What is a debt consolidation loan?
A debt consolidation loan is a type of personal loan you can use to repay multiple existing debts, leaving just one loan to manage.
The debt consolidation loan should have a lower interest rate than the other existing debts. That way, the new loan will reduce the overall cost of the debt and make it much easier to manage.
Does Integra Credit offer loans for debt consolidation?
With Integra Credit, what you use your loan for is up to you. If an Integra Credit loan carries a lower interest rate than your existing loans then consolidating your debt with Integra Credit might be right for you.
Managing multiple debts can be hard, especially with bad credit. That’s why lenders consider more than just your credit score to find a solution that works for you.
Debt consolidation loans offer simple, transparent terms with no hidden fees, making it easier to take control of your finances.
At Integra Credit, you can complete a quick online application, and if approved, see your available preliminary offers in minutes. Our dedicated support team is here to answer any questions and guide you through the process.
Most applicants receive an instant conditional decision, and if approved, funds are typically deposited as soon as the next business day.*
How does debt consolidation work?
A debt consolidation loan works by paying off and effectively combining multiple debts into a single, more manageable payment.
For example, if you had three credit cards with a total outstanding balance of $3,000 on high interest rates, you could use a $3,000 consolidation loan with a lower fixed rate to pay them off.
This would leave you with one monthly payment rather than three, paying less interest and potentially avoiding costly late payment fees.
For a debt consolidation loan to be effective, make sure the interest rate is lower than the rates you are already paying on your existing debt.
Can you get a debt consolidation loan with bad credit?
Getting a debt consolidation loan is still possible if you have fair or even bad credit. There are a number of lenders that look at factors other than credit score when assessing your loan application.
Even if you have a history of missed payments or a low credit score, you could still qualify based on your income, employment status, and ability to repay the loan.
While interest rates may be higher if you have poor credit, consolidating your debts can help by simplifying payments and reducing overall costs over time.
Can debt consolidation improve your credit score?
A debt consolidation loan can help rebuild your credit when managed responsibly – here’s how:
- Simplify payments: Consolidating multiple debts into one fixed payment can make it easier to manage and avoid missed or late fees.
- Reduce credit utilization: Consolidating credit card debt with a loan can lower your credit ulilization, especially if you are near your credit limits.
- Build positive payment history: Making your consolidation loan payments in full and on time will demonstrate responsible borrowing and improve your score over time.
A debt consolidation loan won’t immediately increase your credit score, and its impact depends on whether the lender reports your repayments to credit bureaus. If they don’t, the loan won’t affect your credit score at all.
However, if your repayments are reported, you make on-time payments and avoid new high-interest debt, a debt consolidation loan can help improve your credit score over time.
How to qualify for a bad credit debt consolidation loan
To be eligible for a debt consolidation loan, the minimum criteria for the majority of lenders includes:
- Being at least the minimum legal age to contract in your state of residence
- Having a valid bank account
- Providing a valid email address
- Being a resident of the United States
Many lenders look beyond your credit score when assessing applications. Here are some of the other factors lenders consider:
- Stable income: Lenders want to see that you have a steady source of income to ensure you can make your monthly payments.
- Debt-to-income ratio (DTI): DTI is the percentage of your monthly income used to pay debts. A low DTI increases your chances of approval, so try to reduce existing debts before applying.
- Employment status: Full-time employment or consistent self-employment income can strengthen your application.
- Banking and payment history: Lenders may look at your bank account transactions to assess the health of your finances.
By evaluating these factors, lenders can offer you loan terms that match your financial situation, even if your credit score is not perfect.
Debt consolidation loans FAQs
What debts can I consolidate?
You can use a debt consolidation loan to consolidate a range of credit accounts and loans, including:
– Credit cards and lines of credit
– Unsecured personal loans
– Private student loans
– Secured loans
If you’re clearing expensive personal loans, check to see if there are any fees for paying off the balance early. Many loans come with prepayment penalties, which you may be charged if you repay the loan before the end of the term.
How much can I borrow with a debt consolidation loan?
The amount you can borrow differs by lender. Integra Credit personal loans have a maximum amount of $3,000, depending on the laws within your state. For more information on the maximum loan amount by state, please refer to our Rates and Terms page.
What are the minimum qualifications to apply for a debt consolidation loan?
Minimum qualifications vary by lender. The minimum qualifications to apply for a debt consolidation loan through Integra Credit are that you must be at least the minimum legal age to contract in your state of residence, have a valid bank account, have a valid email address, and be a resident of the United States. Please see our Rates and Terms page for more information on which states we service.
What’s the difference between a debt consolidation loan and a debt management plan?
A debt consolidation loan gives you a lump sum to pay off multiple debts, replacing them with one fixed monthly payment.
On the other hand, a debt management plan is a structured repayment plan set up by a credit counselling agency to negotiate lower interest rates with creditors.
Can I get a debt consolidation loan for bad credit with instant approval?
Many lenders, including Integra Credit, offer fast decisions on debt consolidation loan applications, even if you have bad credit. Most applicants receive a conditional decision within seconds after submitting their application.
At Integra Credit, we use a flexible underwriting process that assesses your eligibility beyond your credit score. If approved, funds can be deposited as soon as the next business day*, helping you quickly access the money you need.
What is Annual Percentage Rate (APR)?
Annual Percentage Rate, or APR, is a standardized measure used to express the cost of a loan for a whole year. This rate takes into consideration interest owed and any fees a customer will pay as a result of taking out the loan.
How long will it take to receive my money?
This also depends on what your specific lender provides. With Integra Credit, if your application is approved by 8pm CT on business days and 3:30pm CT on Sundays, funds are typically sent the next business day. Check with your financial institution’s funds availability policy to learn when it will provide you with access to the funds.
How is my personal information protected?
At Integra Credit, protecting your privacy is of our highest concern. Please see our privacy policy for more information.
