{"id":26876,"date":"2022-12-20T11:32:30","date_gmt":"2022-12-20T10:32:30","guid":{"rendered":"https:\/\/www.lendingstream.co.uk\/blog\/?p=26876"},"modified":"2023-02-23T10:02:30","modified_gmt":"2023-02-23T09:02:30","slug":"debt-consolidation-loans-for-bad-credit","status":"publish","type":"post","link":"https:\/\/www.lendingstream.co.uk\/blog\/debt-consolidation-loans-for-bad-credit\/","title":{"rendered":"Debt Consolidation Loans for Bad Credit in the UK"},"content":{"rendered":"\n<p>Are you struggling with debt? Or maybe you have bad credit and are looking for <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-pay-off-a-loan-early\/\"><strong>ways to become debt free<\/strong><\/a>? If so, you might be considering a debt consolidation loan. This can be a good option for those of us who have bad credit as it combines all your debts into one loan.<\/p>\n\n\n\n<p>If you want to find out more about debt consolidation loans for bad credit in the UK then you\u2019re in the right place. We\u2019ll cover how they work and the benefits of using them. We&#8217;ll also tell you what you need to take to apply for a debt consolidation loan.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f2835dae879\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f2835dae879\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/debt-consolidation-loans-for-bad-credit\/#what_are_debt_consolidation_loans\" >What are Debt Consolidation Loans?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/debt-consolidation-loans-for-bad-credit\/#can_i_get_a_debt_consolidation_loan_with_bad_credit\" >Can I Get a Debt Consolidation Loan with Bad Credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/debt-consolidation-loans-for-bad-credit\/#is_a_debt_consolidation_loan_a_good_idea_when_i_have_bad_credit\" >Is a Debt Consolidation Loan a Good Idea When I Have Bad Credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/debt-consolidation-loans-for-bad-credit\/#what_can_i_use_a_debt_consolidation_for_bad_credit_for\" >What Can I Use a Debt Consolidation for Bad Credit for?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/debt-consolidation-loans-for-bad-credit\/#what_types_of_debt_consolidation_loans_for_bad_credit_can_i_get\" >What Types of Debt Consolidation Loans for Bad Credit Can I Get?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/debt-consolidation-loans-for-bad-credit\/#1_short_term_loans\" >1. Short Term Loans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/debt-consolidation-loans-for-bad-credit\/#2_secured_loans\" >2. Secured Loans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/debt-consolidation-loans-for-bad-credit\/#3_unsecured_loans\" >3. Unsecured Loans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/debt-consolidation-loans-for-bad-credit\/#4_instalment_loans\" >4. Instalment Loans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/debt-consolidation-loans-for-bad-credit\/#5_personal_loans\" >5. Personal Loans<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/debt-consolidation-loans-for-bad-credit\/#what_are_the_advantages_and_disadvantages_of_debt_consolidation_loans_for_bad_credit\" >What are the Advantages and Disadvantages of Debt Consolidation Loans for Bad Credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/debt-consolidation-loans-for-bad-credit\/#how_can_i_find_the_best_debt_consolidation_loan_for_bad_credit\" >How Can I Find the Best Debt Consolidation Loan for Bad Credit?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/debt-consolidation-loans-for-bad-credit\/#1_work_out_how_much_you_need_and_how_much_you_can_pay\" >1.&nbsp;Work Out How Much You Need and How Much You Can Pay<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/debt-consolidation-loans-for-bad-credit\/#2_check_your_credit_score\" >2.&nbsp;Check Your Credit Score<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/debt-consolidation-loans-for-bad-credit\/#3_shop_around\" >3. Shop Around<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/debt-consolidation-loans-for-bad-credit\/#how_much_does_a_bad_credit_debt_consolidation_loan_cost\" >How Much Does a Bad Credit Debt Consolidation Loan Cost?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/debt-consolidation-loans-for-bad-credit\/#how_can_i_apply_for_a_debt_consolidation_loan_for_bad_credit\" >How Can I Apply for a Debt Consolidation Loan for Bad Credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/debt-consolidation-loans-for-bad-credit\/#what_are_some_of_the_best_alternatives_to_debt_consolidation_loans\" >What are Some of the Best Alternatives to Debt Consolidation Loans?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/debt-consolidation-loans-for-bad-credit\/#how_do_i_check_if_im_eligible_for_a_bad_credit_debt_consolidation_loan\" >How do I Check if I&#8217;m Eligible for a Bad Credit Debt Consolidation Loan?