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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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Why compare debt consolidation loans with MoneySuperMarket?

  • It’s quick and easy

    We’ll ask you a few questions about yourself and what you need the debt consolidation loan for. Then we’ll carry out a ‘soft search’ which won’t hurt your credit score.

  • Wide range of deals

    We work with a range of leading loans providers. So, you can browse across a wide market to find your right deal. You can sort loans by likelihood of being accepted so you can apply with confidence.

  • We're highly rated

    Our loans service is highly rated. We currently have a 4.2/5 star rating on Feefo – our customers praise the ease of using our site and the super savings they’ve made.

What is a debt consolidation loan?

debt consolidation loan is a way of combining your existing debts to make them easier to manage. If you have debts in several places, you can use this type of loan to bring all your debt together and repay it off gradually with a monthly payment. If you are able to get the consolidated loan at a lower rate of interest than those on your outstanding debts,  you could make big savings on the cost of your monthly repayments.

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Can I get a debt consolidation loan with bad credit?

It is possible to get a debt consolidation loan for bad credit. However, 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. Also, bear in mind that searching won’t harm your credit score.

Representative 29.9% APR

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How do bad credit debt consolidation loans work?

A bad credit debt consolidation loan works like a standard debt consolidation loan but is easier to be accepted for. With a debt consolidation loan, you’re able to move your existing debts to one loan so you’ll only need to make monthly repayment. Here’s what to expect:

  • 1

    Figure out how much you owe

    Look at your existing credit card, loan and overdraft debts. Calculate the total value of the loan you’ll need to cover these existing debts and borrow that amount

  • 2

    Pay off the debt with the loan

    Use the loan to pay off existing borrowing. With a bad credit loan you may not be able to borrow as much as you’d like compared to a typical loan. Although, having just one loan will lower the number of repayments you need to make every month by having your debt in one place

  • 3

    Pay back the loan

    Once you’ve paid off your existing debts you’ll then pay back the consolidation loan within the set term. Having just one monthly repayment could make things easier to manage. It’s important to remember that a bad credit loan will likely have higher interest than a standard loan.

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

What are the pros and cons of a bad credit debt consolidation loan?

If you’ve struggled with bad credit in the past, you may need to weigh up the advantages and disadvantages of taking out a bad credit debt consolidation loan:

  • Tick


    • Easier to apply for than a normal debt consolidation loan as the credit score requirements is lower

    • All your debt in one place can help to simplify your finances. With a debt consolidation loan you’ll only have one monthly payment to make each month

    • You’ll have a clear repayment timeline and know when you should be free from debt

  • Cross


    • When you’re taking on a bad credit debt consolidation loan you’re likely to pay a higher interest rate because you’re seen as a riskier borrower

    • Because of your credit score, you probably won’t be able to borrow as much as someone with a better credit score

    • Taking out this type of loan means taking on more debt – so you need to make sure you can afford the payments

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 years



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, which is sometimes for more than two years, while you pay it off.

debt consolidation illustration

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Rebecca Goodman

Our expert says


If you have poor credit and debts to pay off, it can seem like an impossible situation but it’s important to remember that all debt is solvable. There are options for everyone and it’s all about finding the right one for you. A consolidation loan is one option, it means one payment each month which is set until the debt is cleared making life a little simpler. However, before you sign up, check the interest rate and any fees applied and make sure you can afford the repayments.

- Rebecca Goodman, Financial journalist

How to compare debt consolidation loans with MoneySuperMarket

Compare debt consolidation loans for bad credit:

  • Calculate what you owe

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

  • Check your eligibility

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

  • We do the rest

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

Any application for credit will show up on your credit score, which then lenders will take 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’re 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 worthwhile move. In fact, it could save you money overall.

Yes, this is indeed possible. After all, a debt consolidation loan aims to merge all existing debts into one and combine them in a single, fixed monthly repayment. 

That said, the type of fixed-term deal available to you will change based on a number of different circumstances. This could include your current credit score and the amount of money you’ve asked to borrow.

Yes, you can get a debt consolidation loan for bad credit without having a guarantor. A guarantor is a financially stable person, usually a parent, family member, or close friend, who will need to take responsibility for covering the costs of your loan repayments if you’re not able to afford them yourself.  

Although you don’t necessarily need one, there is no denying that having a guarantor could favour your application process. In fact, loan providers will see this as something that lowers their risk when lending you money.

No, you’re not required to pay off all your existing debts with this kind of loan. But it’s fair to say that the main advantage of a debt consolidation loan for bad credit is that it makes budgeting and repayments easier. Indeed, you only owe money to one lender rather than several different ones. 

However, there may be some exceptions. For instance, if you have a favourable interest rate on one of your existing loans, you may realise that it will save you money to just stick to it.

If you’re not able to afford your repayments, you could be charged extra fees and your credit score may be negatively affected. 

If you’re struggling to pay back your debt, it’s always wise to get in touch with your lender and inform them about your situation. They may be able to offer some precious financial advice and find a solution that favours you both. What’s more, you can visit the government’s Money Advice Service to receive some useful, additional tips.

Before applying for a bad credit debit consolidation loan you should think about whether it’ll help your budgeting. You should carefully consider if the loan will better your money management.  

You also should consider if it’ll save you money and 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. 

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.

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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