What credit score do you need for debt consolidation?
Summary
Debt consolidation can help people manage multiple high-interest debts by combining them into one payment, often with lower interest. The chance to get a consolidation loan depends on your credit score, income, and debt levels, but different lenders and programs have different requirements.Key Facts
- Credit card interest rates average over 22%, making debts expensive to carry.
- Debt consolidation means paying one monthly bill instead of many with high rates.
- No one credit score works for all consolidation loans; lenders have different rules.
- Traditional debt consolidation loans usually require a credit score in the mid-600s or higher.
- Some lenders offer loans for scores in the 500s but with higher interest rates and fees.
- A low credit score might mean a consolidation loan isn’t cheaper than current debts.
- Debt consolidation programs often have lower credit score requirements and help those with credit problems.
- These programs connect borrowers with lenders who provide loans to pay off credit cards through the program.
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