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Once we’ve found you a loan, then you can apply with the lender directly. They may require some additional information and documentation.

This two-step process is the quickest way to find out if you are eligible and it ensures that you get the loan you want. When you first fill out that application form on our page, we ask you what kind of loan you are hoping to get.

We want to know a few specifics about the loan so that we can connect you to the best lenders for your situation. Not all of our lenders offer the same loans, so it’s important to filter through them to find the most appropriate choice.
Now, let’s answer a few quick questions you may have about the lending process and how it works here.

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Consolidation Loans

Juggling multiple debts can be very stressful. It’s hard to deal with your monthly obligations and pay off several debts at the same time. Having to split and budget your salary for your everyday living and for your credit card payments and other debts is no fun at all. If you can relate to this, one good solution for you is to get a consolidation loan. Consolidation loans make your debt repayments easier, with a lower interest rate and just have one lender to pay.

Consolidation loans in the United Kingdom are very similar with loans. These loans are a favorite alternative taken by people with multiple high interest debts. Consolidation loans are used to combine financial obligations from credit cards, personal loans, and other unsecured credit into one.

One of the advantages of consolidation loans is that they are easy to obtain even when one has a low credit score. It’s easy to apply and get consolidation loans from banks and credit unions if you have a spotless credit history. If your credit score fails you, you may have to work with nonbank financial firms, who specialises on loans for people with poor or bad credit.

You’ll also find many online lenders in the UK offering loans for debt consolidation. However, the amount you can borrow varies from lender to lender. The interest rate and the repayment period vary according to your personal circumstances, and the lender’s policies and requirements as well.

Consolidation loans will enable you to combine all your credit and debts into one single loan. In other words, you will be paying a much lower interest rate because you with only have one monthly payment. Consolidation loans are a great advantage when your existing debts have high interest rates.

why get consolidation loans

Consolidation Loan Options

Combining all your credit card balances and loans will lower your monthly expenses and makes it easier for you to manage your monthly obligations. You have several options to do this, as there are a number of different types of loans you can use to consolidate debt.

One way to consolidate debts is through a home equity loan, which is a secured loan that uses the equity in your home as collateral of the loan. You must have a fair amount of equity in your home as well as good credit history for you to be eligible for this consolidation option. The interest rates of home equity loans are often lower than other types of loans. However, the catch is you are risking your home for your debt. Remember that if you fail to repayment the loan, you could lose your home.

Another option for you is to do credit card balance transfers to consolidate your debts. This enables you to transfer your credit card balances to one single credit card. If you choose this option, go for the credit card with a zero or low interest rate. Low balance or zero transfer interest rates are promotional rates, which usually expire after six months.

Make sure you know the expiration of the low or zero rate. Beware when the regular interest rate will take into effect for the remaining balance because you might have trouble paying them off. Choose a credit card with a credit limit that is large enough to hold all your credit card debt if you want to use a credit card balance transfer as a consolidation loan.

However, putting too much debt on one credit card can have a negative impact on your credit rating because your credit utilization will go up. On the bright side, your credit score will bounce back up as you pay down the balance.

You can also use a personal loan to help you consolidation debts. If you have a good credit score and can borrow a loan large enough to cover all your credit card balances and other loans, it is a viable solution. Personal loans are unsecured type of borrowing, which means the decision for approval depends on your creditworthiness. The higher your credit score, the better chance you have to be approved. These consolidation loans usually have fixed payments over a fixed period.

You can also work with your bank or credit union. You’ll find consolidation loans offered by banks and credit unions for the sole purpose of combining credit card balances and other loans. It is crucial that you choose the option that works best for your circumstance and capacity to pay.

Taking out Consolidation Loans

The approval of any loan and its interest rate greatly depend upon your credit history. If you have a low credit score, you may still get a loan approved. However, it’ll be most likely at a higher interest. Unfortunately, others with bad credit cannot get a loan approval at all.

In general, consolidation loans have lower interest rates than the total interest you are currently paying for your existing debts. However, while taking high interest consolidation loans would let you combine your debts, it may also be risky.

Understand that with consolidation loans, you are not really getting rid of debt. Rather, you are simply gathering all your current debts into one to make it easier and cheaper for you to pay. You may think that you have only one debt, but do not be tempted to borrow more. As much as possible, avoid getting other loans and credit cards until your consolidation loan is completely settled.

Take Aways

Home equity loans can also serve as consolidation loans. But, if you are not a homeowner, you can apply for unsecured personal loans. Unsecured loans means they’re dependent to your credit score.

To find the best consolidation loans, think about how much you need to borrow and weigh all your monthly income and expenses. Sum up all the debts that you wish to consolidate and include any extra charges you have to pay. Choose your repayment period, and look for the lowest interest rate as possible.

Keep in mind that consolidation loans are designed to help you pay off your debts easily and quickly. Note that you also have other obligations to take care of each month aside from settling your debt. If consolidation loans seem to be a burden instead of making your life easier, better seek professional advice from a financial adviser.

why get consolidation loans

5 most recent personal loan reviews

Review of Oakam

There are no other companies who can finance you as easy as Oakam loans, fast, courteous, reliable, no penalties and no hidden fees - real people for working class. Be honest find a friend to back you and you're done. Over 3 months I got £10,000, thank you Oakam you were there for me when all banks said NO.

Review posted by Daniel Fisher, Grantham

  • Customer Service
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Review of Cashflex

Cashflex was very considerate and understanding in giving a loan to a person with a limited credit history in the UK. Although I am in a well paying job, the fact that I moved recently to the UK makes people like me with a limited credit history look totally untouchable for high street banks. Cashflex opened a door and some breathing space for me, whose only other option would be payday loans. Thank you very much Cashflex!

Review posted by Manu Balewa, Plymouth

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Review of Flexy Finance

After almost giving up on all my wedding plans due to the fact my grandfather had recently been diagnosed with lung cancer, taking months off work to look after him and attend his treatments, this took a massive impact and couldn't afford to pay our venue. Our wedding is in June and the pressure was getting to much! Not to mention the worry and feeling anxious that my grandad won't be here to give me away, it's basically now or never. So knowing my credit isn't the best I just hit a wall and thought this was the end! Until I came across Flexy Finance loans! After having a chat with my sister who wanted the wedding to go ahead as much as me she very kindly agreed to stand my guarantor! I only applied Saturday evening Tuesday £4000 cleared into my account! So a massive massive thank you! You've not only helped my dreams come true but given my family hope and something very good to look forward to! Would recommend to anyone.

Review posted by Anita Moir, Downham

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Representative Example:
305.9% APR. £400 borrowed for 90 days.
Total amount repayable is £561.92 in 3 monthly instalments of £187.31.
Interest charged is £161.92, interest rate 161.9% (variable)

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