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/debt-consolidation-loans-for-bad-credit\/#faq_debt_consolidation_loans_for_bad_credit\" >FAQ: Debt Consolidation Loans for Bad Credit<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/debt-consolidation-loans-for-bad-credit\/#will_a_debt_consolidation_loan_affect_my_credit_score\" >Will a Debt Consolidation Loan Affect My Credit Score?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/debt-consolidation-loans-for-bad-credit\/#is_consolidating_my_debts_a_bad_idea_if_i_have_poor_credit_history\" >Is Consolidating My Debts a Bad Idea if I Have Poor Credit History?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/debt-consolidation-loans-for-bad-credit\/#can_i_get_a_debt_consolidation_loan_for_bad_credit_without_a_guarantor\" >Can I Get a Debt Consolidation Loan for Bad Credit Without a Guarantor?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/debt-consolidation-loans-for-bad-credit\/#can_i_get_a_bad_credit_debt_consolidation_loan_without_a_credit_check\" >Can I Get a Bad Credit Debt Consolidation Loan Without a Credit Check?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"what-are-debt-consolidation-loans\"><span class=\"ez-toc-section\" id=\"what_are_debt_consolidation_loans\"><\/span><strong>What are Debt Consolidation Loans?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A debt consolidation loan is a <a href=\"https:\/\/www.lendingstream.co.uk\/loans\/\"><strong>type of loan<\/strong><\/a> that allows you to pay off multiple debts in one go. Here\u2019s an example. <strong>Let\u2019s say you had three debts:<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\" type=\"1\">\n<li>An overdraft of \u00a31200<\/li>\n\n\n\n<li>An outstanding credit card balance of \u00a34,300<\/li>\n\n\n\n<li>An outstanding balance on a store card of \u00a3500<\/li>\n<\/ol>\n\n\n\n<p>Your total debt would be \u00a36,000. Instead of paying all these debts, you could take out a consolidation loan for \u00a36,000 and pay them all off. This way, you\u2019d only have one payment to make each month instead of three.<\/p>\n\n\n\n<p>You can apply for a debt consolidation loan from banks, credit unions and direct lenders.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"can-i-get-a-debt-consolidation-loan-with-bad-credit\"><span class=\"ez-toc-section\" id=\"can_i_get_a_debt_consolidation_loan_with_bad_credit\"><\/span><strong>Can I Get a Debt Consolidation Loan with Bad Credit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Yes, you can get a debt consolidation loan with bad credit. But just be aware that it\u2019ll probably come with a high interest rate.<\/p>\n\n\n\n<p>Before you apply for a debt consolidation loan, check your credit score and history to see where you stand. If your credit score isn\u2019t looking very healthy, see if you can improve it. If you need to apply while your credit rating&#8217;s poor, look for lenders that specialise in helping people with bad credit.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"is-a-debt-consolidation-loan-a-good-idea-when-i-have-bad-credit\"><span class=\"ez-toc-section\" id=\"is_a_debt_consolidation_loan_a_good_idea_when_i_have_bad_credit\"><\/span><strong>Is a Debt Consolidation Loan a Good Idea When I Have Bad Credit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A consolidation loan when you have bad credit can be a good idea, but it depends on your situation.<\/p>\n\n\n\n<p>If you can get a low interest rate and you&#8217;re confident you can make the monthly payments, it\u2019s a good thing. It\u2019ll help you get out of debt. But if you&#8217;re not sure you can make the payments or if the interest rate is too high, it might not be worth it.<\/p>\n\n\n\n<p>If you\u2019re not sure if a consolidation loan is right for you, seek advice. There are organisations who can help like <strong><a href=\"https:\/\/www.stepchange.org\/\" target=\"_blank\" rel=\"noreferrer noopener\">Stepchange<\/a><\/strong> or <a href=\"https:\/\/www.nationaldebtline.org\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>National Debtline<\/strong><\/a>. These are charities who you can talk to for free.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-can-i-use-a-debt-consolidation-for-bad-credit-for\"><span class=\"ez-toc-section\" id=\"what_can_i_use_a_debt_consolidation_for_bad_credit_for\"><\/span>What Can I Use a Debt Consolidation for Bad Credit for?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A debt consolidation loan for bad credit can be used to pay off different types of debt. <strong>Here are the most common ones<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Credit cards<\/li>\n\n\n\n<li>Short term personal loans<\/li>\n\n\n\n<li>Store cards<\/li>\n\n\n\n<li>Tax arrears<\/li>\n\n\n\n<li>Overdrafts<\/li>\n\n\n\n<li><a href=\"https:\/\/www.lendingstream.co.uk\/loans\/payday-loans\/\"><strong>Payday loans<\/strong><\/a><\/li>\n\n\n\n<li>Unpaid utility bills<\/li>\n<\/ul>\n\n\n\n<p>If you have a few different debts and you\u2019re struggling to manage them all, a consolidation loan could be your answer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-types-of-debt-consolidation-loans-for-bad-credit-can-i-get\"><span class=\"ez-toc-section\" id=\"what_types_of_debt_consolidation_loans_for_bad_credit_can_i_get\"><\/span>What Types of Debt Consolidation Loans for Bad Credit Can I Get?