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Debt Consolidation Loans for Bad Credit May 2023

A debt consolidation loan lets you combine multiple debts into one loan. Not only can this lower your monthly payments, but it could potentially make it easier to pay down your debt. Consolidating your debts into one account could also make it easier to manage your finances and help you avoid late fees.

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Key Facts

  • The nation's largest online lending marketplace
  • Over $260 billion in loans facilitated
  • One short form for multiple loan options
  • Max Loan Amount: $50K

Pros

pros iconPre-qualification won't harm your credit score

pros iconGreat customer service

pros iconCompetitive APR rates from many lenders

Cons

cons iconSome loans may have origination fees

cons iconTerms depend on income and job status

cons iconMarketplace and not an actual lender

LendingTree, LLC is a Delaware limited liability company with its corporate headquarters located at 1415 Vantage Park Drive, Suite 700, Charlotte, North Carolina 28203. Any reference in this Licenses and Disclosures to “we” or “us” or similar words shall refer to LendingTree, LLC unless otherwise indicated, all such entities referred to as “LendingTree”. Any reference in Licenses and Disclosures to “you” or “your” means the person(s) using the LendingTree Websites (as defined in the Terms of Use Agreement), and/or the good, facilities or services of LendingTree offered through alternative methods. LendingTree is a marketing lead generator, required to be licensed as a Mortgage Broker or other state license designation. LendingTree DOES NOT take mortgage applications, originate, service, make loans or credit decisions in connection with loans, nor does LendingTree issue commitments or lock-in agreements. LendingTree’s services are only administrative. Any loan inquiry you submit is NOT an application for credit. Rather, it is an inquiry to be matched with Lenders to receive condition loan offers from Lenders. You may have to complete an application with a Lender before they will extend an unconditional offer. A Lender you select may require you to pay an application or other fee to cover the costs of an appraisal, credit report or other items. The Lender, not LendingTree, will determine the amount of any such fee and should provide information to you regarding the refundability of any such fee. LendingTree, LLC does not endorse or recommend the products of any particular Lender.

  • $1K-$50K Loan Amount
  • 550 Min Credit
  • 6.99-35.99% APR
Easy Application
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Key Facts

  • APR: Varies by lender
  • Loan Term: Varies by lender
  • Min Credit Score: 300
  • Max Loan Amount: $40K

Pros

pros iconFunds direct deposited often within a single business day

pros iconAbility to compare a range of different options

pros iconHelps people with bad credit to get a loan

pros iconGood range of possible loan amounts

Cons

cons iconAPRs can be high

cons iconNot too much info about lenders

THE OPERATOR OF THIS WEBSITE IS NOT A LENDER, does not broker loans to lenders and/or lending partners and does not make cash advances or credit decisions. This Website does not constitute an offer or solicitation to lend. The operator of this Website is not an agent, representative or broker of any lender and/or lending partner and does not endorse or charge you for any service or product, but may receive compensation from the lender and/or lending partner for forwarding your information to them. In some cases, you may be given the option of obtaining a loan from a tribal lender and/or lending partner. Tribal lenders and/or lending partners are subject to tribal and certain federal laws while being immune from state law including usury caps. If you are connected to a tribal lender and/or lending partner, please understand that the rates and fees may be higher than state-licensed lenders and/or lending partners and you may be required to agree to resolve any disputes in a tribal jurisdiction. Additionally, your information may be going to an aggregator and not a lender and/or lending partner. Your information can be sold multiple times leading to multiple offers from lenders and/or lending partners, and other marketers. Lenders and/or lending partners who buy your information may supplement it with additional information about you that they obtain from other sources. Not all lenders and/or lending partners can provide your requested type of loan and/or loan rate or terms, and we make no promises that you will be able to obtain a loan. Cash transfer times may vary by lenders and/or lending partners and local laws. Lenders and/or lending partners may perform a credit check to determine your creditworthiness. In some circumstances faxing may be required. For details, questions or concerns regarding your cash advance, please contact your lender and/or lending partner directly. Lenders and/or lending partners are solely responsible to you for all aspects of any loan request or loan transaction, including compliance with all applicable laws and regulations relating to your loan request form and any agreement or disclosures relating to your loan request form or loan transaction (including any adverse action notices or Truth-in-Lending Act disclosures). If you are not connected with a lender you may be connected with other financial service providers that offer products associated with your selected loan purpose. Residents of Connecticut, New Hampshire, Washington, and Vermont are not eligible to submit a request for a cash advance on this Website. This service is not available in all states, and the states serviced by this Website may change from time to time and without notice. Short-term loans are an expensive form of credit and not a long-term financial solution. Please use short-term loans responsibly.
Online Lenders Alliance: When you see the OLA seal, you can trust you’re working with a company committed to the highest standards of conduct dedicated to ensuring the best possible experience for their customers, fully compliant with federal law, and working hard to protect consumers from fraud.
© Copyright 2011 – 2023. Lending For Bad Credit. All Rights Reserved. All trademarks, service marks, trade names, product names and logos appearing on the site are the property of their respective owners. Any rights not expressly granted herein are reserved.

