- 1 debt consolidation loan bad credit direct lender
- 1.1 Debt consolidation personal loans
- 1.1.1 Debt consolidation personal loans explained
- 1.1.2 What can a debt consolidation personal loan be used for?
- 1.1.3 Do I qualify for a debt consolidation personal loan?
- 1.1.4 How long do I have to repay my loan?
- 1.1.5 How much interest will I have to pay on my loan?
- 1.1.6 Understanding Bad Credit Loans
- 1.2 Q3: Can taking out a loan improve my credit score?
- 1.3 Q4: Will applying for a loan effect my credit score?
- 1.4 Q1: What do I need to get approved for a loan?
- 1.5 Q2: How long does it take to get a loan?
- 1.6 Q3: Can I get a top up on my loan?
- 1.7 Q4: Is Everyday Loans a direct lender?
- 1.8 Debt Consolidation Loans up to $100,000
- 1.9 Debt Consolidation Loans up to $100,000
- 1.10 Choosing the Best Debt Consolidation Loans
- 1.11 Debt Consolidation with Personal Loans
- 1.12 Consolidation Options: Loans vs. Credit Cards
- 1.13 Debt Consolidation Loans for Good & Bad Credit
- 1.14 Consolidate Your Debt Today Using LendingTree
- 1.15 How does consolidating debt work?
- 1.16 What types of debt can I consolidate?
- 1.17 How much can I save by consolidating my debt?
- 1.18 Does it make sense to consolidate your debt?
- 1.18.1 What is a bill consolidation loan?
- 1.18.2 How do I know if I need debt consolidation?
- 1.18.3 How does debt consolidation affect my credit score?
- 1.18.4 What is the difference between a secured loan and an unsecured loan?
- 1.18.5 How do I determine if a lender is legit and has my best interests?
- 1.18.6 Can I get a debt consolidation loan if I have bad credit?
- 1.18.7 Is it smart to pay off debt by taking out more debt?
- 1.18.8 What is the difference between debt settlement and bankruptcy?
- 1.18.9 Can I consolidate debt if I’ve been sued?
- 1.18.10 Get to Yes, Safely and Securely
- 1.19 Unsecured Loans for Bad Credit
- 1.20 What Are the Credit Score Ranges?
- 1.21 Is Having "No Credit" the Same as Having "Bad Credit"?
- 1.1 Debt consolidation personal loans
debt consolidation loan bad credit direct lender
Debt consolidation personal loans
Debt consolidation personal loans explained
When people find themselves in debt, it can be a very stressful time for both themselves and their family. In fact, debt is one of the most common causes of anxiety among adults.
This is particularly the case when a person owes multiple debts to several different credit providers. Keeping track of your monthly outgoings becomes a challenge which only adds to the stress of repaying your debts.
A debt consolidation personal loan is sometimes referred to as an unsecured loan, which is primarily used to pay off existing debts. This can not only be used to consolidate separate pending loans, but other forms of debt such as credit cards etc.
By consolidating existing debts into one single monthly payment, a person can often reduce their monthly outgoings and better manage their finances. These types of loans often prove to be more affordable.
When people owe credit to several different providers at the same time, it heightens the chances that they will fall behind on payments from time to time. This has an adverse effect on that person’s credit score and therefore harms their chances of applying for future credit.
Debt consolidation personal loans may, therefore, give people a greater sense of control over their financial situation. Not only that, they may also be able to arrange a repayment plan that suits them far better than their current arrangements.
Before you apply for an unsecured debt consolidation loan through Progressive Money, make sure to read through some of our most frequently asked questions.
What can a debt consolidation personal loan be used for?
A debt consolidation personal loan is a good option for people looking to get a better handle on their multiple outstanding debts. If you’re looking to obtain credit, our range of personal loans for debt consolidation may be able to help you in the following ways:
- Regain control over repayment period
- Reduce the stress in your financial situation
- Reduce your monthly payments
- Reduce the interest you pay
- Improve your credit rating
Do I qualify for a debt consolidation personal loan?
In order to apply for an unsecured debt consolidation loan through Progressive Money, you must meet the following criteria:
- Aged 18-70
- A homeowner
- Live in the UK
- Able to afford monthly repayments comfortably from your regular income
Progressive Money offer personal loans for debt consolidation from £1,000 up to the value of £15,000.
How long do I have to repay my loan?
We offer flexible repayment periods of up to 10 years. Our team of expert loan advisers can talk you through all repayment options available to you.
