You can find high-dollar debt consolidation loans online or at storefront locations, from a number of different kinds of lenders. The type of loan and lender you choose will usually depend on your current financial situation and your credit history/score. A better credit score will mean a lower interest rate on your consolidation loan, which could save you a lot of money in the long run.
So which type of consolidation loan will you qualify for? Well if you have a good credit history, then you may qualify for a traditional bank loan or a credit union loan. These loans are known for having lower interest rates, and they tend to be offered to borrowers with decent credit. If you’re eligible for one of these, they’re recommended for consolidating your other debts.
Banks and credit unions may also allow you to borrow a larger amount of money. Since the bank or credit union knows you are a trustworthy borrower, they’re usually willing to offer you a larger loan. This is definitely helpful when it comes to consolidating your debts, because paying off several debts may take a pretty big loan.
If you don’t have a great credit score, don’t worry. There are still options out there for you that can help you pay off your other debts. But having low credit does make the process a bit more complicated. Since banks and credit unions may not approve you, you’ll have to do some research to find a lender that will.
Personal installment lenders may be one option. These loans tend to be larger than payday and pawnshop loans and may allow you to get the funds you need. Usually, you can even get approved for a personal installment loan even with a poor credit score.
The important thing to remember is that consolidating your debts can help you better manage your finances, and if you get a good interest rate you could even save money. The goal should be to find a loan with a better interest rate than the average rate of your other debts.