Applying for an Unsecured Debt Consolidation Loan With Bad Credit

When it comes to an unsecured debt consolidation loan, bad credit does not have to be what makes or breaks your application.  As an applicant with bad credit, you may have to work a bit harder to obtain an unsecured debt consolidation loan, but with a little dedication and some background knowledge, you will know how to approach the application process in the most effective way.

Talk to Different Lenders

When it comes to looking for unsecured debt consolidation loans with bad credit, there are different types of lenders and different ways to find these lenders.  Lenders can come in the form of banks or independent companies that specialize in debt consolidation.  You should be prepared to talk to several different lenders before deciding which one is the best for you.  Remember that you should always be looking for a low interest rate on the debt consolidation loan.  When you are ready to talk to lenders, talk to the local banks in your area.  You can also use the Internet as a great resource of information to find out about other banks and lenders that are available for unsecured debt consolidation loans, bad credit not considered.

Know Your Numbers

The first step of the process is to figure out exactly how much debt you have accumulated on your various credit cards, car payments, or any other significant money owed.  By knowing how much total debt you have, you can know what size you need your unsecured debt consolidation loan, bad credit put aside, should be.  Also, when you talk to various lenders, it will be good to know how much debt you have and how big of a loan you need. 

Don’t Hide Your History

Even though it may seem tempting, do not hide your history of bad credit from the lender.  Chances are very good that they will find out about it sooner or later.  By being honest, you can talk about your future goals and the responsibility you have taken or are planning to take in order to stave off additional derogatory credit.  Showing the lender that you are responsible and can learn from your mistakes will help you receive the debt consolidation loan that you need.

Be Aware of the Cash Flow

By consolidating your debt with an unsecured debt consolidation loan, bad credit can become something of the past. For example, instead of paying eight bills at varying interest rates, you’ll only pay one bill with one interest rate.  Because the rate may be significantly lower, you may find yourself extra money every month.  While it is great to have some extra cash, you should plan to use this cash to go straight to paying off the debt consolidation loan.  Even though the consolidation loan will probably have a relatively low interest rate, it is still debt and like all debt, the sooner you can pay it off the better.


Need Cash Now? Get a Cash Advance