Strategies for Securing Debt Consolidation Loans with Bad Credit
Navigating the financial landscape with bad credit can be daunting, especially when high-interest debt threatens stability. Debt consolidation offers a pathway to potential interest savings and simplified repayment, even for those with low FICO scores. While challenging, securing a favorable loan is not impossible—success hinges on strategically mitigating perceived lender risk.
Key strategies include leveraging a co-signer with excellent credit to gain instant credibility and access lower rates. Pledging collateral, such as savings or a vehicle, can also reduce lender risk and secure better terms. Targeting fintechs and credit unions, which evaluate criteria beyond FICO scores, may improve approval odds.