Although opting for a longer repayment schedule may reduce the amount you are due to pay back each month, remember that it also means that you are in debt for a longer period of time.
How much interest will I have to pay on my loan?
We believe in being completely transparent about all fees involved in your personal loan application. Interest rates vary with each application, and is dependent on various factors such as loan amount, repayment term, and credit score.
Progressive Money charge an acceptance fee of 10% of the loan amount and an administration fee of £390 for the administration of the loan, which you can pay up front or choose to add into the loan amount. For example, if you are applying for a £7,500 loan, you may expect to pay an acceptance fee of £750 and an administration fee of £390.
We will not turn you away if you have negative equity in your property. Please be aware that we cannot guarantee your personal loan until we have reviewed your current circumstances and the repayments you can afford.
At Progressive Money, we listen to you. Your application will be individually assessed by an Underwriter and not by a computer.
A personal account manager will be there for you to discuss any queries you have regarding your account right through until the completion of your loan term. Remember your personal account manager is always just a quick call away.
Representative Loan Example: Loan Amount: £4,000.00, Loan Term: 36 months, Monthly Interest Rate: 30.60% PA (Fixed), Monthly Repayments: £195.55, Total Amount Repayable: £7,040.00, This example includes an Acceptance Fee of £400 (10% of the loan amount) and an Administration Fee of £390.
*The maximum APR is representative of plan 4c based on a term on 24 months and a loan amount of £2000.
Progressive Money Limited is a direct lender and licensed credit broker. If your application for a loan doesn’t meet the underwriting requirements of Progressive Money Limited or you wish to consider other lending options, we may with your permission, pass your information onto other selected third party lenders or brokers, including other group companies. Authorised and regulated by the Financial Conduct Authority. Firm Reference No. 690699. Registered with the Information Commissioners Office No. Z3414982.
If you have been refused credit by your bank or a high street lender,
don't worry, there are still options for you.
If your credit history has had a few bumps in the road in the past, for example if you've missed a payment on a debt, whether this is an overdraft, credit card, personal loan or even a mortgage, you may find it harder to obtain the finance you need.
We know very well how challenging it can be to stay afloat. We all experience difficult times now and then where our finances are concerned, and the Everyday Loans mission statement is to help you get through those times. With the help of a flexible, direct loan you’ll be back on your feet in no time.
Loans are subject to status and affordability. Terms and conditions apply.
Flexible, friendly and transparent with great customer service - at least that's what our customers say!
With everyday loans, you're more than just your credit score.
We offer loans to those with a less than perfect credit score.
With everyday loans, you're more than just your credit score. Here at everyday we look at your credit future, not just your credit history. As such even if you have bad credit now or you've had a poor credit score in the past, we may be able to help.
There are 3 simple steps to taking out an everyday loans loan. All of our loans are subject to status and affordability.
Complete our short
Get an initial decision
Pop into your local branch
to complete your loan
- Applying with us won't affect your credit score. We use Soft Searching Technology which means even if you're unsuccessful; it won't go against your credit file.
- We offer loans to those with a less than perfect credit score. You'll need to be over 18, a UK resident and be able to afford repayments.
- We're a direct lender not a broker. We'll NEVER charge you a fee to consider your application.
- We'll give you a conditional decision in just minutes.
Start Your Application
Where other institutions and banks would turn down your request, we understand that you have an honest and legitimate need for financial assistance and may be able to help where others wouldn’t. It’s what makes us different!
There are few lenders that offer specifically designed loans for people with poor credit histories. Anyone can apply for a poor credit loan but your age, income and employment status will be taken into account before any application is processed. The minimum requirements are that you are over 18 and employed.
It's our belief that more people across the country should have access to a flexible loan when they are in a time of need. Having a poor credit history shouldn’t mean that you can’t get the help you need when you need it most. Managing a credit rating is part of being a responsible adult, and we understand that building back your credit history won’t happen overnight.
With a direct loan provided by us, your short-term financial stability is restored. This gives you the time you need to get things in order to prepare for the weeks and months to come. In time, with support from that bad credit loan, you’ll be back on your feet where money is concerned.
Paying off your loan from us could have a positive impact on your credit history. This, when combined with other responsible spending activities, can get you closer to a positive history and credit rating that will benefit you going forward.
Everyday Loans is one of the UK's leading bad credit loans direct lenders, offering customers a personal face-to-face service that addresses all our customers' financial needs.
