Guaranteed Debt Consolidation Loans Bad Credit

Writer and editor - Joseph Smith | Updated on 2020-05-27
Disclosure: Our goal is to help you find a lender even if you have a bad credit score. To maintain this site we may receive compensation from the products listed here. See our Advertiser Disclosure. Thanks for understanding.

You’re tired of approaching lenders and getting denied for a loan. But, how do you guarantee approval for a debt consolidation loan?

What is a guaranteed debt consolidation loan?

Technically, there is no such thing as a guaranteed debt consolidation loan. However, debt consolidation loans and programs to get around your bad credit do exist. We can rephrase “guaranteed debt consolidation loan” as “debt consolidation loan for bad credit.”

A debt consolidation loan is simply a program that puts all of your debt under one roof. You pay a single monthly payment to a single lender. Debt consolidation loans have varying interest rates. They can be higher or lower than personal loans. However, debt consolidation loans require less in the way of approval. That’s because debt consolidation loans are meant to help you pay off your debts, not provide a lump-sum loan for other expenses.

Best “Guaranteed” Debt Consolidation Loans Bad Credit

Loans Amount Cost / APR ? Bad Credit Features
QuickLoanLink (Personal loan) $300 - $35,000 APR:
Starting at 6.90% ?
Bad credit allowed
Allowed
  • Loan term 2 months to 7 years
  • Credit check type: Soft ?
  • Next-day deposit: In some cases ?
  • Min creditscore: 550
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?
CashUSA
$500 - $10,000
Individual rates
Bad credit allowed
Allowed
  • Loan terms start at 3 months.
  • Next-day deposit: In some cases ?
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?
LifeLoans (Personal loan) $500 - $40,000 APR:
Starting at 5.99% ?
Bad credit allowed
Allowed
  • Loan term 2 months to 5 years
  • Credit check type: Both ?
  • Next-day deposit: In some cases ?
  • Min creditscore: 580
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?
CreditLoan (Personal loan) $100 - $40,000 APR:
Starting at 5.34% ?
Bad credit allowed
Allowed
  • Loan term 2 months to 7 years
  • Same-day deposit: In some cases ?
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?
HonestLoans
$400 - $5,000
$30 - $750 ?
Bad credit allowed
Allowed
  • Same-day deposit: In some cases ?
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?
OppLoans (Direct Lender)
(Personal loan)
$1,000 - $5,000 APR:
Starting at 99.00% ?
Bad credit allowed
Allowed
  • Loan term 9 months to 3 years
  • Next-day deposit: In some cases ?
  • Low approval rates ?
  • Time for decision: 1.5 min ?
RubikLoan
$100 - $1,000
$1,000 - $5,000
$15 - $300 ?
APR from 6.9% ?
Bad credit allowed
Allowed
  • Same-day deposit: In some cases ?
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?
Personal Loans (Personal loan) $500 - $35,000 APR:
Starting at 5.99% ?
Bad credit allowed
Allowed
  • Loan term 3 months to 6 years
  • Credit check type: Soft ?
  • Next-day deposit: In some cases ?
  • Min creditscore: 580
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?
BadCredit.com
$100 - $5,000
Individual rates
Bad credit allowed
Allowed
  • Next-day deposit: In some cases ?
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?
OpenCashAdvance
$200 - $5,000
Individual rates
Bad credit allowed
Allowed
  • Same-day deposit: In some cases ?
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?

All lenders require some credit checks. It may not be a “traditional” credit check. By traditional credit checks, we mean three types:

  • Your annual credit report – A free annual credit check that you can get here: www.annualcreditreport.com. An annual credit report is not the same as your FICO score.
  • Hard credit check – Avoid these unless you have no other options. Especially avoid these in the preliminary phases of dealing with a lender. Hard credit checks lower your score.
  • Soft credit check – These are the preferred form of credit checks. They do not harm your current standing FICO score, but they are not always an option.