  • $100-$40K Loan Amount
  • 300 Min Credit
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Key Facts

  • 5K Funds makes it easy to get rates and start comparing terms from multiple lenders.
  • 5K Funds has an extensive network of reputable lenders.
  • Borrowers have the freedom to use a personal loan in a number of ways.

Pros

pros iconQuick & simple online application

pros iconAn extensive network of lenders

pros iconUse your loan for any purpose

Cons

cons iconNot BBB Accredited; F rating on BBB

cons iconLoans may contain origination fees

cons iconHighly thorough initial application

5K Funds.com (the “website”) is not an offer or solicitation to lend. The website only provides a service. It is not an agent, representative, or broker of any lender and does not endorse or charge you for any loan or product. The website operators are not lenders, do not make loans of any type, and do not make credit decisions.
The website collects personal information provided by you and forwards it to partners in our lender network. You are not obligated to use this website or service to initiate, contact, or apply for credit or any loan product with any service provider or lender.
Loan amounts vary from $500 and $35,000, but not all lenders can provide up to $35,000. Providing your information on the website does not guarantee you will be approved for a loan or credit product. Cash transfer times may vary between lenders and may depend on your individual financial institution.
In some circumstances faxing may be required. If you have questions, contact your lender directly for details, questions, or concerns regarding your loan or credit product. Short-term cash loans provide short-term financing to solve immediate cash needs and should not be considered a long-term solution.
This service and lenders are not available in all states. Lenders may perform credit checks with the three credit reporting bureaus: Experian, Equifax, or Trans Union or may perform alternative credit checks or consumer reports through alternative providers.
By submitting your request, you acknowledge, agree, and authorize that your information may be sent to lenders or third-party partners on your behalf. Also, such lenders may obtain consumer reports and related information about you from one or more consumer reporting agencies, such as TransUnion, Experian, and Equifax, to evaluate your creditworthiness.

  • $500-$35K Loan Amount
  • 500 Min Credit
  • 5.99-35.99% APR
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Key Facts

  • Borrowers can find a personal loan option that fits their exact needs
  • Offers a comprehensive knowledge hub
  • Simple to use online loan comparison tool

Pros

pros iconDeals with trustworthy lenders

pros iconWide range of personal loans to check out

pros iconEasy to use comparison tool

pros iconMore than four decades of experience

Cons

cons iconNot a direct lender

cons iconNo live chat

Bankrate.com is an independent, advertising-supported publisher and comparison service. Bankrate is compensated in exchange for featured placement of sponsored products and services, or your clicking on links posted on this website. This compensation may impact how, where and in what order products appear. Bankrate.com does not include all companies or all available products

  • $600-$100K Loan Amount
  • 300 Min Credit
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Key Facts

  • A free, secured loan request process
  • Personal loans up to $20,000
  • Borrowers of any background may qualify

Pros

pros iconUnsecured personal loans ranging from $100 to $20,000

pros iconLenders may work with borrowers with limited or poor credit and income

pros iconMember of the Online Lenders Alliance (OLA)

pros iconReceive funds in as little as one business day

Cons

cons iconExact loan terms, rates, and requirements aren’t available until you apply with a direct lender

cons iconVery few reviews on trusted sites like BBB or Trustpilot

cons iconLimited customer service options

THE OPERATOR OF THIS WEBSITE is a for-profit advertising network. We receive compensation, in the form of referral fees, from lenders, aggregators, credit repair services, or other offers that we direct you to. Therefore, the amount of compensation provided, along with other factors, may impact which offer you are presented. The offer you receive may be coming from the company that bid the most for your information. The operator of this website does not always provide you with an offer with the best rates or terms. Our website does not include all companies or all available offers. We encourage you to research all available loans options for your situation.