Understanding Bad Credit Loans
Let’s start with the term bad credit.
The term "bad credit" is often used to describe an individual's credit score which is less than perfect. However, it's important to understand that your credit report is not measured by brackets like "good" or "bad", but with a number or value that is constantly changing based on a variety of factors.
A poor credit history or, in other words, a low credit rating can often stop you from getting loans from high street banks or building societies. This makes buying a new car or converting that loft into the room you’ve always wanted extremely difficult. This is where a ‘bad credit loan’ comes into play. This type of finance is designed for anyone looking to obtain credit, but who is unable to acquire it from mainstream lenders due to poor credit history.
If you’ve struggled with credit issues in the past, it can be difficult to get a loan from a major high street bank like Barclays or Lloyds TSB. A bad credit loan is designed to help those with less than perfect credit scores. These loans usually come with a higher APR than a traditional loans, but specialist lenders like us are more likely to be able to help you if you’ve had problems in the past.
APR stands for annual percentage rate, it essentially represents the price you will pay for a loan. For example; If you were to borrow £1,000 over 1 year with a 10% APR then you would repay £1,100. This is the very basic premise of APR. However, it isn't quite as simple as that due to something known as compound interest which you can read more about here on the ThisIsMoney website. Once you apply with us and are accepted, your APR and repayments will be explained clearly in plain easy to understand English.
Q3: Can taking out a loan improve my credit score?
Taking out a loan does not improve your score on it’s own, however if you make your payments on time every month without any problems this can indeed improve your credit score. Lenders like to see potential borrowers managing their accounts well and can take it a as a sign that even though you had problems before, you are now making regular payments which could imply those problems are behind you.
Q4: Will applying for a loan effect my credit score?
With some lenders, every time you make an application they put a mark on your credit file to show that it was searched. Too many of these can imply to future lenders that you were struggling to get hold of finance and therefore they should be cautious in lending to you. Here at Everyday Loans we use Soft Search Technology, this doesn’t leave any marks on your credit file that can be seen by other lenders.
Learn more about Everyday Loans and our specialist bad credit loans designed to help you get access the finance you need. Our loan application process is quick and easy, with our professional advisors always on hand to answer any questions you may have.
Q1: What do I need to get approved for a loan?
As long as you are a resident of the UK, have a UK bank account and are currently employed then we may be able to help you. We specialise in helping those with less than perfect credit and use soft searching technology that doesn’t affect your credit score if you aren’t successful, as long as you meet our minimum criteria above then you should apply now to see if we can help.
Q2: How long does it take to get a loan?
If your loan application is successful you will receive a conditional approval. Your application is then handed to one of our local branches that will arrange a time for you to come in and complete your loan. The whole process is quick and easy and you could get the finance you are after in little to no time.
Q3: Can I get a top up on my loan?
If you have been paying your loan on time and without any problems, then after a while you may be eligible for a loan top up. Simply get in touch with your local branch to enquire as to whether you are eligible.
Q4: Is Everyday Loans a direct lender?
Yes, we are a direct lender with our headquarters in Bourne End, Buckinghamshire that specialises in helping people with poor or bad credit. Apply with us today to see if we can help.
We do not charge any fees. If you prefer, talk to us on Freephone 0808 231 5453.
Everyday Loans is a trading style of Everyday Lending Limited (Company registration no. 5850869, England & Wales).
Registered Office and Trading Address: Secure Trust House, Boston Drive, Bourne End, Buckinghamshire, SL8 5YS.
Everyday Lending Limited (Firm Reference No. 724445) is authorised and regulated by the Financial Conduct Authority.
Everyday Lending Limited is a member of the Finance and Leasing Association and as a member, we follow its Lending Code.
Debt Consolidation Loans up to $100,000
Debt Consolidation Loans up to $100,000
- Apply right now starting below
- Know if you’re approved within minutes
- Receive money within days
- Consolidate bills into single payment
Options for Debt Consolidation
You have several options when it comes Debt Consolidation. Make sure you know which one is perfect for you.
Knowing the right things to consider when finding the right Debt Consolidation Lender is important.
We have some helpful reminders for those who are considering debt consolidation.
We’re providing you with the steps you need to take in order to start the Debt Consolidation process.
