Can you get a consolidated credit loan with a poor credit score?

Consolidated Credit in Edmonton

If you are struggling with paying off debt and looking for a consolidated credit loan in Edmonton, you need to consider your credit score. Your credit score is the most important number for determining whether you can get a loan, as well as the interest rate for the loan. But can you can you get a Consolidated Credit Loan with a Poor Credit Score?

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Here is everything you will learn in the guide:

Can you consolidate your credit if you have a bad credit score?
Advantages of a consolidated credit loan
What to be aware of if you have poor credit
Consolidated credit alternatives
Who can you contact about credit consolidation?

Sometimes people have several sources of personal debt, all with different interest rates and monthly fees and dates for making a payment each month. Ensuring you are on top of all your payments can be challenging and stressful.

In some instances, people in Edmonton with poor credit can get a loan for the total amount of personal debt from a financial company or bank. You will then use the money from the loan to pay off your money sources of debt. Credit consolidation might also not be the only debt solution available to you. Make you understand all your options first.

You might qualify for a consolidated loan if you:

Advantages of a consolidated credit loan

There are many advantages to a credit consolidation loan. These include:

After debt consolidation, there is just one payment to make each month, at a lower interest rate.
The monthly payment will work with your budget, and you will be able to pay off what you owe faster.
You will also eliminate the problem of missing payments and making them after the due date because you will not have numerous payments to remember each month.

Debt consolidation loans work best if you have many creditors. For instance, you might have credit cards, overdrafts, small loans, payday loans, or bills you have fallen behind on. Remember, you also need to have collateral to put up against the loan to be an option.

Consolidated loan credits and poor credit scores

You can get a consolidated credit loan if you have a poor credit score, but the interest rate might be high—it may even be higher than the interest you are currently paying. This is because banks and financial companies view people with poor credit scores as higher risk. Many will not lend to anyone with poor credit.

If your credit score is not great but would still be considered fair, it might be possible for you to get a loan. Consider talking to someone to get a general idea of where your credit score might fall in the eyes of lenders before you start applying for loans because applying can have an impact on your score. But remember that all lenders are different—one may see a particular score as good enough, whereas another may see it as too low.

Here are two things to be aware of if you have poor credit and are looking for a consolidated credit loan:

If you find a bank or financial company willing to give you a loan, make sure that interest isn't higher than you are already paying and that the monthly payment is affordable.
Online lenders tend to be more flexible in their terms and may be a better option. Use an online loan comparison tool to determine what various online lenders will offer you regarding the interest rate and monthly payment. All you must do is enter basic information, including your credit score, and you will receive quotes.

Consolidated credit alternatives

Often, we advise people with poor credit who are struggling to make all their payments against getting a consolidated loan. Getting a loan to pay off your debts keeps you in debt and, if you do not get advice to help you manage your money, you risk not being able to make your loan payments in the future. Failure to make payments could result in you losing the asset being held as collateral.

A better option may be to file a consumer proposal.

A consumer proposal is made to all your creditors to pay back part of the debt. It still gives you one monthly payment that is in line with your budget, plus you receive counselling and education to help you improve your financial situation.

Who should I talk to about my debt?

When you cannot keep up with your bills, expenses, and loans, it’s a good idea to talk to a Licensed Insolvency Trustee (LIT) to explore your options. Fox-Miles & Associates offers consolidated credit services in Edmonton, and our LITs will help you figure out what’s right for you.

Our team works closely with you to fully understand your financial situation to make the proper recommendation on how to begin your journey towards a fresh monetary beginning and less stress.