Loan Consolidation for Bad Credit

What are the Benefits of Loan Consolidation for Bad Credit?

Consolidating your loans is one of the fastest and most effective ways to get out of debt. Here are just a few of the benefits of consolidating your loans:

Pay Off Your Debt Faster

One of the major benefits of consolidating your loans is that you can pay off your debt faster. By consolidating your loans, you will be able to combine them into one large loan, which will allow you to make one monthly payment. This will help you pay off your debt more quickly.

Better Interest Rate

The interest rate on your loan is going to be lower than what you would be paying on your current loans. This is because you are borrowing money from a lender at a lower rate than what you are currently paying. 

Improve Your Credit Score 

When you consolidate your loan, you’ll reduce your credit utilization rate, which is the ratio of how much of your available credit you are using. When your credit utilization rate is high, it can negatively affect your credit score. By consolidating your loans, you will be able to lower your credit utilization rate, which will improve your credit score.

Less Stress

When you have a lot of debt, it can be stressful to try and pay all of your bills each month. With a loan consolidation, you can take care of all of your debts at once, which will eliminate some of the stress that comes with having multiple payments each month.

Where to Apply for a Loan Consolidation for Bad Credit?

In general, you can apply for a loan consolidation through banks/credit unions, and alternative lenders/online lending companies.

Banks and Credit Unions

Banks and credit unions are often very strict when it comes to who they lend money to. They usually require good credit scores, so if you have bad credit, you may not be able to get a loan through a bank or credit union. However, if you have a long-standing relationship with your bank or credit union, they may be willing to work with you on a loan consolidation.

Alternative Lenders and Online Lending Companies

There are a lot of online lending companies that offer loan consolidation options. You can use these companies to get a loan consolidation without having to go through a bank or credit union. These companies typically charge higher interest rates than traditional lenders, but they are also flexible with their requirements.

Companies That Offer Loan Consolidation for Bad Credit

If you are looking for a reputable company in Canada that offers loan consolidation for bad credit, you should consider these options:

SkyCap Financial

SkyCap Financial is one of Canada’s leading providers of financial products and services including loan consolidation for bad credit. They offer loan consolidation ranging from $500 to $10,000 with a loan repayment period between 9 months and 60 months. SkyCap Financial charges interest rates from 12.99% to 39.99%. To qualify, you need to have a credit score of at least 550.

Mogo

Mogo is another reputable Canadian alternative lender that offers loan consolidation for bad credit for up to $35,000. They charge an interest rate ranging from 9.90% to 46.96% and offer a loan repayment period between 6 months and 60 months. To qualify, you need to have a credit score of at least 500. 

Loan Connect

Loan Connect is an alternative financial service that provides loan consolidation for bad credit ranging from $500 to $35,000. They have a loan maturity date between 12 months and 60 months and charge an interest rate from 5.99% to 47.42%. To qualify, you need to have a credit score of at least 300. 

Conclusion

As you can see, there are a lot of options when it comes to loan consolidation for bad credit. If you have bad credit, you may not be able to get a loan through a traditional lender, but there are still plenty of options out there. It’s important to do your research before applying for a loan consolidation. This will help you to make the right decision for your financial situation.