Can I apply for a debt consolidation loan with bad credit? This question is about Best Debt Consolidation Loans for Bad Credit

Yes, it's possible to get a debt consolidation loan with bad credit, and you could be approved if you choose the right lender. You will also need to meet other requirements to get a debt consolidation loan with bad credit, like being 18+ years old, having enough income to afford the loan and having a bank account. When you apply for the loan, you’ll need to give the lender some personal and financial information, like your name, date of birth, Social Security number, employment status and income. How to Apply for a Debt Consolidation Loan with Bad Credit Pre-qualify, if possible. Some lenders let you pre-qualify before you officially apply. Pre-qualifying shows you your approval odds and what rates you may receive. You can pre-qualify with multiple lenders at once using the free pre-qualification tool on WalletHub. Compare offers you’re likely to get approved for. When comparing offers, the most important factors you need to consider are the loan amounts, APRs, repayment periods and fees. Find the application for your chosen lender. You may be able to apply online, over the phone or in person at a branch. Not all lenders will offer all 3 options, though. Fill in your personal information. The lender will request some personal information on your application, like your name, address, Social Security number and date of birth. Fill in your financial information. The lender will also need some financial information from you, such as your employment status, income and income sources. Check to make sure your information is correct. Once you’re done filling in your personal and financial information, you need to make sure that all of your information is accurate. Any incorrect information may slow down the approval process. Submit your application. You could receive a decision within minutes after you submit the application. Otherwise, it could take a few business days. If you think a debt consolidation loan is right for you, check out WalletHub’s picks for the best debt consolidation loans for bad credit.

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Can I apply for a debt consolidation loan with bad credit?

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This question is about Best Debt Consolidation Loans for Bad Credit

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Grace Enfield, Content Writer

@grace_enfield • 03/20/23 This answer was first published on 07/12/22 and it was last updated on 03/20/23.For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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Yes, it's possible to get a debt consolidation loan with bad credit, and you could be approved if you choose the right lender. You will also need to meet other requirements to get a debt consolidation loan with bad credit, like being 18+ years old, having enough income to afford the loan and having a bank account.

When you apply for the loan, you’ll need to give the lender some personal and financial information, like your name, date of birth, Social Security number, employment status and income.

How to Apply for a Debt Consolidation Loan with Bad Credit

Pre-qualify, if possible.
Some lenders let you pre-qualify before you officially apply. Pre-qualifying shows you your approval odds and what rates you may receive. You can pre-qualify with multiple lenders at once using the free pre-qualification tool on WalletHub.
Compare offers you’re likely to get approved for.
When comparing offers, the most important factors you need to consider are the loan amounts, APRs, repayment periods and fees.
Find the application for your chosen lender.
You may be able to apply online, over the phone or in person at a branch. Not all lenders will offer all 3 options, though.
Fill in your personal information.
The lender will request some personal information on your application, like your name, address, Social Security number and date of birth.
Fill in your financial information.
The lender will also need some financial information from you, such as your employment status, income and income sources.
Check to make sure your information is correct.
Once you’re done filling in your personal and financial information, you need to make sure that all of your information is accurate. Any incorrect information may slow down the approval process.
Submit your application.
You could receive a decision within minutes after you submit the application. Otherwise, it could take a few business days.

If you think a debt consolidation loan is right for you, check out WalletHub’s picks for the best debt consolidation loans for bad credit.

Answer Question

What credit score is needed for debt consolidation?

You need a credit score of 660 or higher to consolidate your debt with a personal loan that has no origination fee and a low APR. In general, the higher your credit score is, the lower your interest rate will be on a debt consolidation loan or a balance transfer credit card... read full answer.

Many lenders disclose a credit score requirement for debt consolidation loans. For your convenience, below is a list of credit score requirements from major lenders. You can check your credit score for free on WalletHub.

Credit Score Needed for a Debt Consolidation Loan by Lender

Lender	Score Required
Payoff	600
FreedomPlus	620
Best Egg	640
LendingClub	600 - 640
Prosper	640
Avant	580
LendingPoint	620
Axos Bank	700
Marcus	640 VantageScore or 660 FICO score
Sofi	680
Upgrade	620
Upstart	580

Note: These requirements are directly from the lenders or according to multiple third-party sources.

To read more about the top-ranked offers, check out WalletHub’s picks for the best debt consolidation loans and the best balance transfer credit cards. If you think a debt consolidation loan is right for you, you can estimate your potential rates with our free pre-qualification tool.

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How can I get out of debt with no money and bad credit?

You can get out of debt with no money and bad credit with the help of a debt management program or a loan from a friend or family member. You should also look into getting a debt consolidation loan for bad credit, especially if you have some income despite not having any money saved. Careful budgeting will go a long way, too.... read full answer

How to Get Out of Debt with No Money and Bad Credit

Debt consolidation loans for bad credit. You can compare WalletHub’s picks for the best debt consolidation loans for bad credit, then estimate your potential rates with our free pre-qualification tool. If you have no job, you can use alternative forms of income on your application, such as unemployment benefits, child support, alimony or Social Security benefits.

Debt management programs. Debt management allows you to negotiate a new payment plan with your lender. This typically involves getting a longer repayment period, a lower interest rate and fees waived. Debt management can hurt your credit score, but it’s better than defaulting on a loan.

Debt settlement. You may be able to settle your debt directly with a lender, by offering a lump sum in exchange for the rest of your debt being forgiven. But this generally won’t work until you’ve already defaulted.

Alternatively, you could try a debt settlement program. This involves making monthly payments to the settlement company while they withhold money from your creditors until your creditors allow you to repay only a portion of your balance. This is terrible for your credit score, and the record of debt settlement will stay on your credit report for 7 years.

Paying off your most expensive balance first. If you have more than one balance, it’s smart to pay off the most expensive one first since it will cost you the most over time. To do this, you should allocate the majority of your debt-repayment budget to that balance, while paying at least the minimum due on your other debts. Once it’s paid off, you can move onto the next most expensive balance and repeat the process until you’re debt-free.

The “snowball method.” The snowball method helps you focus on paying back your smallest debts first before you move onto larger balances. Once your smallest debt is taken care of, you can use the money you set aside to pay off that debt and put it toward the next smallest balance. You’ll then use this cycle until all of your balances are repaid.

The “Island Approach.” The Island Approach means using separate credit card accounts for different types of transactions. This way, you can use one account to manage a revolving balance while using another account for everyday expenses that you can repay in full each month. This will reduce the amount of interest you pay, making it easier to get out of debt.

Loans from friends or family members. A loan from a friend or family member may have better terms than a conventional debt consolidation loan. Keep in mind that you may put strain on your relationship if you cannot repay the loan.

You can read more about how to pay off debt on WalletHub.

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Does a debt consolidation loan mess up your credit?

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