What credit score do I need for a debt consolidation loan?
David Mack 
Often you’ll need a credit score of around 650, although bad-credit debt consolidation lenders exist; these lenders may accept credit scores of 600 or even less. Just remember that the lower your credit score, the higher your interest rate.
How can I turn all my debt into one payment?
Consolidating credit card debt could help simplify and lower your monthly payments as you work to become debt-free.
- Work with a nonprofit credit counseling organization.
- Apply for a personal loan.
- Use a balance transfer credit card.
- Ask a friend or family member for help.
- Cash-out auto refinance.
- Home equity loan.
What do you need to know about debt consolidation?
Key Takeaways 1 Debt consolidation is the act of taking out a single loan to pay off multiple debts. 2 There are two different kinds of debt consolidation loans: secured and unsecured. 3 Consumers can apply for debt consolidation loans, lower-interest credit cards, HELOCs, and special programs for student loans.
Where can I get a secured debt consolidation loan?
Secured debt consolidation loans. Secured debt consolidation loans are typically available at brick-and-mortar financial institutions, including banks and credit unions. They use collateral, such as home equity used to secure a home equity loan, and generally have better interest rates than unsecured ones.
Can a debt consolidation loan be tax deductible?
Debt consolidation loan interest payments are often tax-deductible when home equity is involved. Although the interest rate and monthly payment may be lower on a debt consolidation loan, it’s important to pay attention to the payment schedule. Longer payment schedules mean paying more in the long run.
How long does it take to pay off debt consolidation loan?
The repayment period is normally 3-5 years, but how much you interest you are charged is the key element. Lenders look closely at your credit score when determining the interest rate they charge for a debt consolidation loan. If you are falling behind paying off your credit card debt, it’s very likely your credit score is tumbling, too.
