Debt Consolidation Loan for Bad Credit

It's possible, but harder. Most prime lenders want a score of 620+ for approval, and the best rates typically go to 700+. Below that range, options narrow and rates rise significantly.

• Subprime online lenders — some approve scores in the 550–620 range, but often at APRs of 25–36%, which can erase much of the savings
• Credit union loans — credit unions sometimes offer more flexible underwriting than big banks, especially if you're already a member
• Secured loans — using an asset as collateral (like a savings-secured loan) can improve approval odds and lower your rate
• A co-signer — adding a creditworthy co-signer can significantly improve your terms

If the rate you qualify for isn't meaningfully lower than your current average interest rate, consolidation may not save you money — it just moves the debt around. Run the numbers with a calculator before committing.

If your credit is too damaged to qualify for a loan with favorable terms, debt settlement doesn't require a credit check or loan approval — it negotiates your existing balances down instead of refinancing them.

A nonprofit credit counseling agency can negotiate lower interest rates with your existing creditors without requiring a new loan approval, making it accessible regardless of your credit score.

Compare your actual consolidation loan offer (rate and terms) against debt settlement and credit counseling before deciding. Our Debt Consolidation Loan Calculator can show whether a specific offer would actually save you money.