Payday Loans Debt Consolidation

How To Obtain A Low-Rate Unsecured Loan For Payday Debt Consolidation?

There are several things that you need to take into your careful consideration when it comes to obtaining a low-rate unsecured loan for payday debt consolidation. Lenders that offer conventional unsecured loans, such as personal loans, often determine the rate of interest on the basis of your credit history. Therefore, one way to qualify for an attractive deal in these types of loans is to have a good credit score. But, even if you have bad credit, you still have a few options that keep the rate low. Following is a brief rundown on it.

Is It Possible To Have A Good Credit Score Even If You Are Defaulting On Various Payday Loan Accounts?

You will be glad to know that most payday loan companies do not report payments or non-payments by their borrowers to the three major credit reporting bureaus (TransUnion, Equifax and Experian). They only report to less popular credit reporting agencies. But, it is important for you to keep in mind that your FICO score is mainly determined on the basis of the reports maintained by TransUnion, Equifax and Experian. Therefore, even if you are defaulting on various payday loan accounts, it is very much possible to have a good credit score provided you are paying back your other bills and debts (such as mortgage and car loans) in a timely manner. Therefore, if you are looking out for a low-rate unsecured loan payday for debt consolidation, you should not just assume that you must be having a low credit score because you are not paying back your payday debts in a time. It is time you must request a free report from the three credit bureaus and study it thoroughly to get the correct picture about your ‘official’ credit situation. If your report says you have a good credit history, you can easily qualify for a low-rate personal loan.

Have A Co-Signer

If your credit score is not good enough to seize a low-rate personal loan, you can still qualify for it provided you have someone who is ready to co-sign the loan contract. It can be your friend, a family member or anyone who has confidence in your financial ability that you can practically afford to repay the unsecured loan you are borrowing as per the scheduled repayment plan. Though it is not very easy to find a co-signer for an unsecured loan for payday debt consolidation, you may still give it a try.

Discuss Your Situation With Your Lenders

If none of the above two options work for you, you must go ahead and talk to your lenders. Discuss your situation honestly with them. Provide them proof of the financial hardship you are going through and tell them that you are looking out for a way to consolidate all your payday debts into a single personal loan account, where you should be allowed to pay back in easy monthly installments, as this way, you can regain control of your debts and finances. Since many lenders are in professional relationships with other conventional lenders as well, they may help you to qualify for a low-rate unsecured loan for payday debt consolidation.

Borrow From A Debt Consolidation Company

Even debt consolidation companies these days are offering easy loans to those who are badly trapped in payday loan debts. When you contact a consolidation company, they will first hire a credit counselor to study your specific debt and financial situation. The counselor will be able to suggest you a plan on the basis of their study. They will also educate you on how to save more and manage your finances more efficiently. The consolidation company will then determine the rates of the unsecured loan for payday debt consolidation on the basis of the reports submitted by the credit counselor about your financial capabilities to make the repayment.

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