Does Bad Credit Disqualify You from Debt Consolidation Loans?
If you have bad credit and are thinking about using debt consolidation loans to reduce your monthly payments and interest rates, or if you already applied for this loan and were rejected, then this is going to be the most important article you will ever read. Here’s why:
Within the next few minutes you’re going to learn the dirty little secret lenders don’t want you to know about. It’s something they’ve been getting away with for a long time. And it’s a story that is happening to people in debt all over the country.
It goes like this…
You wake up one day and decide to finally do something about your debt and those incredibly high interest rates. You also decide that you’re going to take care of this problem with a consolidation loan, even though your credit isn’t so great.
So you fire up the computer or mobile device and log onto the internet to search for companies that offer these types of loans. After a few minutes of searching, you find a few that look promising. They seem to offer reasonable rates, even for people with less than stellar credit scores. You’re excited.
Accordingly, you apply to one of these lenders. And, as you’re planning what to do with the money you’ll be saving every month, you get hit with the bad news. The lender rejected your loan application. Not to worry you say – you’ll just apply to another lender.
After all, there are plenty of them out there offering this type of loan.
So you go to another website, fill out all the information, and then wait for the reply.
But again, they turn you down.
And no matter how many lenders you apply to, you keep getting the same answer.
Lender after lender sends you an email stating “I’m sorry, your application has been denied”. Usually, they don’t even give you an explanation for why you were turned down.
So what’s going on here?
Why do so many lenders advertise the idea of loaning money to people with bad credit profiles… even though they have no intention of lending you the money?
And how can you get around this hurdle? This article answers those questions and more.
On this page, you’ll learn why these unscrupulous lenders falsely advertise these loans and you’ll learn which program others have used to get around this problem.
Why They Lie About Bad Credit Loans
The reason lenders deceptively advertise debt consolidation loans for people with bad credit when they have no intention of lending that person money is simple… GREED.
By falsely advertising these loans, they generate more free publicity for their company.
Here’s how this little scheme works…
The lender advertises these types of loans online.
When bloggers and other website owners see this, they start writing new articles or blog posts saying “hey, we know where you can get a loan even if you have bad credit”. Suddenly, the blogger and website owner look like a savior to their readers who are desperate for a loan.
Of course, the consumer never winds up getting the loan they need, no matter how many different lenders they apply to. But these dishonest lenders also profit in a more sinister way.
You see, once you apply for a loan through these bogus ads, and you hand over your personal information to one of these lenders, some of them will sell your info to other financial service companies such as phony credit repair firms.
Now you have a whole new set of problems on your hands. You never got the loan you wanted, but they got your personal data. And you don’t know what they are doing with it.
It’s like a hacker broke into your computer and stole your information. Except that in this case, you willingly handed it over to them.
It’s sneaky on the part of lenders. It’s also dishonest and wrong.
And it’s enough to make you want to scream in frustration and anger, especially when you start receiving calls from deceptive credit repair companies.
Many of these lenders have no shame, no morals and they just don’t care how their deception affects you… as long as they profit in some way. But…
Don’t Let It Crush Your Hopes of Being Debt-Free
The psychological and emotional effect of getting rejected by these shady lenders can be devastating to your psyche. Because when you try to consolidate debt with bad credit and you get turned down from lender after lender for these loans, it crushes your confidence and optimism. Panic sets in and your dreams of living a debt-free life start fading.
You feel hopeless and discouraged.
Thoughts of filing for bankruptcy consume you.
You start thinking there’s no other choice… like you’re all out of options.
It’s a sinking feeling. And not knowing what these lenders are doing with your personal data just pours salt on the wound.But there’s no need for despair, because you can avoid these problems if you know what your other options are.
In fact, you don’t even need to borrow more money to reduce your debt burden.
See for yourself…
How Other People Reduce Debt without Borrowing
When a large firm goes into debt and no bank will lend them any more money, what do they do? They don’t immediately file for bankruptcy.
They try to make a deal with their creditors. They try to get some of their debt reduced and discharged completely. It’s the logical next step for anyone in debt.
But most times, they don’t negotiate with creditors themselves. They hire professionals to do this for them.
They hire an expert that has experience dealing with this type of negotiation…someone who knows what to say and what to look out for.
These experts know which approach works best. And you can use the same strategy.
Here’s how Joe did it…
Joe Reynolds had over $22,000 of debt with USAA Federal Savings Bank. Instead of getting a debt consolidation loan with bad credit, he hired a debt expert to consult with his creditors and win him more favorable terms.
And it worked.
Joe’s bank agreed to settle for just $7,280.00 of the $22,000 that he owed.
So he only had to pay the bank $7,280.00 of his original debt. He also had to pay the debt expert 20% of the debt he enrolled with them. Even with that factored in, he still saved some serious money. Of course, there is no guarantee that your results will be the same as Joe.
No company can or should promise that you can achieve the same results.
But settling your debts for less is possible. Joe and many others like him are proof of it. This method of reducing debt can be used by anyone, regardless of whether your credit is poor or top notch. The only conditions are that you must have more than $10,000 in debt and that your debt was accumulated no more than seven years ago.
