About our debt consolidation loans

Debt consolidation is a way to combine some or all of your debts into one single monthly payment.

It means you could make one payment per month, rather than several. This can make it easier to keep track of all your payments.

With Shawbrook, this involves you taking out an unsecured loan which you use to pay off existing debts.

However, the terms may be different, and the overall cost could increase so read the terms carefully before entering into an agreement.

Other types of debt consolidation include a second charge mortgage or a balance transfer. A balance transfer refers to moving debt from one account or credit card to another.

A range of different debts and loans can be consolidated. The use of a debt consolidation loan can differ from providers so contact your provider to understand more about their debt consolidation loans.

Debt consolidation can cause a temporary dip in your credit score but can improve your rating over time.

This is because being accepted for a loan will require what’s known as a ‘hard search’ – a type of credit check that will leave a record on your file which can lower your credit score and can be seen by other lenders.

But over time, debt consolidation loans may help to improve your credit score. That’s because having one monthly repayment can make it easier for you to pay on time, every time.

Receiving a quote for a debt consolidation loan from Shawbrook Bank won’t affect your credit score as the record, known as a ‘soft search’, isn’t visible to anybody but you. You will only impact your credit score if you apply for the loan.

Find out about the difference between a hard and soft search.