Compare Bad Credit Debt Consolidation Loans

A bad credit loan can be used to consolidate debts into one monthly repayment and potentially lower the interest you’re paying. Compare our range of personal loans from UK lenders, check your eligibility* and get instant personalised quotes without impacting your credit score

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8 products found
    • KOYO Personal Loan logo

      KOYO Personal Loan

      • Loan Type
      • Representative APR
        24.9% APR
      • Available Amounts
        £1,500 - £12,000
      • Min / Max Terms
        1 to 5 years
    • Freedom Finance Personal Loan logo

      Freedom Finance Personal Loan

      • Loan Type
      • Representative APR
        27.5% APR
      • Available Amounts
        £500 to £25,000
      • Min / Max Terms
        1 to 7 years
    • Oplo Personal Loan logo

      Oplo Personal Loan

      • Only available to homeowners
      • Loan Type
      • Representative APR
        27.8% APR
      • Available Amounts
        £2,000 to £15,000
      • Min / Max Terms
        2 to 6 years
    • Guarantor My Loan logo

      Guarantor My Loan

      • Guarantor
      • Loan Type
      • Representative APR
        48.9% APR
      • Available Amounts
        £1,000 to £10,000
      • Min / Max Terms
        1 to 5 years
    • 118 118 Personal Loan logo

      118 118 Personal Loan

      • Loan Type
      • Representative APR
        49.9% APR
      • Available Amounts
        £1,000 to £5,000
      • Min / Max Terms
        1 to 3 years
    • Bamboo Personal Loan logo

      Bamboo Personal Loan

      • Loan Type
      • Representative APR
        59.7% APR
      • Available Amounts
        £1,000 to £8,000
      • Min / Max Terms
        1 to 5 years
    • Likely Loans Personal Loan logo

      Likely Loans Personal Loan

      • Loan Type
      • Representative APR
        59.9% APR
      • Available Amounts
        £500 - £5,000
      • Min / Max Terms
        1 to 3 years
    • Everyday Loans Personal Loan logo

      Everyday Loans Personal Loan

      • Loan Type
      • Representative APR
        99.9% APR
      • Available Amounts
        £1,000 - £15,000
      • Min / Max Terms
        18 months - 5 years

Also for Bad Credit Loans

If you are thinking of consolidating existing borrowing you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.

Our service is free of charge but we receive commissions from the providers we refer you to. This table is initially ordered by representative APR. You can use the options above the table to order it according to various criteria. You may be offered different rates depending on your personal credit rating.

Our comparison service features a selection of providers from whom we receive commission.

*Eligibility Service:

The loans eligibility service is provided by Freedom Finance. The data you supply and submit is used to retrieve loan quotes from Freedom's panel of lenders. By using their loans eligibility service you are agreeing to Freedom's terms and conditions and privacy policy which can be found at

Freedom Finance is a trading style of Freedom Finance Limited who are authorised and regulated by the Financial Conduct Authority. Freedom Finance Limited. Registered Office. Atlantic House, Atlas Business Park, Simonsway, Manchester, M22 5PR. Registered in England & Wales 06297533. FCA No. 662079. VAT Registration Number 257 0001 44.

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Information written by Hannah Harper Last updated on 16 September 2021.

How bad credit debt consolidation works

If you find yourself with a lot of debts to repay, and a bad credit score as a result of this, then a debt consolidation loan for bad credit might help you out of a tight spot.

You’d borrow enough money to cover all the debts you want to pay off, and then you’d only have one monthly repayment to make to one lender, and one interest rate to keep an eye on. If you compare your options and get the right loan, interest rate and term for your particular financial situation, you could simplify your debt, and even go some way to repairing your credit score.

» MORE: How to get a bad credit debt consolidation loan

How to decide if consolidating debt is a good idea for you

As you might expect, borrowing a large amount of money to pay off smaller loan amounts is a big decision. Make sure you answer the following questions to determine whether it makes sense for you:

  • Can you afford the monthly repayment amount?
  • Is the interest rate reasonable?
  • How long do you have to pay back the loan?