Choosing the Best Debt Consolidation Loans
To create the best list of Debt Consolidation partners for you, we’ve taken the following factors into account:
Before anything else, you first need to need to know if you qualify for the loan. Most lenders have a minimum FICO score – this represents their risk appetite. Even if you find what you believe to be the best company to get a debt consolidation loan from, you will have to look for other options if you do not meet their requirements. Therefore, if you have a relatively low FICO score, be realistic and expect higher APRs. On the other end, if you have an excellent FICO score, your options will be a lot broader.
Annual percentage rates (APR) and monthly payments
If you are looking at estimated APR and monthly payments, you should already have narrowed down the list of potential lenders on where you qualify. Of course, you want to get the best deal out there. However, understand that this is limited by certain factors, largely by your FICO score. What you will have now is a range of your potential interest rates you can accrue based on the information you gathered. Assuming you have the same loan term, the higher the interest rate is, the higher your monthly payments will be.
Aside from interest, lending institutions earn money through various fees. There are different types of fees that a lender can impose on clients, but the most common one is a prepayment fee. Your best debt consolidation loans will not come with fees unless they are very minimal. Know the fees associated with your loan. Otherwise you might be surprised when your bill comes.
If your credit rating is impeccable and you have found the perfect debt consolidation loan, you may find their payment process is indirect and very democratic. Is this still a viable option? You should always consider the accessibility and convenience of your lender. There are other concerns in your life besides settling your debt. If your chosen debt consolidation loan becomes a burden instead of making your life easier, you are better off with another creditor.
Lastly, assuming that you are no expert when it comes to how these things are handled, there must be qualified and competent customer representatives to bridge the knowledge gap for you. Even if you feel you are comfortable with a lender, you still must be certain that your concerns are addressed accurately in a timely manner. Especially when it comes to fees, there must be clear communication between the two parties. Without that, you might unknowingly hold wrong expectations and get very frustrated later on.
The decision must not be on your financial concerns alone. In the end, the loan is just as good as where you source it. Your choice must be a balance of all these factors, with some factors weighing more heavily than the others depending on your priorities.
Debt Consolidation with Personal Loans
Many individuals accumulate debt with various organizations. This can include things like student loans, credit cards, business loans, mortgages, and many other lending products.
One of the best ways to simplify this complex web of bills is with a debt consolidation loan. A debt consolidation loan is when you are given a loan to pay off other debts. The result is that your bills are consolidated into one place so you don’t have to worry about tracking multiple different payments.
You pay a fixed payment to your lender for a period of two to five years on average. Most consolidation loans are offered at a fixed interest rate, which gives borrowers the stability and predictability they might lack in their current financial arrangements.
Are you a good candidate for Debt Consolidation?
You might be a good candidate for a debt consolidation loan if:
- You can repay your consolidation loan without accruing additional debt.
- You have the right credit to obtain a loan at a better interest rate than your current debt.
- You are having a hard time keeping up with multiple different payment schedules.
However, as with all financial products, there are a few things you should pay attention to:
- Make sure you are aware of the fee the consolidation lender will charge
- Understand what support you have access to, for example: will the lender pay your creditors directly?
- Check if there is an advantage to having a co-signer on your loan.
Consolidation Options: Loans vs. Credit Cards
With the right credit, you can get a card that has an introductory 0% interest period. Transferring your current balances to this new card can save you money.
Something to consider, though, is that the introductory rate will eventually expire. If you haven’t paid off the balance by that point you could be in for a surprise when the bill comes due. The interest rate on credit cards is almost always higher than the interest rate on a personal loan, so if something comes up and you can’t pay off the balance on time you’ll face a large expense.
There are some distinct advantages to personal loans when compared to credit cards for debt consolidation.
The first advantages have to do with the structure of a personal loan. The fixed payments provide predictability on when you will be done paying your loan, and the interest rates are usually much lower for personal debt consolidation loans than they are for credit cards. In fact, because loans are issued through the banks, there are limits on how high of an interest rate they can have. For example, federal credit unions are typically limited to 18% per annum.
Another advantage is the way that the debt is treated on your credit report. Credit cards appear as something called revolving debt, which has a greater impact on your score than installment debt, which is how a loan is categorized. This has to do with the fact that credit cards have a credit limit, and using too much of your credit limit can negatively impact your score. These factors don’t apply to installment credit.
There are a number of ways that you can get personal debt consolidation loan, but one of the most common is to use online services to compare different lenders. Each lender has different policies and procedures, so it is important to understand how to compare different personal debt consolidation loan lenders.
