When you struggle with your credit card debt, you may easily consider for a loan. However, it will be difficult if your credit score is poor. But it does not mean that bad credit debt consolidation loan is impossible. You still can get it if you understand how to get it. So, how to get bad credit debt consolidation loan? That is what we will discuss in this article.
When Do You Belong to Bad Credit?
With good credit score, you can get a loan easily. On the contrary, bad credit score makes it more difficult. Bad credit debt consolidation loan means that you have poor credit score. Credit score is considered as poor or bad if it is under 600. To get poor credit debt consolidation loan, you have to understand the following guides.
Tips in Getting Debt Consolidation Loan with Bad Credit Score
Having a bad credit score is a problem when you want to apply for a loan. However, you still can get bad credit debt consolidation loan with the following ways:
- Student Loan Consolidation
If your credit card debt that will be consolidated is student loan, you are in luck. For your information, it is much more difficult to get rid of than any other debt. Besides that, it is also not dischargeable in bankruptcy. It makes this bad credit debt consolidation loan less risky.
- Consider Lenders with Poor Credit Score Minimum
With your bad credit score, the lenders will give different requirements with the moderate, good or even excellent credit scores. Different agencies or companies may have different classifications to determine bad credit score. Anyway, it can be one of the ideas that can be tried or you who look for bad credit debt consolidation loan.
- Get a Cosigner
Most lenders will not offer debt consolidation loan for you who have bad credit score. However, they may approve your application since you have co-applicant with good or excellent credit score. In this case, you need a lender that allows co-applicants and also a willing cosigner. If you can find them both, your bad credit debt consolidation loan may be approved.
- Try Credit Union
As a non-profit financial institution, credit union often provide debt consolidation loan for those who have bad credit score. Even more, members also often get lower rates. However, not all credit unions offer it. So, you have to find a credit union in your country that provides bad credit score debt consolidation loan.
- Nonprofit Debt Consolidation
Besides credit union, there are still many other nonprofit debt consolidation companies. Even more, nonprofit debt consolidation companies also allow you to negotiate with lenders to lower the interest rates.
- Secured Loan
If you possess good assets, you can consider borrowing to them with secured loan to consolidate debt. For example, you can use a home equity or a car for your asset used to guarantee your loan. This will ease you get bad credit debt consolidation loan fast.