Bad credit loans can be a hassle.
Have you found yourself in a similar situation where you’re tasked with paying off bad credit loans and struggling to get approval for your debt consolidation? We took the time to explore bad credit loan debt consolidation options and found a few good opportunities for businesses to leverage. To make things easier for you, we have simply organized some of the best debt consolidation programs for those who are struggling with poor credit.
But before we dig into the details, let us first understand what debt consolidation is and how it helps you with your bad credit loan situation.
What is Debt Consolidation in Terms of Bad Credit Loan?
Debt consolidation is a way to sum up multiple debts under a single credit in order to pay them all off individually and quickly. Debt consolidation allows the borrower to sum up multiple debts into a single loan where they are tasked with paying off a fixed monthly payment. It not only helps the borrower save money on interest, but it also eliminates the stress of managing multiple bills and making repayments on due dates.
To qualify for debt consolidation for bad credit loans requires a credit score of 669, which is often difficult for someone who is already knee-deep in bad credit loans. Individuals with a strong profile have a much better chance of approval compared to those who don’t have a strong credit history. In fact, they actually see things coming in their favor compared to someone who has always been struggling to maintain a decent credit profile.
But that certainly does not mean an individual who has a bad credit score cannot find a way to achieve debt consolidation. To help you find the best debt consolidation options for your bad credit loans, we have listed below a few good options based on interest rates and repayment terms. So without further ado, let’s check it out.
Achieve – Best For Low Fees
Annual Percentage Rate – 8.99% to 35.99%
Loan Amount – $5,000 to $50,000
Term – 24 to 60 Months
Credit Score Requirements – 620 or Higher
Origination Fee – 1.99% to 6.99%
Achieve, is by far, the best debt consolidation option with a fairly decent origination fee. It’s an excellent option for such individuals who carry a bad credit history and are looking for debt consolidation with flexible rerms & fast approval. It offers easy funding at the best affordable interest rates.
As far as its qualifying is concerned, you need to secure a credit score of 620 or higher. This is a considerable number which Achieve seeks in order to qualify you as someone who is eligible for debt consolidation. To make sure you’re eligible, Achieve performs a soft credit inquiry.
Once the pre-approval phase is complete, the company will then proceed with a hard credit check which may impact some of your credit points. Once, Achieve completes screening process, you will then receive funds within 24 to 72 hours. While most debt consolidation for bad credit charges an interest rate of 36%, Achieve is still considerably lower compared to many other programs.
Upstart – Best for People without a Credit History
Annual Percentage Rate – 7.44% to 35.99%
Loan Amount – $1,000 to $50,000
Term – 36 to 60 Months
Credit Score Requirements – 300 on One Credit Report
Origination Fee – 0% to 12%
If you’re someone with no credit history and you’re looking to take out debt consolidation on bad credit loans, Upstart is your perfect option. The company simply checks your work history & education at the time of evaluation.
The best part: You can borrow a loan as small as $1,000 which makes it an ideal choice for loan takeouts. You can also check the interest rate which you will be paying off once you apply for the debt consolidation loan. 99% borrowers who have issued loan from Upstart claims they receive personal loan amounts as soon as a day after signing up for debt consolidation. The only downside is the origination fee which may vary or increase depending on the loan issuance terms.
Lending Point – Best for Quick Approvals
Annual Percentage Rate – 7.99% to 35.99%
Loan Amount – $1,000 to $36,500
Term – 24 to 72 Months
Credit Score Requirements – Poor or Fair
Origination Fee – Upto 10% based on your state.
Late Fee Surcharge – Doesn’t charge late fee but holds the right to apply late fee of up to $30.
If you’re looking for quick access to debt consolidation on bad credit loans, and you already have a bad credit history, then Lending Point is the answer. The terms can easily be checked online or you can simply visit one of the LendingPoint facilities to get a quick estimate. As with others, you don’t have to wait for a business day or business days to receive an approval. The approval process completes within a matter of seconds. Once you’ve passed the pre-approval phase, the loan disbursement completes in the next one working day. With all of this criterias well met, Lending Point requires you to show an annual earning of $35,000 and the company doesn’t entertain states of Nevada and West Virginia.