Debt Consolidation Loans for Good & Bad Credit
Consolidate Your Debt Today Using LendingTree
Home Equity Loan
How does consolidating debt work?
Debt consolidation can take many forms, including a personal loan, a balance-transfer credit card, a home equity line of credit (HELOC) and a debt management plan, among others. (We’ll get into the details of those options later on.)
No matter what strategy suits you best, the idea is the same: Lump together all or most of your debts into a single payment as a way to save money, simplify your finances … or both.
For example, if you have multiple high-interest credit card debts and outstanding medical bills, you may want to take out a personal loan to repay those debts. Then you can focus on repaying that personal loan, which requires just one monthly payment and, ideally, has a lower interest rate than what you were paying across multiple debts (it may not have a lower rate, but it’s in your best interest to find the lowest one you can).
The specifics of how debt consolidation works will vary by the type of debt you have and the method you choose.
What types of debt can I consolidate?
Any type of personal debt can be consolidated. This includes but is not limited to:
- Credit cards (retail or bank cards)
- Student loans
- Unsecured personal loans, including payday loans
- Medical bills
- Holiday debt
- Utility bills, including cell phone bills
- Money owed to collection agencies
- Court judgments
You can take out a personal loan to pay off existing debts and then work to pay off that loan over time. This makes the most sense when the personal loan has a lower interest rate than you’ve got across your existing debts.
- Personal loans can be easy and quick to obtain, compared with options like HELOCs or a cash-out refinance.
- Loan fees are low compared with other options.
- The fixed loan term and interest rate make payments predictable and force you to stick to a schedule.
- Terms are short (commonly one to five years), so you get your debt paid off expediently.
- If you have bad credit, it might be difficult to find a personal loan with a lower interest rate than what you’re managing with existing debts.
- The fixed monthly payment and loan term offer no flexibility.
- Because terms are shorter, monthly payments are higher.
- Because personal loans are unsecured, they have higher interest rates.
For individuals with debt on several credit cards, it can make sense to transfer the balances over to the card with the lowest interest rate, creating one payment and lowering interest overall. Some people even open a new card with a 0 percent APR for a promotional introductory period (many of these run the gamut from six to 24 months) and transfer other balances over to that card. This can be a viable solution if you think paying the card off within that promo time frame is doable.
With credit card debt rising in America each year, we’ve conducted a study to see the Most Maxed Out Places in America, click here to see where your city ranks.
- You can save money on interest.
- The single bill replaces several monthly payments.
- The end of the promotional period can be a motivating deadline for getting out of debt.
- Balance transfer cards have limits, so if your debt exceeds the credit limit you’ve received, you won’t be able to pay off all your credit card debt with a balance transfer.
- Balance transfers often carry a fee, as well, so do the math to make sure it’s worth it.
- If you don’t pay off the balance before the end of the promotional period, the remaining balance will be subject to the ongoing APR, which may be very high.
- You will need excellent credit to qualify for the best balance transfer offers, which may be problematic if you’ve been struggling to keep up with debt up to this point..
A home equity loan gives the borrower access to home equity in cash, which can be used to pay off other debts. A home equity loan does not replace the existing mortgage as a cash-out refinance does, but it is another loan in addition to the existing mortgage.
- The loan is secured by collateral (your home) so interest rates are lower.
- Interest payments may be tax-deductible.
- The fixed interest rate and repayment term make monthly payments predictable and help you stay on schedule for paying off your debt.
- You can get a longer term with a home equity loan than you can generally get with a personal loan.
- Because this loan is secured by your home, if you default, you could lose your home.
- Losing equity in your home can negatively impact long-term financial plans.
- Because terms are relatively longer with a home equity loan, you may pay more interest overall, even if the rate is lower than what you are currently paying.
HELOCs differ from home equity loans in that, instead of receiving a lump sum of cash, borrowers have an agreed-upon amount that they can take from their equity, and access as needed over time. This money can be used to pay off existing debts.
- Interest rates are low, because this debt is secured by your home, and interest payments may again be tax-deductible.
- You only pay back (and pay interest on) the portion of the line of credit you use.
- A line of credit can come in handy in case of future emergencies or necessary home repairs.
- Having access to a line of credit that is greater than the sum of one’s debts might tempt some individuals to overspend.
- Variable interest rates can make payments unpredictable.
- Defaulting on a debt secured by your home can result in foreclosure.
- Any balance you have at the end of a HELOC’s repayment period comes due immediately and can result in a balloon payment.
