Can you get a debt consolidation loan with bad credit?

Although it is possible to get a loan if you have bad credit, it is unlikely that you will be accepted for a loan with Shawbrook Bank.

We take our responsibilities seriously. When you apply for a loan with us, we’ll look at your personal circumstances and will only lend to you if we are comfortable that you can afford the loan. When considering your suitability for a loan, we’ll use your credit history along with other information you provide to decide if we can lend to you. If you have a history of missing payments or a poor credit history, you’re unlikely to be offered a loan by Shawbrook Bank.

There are also other reasons why you may not be offered a loan, even if you have a good credit history. More information can be found in our guide about being turned down for a loan despite having good credit.

However, there are lenders who may still offer loans to those with bad credit. Beware of high fees and read your terms and conditions carefully. If you are offered a loan despite bad credit, make sure you’re able to comfortably afford the monthly repayments and check whether your new loan cost (the amount borrowed and the total interest you will repay) is not greater than your existing debt.

A debt consolidation loan can help you to merge some or all of your existing debts into one which can make managing your payments easier. If your credit score is worse than it was when you took out your previous credit, it may not be a suitable option for you. If you want to understand more about your credit score and why you might be classed as having ‘bad credit’, visit our guide on 7 reasons your credit score goes down.

If you are struggling with debt and would like support, we recommend speaking to StepChange. The debt charity helps over 650,000 people a year with debt-related problems and offers free, confidential, and expert advice and money guidance online or over the phone.

If you’re a Shawbrook customer and are having financial difficulties, visit our help page.