Many of us face financial challenges at some point, and loans are often sought to navigate these situations. If managed responsibly and repaid promptly, loans can even enhance your credit rating. However, life doesn’t always unfold seamlessly, and debts may become burdensome. Fortunately, there are solutions available to assist, even for individuals with a poor credit score.
A widely-used and effective financial tool is the debt consolidation loan. These loans empower you to take charge of your finances, potentially reduce your interest rates, and alleviate financial strain. If you’re seeking debt consolidation loans with a guarantor to mitigate the impact of bad credit, Debt Consolidation is here to support you.
If you have extremely poor credit, one alternative is a guarantor loan, although most direct lenders may not provide this option. A guarantor loan involves having someone willing to cover your repayments in case you are unable to, similar to having a guarantor when renting a property.
This can be a helpful solution if other lenders are rejecting your applications for a personal loan. However, it can be challenging depending on the person you approach to be your guarantor. Always choose someone with whom you have a strong relationship and ensure they fully comprehend the situation:
What does a loan without a guarantor entail?
This is likely the type of loan you are most familiar with, commonly referred to as a regular personal loan. It can take various forms, such as payday loans, quick loans, store cards, and more. However, it’s important to note that they often come with high-interest rates, especially for short-term loans, and eligibility may be limited if you have a poor credit history.
What choices do you have?
Practically, if you’re seeking a no-guarantor loan but have a very poor credit history, many direct lenders may not consider your application. This is because they lack a backup if you’re unable to make payments. However, there are still options available to you.
One alternative for individuals with bad credit is a debt consolidation loan. This type of loan is suitable if your low credit rating results from existing debts. A debt consolidation loan allows you to borrow enough money to settle your existing debts, consolidating your payments into one affordable monthly installment.
All debt consolidation loans offered by accredited companies, such as ours, adhere to regulations set by the Financial Conduct Authority (FCA). Following the FCA’s guidelines, we are committed to fair contracts and transparent promotions. Our goal is to provide you with a loan that facilitates repayment and sets you on a path toward improved financial well-being.
Choosing a lending company can be daunting given the saturated market. However, we distinguish ourselves through high-quality, honest, and judgment-free customer service.
Similar to various financial options, consolidating credit card debt has its advantages and disadvantages:
Whether you’re in search of a loan with a guarantor or without, you will be evaluated for a debt consolidation loan regardless of your credit score. If you find it challenging to manage monthly repayments to multiple creditors, a Debt Consolidation Loan (DCL) could offer a solution to regain control of your finances. Our team specialises in debt consolidation, and if you have debts ranging from £5,000 to £75,000 and reside in the UK, we may be able to assist you. Complete our online application today to determine your eligibility.
You can visit the Money Helper website to find out more about managing your money and to get free advice, they are an independent service set up to help people manage their money
Your details might be used for a soft credit check, which you can see but lenders cannot. This will not impact your credit score. The lender will perform a credit check which will appear on your credit file.
DebtConsolidation.co.uk is a registered trading name of Dissolve Debt Limited, which is authorised and regulated by the Financial Conduct Authority and is entered on the financial services register under reference number: 662423. Dissolve Debt Limited is registered in England and Wales (Company Number 05278758), registered office; Paul House Stockport Road, Timperley, Altrincham, Cheshire, England, WA15 7UQ. Registered with the Information Commissioners Office, (Registration Number Z896984X).
Disclaimer
The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details on the FOS can be found on its website at www.financial-ombudsman.org.uk.
“Dissolve Debt Limited” act as a broker processing the information that you provide to us and pass this on to our Limited group of third party lenders and brokers.
We do not charge a borrowers fee for the use of our brokerage services, however we do receive commission from lenders (or other brokers) when borrowers sign into a credit agreement following an introduction through the Debt Consolidation website.
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As operator of this website, Debt Consolidation is not an agent or representative of consumers or any lenders and therefore does not endorse the services offered by specific lenders.
The guidance and/or advice contained within the website is subject to UK regulatory regime and is therefore primarily targeted at customers in the UK. For more information on how we handle your data see our privacy policy (for further details about Debt Consolidation and Dissolve Debt Limited, see our Terms and Conditions).”
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
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