- You will have to pay closing costs, though they are likely lower than those associated with a cash-out refinance
Cash-out refinancing involves replacing your mortgage loan with a new one for more than you owe, taking part of the difference between your old and new loans in cash. Some people use this cash to pay off other debts.
- This option can make sense if you are able to get a new mortgage interest rate that’s lower than your current one and lower than the rates you’re paying on your other debts.
- Interest is low because this loan is secured by your home, and may be tax-deductible.
- Monthly payments are very low because the loan term can be stretched up to 30-plus years
- If you default on this loan, you risk foreclosure.
- Losing equity in your home might alter your long-term financial plans, especially if retirement is on the horizon.
- Cash-out refinancing involves a lengthy process and comparatively higher upfront costs.
- Stretching out the loan term can mean you pay more interest in the long run, even if the rate is lower.
- A cash-out refinance is a new first mortgage, so closing costs can be more expensive than those for a HELOC or home equity loan.
- If you refinance more than 80 percent of the loan’s value, you may have to pay mortgage insurance
There are two categories: a federal Direct Consolidation Loan and private consolidation or refinancing options. You can consolidate most federal student loans with a Direct Consolidation Loan, which you can read more about here. There are also a variety of private lenders that will allow you to consolidate either private or federal student loans.
- You get a chance to change the repayment schedule for your loans, either by extending or shortening your loan term.
- Potentially lower your interest rate.
- Potentially lower your monthly payment.
- Deal with one lender and one loan payment instead of several.
- The best refinancing terms require very good credit. You may not qualify for consolidation at all if your credit is lacking.
- If you consolidate a federal loan through a private lender, you will lose access to the benefits that come with federal student loans, like student loan forgiveness and income-based repayment plans.
How much can I save by consolidating my debt?
By using debt consolidation loans, you can save considerably — sometimes up to 40 percent of the total debt. Enter your current debts into our loan calculator to start creating a plan to eliminate your debt.
Does it make sense to consolidate your debt?
While consolidating debt certainly has merits, it is not the right choice for every individual. Above all, the approach has to match the need and the comfort level of the borrower.
Some people prefer a debt management plan, while others benefit from simplified singular payment of a consolidation loan. It all depends on the person and the type of debt they’ve accrued.
A good rule of thumb is: debt consolidation is not a good option if your debt is more than 50 percent of your income. It is also not a fit if you do not have a consistent source of income that more than covers your monthly payment.
Finally, bad credit can keep you from getting a good interest rate, which negates the main purpose of a debt consolidation loan. But obtaining debt consolidation loans with bad credit is possible if you fall into that category.
What is a bill consolidation loan?
Bill consolidation is just another term for debt consolidation. They are the same thing – combining multiple payments into one by paying off existing debt with a new loan. Ideally, that new loan has a low enough interest rate to save you money.
How do I know if I need debt consolidation?
Debt consolidation is best for someone with a manageable amount of debt from multiple creditors. Remember that rule of thumb from above: Debt consolidation works best when your debt does not exceed 50 percent of your income and you consistently bring in enough money to cover a regular payment. Individuals with good credit can get lower-interest loans and credit cards, so for them, debt consolidation can really mean significant savings.
How does debt consolidation affect my credit score?
As long as you stay on plan and don’t run up new debts, debt consolidation should have a positive effect on your credit score in the long run. You may, however, see a drop in your credit score when you apply for a consolidation loan or close the accounts you pay off with the new loan. You can read more about debt consolidation and your credit score here .
What is the difference between a secured loan and an unsecured loan?
A secured loan has collateral to back it in case of default. For example, a mortgage is a secured loan because if you stop paying the mortgage, your lender can repossess your home and sell it to recoup lost costs. Typically, secured loans have a lower interest rate because they are less risky for lenders. An unsecured loan, like most personal loans, means there’s no collateral for a lender to take if you don’t make your payments, so such loans tend to require higher credit qualifications and/or higher interest rates.
How do I determine if a lender is legit and has my best interests?
The biggest sign of a fraudulent lender is demanding huge fees upfront, according to the Federal Trade Commission. Before engaging with any creditor, it can be prudent to check their record with the Better Business Bureau . You can also do an internet search to easily find any existing consumer complaints.
Can I get a debt consolidation loan if I have bad credit?
