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Debt consolidation loans for bad credit

Compare consolidation loans for poor credit

  • Find deals from a wide range of providers
  • See whether you’re pre-approved
  • Searching won’t harm your credit score

Compare loans from over 40 lenders, right across the market

We do the heavy lifting, so you don't have to. We work with leading providers to help you borrow the money you need.

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Can I get a debt consolidation loan with bad credit?

debt consolidation loan is a way of combining your existing debts to make them easier to manage and potentially you could make big savings on the cost of your monthly repayments. 

It is possible to get a debt consolidation loan if you have bad credit, but your choice of deals may be limited and you might not be offered the best interest rates and terms. That’s why it’s important to compare deals from across the market – and that’s where we can help.

MoneySuperMarket searches across a broad range of lenders to find the best loans to suit your needs. We can also show you your chances of being accepted so you’ll know where you stand before you apply – and searching won’t harm your credit score.

Representative 29.9% APR




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What types of loan could I be offered?

There are different types of loan you can use to consolidate other debts. They include:

  • Personal loan

    It may be possible to get an unsecured personal loan from a provider who specialises in loans for those with bad credit. But you’ll probably only be able to borrow a small amount and you could face paying a higher interest rate


  • Secured loan

    If you own part or all of a home or a car, you could use it to secure a better deal for a consolidation loan even if you have bad credit. The danger with secured loans is you risk losing your home if you cannot keep up with repayments

  • Guarantor loan

    Designed for borrowers with bad credit, guarantor loans must be assured by a family member or close friend, who will be liable for the debt if you default. Like unsecured personal loans, they often have high rates of interest

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What should I use a bad credit debt consolidation loan for?


A consolidation loan for bad credit could be a good step towards clearing what you owe and getting your finances back on track.


For example, if you have £2,000 outstanding on a credit card, 1,000 on a store card and £2,000 on a loan, then a debt consolidation loan for £5,000 can clear this and leave you with one monthly debt repayment. You’ll be able to see exactly what you owe and there is less risk of missing a repayment. You might also be able to find a lower interest rate on your consolidation loan – so this could lower your monthly debt repayments.

Bear in mind though that you could end up paying more in interest in the long run – and it could take longer to clear your debt, depending on the length of the loan term on your consolidation loan. 

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    Could a consolidation loan help you better manage your money? Taking out one new loan to consolidate other debts may be able to help you keep your finances under control as you’ll just have one fixed monthly repayment.

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    Will it save me money?

    It may not always be possible to find a lower interest rate – compared to your existing debts – but if you can find a better deal and a lower APR you should be able to cut the total amount you repay each month.

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    Fees and charges

    Will there be any additional costs to switch your debts to a consolidation loan? Check with existing lenders to see if there are any early repayment charges as you’ll need to factor in these costs when working out if a new loan will save you money.

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    Loan approval

    If you’ve got bad credit you may be worried about whether you’ll be accepted for a new loan? When you compare deals with MoneySuperMarket, we’ll show you your chance of approval. That means you’ll know where you stand and can apply in confidence.

What will my loan cost?

It’s important for you to work out what your loan will cost you in terms of monthly repayments over the term. Whether you’re looking to take a £5,000 loan or even £15,000, our loans calculator can help you work out how much you can afford to borrow by entering how much you can afford to pay back each month and the length of time you can afford to pay that amount (and at what interest rate).


It’s worth noting that smaller loans tend to have higher interest rates, which can affect the affordability of your loan - so if you take out a loan over a longer term you should be able to bring the repayments down.



Loan amount Loan term Monthly repayment* Total interest cost
£3,000 3 years £124.48 32.2%


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Alternative to loans when you have bad credit

If you have bad credit it can make it difficult to get the best loan deals to clear your existing debts. 

While not always possible, you may be able to take out a 0% balance transfer credit card to help with more modest debts. These allow you to shift what you owe onto the balance transfer card for an interest-free grace period - sometimes for more than two years - while you pay it off.



How to compare debt consolidation loans with MoneySuperMarket

Compare debt consolidation loans for bad credit

  • Results

    Calculate what you owe

    Do the sums and find out exactly what your debts are worth in total, with outstanding interest

  • Savings icon

    Check your eligibility

    Enter a few details about you and your finances into MoneySuperMarket’s eligibility checker 

  • We do the rest

    We do the rest

    We’ll come back with a range of loan options – and your credit score won’t be affected

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Is a consolidation loan a good idea when you have bad credit?


If you’ve struggled with bad credit in the past, you may need to weigh up the reasons why you want to take out a consolidation loan. 

Taking out a debt consolidation loan would mean taking on more debt – be sure to check if that’s an affordable option for you and won’t make your financial situation more difficult. While a debt consolidation loan is designed to have all your debt as one payment, it may end up costing you more in the long run once you factor in the interest rate and any extra fees. 

Looking for an alternative to help manage your debt? A balance transfer card may suit you. A balance transfer card can help you pay off your debts by consolidating your credit card balance onto one card with no interest for up to two years, or even longer in some cases. 

MoneySuperMarket is a credit broker not a lender. You must be over 18 and a UK resident.

Any application for credit will show up on your credit score and lenders take it into consideration when deciding whether to accept your application to borrow. However, when you compare deals through MoneySuperMarket we’ll conduct a soft search that shows you how likely you are to be approved without harming your credit score. 

 It depends if the debt consolidation loan you get improves your financial situation. If you end up paying more in debt repayments because you are only able to get a deal with a high interest rate, it is a bad idea. However, if you can reduce the amount of interest you pay on your existing debt through debt consolidation then it could be a prudent move – and save you money overall.

If you have bad credit it can make it difficult to get the best loan deals to clear your existing debts. 

While not always possible, you may be able to take out a 0% balance transfer credit card to help with more modest debts. These allow you to shift what you owe onto the balance transfer card for an interest-free grace period - sometimes for more than two years - while you pay it off.


You work hard to earn your money, and we don’t think you should waste a penny of it paying over the odds on your household bills. That’s why at MoneySuperMarket, we’re on a mission to save Britain money.

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You might be wondering if we work with all the companies in the market, or if our commercial relationships with our partners might make us feature one company above another. We’ve got nothing to hide, and we want to give you clear answers when it comes to questions like these, so we’ve pulled together everything you need to know on this page.