Juggling multiple debts can be extremely hard to keep track of and leave you feeling confused, stressed and anxious about repayment dates and amounts. For these reasons, a debt consolidation loan provides the perfect solution to streamline your finances and make life with debt that much easier to manage.
Should I Use A Loan To Consolidate My Debt?
Debt consolidation loans exist to help downsize multiple debts into one manageable monthly payment. This type of loan can have huge benefits if used correctly, reducing monthly payments and interest rates as well as preventing you from accruing further debt.
It can be difficult getting access to the best debt consolidation loans online, particularly if you apply for an unsecured debt consolidation loan and have a poor credit history.
If you don’t want to risk losing valuable collateral and decide against a secured loan to help your debts, your best bet is to apply for an unsecured debt consolidation loan. At Top Rated Personal Loans we aim to accommodate as many customers as possible; and if your credit report has flaws, there are ways you can improve your application and ability to repay in the eyes of the lender.
Applying For A Debt Consolidation Loan Online
To reiterate, unsecured debt consolidation loans rely upon an individual’s creditworthiness and repayment ability, so if you find yourself worried about previous financial blips, the first thing you should do is check your credit score.
Luckily there are lots of online platforms that allow you to check your credit file for free; Equifax offers a free thirty-day trial giving you unlimited access to your latest credit report. Experian offers a similar service with helpful tips for improving your credit score.
This should be your first port of call when applying for the best debt consolidation loans on the web because whilst checking your report won’t impact your score, rejected applications will. Once you have established whether you have poor credit, start making changes to recover it.
Remember that you will need to allow for a 6-12-month period before seeing a difference and positive change on your report (if your need for debt relief is urgent then this timeframe may prove problematic but regardless it is always handy to know the state of your credit report).
Improve Your Credit Report
Limit your loan applications because repeated denied applications can negatively impact your score - restrict applications to every three months minimum.
In the event you’ve had extenuating circumstances that have impacted past loan repayments, add a Notice of Correction to your credit file. This 200-word statement can explain missed or late repayments to lenders when they check your file.
If you’ve shared a financial product with an ex-partner or similar, you can complete a Notice of Disassociation which will then remove the financial associate from your file and prevent their low credit score impacting yours.
If you haven’t done so already, check you are registered on the electoral register to prove that all details provided on your credit report are accurate. Lenders want to ensure that they can confirm the validity of your identity to prevent issues with fraud and identity theft.
Do All The Necessary Calculations
Once you have decided which type of loan you want and checked your credit file, you will need to tally up all your existing debts, look at your income and expenditure and make sure that you will comfortably be able to afford the debt consolidation loan repayments.
Debt consolidation loans work well when used to pay off all your debt in full once and for all - as if you try to borrow more money after consolidating all your debts into one, your account will be in a worse state than when you started…
Finding The Right Lender For Debt Consolidation
Doing prior research when finding the right lender is important because all lenders have different interest rates and unique loan terms. It is far easier to find a lender using a brokerage like Top Rated Personal Loans , as you don’t have to spend time searching the internet, visiting banks or credit unions. Instead, we do the hard work for you and will match you to the lender that is most appropriate for your financial situation.
Lots of lenders also charge high fees for arranging this type of loan, so make sure you read the fine print. The best debt consolidation loans can be arranged here at Top Rated Personal Loans , where you won’t find any extra or hidden fees charged.
Why not apply today?