3 Ways To Consolidate Private Student Loans with Poor Credit

If you want to consolidate private student loans with poor credit, you need to know the process isn’t easy. It doesn’t mean it’s impossible, but you will have to do some research and be realistic. If you have less than perfect credit here are 3 ways you can still consolidate.

Consolidate Private Student Loans with Bad Credit

Use Existing Relationships

If you already have private loans, it means you already have a relationship with an existing lender. Even if your credit is lacking, if you’ve kept up with your current loan payments you may be able to consolidate private student loans by using the existing lenders. Since you have a proven track record they are more likely to work with you.

Short Term Consolidations

If you don’t have long left to pay on the loans, a short term consolidation may be the best way to consolidate private student loans. This option will allow you to pay off your existing student loans and make a single payment, but will be a shorter term loan. This is a lower risk to the lender since you will pay it off in a short period of time. Most short term consolidations are available in as little as 5 year terms, or as long as 10 years depending on the amount still owed.

Higher Interest Consolidation Loans

With less than stellar credit you should expect your consolidation loan to carry a slightly higher interest rate. However, even with that said, you can still save money. If you have multiple loans with varying interest rates, a single loan with a slightly higher rate can actually mean less money each month. You aren’t paying interest on numerous amounts, just one. And even a slightly higher than average rate may be less than what you are currently paying on the student loans.

In conclusion, it is possible to consolidate private student loans with poor credit.

, ,