Debt Consolidation
admin June 17, 2022

If you want to make a debt consolidation, you are doing something great!

It is because debt consolidation can organise your debts in such a way that you will enjoy paying them off.

More importantly, you are going to get even more organised in managing the debts or multiple debtors.

In this tough age of competition and money-related hurdles, you are always met with a level of challenge all the time and therefore are experiencing a constant struggle in the financial department. Managing money is fun, but when it gets out of your control, you rush here and there to get money delivered to your debtors.

Things don’t have to be this way.

You can take the help of a debt consolidation loan from direct lenders such as us anytime you want.

But a bad credit score gets in your way, right?

Getting a Debt Consolidation Loan in Poor Credit Is Possible

Rejection is but a negative emotion we can all relate to. Whether it is a rejection of your pet dog to fetch the stick for you or getting rejected for a loan just because you have a bad credit score, they feel the same.

The case of loan rejection is more painful because it brings with it a hundred many concerns, mainly when multiple creditors are involved.

In these situations, you might think there isn’t an option to get a loan with low credit scores.

But actually, there is.

It is not the fact that we offer these loans, but you can get them from any direct lender if you are strategically managing the workforce and you are working brilliantly to weigh your strengths with your problem: A bad credit score.

So, in summary, a debt consolidation loans for bad credit UK no guarantor is something that is possible.

If you think it is impossible, then use these strategies mentioned below to reverse it:

  1. Evaluate Your Credit Score
  2. Wait for Improving Your Credit…Maybe Take out a Short Term Loan
  3. Take Good Care of debt-to-Income Ration by Improving It
  4. Compare Packages
  5. How about Alternatives?

Let us now learn about them in detail:

  1. Evaluate Your Credit Score

Credit card providers supply you with credit reports and credit scores.

Your credit report is basically the transactions you made using your credit card and the details of them when they have been made and in what amount or to which organisation or individual etc.

Now the credit score part is a bit tricky.

In the UK, credit scores are basically defined by three standards. They are:

  • Equifax
  • Experian
  • TransUnion

You have to learn what standard your credit card provider follows to supply your lender with the correct credit score for the consolidation loan you want from him.

Hold on!

We are not done yet!

Your credit score and credit report must be cross-checked with the payments you made using them. Chances are you may find errors in the report and, therefore, in the calculation of the credit score. Immediately talk to your credit card provider to get it fixed, and only then speak to your lender.

Who knows? Maybe your credit score will improve if you are serious about cross-checking.

2 - Wait for Improving Your Credit…Maybe Take out a Short Term Loan

Waiting to make your credit score go up again is okay if your debtors are not in a hurry. You might also buy yourself some time using this method.

You can do something before deciding on a short-term loan.

As a matter of fact, you can still make yourself more organised with money. You can ensure you are checking your expenses and analysing them to cut costs and reduce financial burdens. In this regard, make all those pending credit card payments not in a hurried way but in a more regularised way than before to improve your credit score. You can then take out an easy debt consolidation loan too.

But what if you do not have that time?

In that case, you can go for a short-term 5000 pound loan bad credit no guarantor to worry about and immediately make your credit card payments. You can elevate your credit score to get a debt consolidation loan later.

Taking a short-term loan of this kind may also help you with lowering the amount of your debt consolidation loan because you can pay a few debtors with part of the money from that 5000-pound loan.

3 - Take Good Care of Debt-to-Income Ratio by Improving It

Your debt-to-income ratio is always required to be proper.

Although this is a thing, you will hardly know about unless you are a direct lender or have studied lending.

We can give you a basic idea about this.

You can simply work with your income and ensure it is always higher than the expenses. You must find some money left in your pockets that you can save, and with that money, you are going to pay the monthly instalments of the debt consolidation loan direct lenders will offer you.

Yes, no lender is asking you to give whatever you save as your loan instalment.

You must check that you have some money left even after paying the instalments off.

It is because people might face emergencies. You need money then!

4 - Compare Packages

One of the best ways to consolidate your debts in bad credit is to make some good comparisons.

Here is what you can do:

  • Get online and list all the lenders listed down who are providing you with a bad credit loan for debt consolidation purposes.
  • Use an app if you need to in this process to get a faster result and efficient listings of lenders.
  • Avoid brokers as that may take some time to work (and sometimes it is too costly if you go this way).
  • Choose a few lenders where you want to finalise one.
  • Make a soft enquiry or speak with all lenders over the phone or email to get loan quotes.
  • Compare the interest rates and loan duration. Find out the most affordable one.

And now it is your time to book your loan and get started with the discussion of the terms.

5 - How about Alternatives?

Sometimes, we might want to look for something else when we are not getting what we want.

In that regard, you can make go for other sorts of loans we offer.

You must remember that you are doing the same thing as taking out a debt consolidation loan if you take out another loan.

At the end of the day, these are all but loans…yes, with some sort of differences in their terms and other traits.

The main problem here isn’t debt consolidation. The problem here is the poor credit score.

In order to get financial aid in that issue; you can check out the following loans as they are equivalent to a consolidation loan, and they’re all offered in a credit score that’s not favourable:

  • Bad credit loans
  • Unemployed loans
  • No credit check loans
  • Maybe the best secured personal loans for bad credit

If you have sound income proof or you do not use a credit card, or you are buying a loan from us for the first time, you really do not need a strict credit check.

So if you have worries about rejection, go kiss it ‘goodbye’.  

To Conclude

Was this information helpful?

Did you already get a bad credit loan for debt consolidation? Or are you looking for one? What thoughts are popping up in your mind now after reading this post?

Do let us know in the comments.

We’d love to know what’s going on!

Read Also - Is Bad Credit Score a Problem for Debt Consolidation? Nope!!!