* The operator of this website does not broker loans to lenders and does not make cash advances or credit decisions. This Website does not constitute an offer or solicitation to lend. This site will submit the information you provide to a lender. In some cases, you may be given the option of obtaining a loan from a tribal lender. Tribal lenders are subject to tribal and certain federal laws while being immune from state law including usury caps. If you are connected to a tribal lender, please understand that the rates and fees may be higher than state-licensed lenders and you may be required to agree to resolve any disputes in a tribal jurisdiction. Additionally, your information may be going to an aggregator and not a lender. Your information can be sold multiple times leading to multiple offers from lenders, aggregators, and other marketers. Providing your information on this Website does not guarantee that you will be approved for a cash advance. The operator of this Website is not an agent, representative or broker of any lender and does not endorse or charge you for any service or product. Not all lenders can provide up to $20,000. Cash transfer times may vary between lenders and may depend on your individual financial institution. In some circumstances faxing may be required. This service is not available in all states, and the states serviced by this Website may change from time to time and without notice. For details, questions or concerns regarding your cash advance, please contact your lender directly. Cash advances are meant to provide you with short term financing to solve immediate cash needs and should not be considered a long term solution. Residents of some states may not be eligible for a cash advance based upon lender requirements.

** Lenders may perform credit checks with the three credit reporting bureaus: Experian, Equifax, or Trans Union. Credit checks or consumer reports through alternative providers may be obtained by some lenders.

ANTI-SPAM POLICY: We strictly prohibit any reference or advertisement of our brand and web site using unsolicited email messages. Violation of this policy will cause partnership termination and further actions permitted by the law. If you feel you have been sent unsolicited messages promoting our brand or website and would like to register a complaint, please refer to our Privacy Policy. We will investigate all complaints and take necessary action.

  • $100-$20K Loan Amount
  • 580 Min Credit
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Key Facts

  • See loan offers from over 100 lenders
  • Loans available for any type of credit
  • Fees depend on specific lender
  • Max Loan Amount: $35K

Pros

pros iconReceive offers from multiple lenders

pros iconLow minimum credit score required

pros iconNo application fee

Cons

cons iconHard credit pull

cons iconMaximum loan amount of $35K

LoansUnder36%.com (the “website”) is not an offer or solicitation to lend. The website only provides a service and is not an agent, representative, or broker of any lender and does not endorse or charge you for any loan or product. The website operators are not lenders, do not make loans of any type, and do not make credit decisions. The website collects personal information provided by you and forwards it to partners in our lender network. You are under no obligation to use this website or service to initiate, contact, nor apply for credit or any loan product with any service provider or lender. Loan amounts vary from $500 and $35,000 but not all lenders can provide up to $35,000. Providing your information on the website does not guarantee you will be approved for a loan or credit product. Cash transfer times may vary between lenders and may depend on your individual financial institution. In some circumstances faxing may be required. If you have any questions, contact your lender directly for details, questions, or concerns regarding your loan or credit product. Short-term cash loans are meant to provide you with short-term financing to solve immediate cash needs and should not be considered a long-term solution. This service and lenders are not available in all states. Lenders may perform credit checks with the three credit reporting bureaus: Experian, Equifax, or Trans Union or may perform alternative credit checks or consumer reports through alternative providers. By submitting your request, you acknowledge, agree, and authorize that (a) your information may be sent to lenders and/or third-party partners on your behalf, and (b) such lenders may obtain consumer reports and related information about you from one or more consumer reporting agencies, such as TransUnion, Experian and Equifax to evaluate your creditworthiness. Representative example: If you borrowed $2,000 over a 12 month period and the loan had a 3% origination fee ($60), your monthly repayments would be $189.12, with a total payback amount of $2269.44 which including the 3% fee paid from the loan amount, would have a total cost of $329.44. Representative 29.82% APR. If you borrowed $5,000 over a 48 month period and the loan had an 8% origination fee ($400), your monthly repayments would be $131.67, with a total payback amount of $6320.12 which including the 8% fee paid from the loan amount, would have a total cost of $1720.12. Representative 18.23% APR. Loan products have a 61-day minimum repayment term.

