Debt Consolidation Loans Eligibility

If you have found it difficult to juggle multiple debt repayments or keep up with various repayment dates, you may have considered a debt consolidation loan.

While you might already be making loan repayments each month, a consolidation loan is designed to help manage them more easily. They combine your debts in a single sum, so you can easily repay, then owe the money back to one lender, which can provide you with peace of mind. However, knowing where to start may be daunting, but we are here to help.

On this page, we will be discussing debt consolidation loans eligibility criteria to help you find out whether you are eligible for a debt consolidation loan.

A happy young couple learn that they are eligible for a debt consolidation loan and shake the provider's hand in agreement

How DCL Can Help

Debt Consolidation Loans are a consolidation broker service who use a panel of lenders to find a loan that suits you. We personally check each application for eligibility and affordability, rather than relying on automation, then choose one of our trusted lenders based on the best solution for you. This means that we are able to find and compare deals as quickly as we can, taking out all of the hard work for you. Once we have found the best option to suit your requirements, the chosen lender will contact you to finalise your application and help you consolidate your debts.

  • Years of experience in the finance industry
  • Large panel of consolidation loans lenders
  • Personal approach to application reviews
  • Bad credit applications considered
  • Easy online application process
  • FCA authorised, responsible broker service

Read on to see if you are eligible for a debt consolidation loan. Once you are ready to start your application, simply apply online and our team will begin reviewing your affordability to reach a lending decision.

Why debt consolidation?

  • Improve your monthly budget
    A debt consolidation loan will enable you to group all your existing borrowing and the monthly repayments are easier to manage.
  • Reduced overall repayments
    A debt consolidation loan could even save you money each month if the interest rate is less than the combined total interest of the previous loans.
  • Improved credit rating
    The simplicity of repaying a debt consolidation loan means that you are more likely to repay the debt on time every month. This will prove you to be a responsible borrower, which will have a positive effect on your credit score.

 

What Is Debt Consolidation Eligibility?

This term simply refers to whether or not you meet the requirements for a loan. Each lender or broker will set out criteria that you need to meet to apply for their services, and ensuring that you meet these terms is imperative to maintain your credit score. It can be tempting to apply for a loan straight away, but by checking you are eligible for a debt consolidation loan first, you can prevent being turned away. Take the time to browse lenders to find those that offer the best services for you, and check their requirements to make sure your application will be considered.

What Are Your Debt Consolidation Loans Eligibility Requirements?

Before you apply for any form of credit, whether it be a debt consolidation loans for bad credit or a secured consolidation loan, you should check to make sure you meet the debt consolidation eligibility criteria. This will usually vary across lenders, but we ask that you:

  • Have been a UK resident for at least 3 years
  • Have a regular income above £12,000 a year
  • Are over 21 and no older than 70 when the loan term ends
  • Have a good credit rating without a history of County Court Judgment or bankruptcy
  • Have a UK-based bank or building society account that can pay direct debits
  • Can meet the repayments as missed payments incur a charge and could have severe consequences on your ability to obtain future credit
  • Don’t know of, or anticipate, any changes to your income during the life of the loan which could materially affect your ability to afford the repayments

These are the base debt consolidation eligibility requirements that we need you to meet before we can accept an application from you, however, some of our lenders may require more specific criteria. For example, if you need a debt consolidation mortgage, you will need equity in your home or other property.

If you meet the requirements as listed above, you can confidently apply with us and we will put you in touch with a lender that fits your needs. We will ensure that they will work for you, and keep any further requirements in mind in order to choose a solution that fits.

Why debt consolidation?

  • Improve your monthly budget
    A debt consolidation loan will enable you to group all your existing borrowing and the monthly repayments are easier to manage.
  • Reduced overall repayments
    A debt consolidation loan could even save you money each month if the interest rate is less than the combined total interest of the previous loans.
  • Improved credit rating
    The simplicity of repaying a debt consolidation loan means that you are more likely to repay the debt on time every month. This will prove you to be a responsible borrower, which will have a positive effect on your credit score.

 

What Can I Do If I Don’t Meet The Criteria?

If you have checked your debt consolidation loans eligibility and are worried that you don’t meet the criteria for any lender or broker, there are several alternatives that you could consider.

Balance Transfer Credit Card

If you need to consolidate credit card debt, your outstanding balance could be moved to a balance transfer card for easy management. If you choose a 0% balance transfer credit card, you may not have to pay interest on your debt for a few months, which can save you money and help to clear your debt quickly. Make sure you check the fine print to ensure there is no fee for the amount you transfer.

Release Equity From Your Home

If you are a homeowner, another option is a to release equity from your property. It is usually better to do this if your existing mortgage deal is coming to an end, otherwise you may have to pay an early repayment fee. If your property has seen an increase in value, you could choose to take out a new, larger mortgage and use some of the equity to pay off other debts. However, it is important to remember that the size of your mortgage loan will increase, so your monthly payments might also go up, even if you secure a mortgage with low interest rates.

Secured Loan

A secured loan usually allows you to repay over a longer time frame and borrow a larger amount than a personal loan. However, a secured loan will need to be secured against a high value asset, such as your home or car, which could be repossessed if you cannot keep up with repayments. You should only consider this option if you are confident about making repayments. As there is less of a risk for the lender, you may find that the interest rates offered on secured loans are reasonable.

If you need any more help with finding a suitable alternative to debt consolidation loans, or need further advice on debt consolidation eligibility, please seek impartial support from the Money Advice Service.

Choose DCL For Your Loans

If you have read through our debt consolidation eligibility criteria and feel that you fit the requirements, you can apply with us in confidence. At Debt Consolidation Loans, we constantly strive to keep our customers’ best interests at heart to make sure that everyone is treated fairly. We personally review all applications and take the time to understand our customers’ needs, which means we can cater to people in a range of financial positions, such as those with poor credit. We will do everything we can to ensure you can make repayments, even if you have been turned away by other lenders or brokers. However, if we felt that you would struggle to comfortably make repayments on your loan, we would need to decline your application to protect your wellbeing.

We offer flexibility in all of our repayment plans, so we can work together to pre-agree a repayment date each month that suits you and your budget. This can give you the chance to organise your finances effectively and provide peace of mind around budgeting. We also pride ourselves on our transparency, so we can guarantee that our soft search will not damage your credit rating and there are no fees for using our service.

If you would like any more information about what DCL can offer you, check our FAQs or feel free to contact us. If you are ready to start searching for consolidation loans, please apply now.