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are a few different types of debt consolidation loans for bad credit that you can get in the UK. It depends on what you need. Below we list some of the options available to you.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"1-short-term-loans\"><span class=\"ez-toc-section\" id=\"1_short_term_loans\"><\/span><strong>1. Short Term Loans<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><a href=\"https:\/\/www.lendingstream.co.uk\/loans\/short-term-loans\/\"><strong>Short term loans<\/strong><\/a> are good for borrowing smaller amounts with shorter repayment terms. The interest will vary from one lender to the next. How much interest you pay is dependent on your situation and credit history.<\/p>\n\n\n\n<p>They\u2019re a good option if you don\u2019t owe much but are paying high interest rates. They can help you by reducing the amount you pay each month when compared to your existing loan. You just need to be sure you\u2019re not paying more interest overall.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"2-secured-loans\"><span class=\"ez-toc-section\" id=\"2_secured_loans\"><\/span><strong>2. Secured Loans<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A secured loan is one that is backed by collateral, such as your home. This makes it easier to get approved for a loan, even with bad credit. But it also means that you could lose your home if you can&#8217;t repay the loan.<\/p>\n\n\n\n<p>The good thing about secured loans is that, as the risk to the lender is lower, you can get a better interest rate.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"3-unsecured-loans\"><span class=\"ez-toc-section\" id=\"3_unsecured_loans\"><\/span><strong>3. Unsecured Loans<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>An <a href=\"https:\/\/www.lendingstream.co.uk\/loans\/unsecured-loans\/\"><strong>unsecured loan<\/strong><\/a> is not backed by collateral, so it may be more difficult to get approved for one. You may have a high interest rate compared to a secured loan.<\/p>\n\n\n\n<p>Check if you\u2019re eligible for an unsecured loan before you apply for it. You don\u2019t want to make lots of applications as this will <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/what-affects-your-credit-score\/\"><strong>hurt your credit score<\/strong><\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"4-instalment-loans\"><span class=\"ez-toc-section\" id=\"4_instalment_loans\"><\/span><strong>4. Instalment Loans<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Most consolidation loans are instalment loans. They\u2019re paid back in regular, fixed repayments over a set period of time.<\/p>\n\n\n\n<p>Knowing exactly how much you\u2019re paying each month will make it easier to budget. This\u2019ll help you avoid missing payments on the loan.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"5-personal-loans\"><span class=\"ez-toc-section\" id=\"5_personal_loans\"><\/span><strong>5. Personal Loans<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A personal loan is an unsecured loan that can be used for any purpose. This makes it a flexible option. But check the interest rate to make sure it\u2019s the right one for you.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-are-the-advantages-and-disadvantages-of-debt-consolidation-loans-for-bad-credit\"><span class=\"ez-toc-section\" id=\"what_are_the_advantages_and_disadvantages_of_debt_consolidation_loans_for_bad_credit\"><\/span>What are the Advantages and Disadvantages of Debt Consolidation Loans for Bad Credit?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are advantages and disadvantages of having a debt consolidation loan for bad credit. The table below lists what they are.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Advantages of consolidation loans for bad credit<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Disadvantages of consolidation loans for bad credit<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">You can pay a lower rate of interest on your debts.<\/td><td class=\"has-text-align-center\" data-align=\"center\">It could end up costing you more depending on the rate of interest you get.&nbsp;<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">You pay one lower monthly payment instead of multiple ones, so it\u2019s easier to manage.<\/td><td class=\"has-text-align-center\" data-align=\"center\">It may take longer to pay off your debts depending on the loan repayment term.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">It can help improve your credit score by:<br>reducing the number of outstanding debts.<br>increasing the amount of your available credit.