How Hard Is It To Get a Credit Card Consolidation Loan?

Depending on your credit score and borrowing history, it may not be very hard at all to get a consolidation loan. But keep in mind that the better your credit score, the easier it will be. Having a low credit score tells lenders that you may not be a trustworthy borrower. This means that many lenders may deny your loan application. However, there are lenders out there that cater to borrowers with less-than-perfect credit, you just have to know where to look. 

A credit card consolidation loan is a large, personal loan that a borrower uses to pay off several credit cards. Borrowers do this for a couple of reasons. First, it makes managing your monthly payments and budgeting much easier. Second, if you can get a good interest rate on your consolidation loan, you could end up saving money in the long run. But if you have a low credit score, how do you get a good consolidation loan?

There’s no doubt that having low credit will make it difficult to get a large personal loan. Luckily, there are still options out there. One option that borrowers with poor credit turn to is called a personal installment loan. This is an unsecured personal loan, that typically offers borrowers larger loan amounts than payday and pawnshop loans. The other benefit is that you can repay a personal installment loan over the course of several months, up to a couple of years depending on the lender and specific loan. 

The good news for low-credit borrowers is that personal installment loans are usually designed for this exact type of customer. You won’t need a perfect credit score to get one. That being said, you may not find one with an interest rate that’s low enough to allow you to save money by consolidating. But combining your debts and making your finances easier to manage could be worth it regardless. 

Having a low credit score will definitely make getting a consolidation loan more difficult. But if you do your research and thoroughly review the lenders and loans in your area and online, you’ll likely be able to find the right consolidation loan for your specific situation.