  • $500-$35K Loan Amount
  • 300 Min Credit
  • 5.99-35.99% APR
View Details

Pros

pros iconEasy, fast lender matching process

pros iconFunds are disbursed quickly

pros iconCompetitive interest rates for those with good credit

Cons

cons iconDoes not provide service to borrowers

cons iconBank account required

Terms of your loan will vary based on the amount of the loan and the period of time to repay. Other factors may include the state you live in, your source of income, and your repayment history. Please contact your lender directly for questions regarding your loan.
Loan Example: A $3,000 loan with a 14.99% APR that is repayable in 12 monthly installments would have monthly payments of $270.76 to a total of $3,249.13.
APR for good credit typically ranges from 5.99% to 35.99% and generally will have a repayment term of 3 months to 72 months. Loan amounts under $1,000 will have varying APR’s than what is listed in the represented example above. Please contact your lender for more information.

  • $100-$20K Loan Amount

How Does Debt Consolidation For Bad Credit Work?

Debt consolidation is a financial strategy where multiple debts are combined into a single loan with a lower interest rate or lower monthly payment. If you have bad credit, a debt consolidation loan could help. Some lenders offer personal loans specifically to borrowers with limited credit history or poor credit. This makes it a solid option for people who need a loan to consolidate their debt.

Oftentimes, the interest rate on a debt consolidation loan would be lower than what you pay on your individual accounts. If it is lower, you could save money on interest charges over time. You might also be able to reduce your monthly payment amount. Make your payments on time, and this kind of loan can help you avoid penalties and eventually resolve your numerous debts.

By getting a debt consolidation loan, you can streamline your monthly payments. Instead of paying several accounts every month, you’ll only need to pay one loan. Having only one monthly due date makes it harder to miss payments or incur late fees. This can also help if you have a history of missed payments and are trying to rebuild your credit score.

Who is Debt Consolidation Good For?

Debt consolidation is generally best for borrowers with a lot of high-interest debts or debts with variable annual percentage rates (APRs). You can use a debt consolidation loan for things like credit cards, medical bills, and payday loans.

Some banks, credit unions, and online lenders offer debt consolidation loans to people with bad credit. If you have a steady income and a lower debt-to-income ratio, you may have a higher chance of getting a loan with decent rates.

Here’s what’s generally considered bad credit:

  • FICO (used by 90% of lenders) — 300 to 579
  • Experian — 300 to 579
  • Equifax — 280 to 559
  • TransUnion — 300 to 600

Loan Calculator for Bad Credit

Loan amount

$

Term in months

ui_calender

Interest rate per year

%

$853.79

Monthly payment


$10,245.42

Total paid

$245.42

Interest paid

How to Get a Debt Consolidation Loan for Bad Credit

If you’ve weighed the pros and cons of debt consolidation and are still interested in applying for a loan, here’s how to do it:

  1. Check your credit. Get a free copy of your credit report and review it. There might be ways to improve your score before applying for a loan. This could get you more competitive interest rates.
  2. Compare lenders. Shop around until you find the lender with the best rates and terms. You may be able to prequalify to see your potential rates without affecting your credit score.
  3. Apply online. You can typically apply for a debt consolidation loan online. This might affect your credit score.
  4. Wait for the decision. The lender will review your information and approve or deny your application.
  5. Receive funds. If approved, you’ll usually receive the money within a couple of business days (depending on the lender). You can then use the funds to consolidate your debts.
  6. Start making payments. Make on-time payments on your new loan until it’s paid off.

Debt Consolidation Loans: What to Consider

Every loan — including debt consolidation loans — comes with its benefits and drawbacks. Make sure you consider these before applying for one.