<\/td><td class=\"has-text-align-center\" data-align=\"center\">If you keep your credit cards after you\u2019ve cleared them, you could be tempted to spend on them again. This\u2019ll make your debt situation worse, and it\u2019ll affect your credit score.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">You can get out of debt faster than you would if you were only paying the minimum payments on your credit cards.<\/td><td class=\"has-text-align-center\" data-align=\"center\">&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-can-i-find-the-best-debt-consolidation-loan-for-bad-credit\"><span class=\"ez-toc-section\" id=\"how_can_i_find_the_best_debt_consolidation_loan_for_bad_credit\"><\/span><strong>How Can I Find the Best Debt Consolidation Loan for Bad Credit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Here are a few tips to help you find the best debt consolidation loan for bad credit.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"1-work-out-how-much-you-need-and-how-much-you-can-pay\"><span class=\"ez-toc-section\" id=\"1_work_out_how_much_you_need_and_how_much_you_can_pay\"><\/span><strong>1.&nbsp;Work Out How Much You Need and How Much You Can Pay<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Before you start looking for a consolidation loan, you\u2019ll need to decide exactly how much you need to borrow. Add up all your debts so that you don\u2019t borrow more than what you need. Once you know this, you\u2019ll need to work out how much you can afford to repay each month.<\/p>\n\n\n\n<p>Knowing what you need and the payments you can afford will help you choose the right loan with the right lender.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"2-check-your-credit-score\"><span class=\"ez-toc-section\" id=\"2_check_your_credit_score\"><\/span><strong>2.&nbsp;Check Your Credit Score<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Checking your credit score will give you an idea of how likely it is that you\u2019ll get a consolidation loan. If your credit score is poor, it\u2019s worth doing what you can to <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-improve-your-credit-score-in-30-days\/\"><strong>boost your credit score<\/strong><\/a> before you apply. The UK has three credit reference agencies to check your score with:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a href=\"https:\/\/www.experian.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">Experian<\/a><\/strong><\/li>\n\n\n\n<li><strong><a href=\"https:\/\/www.equifax.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">Equifax<\/a><\/strong><\/li>\n\n\n\n<li><strong><a href=\"https:\/\/www.transunion.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">TransUnion<\/a><\/strong><\/li>\n<\/ul>\n\n\n\n<p>If you\u2019ve got a bad credit score it may mean you end up paying higher interest rates. If this is the case, your consolidation loan may not be cheaper than your existing debts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"3-shop-around\"><span class=\"ez-toc-section\" id=\"3_shop_around\"><\/span><strong>3. Shop Around<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Don&#8217;t just settle for the first loan company you come across. Compare interest rates, fees and repayment terms from multiple lenders to find the best deal. And make sure the lender you choose will let you borrow the money you need to clear all of your debts.<\/p>\n\n\n\n<p>If you want to know if you\u2019re eligible to apply for a loan with a lender, have a look at comparison websites.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-much-does-a-bad-credit-debt-consolidation-loan-cost\"><span class=\"ez-toc-section\" id=\"how_much_does_a_bad_credit_debt_consolidation_loan_cost\"><\/span><strong>How Much Does a Bad Credit Debt Consolidation Loan Cost?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The main cost associated with a bad credit consolidation loan is the interest rate. It&#8217;ll be higher than what you&#8217;d pay on a regular personal loan. The total amount you\u2019ll pay back will be provided to you by the lender. This may vary from one lender to the next as they all have different charges. But it\u2019s important you check this total repayment figure for the following reasons.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You\u2019ll want to compare your new loan repayment with what you\u2019re already paying. You don\u2019t want it to cost you more than your existing debts.<\/li>\n\n\n\n<li>Once you know the total cost you can compare it with other lenders.<\/li>\n<\/ul>\n\n\n\n<p>Although you should avoid missing payments on the consolidation loan, find out what you\u2019ll be charged if you do. And read the terms of any bad credit consolidation loans before signing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-can-i-apply-for-a-debt-consolidation-loan-for-bad-credit\"><span class=\"ez-toc-section\" id=\"how_can_i_apply_for_a_debt_consolidation_loan_for_bad_credit\"><\/span><strong>How Can I Apply for a Debt Consolidation Loan for Bad Credit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you&#8217;ve got bad credit but want to apply for a debt consolidation loan, here are some steps to follow.