Nowadays, due to global financial crisis, most of the non-bank lenders are very lenient in approving their loans to people with poor credit. The same applies to those debtors who are allowed to consolidate their multiple debts into one single loan even though their credit score is poor.
To be frank, getting financial assistance is not really hard. However, the most challenging part is how to get the best deal in order to save your cost. In general, for people whose credit rating is low, the lenders usually set the following conditions:
· The interest rates offered are much higher than the regular loans
· The late fee charges are extremely high
· The term of repayment is less flexible
If you intend to obtain a bad credit debt consolidation loan, there are 3 ways you can take in order to enjoy lower interest rates.
Option No. 1: Get a secured debt
If you own fixed asset, you are advised to get yourself a secured loan by making your fixed asset as collateral. By doing so, you can negotiate with your lender to reduce the interest rate.
Option No. 2: Get a co-signer
Since your credit is bad, it is not possible for the lender to offer you lower interest rate. However, if you manage to get someone with good credit to become your co-signer, you stand a higher chance to enjoy a lower interest rate.
Option No. 3: Get government backed loan
This type of loan is quite hard to obtain because there are many limitations set by the government. This loan is aimed to help people who are really in need for certain purposes. Hence, before you apply for this type of loan, you are reminded to make sure that you fulfill the requirements.
To sum up, getting low interest debt consolidation loan is still possible even if your credit is poor. You just need to be smart in looking for the right way.
For more information about government consolidation loans and debt consolidation loans, visit DebtConsolidationLoansAdvice.com.
Article Source: http://EzineArticles.com/?expert=Jeslyn_Jessy
No comments:
Post a Comment