If you have low average to bad credit (below 660 credit score) you may still qualify for a debt consolidation loan but the interest rate will be high.Rates can be as high as 30% in some cases defeating the purpose of a debt consolidation loan.Peer-to-peer lenders will let you check on rates without it impacting your credit score.That's a good way to check on an interest rate amount.
RATE SEARCH: Interested in a personal loan for debt consolidation? Lenders base their loan decisions on your credit history, which goes into a credit-scoring model to come up with your credit score.
The following four steps will walk you through calculating how much debt you have, choosing the debt consolidation loan, setting a timeline to be debt free and teaching you how to control your spending.
If too much debt has damaged your credit score, then consolidating that debt into a single loan can be the first step towards solving the problem.
With so many ways to consolidate, there’s bound to be a solution for your unique situation. Debt consolidation is the process of combining your debts into one loan with a lower interest rate.
Instead of having multiple debt payments each month, you’ll only have one.