Yes, you can qualify for a debt consolidation loan with less-than-stellar credit , but it can be difficult. If you qualify, you may have to pay a higher interest rate and may have to put up collateral, such as home equity. This can be chancy because if you default on the consolidated loan, you risk losing your collateral.
Is it smart to pay off debt by taking out more debt?
Taking out a debt consolidation loan can save you money on interest and allows you to become debt-free faster and with less hassle. If you are not committed to paying off your debts and exercising financial responsibility, then taking out more debt is probably not a good choice.
What is the difference between debt settlement and bankruptcy?
Debt settlement involves working with a settlement company to pay off your debts for a lower negotiated sum. Chapter 7 bankruptcy liquidates all of your assets to pay your creditors and clear your debts. Chapter 13 bankruptcy allows you to create a financial plan to address all debts within five years. While debt settlement and bankruptcy both have negative affects on your credit score and financial history, the consequences of bankruptcy can be more severe and longer-lasting.
Can I consolidate debt if I’ve been sued?
Yes, court judgments are one of the types of unsecured debt that can be paid off via a debt consolidation loan.
Get to Yes, Safely and Securely
Unsecured Loans for Bad Credit
People who are coping with bad credit know how difficult and frustrating it can be to get a "yes" from a lender. Moreover, the constant rejection can be humiliating and degrading for subprime borrowers. At Direct Lending Solutions, we list the best companies that will lend money in most states with bad credit allowed and at the lowest rates possible. Before you decide on the type of loan that you'd like to apply for online, it's crucial that you get the facts and research your borrowing options so you can make the best financial decision possible. When shopping for a direct loan, you'll discover quite a plethora, each with varying terms, conditions and interest rates. These factors will cumulatively determine your total expense during the life of the loan.
By definition, a loan is considered to be "unsecured" when it is not backed by personal property as collateral; rather, it is extended to you by the lender with just your signature on a promissory note to repay the money according to specific terms, rates, and a payment schedule. Keep in mind, when you need a loan quickly, cash advances are certainly convenient and easy to qualify for, but we caution that these loans come at a high cost with governing laws that vary from state to state. Although they do serve a valid purpose, they should be used sparingly or for emergencies. The small, short-term loans like the ones we've just described, typically range from $100 to $5,000. For larger amounts, lenders may require better credit scores and a proven ability to repay, such as verifiable employment and adequate income. Amounts above $10,000 will inevitably require "good" credit.
First Choice connects you with the right online personal lender for your needs. The loan process is quick and simple, with fast online approval in most cases. You will be simultaneously considered for a payday loan alternative in the event that you do not qualify for longer repayment periods. To qualify for an unsecured loan of $10,000 or more, good or excellent credit may be required. Even if your credit score is poor, short-term cash loans are available.
- Bad Credit OK
- Nothing to Fax
- Unsecured Installment Loans
- Terms up to 60 months
- Instant Decision
- High Loan Approval Rate
- Get Your Loan Within 24 Hours (Often Same Day)
What Are the Credit Score Ranges?
If you find yourself in need of money fast and begin a search for a loan, it's crucial that you know how potential lenders will view your credit-worthiness. Your credit score is more than just a number: it's a reflection of your financial history and is an important factor in deciding whether you get approved for loans, credit cards, mortgages, and so much more. So why does it seem so tricky to understand what your credit score really means? To get a better idea of what that number tells a potential lender, let's explore the various credit score ranges. There are a few slightly different ways to model a credit score, but the FICO Score® is the most widely used, so we'll be taking a look at that.
Excellent Credit -- 800 to 850
If you've got a credit score of 800 or higher, then give yourself a pat on the back – your credit is excellent and you're sitting pretty in the top tier of borrowers. You'll have a strong chance of getting approval for the best loans, large lines of credit, and mortgages available from some of the top reputable lenders in the industry, each with competitive terms and low interest rates. People in this credit range usually have a long and (mostly) spotless credit history, with multiple lines of credit, a proven record of making payments on time, and few (if any) instances of accounts being sent to collections. Remember that it's entirely possible to raise your credit score over time, so don't worry if you don't yet fall into this range.
Very Good Credit -- 750 to 799
Individuals with credit scores in the 750-to-799 range are in pretty strong shape as well. There are probably only a couple of minor things separating these people from excellent credit - the occasional late payment here and there, or perhaps periodic gaps in employment history. Most lenders don't differentiate much between "excellent" and "very good" credit, so borrowers with a credit score in this range can expect similar options and treatment, more or less, as those with credit scores of 800 or more.