<\/p>\n\n\n\n<ol class=\"wp-block-list\" type=\"1\">\n<li>Look for lenders that specialise in loans for people with bad credit.<\/li>\n\n\n\n<li>Once you&#8217;ve found a lender, you&#8217;ll need to complete their application. At this point you\u2019ll need to have some information to hand. They\u2019re likely to ask for:\n<ul class=\"wp-block-list\">\n<li>Proof of identity<\/li>\n\n\n\n<li>Proof of your address<\/li>\n\n\n\n<li>Proof of your income<\/li>\n\n\n\n<li>Details of your income and outgoings<\/li>\n\n\n\n<li>Your bank account details<\/li>\n\n\n\n<li>Details of your debts that you want to pay off<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>If you&#8217;re approved for the loan, the next step is to use it to pay off your debts. Start by clearing the one with the highest interest rate first. Then pay your new loan repayments on time and in full each month.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-are-some-of-the-best-alternatives-to-debt-consolidation-loans\"><span class=\"ez-toc-section\" id=\"what_are_some_of_the_best_alternatives_to_debt_consolidation_loans\"><\/span><strong>What are Some of the Best Alternatives to Debt Consolidation Loans?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Debt consolidation loans are often marketed as a way to make your debt more manageable, which they can be.<\/strong> They\u2019re also another form of debt. There\u2019s more than one way to pay off your debts, here are some alternative options you could try.<\/p>\n\n\n\n<ol class=\"wp-block-list\" type=\"1\">\n<li>The first thing you could try is to transfer your balance to a 0% APR credit card. This will give you an interest free period to pay off your debt.<\/li>\n\n\n\n<li>If you own a property, you could take out a mortgage on it. If you already have a mortgage, you could either re-mortgage for a higher amount, or take out a second mortgage. Mortgage rates tend to be lower than loan rates. But remember your home is at risk of being repossessed if you can\u2019t make your payments.<\/li>\n\n\n\n<li>If you\u2019ve got any savings, use some of them to reduce your debts. If the interest you\u2019re paying on your debt is more than the interest on your savings, then it\u2019s worth doing.<\/li>\n\n\n\n<li>Finally, you could negotiate with your existing creditors. If you&#8217;re struggling, they may be willing to work with you which could involve setting up a payment arrangement. Doing this can help reduce the interest rate and get late fees waived. But the downside of this option is that it\u2019ll show up on your credit file, which will harm it.<\/li>\n<\/ol>\n\n\n\n<p>Whichever option you choose, make sure you do your research and compare all the alternatives available.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-do-i-check-if-i-m-eligible-for-a-bad-credit-debt-consolidation-loan\"><span class=\"ez-toc-section\" id=\"how_do_i_check_if_im_eligible_for_a_bad_credit_debt_consolidation_loan\"><\/span><strong>How do I Check if I&#8217;m Eligible for a Bad Credit Debt Consolidation Loan?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>So, you\u2019ve decided you want to consolidate your debts with a bad credit debt consolidation loan. But how do you know if you qualify for one? We\u2019ve listed a few things below that\u2019ll help you find out if you\u2019re eligible for a debt consolidation loan.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Reasons you\u2019re likely to be eligible for a debt consolidation loan<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Reasons you may be ineligible for a debt consolidation loan<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">You\u2019ve got a good credit history with no missed or late payments<\/td><td class=\"has-text-align-center\" data-align=\"center\">You\u2019ve got missed or late payments on your credit file, or defaults registered against you.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Your debt repayments are less than 40% of your total income.<\/td><td class=\"has-text-align-center\" data-align=\"center\">Your debt repayments are higher than 40% of your income.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">You have a regular income.<\/td><td class=\"has-text-align-center\" data-align=\"center\">You don\u2019t have a regular income.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">You\u2019re a UK resident, over the age of 18.<\/td><td class=\"has-text-align-center\" data-align=\"center\">You don\u2019t have a UK bank account.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Ultimately, to find out if you\u2019re eligible for a bad credit debt consolidation loan check with the lender. Comparison sites can help with checking which loans you\u2019re eligible to apply for.