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Can I Consolidate If I Have Bad Credit?

Understandably, people struggling with large amounts of debt also tend to have poor credit scores. The excessive interest rates of unsecured loans often lead to late payments and delinquent accounts, both of which take a serious toll on your ratings. Mistakenly, many consumers in this predicament believe that they cannot qualify for services such as ours because of their financial challenges. However, there are bad programs that will accept virtually all consumers in spite of their fiscal woes.

Qualifying is Easier Than You Think

Most programs such as ours have qualification criteria, but they don't necessarily preclude consumers with poor credit. You can still become free of financial headaches through a program such as ours as long as you meet the following criteria (will vary by service):

  • Your debt is unsecured. Most companies usually only allow unsecured debt to be included in the consolidation process. Unsecured debt is unattached to a piece of collateral (e.g., house, car, etc.).
  • You have owe less than $20,000. These solutions tend to work best for consumers who owe $5,000-$20,000. Consumers with higher levels of money owed may be better served by alternative solutions.
  • You are not seriously delinquent on your accounts. To qualify, you cannot be more than three months behind on any of your accounts. Accounts that are in later stages of delinquency are more difficult to consolidate.

Consolidate Debt Loans

If you have financial challenges, you will most likely be unable to qualify for assistance, which are an alternative to professional consolidation solutions. These services usually require the borrower to have good or excellent credit, especially for loans with affordable interest rates. For example, too much money owed may prevent you from qualifying for loans. If you cannot qualify for these kinds of solutions, you still have a good chance of qualifying for assistance.

For consumers who are seriously delinquent on their accounts and/or have too much debt to qualify for traditional assistance, there are other options. For one, you may be able to consolidate through a settlement or negotiation. With this option, a service such as ours negotiates with your creditors in order to arrange a payoff amount. Most consolidation services offer this intervention for clients with serious credit problems.

Alternatively, consumers for whom bad debt consolidation does not work may consider bankruptcy. If you have high levels of money owed, seriously delinquent accounts, and have exhausted all other options, bankruptcy may be the best way to become free from financial headaches. Bankruptcy will have a powerful negative impact on your credit score for several years, but you will be able to start fresh and begin rebuilding your credit immediately. Before you declare bankruptcy, make sure you discuss your options with us first.

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