How To Get a Credit Card Consolidation Loan With a Low Credit Score

You can get a credit card consolidation loan even with a low credit score by researching lenders and types of loans that cater to less-than-perfect credit scores. This may include loans like personal installment loans, credit union loans, friends & family loans, and more. 

There are a couple of main loan types that borrowers with low credit scores can still qualify for. That being said, any loan you’re approved for with low credit will likely carry higher-than-average interest rates. 

One loan that can be used as a credit card consolidation loan is called a personal installment loan. This is an unsecured loan, meaning you won’t be required to offer up any collateral to get one. They approve borrowers based on their income, bank account status, and sometimes their creditworthiness. But the best part is that you won’t need a great credit score to be approved in most cases. 

A personal installment loan tends to offer borrowers more money than payday loans, and a much longer time to repay the loan as well. While payday loans are usually repaid in a couple of weeks, personal installment loans may be paid back over the course of a few months, up to a couple of years in some cases. 

Another option for a consolidation loan would be a credit union loan. Credit unions offer membership based on different things like where you live, your employer, or your church. If you can get a membership, they tend to offer better interest rates and terms than your average bank. 

A loan from a friend or family member can also help consolidate your debts. This can be a risky option, as money and loans can tarnish relationships if you’re not careful. That being said, if you have a friend or relative who is willing to help you, it may be a good way to avoid high interest charges and unfavorable terms and conditions. 

Explore all of these options before deciding which one is right for you. Make sure to ask a lot of questions, read reviews, and be sure that you’re able to pay the loan back before signing for it.

Other Frequently Asked Questions