Good Credit -- 700 to 749
A "good" credit score will allow you to get approved for most of the credit lines and loans that you apply for, although you'll probably have to pay a slightly higher interest rate than those who fall into the higher categories. Your score might be reflective of a financial rough patch sometime in the past, or perhaps a recurring pattern of slightly late payments. In the end, a credit score in this range isn't likely to cause any serious problems. There's room for improvement, but you probably won't be seriously inconvenienced as a result of your score. It's when your credit falls even lower that you start to run into real issues.
Fair Credit -- 650 to 699
When your credit score falls below 700, potential lenders start to look critically at the details of your credit report. You'll still qualify for a reasonable number of loans, but it's unlikely that you'll get good rates, and you may even be asked for an early down payment. This is also where you might start to encounter problems landing work in fields that demand a lot of responsibility and a solid credit history, such as in the financial sector. Focus on reducing your debt and making payments on time, and you should be able to bump your credit score back up over the next several months.
Poor Credit -- 600 to 649
If your credit is in this range, it probably means you've had frequent or ongoing credit issues. Things like missing payments on credit cards and loans, having accounts sent to collections, or having to file bankruptcy are all possible causes. Getting a loan or new line of credit can be tricky in this situation, particularly from the more traditional lending institutions. You'll be at the mercy of the lender's terms, may need to make a substantial down payment or put up collateral, and may need to get someone else to co-sign as well. Expect to pay higher interest rates compared to your peers with better credit. A bad credit loan, such as the personal loan we offer through First Choice, may meet your needs.
Very Bad Credit -- 300 to 599
When your credit score falls below 600, you'll find it extremely difficult to get a loan from anyone other than online lenders who specialize in so-called "payday loans" (usually at ridiculously high interest rates that can trap you in a vicious borrowing cycle). Simply put, if your credit score falls in this range, you won't have many options for borrowing. And it's probably not a good idea to borrow more money at this point, anyway.
Is Having "No Credit" the Same as Having "Bad Credit"?
There are considerable differences between having bad credit and the mere lack of an established credit history. Many young people who are just starting out, for example, may not yet have a sufficient credit profile, and this is not the same as earning a lengthy, bad-credit profile marred by poor debt management, late payments, collections, and excessive spending accounts. Your credit is scored by the credit bureaus based on account handling. Theoretically, a person with a newly established credit history and only one or two accounts contained in the credit profile could have a "good" score. However, the folks who lend the money typically look at more than just your credit rating. They will see additional information, such as the length of time since credit was first established in your name, for instance, and may reject your application for a large loan amount until you have gained more credit experience. This situation is called "insufficient credit" and this condition may exist simultaneously with a good credit score (i.e., you can have a high credit score and still have insufficient credit for the purposes of a particular credit application.)
Granted, the outcome of a loan application submitted by someone who does not have a sufficient credit history can be the same as that for a bad credit line. However, the processes to remedy the two are entirely different. The person with a bad credit history has their work cut out for them; they must change their spending and repayment habits, bring down their debt ratio, and improve their overall handling of accounts. It can take a very long time for changes in spending and account management to have a positive impact on a credit score. On the other hand, the young person who is simply lacking a credit history can take steps to create a positive credit profile, such as obtaining a small loan, or a low-limit unsecured or secured credit card.
A lender will often work with those who are just starting out to help them obtain a reasonable line of credit within their budget, enabling them to establish a credit file. If you find yourself in this camp, take care of your accounts from the beginning; you don't want to go from "no credit" to "bad credit" because you made some careless errors from day one with the handling of your new credit card or loan account. Above all, keep your spending under control. The ideal credit utilization ratio (the ratio of your used credit to the total available) should be 30% or less. If you find yourself maxing out your cards and making late payments, your credit score will suffer and you will not be able to purchase the larger items that really matter.
How fast will my loan be processed?
Will my loan request affect my credit score?
Is the loan form secure?
Can I get my loan the same day?
Are there any upfront fees for the loan?
What is the interest rate on the loan?
Protect yourself and your finances from fake lenders and low-life scammers. Make sure to read up on scam techniques, such as their use of legitimate company names and logos, stolen from real loan companies, in order to hide their illegal operation. Educate yourself about foreclosure fraud, advance fee loan scams, and identity theft, so you'll be better able to recognize red flags when you see them. You will be able to fend off the bad guys who take advantage of the desperate and vulnerable.