Bad Credit Debt Consolidation Loan

Debt consolidation is a type of loan that can help pay off other debts. In addition, this one solution can also free you from complicated processes, especially if you have debt from more than 1 creditor. A bad credit debt consolidation loan is one way to ease the debt burden by making one debt, even though the debt is in bad condition.


A debt consolidation loan is a loan that is the result of the mechanism of merging several different debts into one. So, the debtor or borrower will only need to make repayments through one loan.

Debt Consolidation Loan with Bad Credit

A debt consolidation loan can help you get a lot of debt under control, and you can save on interest costs with a much lower interest rate. But getting a debt consolidation loan with bad credit is difficult (FICO considers a score below 580 to be "bad"). Lenders may be reluctant to approve your application, and those who approve you will most likely charge high-interest rates or fees—making it difficult to disclose.

If you have bad credit, it's a good idea to explore your options. But it's important to know that the options may be limited and expensive, and predatory lenders may target borrowers in your situation. In some cases, you may be better off paying off existing debt without applying for a new loan.

Where Can You Get A Debt Consolidation Loan With Bad Credit?

There are several popular online lenders to identify potential sources for debt consolidation loans. These lenders can provide loans to borrowers with lower credit scores, but that doesn't mean they approve every application. To qualify for a loan, you usually need a steady income or other factors that can offset items in your credit history.

  • Upgrade

If you want to hear what others have to say about lenders, Upgrade provides plenty of recent user reviews. You should always look at reviews that lenders provide with skepticism, but this information may be useful—even if the negative reviews aren't suspicious. Hearing how others describe the service in their own words can provide clues to help validate whether you're on the right track.

  • Veridian Credit Union

Veridian Credit Union offers Payday Alternative Loan (PAL) which may be a good option to pay off small debts quickly. PALs must follow strict rules from the National Credit Union Administration (NCUA), which helps control costs. The rates you pay to Veridian CU are relatively low for bad credit lenders, but it is best to minimize loans.

CU's Veridian approach puts you in a better financial position in six months. You receive half of the funds (minus the application fee) upfront for consolidation, but you pay back the full loan amount. At the end of the term, you have a loan in full and additional cash for emergencies. With this safety net, you are less likely to take on high-interest debt again.

To get approved, you must become a member at Veridian CU and set up direct deposit into your account. All of that (especially waiting for an employer to send you your paycheck) can be time-consuming. Once everything is set up, you can apply for PAL and potentially receive funding within a day, according to a Veridian CU representative. You also shouldn't have a payday loan that charges a fee.

To be eligible for membership in Veridian CU, you can create an account on the Dwolla payment platform, which is available to consumers across the country.

Hopefully this information about "Bad credit debt consolidation loan" is useful for you.


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