That’s all you need to be eligible.
So Which Company Helped Joe?
When Joe was desperate for a solution and really needed a company to pull through for him, he found National Debt Relief.
They are the ones that consulted with his bank and got them to drastically reduce his total amount of debt.
That’s what good debt reduction experts do. They haggle with your bank or credit card company and try to get them to lower the amount you have to pay back. It’s like hiring a salesperson to sell on your behalf. They do all of the work and selling for you.
They call your creditors and sell them on the idea of permanently eliminating a portion of your debt. They make your creditors see that reducing the amount you must repay will benefit them as well as you. And they convince your creditors it’s the only way they are going to get some of their money back.
When your creditors agree to this, you’ll instantly have a lower total debt. But finding the right firm is vital to making this strategy work. If you find the right one, you’ll be well on your way to reducing debt and living life on your own terms again, even if you have sub par credit.
Here’s another big benefit to going with a service like this…
You Don’t Pay Anything Upfront
You only pay the debt expert on a commission bases. In other words, you don’t pay them any money until after they get your creditors to agree to a reduction in your debt.
What’s more, it’s against the law for a company to charge upfront fees for this service.
If a firm does try to make you pay before any work is done, that’s a sure sign you’re not dealing with a reputable firm.
Done right, this debt program produces a win-win situation for everybody involved. You get a lower debt amount, your creditors get some of their money back, and the debt negotiator gets another satisfied customer.
Important Note: This solution isn’t a “magic bullet”. You still need to do all the other things that make up a good debt reduction plan. For example, you still need to continue budgeting and being smart with your money. You still need to cut back on unnecessary spending. And you still need to eliminate impulse buying.
If you do all those things, and combine them with the negotiation strategy listed above, then you’ll be well on your way to living a life that’s a little more enjoyable, a little less stressful, and free from debt.
Now, you might be thinking…
Why Don’t More People Use This Strategy?
The answer is simple… because most people just don’t know about it. This lack of knowledge is evident in how many times people search for this type of program online compared to how many times they search for a loan.
Here’s a look at the total monthly searches done on Google for each of the two options…
- 864 monthly searches done for the phrase “debt negotiation”
- 32,520 monthly searches done for the phrase “debt consolidation loans”
This data is taken directly from Google’s own keyword research tool, which lets you view how many times people searched for certain words online.
As you can see, a lot more people know about consolidation loans than the negotiation strategy. But many that do know about negotiation have taken full advantage of it and put themselves back on solid financial ground.
There’s no reason why you or anyone else in debt can’t do the same. Again, it all comes down to using the right company for this strategy to pay off. If you use the company mentioned on this page, or any other reputable firm, you shouldn’t have any problems.
Still Want to Apply for a Consolidation Loan?
If you still think you can qualify for a personal loan, here’s a list of your options. Just make sure you are dealing with a reputable company that won’t sell your personal data to other fraudulent companies.
Here’s the list…
- Your existing bank or credit union is the first place you can start. If you feel like you have a good relationship with them, and you think they might be willing to overlook your recent credit history, give it a shot.
- Next, you have the companies that claim to specialize in bad credit debt consolidation. These are companies like Avant Loans and PersonalLoans.com. A whole host of online lenders claim to offer these types of loans.
- Peer lending networks are yet another option at your disposal. This is where you attempt to get a loan from your fellow Americans. You sign up for the service and post what your loan needs are. Everyday Americans will decide if they want to risk their money by lending it to you. But keep in mind that they will also have access to your credit score.
- Equity Loans are a solution you can look at if you currently own a home and have enough equity in it to ask for this loan type. Keep in mind that this is the riskiest option available to you because you can lose your home if you’re unable to pay the loan back.
- Get a loan from someone you know through a peer-to-peer lending site. If you know of a family member or friend who might be willing to lend you all or some of the money you need, then this might be a good option.
The person giving you the money will want some type of contract, so if you both sign up with a peer lending network, all of the legal stuff is mostly taken care of for you. The peer lending network’s site serves as a legally binding agreement.
Lastly, you can try calling all of the companies you owe money to and negotiate with them yourself. However, this can be difficult to do if you’re not comfortable as a negotiator.
Put the Car In Drive and Get Going…
Only you have the power to put the wheels of change in motion.
Whether you decide to use the solution listed on this page, or some other strategy, taking action is usually the most difficult part. The longer you put it off, and the longer you procrastinate, the more debt you are going to accumulate. It only gets worse.
Six months from now you could still be struggling – and worrying – and wishing you had taken action today. Or you could be enjoying your new, happier life… a life you promised you’d give yourself and your family. A life that is more… full of life.
Defeating debt and strengthening your finances may seem hard now, but once you get serious and take steps to actually start the process, it gets easier and easier.
As you put the wheels in motion, day-by-day you start feeling more and more confident.
And when you do finally get even with your creditors, you’ll feel like a whole new person. It’s empowering. It’s a feeling you should experience again as soon as possible. But only you have the ability to put the car in drive and get rolling.
So get going and good luck in your journey back to freedom.