How to get a debt consolidation loan
There are two criteria that lenders will look at before offering a loan for debt consolidation. Your outstanding debt and your credit risk. These will determine whether you may consolidate. Lenders may only offer secured debt consolidation loans for bad credit.
Plenty of personal loans can be used for debt consolidation. The decision to lend hinges on a combination of factors. The amount you want to borrow, the length of the loan and your income will all be taken into consideration.
Does debt consolidation affect your credit score?
Like all other forms of borrowing, failure to repay will hinder your credit rating. If you do make successful repayments however, your score will typically improve over time. If you have several large debts then consolidating could result in a lower interest rate overall making it easier to repay and also helping your credit score.
How to find debt consolidation loans
You can find a range of consolidation loans on our website. Find and compare your options with our powerful comparison service to find the right loan for you.