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If youve ever tried to get a debt consolidation loan with bad credit, then you know that it isnt always easy. It may seem odd that you can have such trouble being approved for a loan designed to help people who are in debt, but many lenders can be hesitant to give money to a person who has a history of not repaying.
It is possible to get a debt consolidation loan with bad credit, however… you just need to know what the banks and lending companies are looking at and how to make them see you as worth the risk.
Bad credit isnt the end
If you have credit problems, then you might feel as though youve reached the end of your rope… after all, if you cant get a debt consolidation loan with bad credit then how can you possibly hope to repay your debt and improve your credit?
The problem here isnt that you have bad credit… the problem likely is that youre looking for a solution as though you dont have bad credit.
There are many lenders who specialize in working with people who have bad credit, and will offer debt consolidation loan with bad credit; the trick is to find them.
Often, banks and finance companies that turn you down will be able to make suggestions on where you might go… and an internet search or two will usually end in multiple hits for possible lenders.
High-value collateral for lower-value loans
If youre having problems finding a lender while youre asking for the total value of your collateral, then you probably need to lower your sights a little bit.
One of the keys to getting a debt consolidation loan with bad credit is to guarantee your lender that theyll get their money back… and thats your collaterals job.
Asking for less than the total value of your collateral is a good way to get an approval that you otherwise might not get; after all, asking for £5,000 and offering property thats valued in the £7,000 range is an easy way to get the point across that theyll get their money no matter what.
Do your best beforehand
Applying for a debt consolidation loan with bad credit can make it seem like youre simply looking for an easy way out, especially if you havent been making any attempt at repaying what you owe.
Do the best that you can to make as many payments as you can in the weeks and months leading up to your application… after all, a lender is more likely to give you a debt consolidation loan with bad credit if you can show that youre making an attempt but need some help instead of just sitting there waiting for money to come from somewhere else to pay your debts.
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About The Author
John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans.co.uk website.
Article Source: EzineArticles.com