Do I Qualify for Bad Credit Debt Consolidation?Debt Consolidation
Consumers with high levels of debt often face a no-win situation when it comes to qualifying for debt consolidation. Carrying high-interest debt commonly leads to credit problems, which in turn preclude consumers from qualifying for many forms of consolidation. For example, borrowers must have excellent credit to obtain a personal consolidation loan or a home equity debt consolidation loan. If you have blemishes on your credit record because of your overwhelming debt burden, these programs are more than likely out of reach. However, you can still qualify for effective debt consolidation services with bad credit. No Debt Today can find you a debt consolidation program that welcomes clients with credit challenges. Read on to learn more about your eligibility for a bad credit debt consolidation program.
Defining Bad Credit
Before we address your eligibility for bad credit debt consolidation, we’ll first explain what bad credit means. Of course, the definition of bad credit will vary considerably by lender, but a credit score of 620 or below is typically classified as a poor score. If you fall into this category, you will likely find it next to impossible to obtain debt consolidation loans from traditional banks and credit unions. You are considered a sub-prime borrower, and very few lenders are willing to assume that risk.
Debt Relief for People with Credit Challenges
If you have poor credit, you do not have to continue damaging your credit score with impossibly high levels of debt. No Debt Today can easily find you a consolidation service with experience helping debtors with credit challenges. With most consolidation services, clients do not have to have a certain credit score to qualify. As long as you meet the other eligibility criteria, you can usually qualify for bad credit debt consolidation without a problem. Here are the qualifications most consolidation services require of their borrowers:
- A minimum level of unsecured debt (specific amount will vary)
- No existing enrollments in debt consolidation programs
- A willingness to cancel the credit cards included in the bad credit debt consolidation
What Will Disqualify You
The fact that you have bad credit will not normally disqualify you from receiving debt consolidation services. However, if you are excessively behind on your payments, you may be ineligible for bad credit debt consolidation. For instance, a consolidation company may require that its clients be no more than three months behind on their payments. For borrowers with more serious delinquencies, debt settlement or debt negotiation may be a better option. No Debt Today can refer you to a consolidation service that offers these options if you are interested.
Bad Credit Debt Consolidation Loans
Some lenders offer bad credit debt consolidation loans that have relaxed eligibility criteria. Debtors with bad credit can borrow these loans and pay off their high-interest debts. However, bad credit debt consolidation loans tend to have very high interest rates themselves, so they are often counterproductive. Consumers with bad credit and significant debt are typically better off using a professional consolidation service instead. If you choose No Debt Today, you will gain access to one of the largest selections of bad credit consolidation options available.