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"faq-debt-consolidation-loans-for-bad-credit\"><span class=\"ez-toc-section\" id=\"faq_debt_consolidation_loans_for_bad_credit\"><\/span>FAQ: Debt Consolidation Loans for Bad Credit<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1671106401998\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"will_a_debt_consolidation_loan_affect_my_credit_score\"><\/span><strong>Will a Debt Consolidation Loan Affect My Credit Score?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>A debt consolidation loan can affect your credit score in the following ways:<br \/>1. It\u2019ll help your credit score as the amount of available credit you have will go up. That\u2019s so long as you don\u2019t spend on the credit cards you\u2019ve cleared.<br \/>2. If you keep on top of your consolidation loan repayments, it\u2019ll help improve your credit score. But if you miss them or are late making your payments, it\u2019ll hurt your credit score.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1671107985908\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"is_consolidating_my_debts_a_bad_idea_if_i_have_poor_credit_history\"><\/span><strong>Is Consolidating My Debts a Bad Idea if I Have Poor Credit History?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>If you have a poor credit history, debt consolidation may not be a good idea for the following reasons.<br \/>1.\u00a0You could end up paying a higher interest rate compared to your existing debts.<br \/>2.\u00a0It can take you longer to pay back what you owe.<br \/>3.\u00a0Moving your debt doesn\u2019t make it go away, you still have to pay back what you owe.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1671108036354\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"can_i_get_a_debt_consolidation_loan_for_bad_credit_without_a_guarantor\"><\/span><strong>Can I Get a Debt Consolidation Loan for Bad Credit Without a Guarantor?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>If you have bad credit, you don\u2019t need a guarantor to get one. There are lenders who\u2019ll consider providing debt consolidation loans to people with bad credit. But <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/who-can-be-a-guarantor\/\"><strong>if you have got a guarantor<\/strong><\/a> then it\u2019ll help secure a loan if your credit rating is poor.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1671108065794\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"can_i_get_a_bad_credit_debt_consolidation_loan_without_a_credit_check\"><\/span><strong>Can I Get a Bad Credit Debt Consolidation Loan Without a Credit Check?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>No, all authorised lenders will do a credit check as part of their decision-making process. This is because the <strong><a href=\"https:\/\/www.lendingstream.co.uk\/blog\/financial-conduct-authority\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/www.lendingstream.co.uk\/blog\/financial-conduct-authority\/\" rel=\"noreferrer noopener\">Financial Conduct Authority<\/a><\/strong> sets out guidelines that lenders must follow.<br \/>If a lender says they\u2019ll give you a loan without doing a credit check, then read the small print. All reputable lenders will do a credit check when you apply for a loan.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<p><strong>Disclaimer:<\/strong> Any information provided does not constitute financial advice. Please read carefully about the terms and conditions of the credit provider you choose to take out a loan from. Any links to external websites are for reference only and are correct at time of publishing.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Are you struggling with debt? Or maybe you have bad credit and are looking for ways to become debt free? If so, you might be considering a debt consolidation loan. This can be a good option for those of us who have bad credit as it combines all your debts into one loan. If you [&hellip;]<\/p>\n","protected":false},"author":48,"featured_media":26877,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[267],"tags":[],"class_list":["post-26876","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loans"],"_links":{"self":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26876"}],"collection":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/users\/48"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=26876"}],"version-history":[{"count":2,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26876\/revisions"}],"predecessor-version":[{"id":27014,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26876\/revisions\/27014"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media\/26877"}],"wp:attachment":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=26876"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=26876"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=26876"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}