Your Debt Consolidation Loan Rate: What To Expect

Although a poor credit history mean a high debt consolidation loan rate, if you are behind on payments and are spending all of your money attempting to catch up, a debt consolidation loan can save you.

Types of Lenders

You can take your loan from a variety of lenders. If you believe your situation is extremely sympathetic, you can secure a low debt consolidation loan rate from a non-profit lender. If you are borrowing from a bank or lending company, and your credit is extremely poor, you will have to face high interest rates because you are a higher risk. If you borrow from a bank, negotiate a trial period and make your payments on time during this period, then the bank will offer you a reasonable rate.

Types of Loans

Your debt consolidation loan can either be secured or unsecured. If your loan is secured, which means that it is corroborated with assets, your interest rate will be lower. If your loan is unsecured, which means that you do not have assets to back your borrowing, your interest rate will be higher.

Improve Your Credit Score - Free Consultation