Frequently asked questions about consolidation loans
Can I pay off a debt consolidation loan early?
As with most loans, it’s possible to repay the amount in full at any time when you take out a loan. It’s important to remember, however, that doing so may incur an Early Repayment Fee. This amount is calculated according to how much interest won’t be paid through your early repayment. 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, it’s vital to check the terms before signing up. While some lenders do offer ‘payment holidays’ on consolidation loans, these can have a negative effect on your credit report, so make sure to assess the situation beforehand.
Do debt consolidation loans hurt your credit score?
Consolidating your loans into one monthly payment might initially affect your credit score, but this can be recovered. Ensure you never miss a repayment and keep on top of making payments regularly. If you're concerned about any negative implications, however, it's important to first seek the advice of an expert.
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.