Have you recently been denied a loan with bad credit in Ontario?
This is a common problem for many people in the province who struggle to pay their bills on time. Getting your financial situation back to normal so you can save up and get rid of debts can be a demanding process requiring patience and restraint.
Many financial institutions in Ontario have strict rules regarding credit checks when looking for a personal loan. If you happen to have bad credit, it will be extremely difficult to obtain a loan of any kind from a bank.
One viable solution for many is debt consolidation. This simply refers to combining your debts and obtaining a lower interest rate for them.
In this article, we will explain what a debt consolidation loan is and how it may potentially be the right decision for you.
Loans with bad credit in Ontario
Before diving into what debt consolidation loans are, it’s important to get an idea of what your options are for obtaining a loan with bad credit in Ontario.
When most financial institutions are likely to refuse your loan application, where can you turn for help?
Here are some of your options:
- Apply for a home equity loan
- Borrow from friends and family
- Find a co-signer for your loan application
- Look for online loan providers such as Friendly Lender
Depending on your financial situation, some of these options will be better than others. Home equity loans, for example, risk the loss of property if you are unable to fulfill your obligations.
Debt consolidation loans
Debt consolidation has the potential to save you money by enabling you to pay back the debts you have with a single loan and a lower interest rate. This also has the advantage of making it easier to keep track of your financial planning with a simple payment to be made each month.
Debt consolidation with bad credit
If you’re one of many people with a bad credit rating in Ontario, you can still obtain a debt consolidation loan if you have enough to make the required monthly payments. This will be much easier to achieve with a private lending service because they often do not require any credit checks.
When choosing a private lender for your debt consolidation loan, there are still stipulations that must be met such as having a stable minimum income and over the age of 18 in the province of Ontario. If you meet the prerequisites, consolidating your debts can eventually help you to re-establish your credit rating.
Why consider debt consolidation?
Debt consolidation makes it easy to avoid missed payments that negatively affect your credit score. Making your payments on time will ultimately bring your score back up to a desirable level.
Managing your debts becomes much easier when they are consolidated into one simple payment. When using a private loan provider for bad credit in Ontario, you also avoid further hurting your credit score when a financial institution performs a credit check.
Consolidation of your debts can be a worthwhile solution for you if you have bad credit and are having trouble keeping up with your payments. Private lenders are able to provide quick cash advances without any negative effect on your credit rating.
Don’t hesitate to contact Friendly Lender today if you have any questions.