Upgrade – Best for Flexible Repayments
Annual Percentage Rate – 9.99% to 35.99%
Loan Amount – $1,000 to $50,000
Term – 24 to 84 Months
Credit Score Requirements – 600 or higher
Origination Fee – 1.85% to 9.99% (deducted with loan proceeds)
Late Fee Surcharge – Upto $10 with 15-Day Grace Period
Upgrade features plenty of loan term options, allowing you to choose one that fits best to your particular needs. The plentiful repayment options is what makes this loan disbursement company an ideal choice for borrowers. Upgrade send funds directly to the creditor making the loan disbursement process as simpler as it gets. The company allows you to borrow loan as little as $1,000 where you receive the fund within one-working day. This is contingent to how soon you submit the required documents. The interest you pay off on your loans are standard rates & you can check the APR as well before committing loan.
SoFi – Best for Borrowers with Strong Financial Profiles
Annual Percentage Rate: 7.99% to 23.43%
Loan Amount: $5,000 to $100,000
Term: 36 to 84 Months
Credit Score Requirements: 680 or higher
Origination Fee: None
SoFi offers competitive rates for those with good credit, making it a great option for borrowers who have a strong financial history. The company prides itself on fast approval and offers flexible loan terms. SoFi does not charge origination fees, which is an added benefit. Borrowers can also enjoy unemployment protection if they lose their job during the loan term, helping them stay afloat during difficult times.
Marcus by Goldman Sachs – Best for No Fees and Flexible Terms
Annual Percentage Rate: 6.99% to 24.99%
Loan Amount: $3,500 to $40,000
Term: 36 to 72 Months
Credit Score Requirements: 660 or higher
Origination Fee: None
Marcus by Goldman Sachs stands out due to its no-fee structure, which includes no origination, late payment, or prepayment fees. With flexible loan terms, Marcus offers options for borrowers who need a bit more breathing room. The lack of fees and a straightforward loan process makes it ideal for borrowers looking for a simple consolidation option.
Avant – Best for Borrowers with Fair Credit
Annual Percentage Rate: 9.95% to 35.99%
Loan Amount: $2,000 to $35,000
Term: 24 to 60 Months
Credit Score Requirements: 580 or higher
Origination Fee: 4.75% to 6.00%
Avant is a good option for individuals with fair credit, offering accessible loan options with a relatively fast approval process. Though the interest rates can be higher than some other options, Avant offers loans with low minimum amounts, making it a practical choice for smaller consolidation needs. The origination fee varies based on creditworthiness but is often lower than competitors.
Best Egg – Best for Fast Approval and Funding
Annual Percentage Rate: 8.99% to 35.99%
Loan Amount: $2,000 to $50,000
Term: 36 to 60 Months
Credit Score Requirements: 640 or higher
Origination Fee: 0.99% to 5.99%
Best Egg is known for its quick and easy loan approval process. Once you apply, you can get a decision within minutes and, if approved, funds can be disbursed as soon as the next business day. The loan terms are flexible, and the company offers competitive interest rates, making it a good choice for borrowers in need of a quick debt consolidation solution.
Can I Apply for Debt Consolidation If I Have a Bad Credit Score?
Yes, you can qualify for debt consolidation for bad credit which is a credit score that falls below 670. However, the type of company you choose for debt consolidation matters & so do the terms on which you agree upon. When you apply for debt consolidation, interest rates may exceed the APR amount on bad credit loans. This usually happens when you have a bad credit history or financial reports.
In such a scenario, taking out debt consolidation might not be the best option. You may explore other ways to take care of your balances such as renegotiating payment terms with your creditor or go for credit counseling and come up with a debt management plan under someone’s supervision.
Why Can’t I Receive a Debt Consolidation Loan?
When you apply for debt consolidation on bad credit, there’s no gaurantee whatsoever that your debt consolidation request will be approved. Lenders bring into account myriad of factors when it comes to loan evaluation. The best use case scenario of denial is when your income falls below the minimum requirement or when your debt-to-income ratio is relatively high. When you experience a denial from a creditor on debt consolidation, the creditor or the median between you & the creditor are required to specify the reason within 60 days.
This is applicable because of Equal Credit Opportunity Act.
Conclusion
If you are struggling with bad credit loans and you are searching up a suitable debt consolidation option, then it can be challenging, but with the right information, it becomes much easier to make a decision. Whether you have no credit history, a fair credit score, or a strong financial background, there are plenty of options available to help simplify your financial situation. By choosing a debt consolidation loan that aligns with your needs, you can save money, reduce stress, and regain control of your finances.
If you’re ready to take the next step in managing your bad credit loans, explore the options listed in this article and find the best fit for your financial requirements.
Mountains Debt Relief is a debt relief service where we offer some great options for debt consolidation. If you’re struggling with your financial journey, don’t wait any longer—start your journey for financial freedom today!