FAQs about consolidation loans
Can I pay off a debt consolidation loan early?
As with most loans, it is sometimes possible to repay the amount in full ahead of time. It’s important to remember, however, that doing so may incur an Early Repayment Fee. This amount usually varies from lender to lender. Always check the terms of your loan before you apply.
Can I take a break from paying back my debt consolidation loan?
If you think you might need a break from repayments at any point, you should check the terms before applying. While some lenders do offer ‘payment holidays’ on consolidation loans, these can show up as a negative on your credit report, so it’s important to get advice before you ask.
Do debt consolidation loans hurt your credit score?
Consolidating your loans into one monthly payment might initially negatively affect your credit score, but over time it could help boost your credit score if you try not to miss repayments and keep on top of making payments regularly. If you're concerned about any negative implications, however, it's important to first seek advice from one of our experts.
Can I get a debt consolidation loan with bad credit?
Some lenders offer debt consolidation loans for poor credit, where customers who may have been rejected elsewhere can still work to take control of their situation. In some instances, you might not be able to borrow as much, and you may be offered higher interest rates than those without bad credit, but we will always try to find a loan that meets your needs and circumstances.