For those in the UK, dealing with debt can be challenging, especially when you’re struggling with bad credit. Accumulating debt negatively impacts your credit scores.
You may consider getting a loan, but bad credit makes it challenging to meet the requirements for lower-interest-rate loans that could help you pay your debt sooner. If you want to get your monthly payments under control, a debt consolidation loan may be the perfect solution
Despite so many debt consolidation loans in UK, getting one for bad credit can be difficult. Moreover, bad credit loans usually come with drawbacks that scare people away most of the time.
But no worries. We have you covered. We want you to know that getting a good debt consolidation loan with bad credit is possible.
Hence, this article will look at The 7 Best Debt Consolidation Loans For Bad Credit in UK. Read on to find out.
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Table of Contents
What Is A Debt Consolidation Loan?
A debt consolidation loan refers to a new loan you apply for to pay off current debts. Balances on credit cards are one example. You make payments on your new debt consolidation loan while transferring the balances from your old debt to it.
Borrowers can consolidate multiple high-interest debts into a single payment using debt consolidation loans. One solution to lower your debt and speed up your debt repayment is to take out debt consolidation loans.
It’s crucial to look for debt consolidation loans with better terms than the ones attached to your existing debt, such as a reduced interest rate. Finding loan conditions and an interest rate more convenient for you is the goal.
Therefore, you may want to consider a debt consolidation loan to simplify your monthly financial obligations and eliminate debt more quickly.
Debt Consolidation Loans For Bad Credit in UK
Are you struggling to keep track of multiple monthly debt payments or have high-interest debt that you’d like to pay off at a lower rate? A debt consolidation loan might be an option even if you have bad credit.
On the other hand, debt consolidation helps you pay down your debt much faster, reducing the number of financial records with balances on your credit report hence increasing your credit scores.
Debt consolidation loans offer many benefits. It helps save money on interest by giving you a lower interest rate; it builds your credit, helps pay off debt faster, and does all this through a simplified process.
Debt consolidation loans are the best choice for anyone with bad credit. However, you can encounter some substantial challenges while looking for a debt consolidation loan with poor credit.
Getting accepted is the first obstacle. Some lenders can refuse to engage with you if your credit scores fall below a specific level. But even if you have poor credit, you aren’t automatically disqualified because lenders often take into account a variety of variables in addition to your credit scores.
We are here to assist you in obtaining the best consolidation loans for bad credit. Let’s look at the best Debt Consolidation Loans For Bad Credit in UK.
What Are The Best Debt Consolidation Loans For Bad Credit in UK?
Based on research, we’ve reviewed some debt consolidation loans for bad credit in UK and have selected the best 7.
Below are the 7 Best Debt Consolidation Loans For Bad Credit In UK.
1. Consolidation Express
Consolidation Express is our number one pick for the best debt consolidation loan companies for bad credit in the UK.
If you have several outstanding bills, credit card debt, and loans, consolidation express will help you boost your credit card amounts at very affordable rates.
Why Choose Consolidation Express?
Consolidation Express is flexible and provides an effective way to pay off your debts. They offer much-needed breathing space as they require one single repayment every month.
More so, Consolidation Express provides loans from £5,000 to £75,000 for repayment with a period of 2 to 10 years. There is no hidden upfront fee, and they offer expert advice on debt solutions.
2. Light Finance
Light Finance is a broker’s company that offers good debt consolidation loans for bad credit in UK. They have low-cost and fixed rates and provide loans from £100 to £10,000.
Why Choose Light Finance?
Light Finance is a good choice as there is no paperwork required, they are pretty affordable as no extra fees are charged, and they also offer an instant online quote service, making loan transactions easier.
3. Solution
The solution is a credit provider with a broad selection of loan packages. They offer their lending packages exclusively for borrowers with poor credit histories.
Like many other businesses in the UK that provide debt consolidation loans for those with terrible credit, their loans have a maximum amount of £25,000 accessible.
Why Choose Solution?
The solution is among the best options because of its highly reasonable repayment offers, which also work to reduce monthly repayment rates and make them more tolerable.
4. Ocean Finance
Ocean Finance is another company for debt consolidation loans for bad credit in UK. They have no additional fees and loans available from £5,000 to £15,000 within a 1 to 5 years interval. Note that these rates depend on your circumstances.
Why Choose Ocean Finance?
Ocean Finance also offers both secured and unsecured debt consolidation loans. They help reduce monthly payments and run on one loan amount, one monthly payment, one interest rate, and one lender policy.
Company URL: https://www.oceanfinance.co.uk
5. 118 118 Money
118 118 Money is one company that provides a fair, transparent way to borrow and pay back without any form of stress. They offer unsecured loans of amounts from £1000 to £5000.
118 118 Money loans are designed to be paid back within 1 to 3 years at a fixed interest rate. More so, they do not base their loan eligibility on anything other than your capability to make regular monthly payments.
Why Choose 118 118 Money?
118 118 Money is another company that provides the best debt consolidation loans for bad credit in UK that always tries to help and allow you to reschedule repayments.
They provide information on where you can get free independent debt advice. If any issue arises, they allow you to put a hold on debt recovery for a reasonable period, allowing you to set up an alternative repayment plan that suits your current situation.
Company URL: https://www.118118money.com
6. Everyday Loans
Everyday Loans is a direct lending company that offers debt consolidation loans for bad credit in UK. They don’t require additional fees; you can borrow from £1,000 to £15,000 over a minimum term of 2 to 5 years.
Why Choose Everyday Loans?
Everyday Loans have a very fast and efficient online presence, giving you the flexibility to select the most relevant terms for your situation. They are also very cost-effective and affordable.
Company URL: https://www.everyday-loans.co.uk
7. Pegasus
Pegasus is one company that gives one of the best debt consolidation loans for bad credit in UK, as they are very efficient and flexible. One can borrow from £5,000 to £100,000 and repay within 2 to 20 years.
Why Choose Pegasus?
Pegasus has flexible terms for customers at affordable rates. They also offer both secured and unsecured debt consolidation loans.
They give out fixed lower interest rates and, at the same time, improve your credit ratings. With a fixed interest rate, you will know the exact monthly payment amounts and how many remaining payments until your debt is fully repaid.
Company URL: https://www.pegasuspersonalfinance.co.uk
Frequently Asked Questions.
What type of loan is best for bad credit in UK?
In the UK, debt consolidation loans are frequently the best loans for people with bad credit. Using a debt consolidation loan enables you to combine all your outstanding bills into one single monthly payment loan at a lower interest rate.
What credit score do I need to consolidate my debt in the UK?
The required credit score is often around 650. However, certain businesses frequently provide debt consolidation loans for borrowers with credit scores under 650.
Can I consolidate my debt into one payment?
Of course! Consolidating debt is mainly done for that reason. It lets you pay off many creditors and bundle all your debts into one payment.
Can you get a credit loan with not-so-good credit?
You can, indeed. The 7 best debt consolidation loans for bad credit in UK have been provided for your convenience. You can obtain a loan even with a low credit score by comparing various loan providers’ interest rates and fees.
Final Thoughts
We’ve now shown you the 7 best debt consolidation loans for bad credit in UK; make sure to look into all your options before committing to any loan.
Once you have a loan that suits your needs, ensure you always make the monthly payment complete and on time. In the long run, consolidated loans can help you become entirely debt-free and enhance your credit.
We hope this list of the best consolidation loans for bad credit in UK has simplified your choice.
