Skip to content
United Settlement
  • Manage Your Debt
    • get-startedGet Started
    • settlementDebt Settlement
    • consolidationDebt Consolidation
    • debt-managmentDebt Management
    • bankruptcyBankruptcy
    • credit-cardCredit Card Debt
    • businessBusiness Debt
    • car-loanAuto Loan Debt
    • student-debtStudent Loan
  • Understand Your Debt
    • credit-cardCredit Card
    • business-2Small Business Debt
    • medicalMedical
    • loansLoans
    • umbrellaCredit Card Relief
    • interest-ratesInterest Rates
    • student-debtStudent Debt
  • Tools & Resources
    • faqFAQs
    • credit-cardCredit Guidance
    • calculatorCalculator
    • call-usContact Us
    • contact-usAbout Us
  • More
    • Debt Settlement
    • Debt Consolidation
    • Reviews
    • FAQs
    • About Us
    • Contact Us
    • Blog
    • Sitemap
    • Debt Relief by State
    • Careers
Debt Relief & Settlement Programs
Logo
United Settlement
phone icon 888-574-5454
client icon Client Log In
  • More
    • About Us
    • Proven Results
    • Reviews
    • Contact Us
    • Debt Settlement
    • Debt Consolidation
    • Debt Management
    • Business Debt Relief
    • Credit Card Debt Relief
    • Debt Relief by State
    • FAQs
    • Blog
    • Sitemap
    • Careers
Qualify For Debt Relief
Debt Relief & Settlement Programs
  • Manage Your Debt
    • get-startedGet Started
    • settlementDebt Settlement
    • consolidationDebt Consolidation
    • debt-managmentDebt Management
    • bankruptcyBankruptcy
    • credit-cardCredit Card Debt
    • businessBusiness Debt
    • car-loanAuto Loan Debt
    • student-debtStudent Loan
  • Understand Your Debt
    • credit-cardCredit Card
    • business-2Small Business Debt
    • medicalMedical
    • loansLoans
    • umbrellaCredit Card Relief
    • interest-ratesInterest Rates
    • student-debtStudent Debt
  • Tools & Resources
    • faqFAQs
    • credit-cardCredit Guidance
    • calculatorCalculator
    • call-usContact Us
    • contact-usAbout Us
  • More
    • Debt Settlement
    • Debt Consolidation
    • Reviews
    • FAQs
    • About Us
    • Contact Us
    • Blog
    • Sitemap
    • Debt Relief by State
    • Careers
United Settlement » Debt Consolidation » Can I Get a Debt Consolidation Loan with Bad Credit?
admin March 2, 2018

Debt Consolidation Loans with Bad Credit

If you are burdened by revolving high-interest credit card debt from a variety of sources, a debt consolidation loan can represent a possible debt relief solution. A debt consolidation loan can be utilized to pay off a number of different creditors all at once and typically results in a lower blended overall interest rate while simplifying the monthly payment process.

However, being granted approval for a debt consolidation loan at an appealing interest rate and favorable terms isn’t always easy, particularly if your FICO credit score is weak. Before embarking on the path toward a debt consolidation loan, be sure to speak with a skilled credit counselor from a reputable credit counseling agency who can conduct an in-depth phone interview with you regarding your financial situation as it relates to your income, expenses and debt levels.

Debt Consolidation vs Debt Settlement

Debt consolidation is different than debt settlement. Debt consolidations consists of getting a loan for  lower interest rate than your current debt. Once you get the loan you pay off your current debt (which has a higher interest rate) and in turn save money which is the difference in the interest. A client that enrolls in debt settlement often does not have an option to take out an additional loan.

Debt settlement often reduces the debt, so the total paid is less than whats actually owed. With debt consolidation the total balance is paid. Its important to know both debt consolidation and settlement are hardship programs and will have a negative affect on your credit score.

