The importance of a good credit score cannot be overstated. Without the backing of a good credit score, you can be denied loans for housing, the apartment you need, and even a manageable interest rate. The lower the score, the fewer financial possibilities are available to you. Increasing your credit score is hard work, but it’s well worth it when you consider how much your poor score is holding you back in life. Here at Lendah, we believe in the power of a debt consolidation loan for bad credit.
How Does Debt Consolidation Work?
A debt consolidation loan is a personal loan with a fixed interest rate that allows you to pay off your credit card debt quickly, improving your credit health. You simply obtain the loan from a trusted lender like Lendah, pay off your credit card debt, and then work to pay off the personal debt consolidation loan. But how do you choose the right consolidation loan? We have a list of some of the top things to consider when choosing your debt consolidation loan. Learn more about debt consolidation loans for bad credit.
Low Interest Rates
One of the most debilitating aspects of credit card debt and other types of revolving debt are high interest rates. As rates rise with inflation, keeping up with the repayment of your credit card debt can become an impossible task. Fortunately, most consolidation loans come with lower interest rates than credit cards. The interest rate you get approved for can depend on a number of factors, your credit score included, but unlike credit cards, personal loan programs are often built for bad credit. Additionally, lower interest rates allow you to pay off your loan faster and that can help boost your credit score as well.
Related Article: How Rising Credit Card Interest Rates Impact Your Debt Repayment
Lower Monthly Payments
If you are paying on multiple credit cards right now, you could be paying hundreds of dollars a month just trying to make your minimum payments. This can be helped with a consolidation loan. According to Forbes, “when consolidating debt, your overall monthly payment is likely to decrease because future payments are spread out over a new and, perhaps extended, loan term.” If you are on a tight budget, having a fixed monthly payment can help you maintain consistent monthly payments, however if you want to pay off your loan quickly, you can make larger payments and decrease your interest rate as you go.
It’s important to remember that not all personal loans are created equally. A consolidation loan designed to help with bad credit will likely come with lower interest rates and shorter loan periods to help keep you on track. That’s why we recommend you team up with Lendah. A personalized loan program with Lendah can be advantageous for budgeting and individual financial situations.
Related Article: What No One Tells You About Student Loan Forgiveness
Lendah’s Consolidation Loans for Bad Credit
A debt consolidation loan from Lendah is more than just a tool to pay off your credit card debt and raise your credit score. You work with a team of financial experts who are here to support you and give you the skills you need to build a better financial future. Our personal consolidation loans for bad credit are structured with:
- Low interest rates
- Approval up to $35,000
- Possible savings of thousands
If you want more information on how debt consolidation affects your credit score, check out this blog.
If you’re interested in consolidating your credit card debt, get started today on our website. Prefer to talk in person? Call us at 833-453-6324 and we’ll get you connected immediately with one of our loan experts.