Yes, you may still be able to get a debt consolidation loan if you have bad credit. A debt consolidation loan lets you pay off existing debt by transferring it to a single loan, with one monthly repayment.

Most lenders check your credit record when you apply for a loan, but some are still willing to consider your application even if you have had problems managing your finances in the past.

However, if the lender thinks you are a riskier borrower because you have poor credit, you may find that:

  • You have to pay higher interest rates

  • You have to borrow less

Get the right loan

The best debt consolidation loan is one that allows you to pay off your existing borrowing for the cheapest cost while offering affordable monthly payments. To start you should:

  • Work out how much you owe: Check if there are any fees to pay back what you owe early and total up the debts you want to consolidate. You can pay off most types of borrowing including loans, overdrafts and credit card debt.

  • Work out what you can afford to pay each month: Draw up a budget to check how much you can repay every month, this is even more important if you have bad credit as you need to avoid further damage to your credit record.

  • Compare rates for loans that fit your criteria: Look for the lowest rate possible and try to borrow over the shortest time that keeps your new loan payments affordable.

You can use this comparison to search for loans that can be used for debt consolidation from regulated lenders. If you are looking at credit card consolidation, then a balance transfer could be another option worth considering.

Should you pick a secured or unsecured loan?

If two identical loans meet your needs but one is secured and the other is unsecured you should pick the unsecured loan.

While you may be able to borrow more using a secured loan they also put something you own at risk, for example your property.

Is consolidating always a good idea?

Not always, you should only consolidate your borrowing if:

  • The payments will still be affordable

  • Your new loan is at a lower interest rate

  • It will not take you much longer to pay off your debts

Debt consolidation loans for bad credit FAQs


Do I have to pay off all my debts with the loan?


No, you can choose which debts to pay off. However, if you keep any open you have to show you can afford to pay them back alongside any new loan.


Will the money be paid straight to my other lenders?


No, it is usually paid to you and then you need to pay off each of your debts separately.


How much can I borrow with a bad credit loan?


It depends on the type of loan you choose and the lender, for example you could borrow more than 100,000 with a secured loan.


What happens if I cannot make my repayments?


You may be charged a fee and your credit record could be damaged. Here is what to do if you cannot pay back your loan .

About our loans comparison


Who do we include in this comparison?


We include loans you can get in the UK from our panel. They are all from lenders regulated by the Financial Conduct Authority. Here is more information about how our website works.


How do we make money from our comparison?


We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.
You do not pay any extra and the deal you get is not affected.