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 secured 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 will not affect your credit score if you maintain the monthly repayment at the agreed time. 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?
Yes, if you have bad credit, there are debt consolidation loans available for you. In some instances, you might not be able to borrow as much and you may have higher interest rates than those without bad credit, but there are certainly loan options for your circumstances.