What is a Debt Consolidation Loan?

A debt consolidation loan integrates multiple small debts into one loan under a fixed interest rate and one installment. People with scattered financial obligations exploit debt consolidation loans to prevent many installments on different interest rates, increasing the size of the debt, and disturbing the budgetary balance. The loan helps attain stability in finances and qualify for new financial products. Nowadays, debt consolidation loans are available online with multiple choices of deals. FastenLoans, the online broker, can bring you the most lucrative deal in terms of interest rates, repayment schedule, and tenure through fee-free broking services.

unsecured debt consolidation loans

Can I get unsecured debt consolidation loans

Yes, you can get unsecured debt consolidation loans, but that puts attention on your financial conditions that should be in harmony with the lender's lending requirements. An unsecured consolidation loan is available if you want to consolidate short-term debts such as credit card debts, personal loans, medical bills, etc.

Your eligibility for an unsecured debt consolidation depends on the following factors –

  • The current income status should be sufficiently strong to manage the repayments after consolidation. It helps us find cheaper deals for you with flexible repayment plans. The income status also includes the concern on income-outgoing ratio.
  • Employment stability is required. The appointment letter of the current company can help. However, we also serve to jobless applicants through debt consolidation loans for unemployed if the offer letter by the new employer is there.
  • The credit score should be good

The above three factors should be there before you apply for a debt consolidation loan. After this starts the application process where FastenLoans takes care of every formality and your work is to wait and watch. We might call you only once or twice (we may not even call you) to confirm a few things overcall.

How much can I borrow?

The amount that you can borrow depends on how much space you can make in your affordability bucket. Larger is space, and bigger is the loan amount. However, there is a generalized minimum and maximum limit in the lending market.

The least limit is $1000, and the last limit is $25000

Now you have the minimum and maximum loan amount. You can borrow any amount between this limit, and qualifying for it demands hard-work on the financial factors. The most important is the stability in personal finances to convince the lender that you can pay the monthly installments.

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How can i get a Debt Consolidation Loan for Bad Credit

Bad credit situation is a particular case and needs to be backed-up with special conditions to ensure hassle-free attainment of funds. For debt consolidation loans with low credit rating, you need the following financial circumstances.

  • Keep the current payment behavior flawless because past issues can be neglected if you are currently making the payments at the right time
  • Income status should be stable with more share of income and less share of expenses
  • An additional source of earning can be a significant factor and it is advisable too
  • If there is any passive income such as rental earning, it can remove the approval hurdles, as passive income is considered a strong backing

Your chances of debt consolidation loan for bad credit situation depend totally on how you manage finances in the present. The lender should see improved financial behavior.

More information on debt consolidation loans

Accumulation of information on financial products is always beneficial for safe and smart decisions. Here are some essential facts that should remain in your knowledge.

You should take a loan to consolidate debts only

Taking a debt consolidation loan does not make sense if –

You should look for the following things when you choose a debt consolidation loan deal –

Keep exploring the information world and gather as much as you can. A confident person is always financially literate.

There may be some time in life when debts surround you. There may be credit card debt along with a personal loan. You may want to get debt free as soon as possible. In such situations, you can apply for a debt consolidation loan.

A debt consolidation loan helps you move your existing debts in one place and make them manageable. You can consolidate any kind of debt too online with this, such as emergency payday loans or installment loans.

Borrowing a debt consolidation loan ideally helps you bring them all in one place. Further, this focuses on saving your money and making single monthly payments instead of multiple payments.

This further helps in reducing your bad credit. If you think you may need cash now, just apply.

At Fastenloans, we focus on consolidating your debt irrespective of the number and the amount. We offer you a fixed monthly repayment plan and interest rate from the beginning.

Hence, there will be no surprises when you apply for a debt consolidation loan with us. We offer you both unsecured and secured debt consolidation loans. The choice remains yours according to your current financial condition.

You do not need to secure any personal assets for an unsecured loan, such as a home or car. Hence, these loans offer you more security on your borrowing. Also, these loans solve the purpose of cash loans for people being unemployed.

While applying for a debt consolidation loan, along with monthly repayments and interest rates, it is essential to consider the term of the new loan. You can make a comparison of the new terms with your existing loans or debts.

If you spread out the payments over the longer term, there are chances of higher payments from your side. In the long term, if you are unable to make payments or miss a payment, it can dip your credit score and overall rating.

But over time, debt consolidation loans are a good way to improve the credit score as they pay off all the current debts, and you have to make just one monthly payment.


What is the difference between secured and unsecured debt consolidation loans?

The difference is apparent and understandable because both have precise and separate features.

Secured debt consolidation loans Unsecured debt consolidation loans
Secured against your asset, whether it is a big one such as your home or maybe a car. There is no need to provide any collateral or security. The funds are approved on your earning and repaying capacity.
The loan amount limit is significant because the lender has collateral as the backing of the repayments The maximum limit is small which may vary from one lender to the other
The tenure is long The tenure is small
The interest rates are low The interest rates are comparatively higher

How does a debt consolidation loan work?

A debt consolidation loan works on the method of integration. It merges multiple debts with varied rates and repayments into one debt on a fixed rate and installment to help the borrower control the scattered obligations.

Which is best for consolidation loans - Broker or Lender?

You can always have your own choice, but having a choice of deals is always the best way to get the best loan offer. A broker brings you the sundry options, and you can choose and understand which one is the most lucrative option.