A non-traditional credit check can be anything as simple as showing proof of income. The key takeaway is that different lenders employ different methods of approval. That means the prerequisites change from one lender to the next. Don’t give up if a particular bank or credit union doesn’t issue you a loan.

Most financial institutions require some necessary information. Here’s an essential checklist:

  • You must be 18 years old or older
  • Older than 21 years is recommended to improve your likelihood for approval
  • A monthly income of at least $800
  • A pre-tax monthly income of $2000 is suggested
  • Have an active bank account
  • Provide an ID
  • Show proof of income, such as with a pay stub

Debt consolidation loans with bad credit options

A few strategies exist to improve your credit enough to secure approval. Debt consolidation loans generally have lower requirements to help you get approved. Keep this mind, along with timing, and you will significantly improve your chances.

Break a big loan into two smaller loans

Two smaller loans are more likely to get approved than a single jumbo loan. But, a $30,000 loan has higher requirements for approval than two separate $15,000 loans.

Transfer your debt to a single credit card payment

Moving the bulk of your balance to one card is a great way to consolidate your debt and even improve your credit score. Before you vie for any loan approval, take some personal steps to consolidate your debt into a manageable sum. Show lenders that you’re serious about eliminating debt, and not seeking a loan for private expenditures.

30% credit utilization dramatically improves your FICO Score

A debt ratio at or below 30% of your available credit can work wonders for your FICO score. A ratio of 8% will bring a significant additional increase. But, don’t zero out your debt, leave at least a $10 balance.

Multiple lines of credit lower DTI and raise your credit score

Credit agencies monitor your DTI, known as your debt-to-income ratio. DTI suggests a simple calculation that includes all of your monthly debt payments divided by your total monthly income. The lower the number, the better your chances of approval. More credit cards mean a higher available line of credit. As that number increases, the ratio of debt to available credit changes.

Early and multiple monthly payments

Your balance isn’t reported at the end of the month. Credit card companies report to bureaus on a separate schedule. Get in touch with your credit card and find out when the reporting occurs. Pay off your card early so that you get the total credit due for your timely payments.

Paying off your bill multiple times a month is also a great of getting lower interest rates and paying off debt faster.

Get a secured credit card to rebuild credit

Secured credit cards offer a way to remedy non-existent credit or a low-risk way of improving your currently damaged credit. They work by turning a cash deposit into a “line of credit.” The available credit does not exceed your cash deposit, yet the spending will be recorded as credit card activity.

Do guaranteed debt consolidation loans bad credit exist?

Due to all the false promises, exaggerated language, and sales tactics, we repeat:

There is no such thing as guaranteed loan approval. If there were, then they wouldn’t call it “approval.”

Benefits of a debt consolidation loan for bad credit

Debt consolidation alone makes for a responsible and proactive solution for a lowered credit score. A debt consolidation loan is a program that targets and eliminates debt, more so than a traditional loan. Personal and conventional loans often assist with a large down payment or mortgage, and debt consolidation loans for bad credit are different.

Here are some benefits bestowed by debt consolidation loans.

  • One regular monthly payment
  • Lower interest rates
  • Smaller, more manageable payments
  • Easier to keep track of

Risks of debt consolidation loans

The risks involved with a debt consolidation loan are those that come with any loan. That said, a debt consolidation loan, if used for its intended purposes, offers a therapeutic, financial solution.

Missing payments still means a lowered credit score. At this point, you need realistic monthly payments with interest rates that you know you can meet.

To determine a payment plan that your income can support, you may have to extend the life of the loan for up to five years. On day one, this lower payment may seem like nothing short of a blessing. Three to five years down the road, you may feel otherwise.

Joseph Smith

Joseph Smith
Writer and editor

Joseph Smith is an experienced freelance writer with over 11 years of experience. His area of expertise includes finance, loans and lending. His work has been featured on various large websites including this one.
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