Here are the main advantages of debt consolidation loans for bad credit:

  • Having one monthly payment makes it easier to make on-time payments.
  • It could help you build your credit score.
  • Makes it easier to keep track of your debt.
  • Your monthly payment amount could be lower than your original debts, especially if you get a lower overall interest rate.
  • These loans come with a fixed repayment schedule.

And here are the main drawbacks:

  • Debt consolidation makes your outstanding debts more manageable, but it doesn’t get rid of them.
  • If you take out a loan that’s bigger than you need, you could end up in more debt than you originally had.
  • Some lenders charge additional fees or require you to have a minimum debt amount.
  • Bad credit could mean higher APR and limited options.

Pros and Cons of Debt Consolidation Loans

Thinking about a debt consolidation loan for bad credit? Here are the main advantages and disadvantages.

Pros of Debt Consolidation Loans for Bad Credit

  • Could save you money on interest payments over time
  • May be easier to qualify for than other debt consolidation loans
  • Having one loan with a fixed monthly payment can make it easier to pay down debt
  • Loan terms may be flexible
  • Can potentially reduce monthly payments, simplify the repayment process, and improve credit scores over time.

Cons of Debt Consolidation Loans for Bad Credit

  • Loan amounts may be lower for bad credit borrowers
  • Higher interest rate than loans for good credit borrowers
  • Not all lenders offer these loans

Other Debt Consolidation for Bad Credit Options

There are several ways to consolidate debt — even if you have bad credit. These include:

  • Personal loan: A personal loan can be used for nearly anything, including debt consolidation. These loans typically have a set repayment term of 12 to 60 months. They also have a fixed monthly payment and interest rate. Loan amounts range from a few hundred dollars to over $100,000. Your credit score will determine your loan amount, rate, and terms.
  • Balance transfer credit card: A balance transfer lets you move your existing credit card balance to a new card — usually for a small fee. Some balance transfer cards have a 0% introductory rate for around six to 21 months. This means the card won’t incur interest during this time. If you pay off the full balance before the introductory period ends, you could save hundreds or thousands of dollars in interest. You may need fair or better credit to qualify.
  • 401(k) loan: If you have a 401(k) retirement plan, you might be able to take out a loan using the funds in your account. The maximum loan amount is $50,000 or 50% of your balance, whichever is lower. You don’t need good credit for this option.
  • Home equity loan: If you’re a homeowner, you may qualify for a home equity loan. These loans use your home equity as collateral. This means you could lose your property if you don’t pay back what you owe. You may be able to borrow up to 80% of your equity. You can use this money for things like home improvements or debt consolidation.
  • Debt settlement: Debt settlement involves working with your creditors to reduce what you owe. This process comes with some risks and can damage your credit score. But it can also make it easier to pay down your debts over time.

Should You Get a Debt Consolidation Loan?

A debt consolidation loan might be a good idea if you:

  • Want to pay down your debts faster
  • Struggle to keep up with multiple monthly payments
  • Want to reduce how much you pay in interest
  • Are trying to improve your credit score
  • Want to reduce financial stress

How to Apply For a Bad Credit Debt Consolidation Loan

Before you apply, add up your existing debts to see how much you need to borrow. You can use a debt consolidation calculator to estimate your monthly payments on the new loan. This will help you determine whether you can afford the loan — and if it’s the best option for you.

Different lenders might have additional fees, such as origination or prepayment fees. They might also require you to have a minimum — or maximum — amount of debt to consolidate.

Compare offers and eligibility requirements from multiple lenders, too. This can help you find the best rates and terms. Typical eligibility criteria include:

  • Steady income
  • Minimum credit score
  • Maximum 40% debt-to-income ratio (excluding mortgages)
  • 18+ years old

Average Debt Consolidation Loan Rates

The interest rate on a debt consolidation loan is mostly based on your credit score. If you have bad credit, you can generally expect a higher interest rate. Here are a few debt consolidation loan lenders and their minimum and maximum APRs:

Lender APR (Fixed) Minimum Credit Score
Bankrate 6.24% to 35.99% 550
5kFunds 5.99% to 35.99% None
LendingTree 5.99% to 35.93% 550
LoansUnder36 5.99% to 35.99% 550
Lending For Bad Credit 6.99% to 35.99% None