Get a Big Picture View of Your Debt

Begin by listing all of your outstanding credit card balances, interest rates and minimum monthly payments. Also, make note of other unsecured debts you may have such as personal loans and student loans as they may affect whether or not you are eligible for a debt consolidation loan. Get a sense of the total amount you owe, your combined monthly payments, as well as the amounts that are applied to interest expense and principal. You should also visit Annual Credit Report to request a free credit report from any of the three national credit reporting bureaus (Experian, Equifax and TransUnion) and examine your report for any errors that may be negatively impacting your credit score and profile.

The First Option to Pursue

Even in some instances, when a credit profile is less than robust, a debtor may still qualify for a low (or zero percent) interest rate promotional credit card that can be utilized for transferring over and consolidating high-interest rate balances. The benefits of low interest rate promotional balance transfers for debt relief are fairly obvious – if a debtor possesses the ability to pay off a significant amount of debt within the promotional APR window (which typically range from twelve to twenty-four months).

This can result in a saving of hundreds, if not thousands of dollars in interest expense. However, depending upon prevailing market conditions, balance transfer fees will range between 2%-5%, and it’s unrealistic to expect the promotional APR to apply to purchases – so be especially careful not to use the card for anything other than balance transfers. Get completely clear about the length of the promotional APR period as well, so as to carefully manage the debt balance as the end of the promotional period approaches.

Do You Have an Existing Credit Union Relationship?

For those who have an existing relationship with a credit union, now is the time to leverage it. Depending on where you reside in the United States, credit unions often play a prominent role in the local community. And whereas banks and credit cards often approach lending decisions in a somewhat cold and clinical manner, credit unions can take into account the duration of an existing customer relationship, as well as the personal qualities associated with that relationship. Indeed, when considering extenuating circumstances and/or financial emergencies associated with a long-standing customer with whom they share a positive relationship, credit unions can make surprisingly favorable lending decisions.

Additional Options for Relieving Debt

There are a number of debt consolidation lenders available to individuals with bad credit. However, it is important to bear in mind why it is that you are seeking a debt consolidation loan in the first place – to secure lower interest rates and reduce monthly payments while simplifying the debt re-payment process.

It simply doesn’t make financial sense to secure a debt consolidation loan at a higher blended interest rate than you are currently paying in your various monthly payments to your creditors. Nonetheless, those lenders that you can research include PersonalLoans.com, BadCreditLoans.com, SignatureLoan.com, Upstart, and One Main Financial. Many of these lenders operate in the sub-prime lending space, granting debt consolidation loans (often at high interest rates, however) to individuals with poor credit.

Alternatives to a Debt Consolidation Loan

Before enrolling in debt consolidation or taking a debt consolidation loan be sure to seek all other options. If you can get a lump sum try calling the creditor yourself and negotiating a one time settlement. If you can contact friends or family for a loan to pay off your debt that is a better option then debt consolidation or settlement which will not have as much of an impact on your credit score. Debt management is important to be successful in achieving financial freedom.

Are you in debt? we can help

  • Amount
  • Contact

How much do you owe?

Excellent

Based on 374 reviews.
Overall 4.4 out of 5 stars

View All Reviews

Annette Huggins

March 14

That when it seems like nobody can help United will.

This was a great experience for me. I am just starting but Madelene Gallon made me feel like we were friends for years. She tried to make me feel that she would help me and make sure I got the best deal...

Kiirstin

March 01

Kind and caring

Had been searching for a while for a company I could trust to get me out of crippling debt. Really didn’t think it was possible. Spoke to Ben at United Debt and he assured me that not only was it possible,...

Kiirstin

March 01

Kind and caring

Had been searching for a while for a company I could trust to get me out of crippling debt. Really didn’t think it was possible. Spoke to Ben at United Debt and he assured me that not only was it possible,...

Dylan

February 28

Quick, easy assistance!

I've been working with Ben at United Debt to help me organize and get out of debt for once - I've been dealing with debt for ages and Ben showed me some simple ways to begin dealing with things to keep...

Takota Carrie

February 14

I need help

I really appreciate

Shawn abetha

December 14

Everything

Thanks

Robert Phillips

November 23

Do your home eork

Paid several thousand dollars and nothing done. Ended up settling 90%by myself. This is a preatory company. So do your homework. This will never post.

