If you need to consolidate and pay off existing debt, but have concerns about your credit score and finances, you may be considering a bad credit loan. Using a bad credit loan to consolidate existing debt may seem like a good idea, but it’s not your only option.
Our program is designed to reduce your debt and prevent you from going deeper into debt. As debt relief experts we understand the risks of bad credit loans and can help you find an alternative to resolve your existing debt.
What Are Bad Credit Personal Loans?
Bad credit loans offer financing to people with poor credit. If you have a credit score lower than 650 and need money your chances of being approved for a traditional loan are very low.
Lenders tend to be risk-averse. When lending to a consumer with a bad credit score, they compensate for their risk by offering bad credit loans with high-interest rates, fees and aggressive terms that are in their best interest.
In some cases, these bad credit loans cause big problems for borrowers who underestimate the burden of subprime borrowing.
Types of Bad Credit Loans Online
Loans from brick and mortar lenders used to mean putting on a suit and going in-person to your local bank to ask for a loan. Fortunately, advances in digital technology mean that we can do everything online and over the phone.
Consumer Credit Available Online
Using Bad Credit Loans to Consolidate Your Debt
Many people try to use a bad credit loan to consolidate their debt. Since they’re unlikely to be approved for a regular loan, a bad credit loan seems like their only option. Unfortunately, many of the risks of debt consolidations with a bad credit loan can exacerbate an already poor financial situation.
Working with an Accredited Debt Relief specialist is one way to find a debt relief strategy that won’t lead to more unmanageable debt.
Risks of Bad Credit Loans
A bad credit loan offers even more risks than regular loans. The interest rates are almost always incredibly high. If you’re planning to consolidate your debt, a higher interest rate probably won’t save you any money on the cost of your debt, and more often than not, you’ll be better off keeping your debts separated or looking into alternatives to bad credit loans like a debt relief program.
In addition, getting a bad credit loan may require that you put your house, car, or other valuables up as collateral. If you can’t make your payments, your creditor could take your collateral instead. Suddenly, you’re out of money and have lost one of your most important assets.
Pros of a Bad Credit Loan
- Generally higher approval rate
- Funding is generally fast
Cons of a Bad Credit Loan
- May have to put up collateral for approval
- Usually have high-interest rates
- Often have many fees
Bad Credit Loan Alternatives
If you have poor credit, working with a debt relief company is a great alternative. Debt specialists understand the burden of debt and can help you find an alternative that is right for your financial circumstances.
Benefits of a Debt Relief Program
- Answers to your debt relief questions
- No need for collateral
- One fixed monthly payment
Work with Accredited Debt Specialists
Our program gives you access to a team of professionals to answer your debt relief questions and match you with a debt relief program that meets your needs. Our process is successful because we work with you to create a budget and set up a dedicated savings account.
We Have A Debt Relief Program For You
When you experience an unexpected expense, access to a loan can have a big impact on your life. Rather than relying on cash advances from high-interest payday lenders or applying for an installment loan with exorbitant origination fees, consider enrollment in a debt settlement program with Accredited Debt Relief. We have an A+ rating with the BBB and nearly 10 years of experience providing debt relief to people all over the United States.
Contact a specialist and get started with a free debt consultation.