If you are struggling with multiple debts, procuring a debt consolidation loan is a feasible option. However, if you possess a below-average credit say CIBIL score below 670, you might be wondering what your loan options are? Thankfully, quite a few lenders like Money View provide debt consolidation loans to people with poor credit. Money View is an authentic online personal loan lender that provides personal loans through its official website or apps within 24 hours which can be used to pay off your consolidated loan. The entire process from application to disbursal is simple and quick.
Advantages of a debt consolidation loan
Now let us discuss some of the advantages of obtaining a debt consolidation loan with poor credit.
Lower rate of interest: --- It is prudent to obtain a debt consolidation loan if you manage to attain a good interest rate as compared to that of the current debt. For example, on average if you are paying 14% to 20% on the credit cards, then you are most likely to receive a debt consolidation loan at a rate of 14%.
How to get qualified for a debt consolidation loan?
Money View has laid down certain requirements for prospective borrowers who are planning to obtain a loan to pay off their consolidated debts. Lose attention is paid to the credit score, income, and debt-to-income ratio of an applicant to determine their eligibility.
Steps given below help in obtaining a debt consolidation loan for bad credit:
Those applicants who are experiencing issues regarding clearing debts and are planning to apply for a debt consolidation loan should be aware of the fact that a credit score of mid-600 is essential to get qualified. Apart from that, a stable income and on-time payments are required.
Keep track of your credit score:----
Money View often grants a loan based on the credit score of an applicant. In general, a low credit score means a higher rate of interest on the loan amount. To get qualified for a debt consolidation loan from Money View, an applicant is supposed to have a CIBIL score of over 600 or Experian score of over 650.
Compare loan amounts: ---
It is advisable to perform comprehensive research regarding loan amounts, repayment terms, and conditions from various sources including national banks, local banks, online lenders, and credit unions.Although it is a time-consuming procedure, it helps you save a considerable amount of money.
The best option could be online lenders wherein you could go through the rates using a soft credit check without affecting the credit score. It is worth checking offerings with an existing bank especially if you have a strong bond with a bank, they are most likely to consider applicants even with below-average credit.
Focus on a secured loan:----
Debt consolidation loans are unsecured which implies that they do not require collateral security. However, if you are struggling to get approved for an unsecured debt consolidation loan, then it is better to consider obtaining a secured loan. Secured loans demand certain types of collateral such as home, vehicle, or similar assets. These can cover the loan amount in case of default payments.
A secured loan can help you pay off your consolidated debt.
Enhance your credit score:----
If you are unable to get a loan despite your best efforts, the next option would be to wait for some time and work on increasing your credit score. Always focus on paying monthly debts within a stipulated period. It might be a great option to clear credit card balances and avoid non-essential monthly expenses.
Reliable sources to procure a debt consolidation loan with bad credit
If you are a customer of a local bank or an active member of a credit union, you may approach a loan officer and discuss eligibility for a personal loan to pay off your consolidated debt. Quite a few institutions might take into consideration not just your credit score but also past financial history, current circumstances, and relationship with the concerned credit union.
Online lenders like Money View are indeed one of the best platforms to search for debt consolidation loans especially if you have a low credit score. They are most likely to accept an applicant with a bad credit loan as compared to other conventional lenders.
A major benefit of borrowing money from an online lender like Money View is that the entire procedure is very fast and paperwork. Additionally,funds are credited to your bank account within a day of loan approval.
Irrespective of how you cover the debt, it is essential to create a plan to achieve your objectives. Keep in mind the fact that a debt consolidation loan is a temporary solution and do not forget to carry out extra steps like creating a budget etc.