Dm

November 18

Customer service is truly helpful

Renika was so helpful. My account was paid off but I kept receiving notifications. She cleared up the situation.

Jose Rosa

November 16

Great Customer Service

Renika did a wonderful job handling my questions and transactions. She is very patient on the phone and took care of my needs accordingly.

Russ

November 03

Very helpful

Renika did a great job in answering all of my questions in a timely manner. She was polite and friendly. Keep her on the payroll.

Anthony Desoto

October 31

What's Important to me is United Settlement Costumer service !

United Settlement Costumer service is Amazing Everyone is Professional . I am so happy choosing them with my card Debt. thank you all for helping me out .

Jerry Bolandis

June 04

Professional and focused on facts and truth not hype. Excellent. We want to know facts.

Great work very professional and great updates. Communication is excellent.

janice head

October 25

trust them

Excellent. Also each time i call there they treat me with respect even though they are probably thinking jerk . You sure have made mess of your life. but they have been taught to smile smile smile. this...

Scott W O'Neill

August 01

Thanks for all your help and negotiations.

Thanks for the update! I have faith in you guys and will continue my payments. Thanks for all your help and negotiations.

Cassandra Robinson

July 30

That A Settlement Was Entered.

I Absolutely Love You All At United Settlements. You All Have Saved My Credit Solutions. I Would Refer Everyone To You Services.

Mildred Yvonne Sherron

July 16

The results of the settlement attempts.

So far, I have found United Settlement more than satisfactory. Very conscientious and very efficient in providing a service in debt settlement. Thank you and all the members of your team who are assisting...

Diana Cardona

July 16

Tough Financial Hard Times During Covid-19

I signed up with United Debt Settlement because of large credit card debts, which had taken a financial toll on my credit. UDS has an outstanding reputation assisting clients like me achieve financial recovery...

Matthew Fry

April 10

No hassle service

Quick fast and no hassle

Buddy Ewing

December 28

Time and again, I did not know how to handle my debt

Time and again, I did not know how to handle my debt. Even when I paid my credit cards off, a few months later I was back in the same situation. But this year is different. I contacted United Settlement...

Lianne Finnegan

December 27

Business debt relief is what I needed when I contacted the United Settlement crew

Business debt relief is what I needed when I contacted the United Settlement crew. They are committed to helping people like me who requires more help with business debt problems. I had several loans out...

united-settlement-9

Contact us: United Debt Settlement

Remember, it makes little sense to secure a debt consolidation loan that comes with an interest rate of 20%-36% attached to it, as this likely defeats the purpose of securing a debt consolidation loan in the first place. Speak to the experienced counselors and debt relief specialists at United Settlement (888) 574-5454, and together we will examine the details of your specific financial situation and explore all avenues available to address your need for a debt consolidation loan – even if you have bad credit.

A skilled counselor will help you determine whether a debt consolidation loan, debt management program, debt settlement program, or possibly even filing for bankruptcy would be the best course of action for you to pursue.

  • Contact Us
  • 240 West 37th Street
    Suite 400
    New York, NY 10018
  • (888)-574-5454
  • [email protected]
  • Privacy Policy
  • Terms & Conditions
  • Debt Relief Services
  • Debt Settlement
  • Business Debt Relief
  • Credit Card Help
  • Debt Consolidation
  • Debt Management
  • Student Loan Help
  • Careers
Learn more about debt relief


    • facebook
    • Google Plus
    • Twitter
    • YouTube
    • Instagram
    • Linkedin
    • facebook
    • Tools & Resources
    • Contact Us
    • About Us
    • Blog
    • Debt Calculator
    • Frequently Asked Questions
    • Sitemap
    • Reviews
    • Client Login
    Free Savings Estimate
    Apply Here
    Clients who stay according to debt relief program can realize approximate savings of 50% before fees, or 25% including fees, over 24 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for reasons such as: their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period. We do not assume consumer and/or business debt, provide tax, bankruptcy, accounting, legal or credit repair services/ advice. Our program is not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. If you have any additional questions please contact us.
    Copyright 2022. United Debt Settlement, LLC