Minimum Credit
Scores
Some people worry that their credit score is too low in order
for them to get a debt consolidation loan. However, most debt
consolidation loans are actually created with these lower credit
score people in mind. Sure enough, they want to be able to help
out someone who needs to reorganize their debts, and a debt
consolidation is the perfect way to do that. However, a poor
credit score might make it a little harder.
A poor credit score will probably get you a higher interest rate
on your debt consolidation than if you had a good score. You
will also find it tougher to get a debt consolidation that is
unsecured. However, all of this depends on how low your score
is, and what company you end up going through. Each of these
things that determine your eligibility for a debt consolidation
are subjective and each bank makes its own rules.
You could have a credit score of 500 and get turned down at
banks A, B and C, but then D, E and F say ok. Maybe D quotes you
18%, E quotes you 15% and F says 12%. You have to do your
research to find out which debt consolidation loan would be the
best for you. Each bank will have its own terms and regulations
that they want you to abide by, so whether or not a particular
credit score is what they need is really up to the bank.
You have to check out each bank, show them that you are working
hard to try and pay down your existing debts, and then hope that
you can find a good match wherever you go.
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