aware of what these both are. For bad credit, secured may be the best option as you’ll traditionally be offered lower interest rates. However, the loan may be ‘secured’ against an asset – such as property. If you fail to make the repayments, this asset could be put at risk.

With unsecured, assets aren’t placed at risk but interest rates could be higher. Your advisor will confirm which option may be most suitable for you and, ultimately, they will strive to find you the best deal possible.

How does a debt consolidation loan work?

When you apply for debt consolidation, one of our advisors will identify whether this solution is right for you. Assuming you have a sustainable source of income to make loan repayments and you’re a UK resident, you may qualify. Then comes the choice between a secured or unsecured loan.

Secured or unsecured loan?

When choosing between a secured and unsecured loan, you should be aware of what these both are. For bad credit, secured may be the best option as you’ll traditionally be offered lower interest rates. However, the loan may be ‘secured’ against an asset – such as property. If you fail to make the repayments, this asset could be put at risk.

With unsecured, assets aren’t placed at risk but interest rates could be higher. Your advisor will confirm which option may be most suitable for you and, ultimately, they will strive to find you the best deal possible.

How can a debt consolidation loan help me?

If you’ve got multiple creditors each asking for money, you’re aware of just how stressful this can be. Managing these and ensuring each gets paid on time, is not only time-consuming – it can sometimes be impossible.

This is where debt consolidation comes in. Instead of juggling bills to your creditors, you can pay them all off and hopefully never have to worry about these firms again. As well as this, a debt consolidation loan can leave you better off – in the long run as well as monthly. Take a look at the example below:

  • Example debts
    Total owed
    Monthly payments
  • Personal loans
    £20,000
    £867
  • Credit cards
    £7,412
    £245
  • Payday loans
    £252
    £23
  • Store cards
    £289
    £26
  • Total
    £27,953
    £1,161
  • Example debt consolidation loan
    Total owed
    Monthly payments at 12.9%APR for three years
  •  
    £28,000
    £932 – that’s more than £200 extra in your bank account per month!

In essence, a debt consolidation loan helps you by allowing you to:

  • Make only one payment per month
  • Focus on one interest rate
  • Simplify communications by only having one lender
  • Have fewer payments going to lenders

No guarantor needed – but you can have one if you like

Although some loan providers will insist you have a guarantor if you have bad credit, this is not essential with us. If you don’t want a guarantor, then we will still strive to find you debt consolidation without one. However, if you want the added security of a guarantor with your consolidation loan, this isn’t a problem either. Regardless of your choice, we’ll find you the best debt consolidation offers we can. You can find more information on our guarantor policy available here.

No guarantor needed – but you can have one if you like

Although some loan providers will insist you have a guarantor if you have bad credit, this is not essential with us. If you don’t want a guarantor, then we will still strive to find you debt consolidation without one. However, if you want the added security of a guarantor with your consolidation loan, this isn’t a problem either. Regardless of your choice, we’ll find you the best debt consolidation offers we can. You can find more information on our guarantor policy available here.

What debts can I resolve with a consolidation loan?

With a debt consolidation loan, generally speaking, all unsecured debts can be consolidated. This includes:

For more information, take a look at our guide ‘what debts can be consolidated?’.

Why we help people with bad credit get debt consolidation loans

If you have a poor credit history, it can feel like the financial world is closed to you. However, with a debt consolidation loan, you can start to repay your creditors while making positive steps towards ultimately improving your score.

Whether you have bad credit or not, we’ll strive to find you the best deal possible. Ultimately, we want to help you get back on top of your debts.

Apply Now

Why we help people with bad credit get debt consolidation loans

If you have a poor credit history, it can feel like the financial world is closed to you. However, with a debt consolidation loan, you can start to repay your creditors while making positive steps towards ultimately improving your score.

Whether you have bad credit or not, we’ll strive to find you the best deal possible. Ultimately, we want to help you get back on top of your debts.

Apply Now

Debt consolidation loans for bad credit FAQs

Can a debt consolidation loan help my credit score?

Taking out debt consolidation can ultimately be a good way to improve your credit report. However, your rating will usually initially worsen as you’re taking out a new line of credit. Eventually though, your credit score should improve as you make regular payments on time. Furthermore, as your credit utilization ratio decreases and the number of creditors shrinks, you should also start to see improvements in your credit rating.

If you want to find out more information, we’ve written a useful guide on the matter – How does debt consolidation affect credit scores.

Can I apply for a debt consolidation loan with no credit check?

Understandably, if you have a history of poor credit, you might get a bit nervous about making an application. It’s worth noting that once you apply for debt consolidation, your credit score will eventually be checked. Still – even if you have a very bad credit score – all ratings are considered.

Although you cannot secure a loan without a credit check, having a poor history – in itself – may not cause your application to fail. In fact, you have nothing to lose by applying for a debt consolidation loan.

How much does a debt consolidation loan cost?

We’re a broker so the price of a loan is dependent on your provider. However, because we want to ensure you’re getting a fair deal – and that consolidation is the best option for you – we’ll be clear about the costs involved.

What is a bad credit score?

Although life would be easier if this was a straightforward question, it unfortunately isn’t. As there is no universal rating system in the UK, it’s a little difficult to actually answer what a bad credit rating really is. For example, credit agencies Experian and Equifax both use different criteria to assess a person’s history.

In the case of the former, the firm details credit scores out of 999. Anything between 0 and 720 is generally regarded as being ‘poor’ or ‘very poor’. Equifax, on the other hand, classifies scores out of 700 and will detail ratings under 379 as being poor or lower.

Therefore, to assess whether you have a bad credit score, you should contact one of these organisations and see what figure they give you. If you fall into one of the above categories, however, then this number may prevent you from obtaining certain financial products or favourable interest rates.

What is APR?

APR stands for annual percentage rate. It is the official term used to help you understand the interest rate and the ultimate cost of borrowing. All lenders must disclose their APR before providing a financial product. In our case, the lenders on our panel offer loans between 12 and 120 months, with rates from 4.4% APR to 49.9% APR.

When will I have to make my repayments?

The details of your repayments can be found in the policy documents issued by your consolidation loan provider. If you can’t find these, contact the organisation.

When will I get the loan?

You could get the money you need within 24 hours. However, the exact timescales depend on your consolidation loan provider.

How do I use a debt consolidation loan?

Once you have the money you need, you use the funds to close accounts with your creditors one by one. We’ve covered this in more detail in our guide ‘How to consolidate debt’.