Does my bad credit affect my eligibility for a consolidation loan?

Lenders do vary in their criteria for who they’ll lend to. If you have bad credit, you may find better terms, such as a lower interest rate, on secured bad credit loans. Secured loans require an asset as collateral. With unsecured loans, lenders assume more risk and often charge more interest to offset the risk.

» MORE: Secured vs. unsecured debt consolidation

Can a bad credit debt consolidation loan save money?

This question is hard to answer definitively – it really depends on what your debts are, and what loan deal you can get to cover them. You might find you pay more in interest overall if your monthly repayments are spread over a longer duration.

How do I find the best bad credit debt consolidation loans?

The best bad credit debt consolidation loan for you will be one that allows you to clear your existing debt with monthly repayments you can comfortably afford, for the shortest term you can get that suits you and your circumstances.

Add up how much you owe to all your debtors, get up to date settlement figures, including any potential early loan repayment fees. Once you’ve arrived at a total, you know how much your debt consolidation loan needs to be. Then work out what you can afford to repay every month.

Armed with this knowledge, you’re now ready to compare loans. Use our comparison table to get familiar with all the different lenders and what they can offer you. Keep in mind three main things: how much your monthly repayments will cost, what rate of interest is charged, and how long you have to pay the loan back.

Are there alternatives to a bad credit debt consolidation loan?

If you need a way to consolidate your debt, but bad credit means you’re having trouble getting an application accepted, a bad credit secured loan may also be an option if you own your home – although you’d run the risk of losing your property if you aren’t able to meet your repayment obligations.

How to find debt support

If you’re worried about your debts, debt charities, like StepChange, are available to offer advice and support.

If it’s your repayments on your bad credit consolidation loan that are troubling you, speak to your lenders as soon as you can. They might be open to lowering your payments over a longer repayment term.

» MORE: How to find debt help


What is a bad credit debt consolidation loan?

By merging different loans into a single one, you can simplify your repayments with a bad credit debt consolidation loan. This is because you will only face a single level of interest from one lender, as opposed to having to contend with multiple rates from multiple lenders on different debts. Consolidation loans can include secured and unsecured ones.

» MORE: Understanding debt consolidation

What do I need to get a bad credit debt consolidation loan?

As long as you are over the age of 18 and have a steady source of income, you could be eligible for a bad credit debt consolidation loan.

Loan applications will require a credit check, as lenders will want to determine your creditworthiness. Your existing bad credit rating will affect how much you can borrow, if anything at all – so prior to making your loan application, it’s a good idea to find out what your credit rating is.

Once you have this knowledge, limit how many loan applications you subsequently make, as more than one can lower your credit rating even further. To avoid this, research any providers thoroughly, and only apply to the one who seems most likely to accept you in your current circumstances. You can use our comparison table to help you with this, and always take advantage of eligibility services rather than make full applications.

Where can I get a bad credit debt consolidation loan?

As a borrower with bad credit, you’ll unfortunately have fewer options with your lenders, as you’ll be perceived as a riskier proposition to lend to. But don’t be too discouraged – lenders are out there, and if you use our comparison table, as well as carry out your own research, you can find a variety of lenders who can provide various options for bad credit debt consolidation loans.

Is a bad credit debt consolidation loan right for me?

A bad credit debt consolidation loan could be a good option for you if you have a bad credit history and mounting debt from a number of different loans. As a result of combining all your debts into one single consolidated loan, you may find the single loan interest rate works out to be more favourable than the previous multiple interest rates you were being charged. Interest rates will have an impact on your ability to pay back the consolidated loan. Bad credit debt consolidation loans may not be suitable if you find that they make repayments difficult to afford, due to higher costs or an extension of the loan term to a length that has a negative impact on your finances.

What are secured bad credit debt consolidation loans?

Secured debt consolidation loans for bad credit are ‘secured’ against a high-value asset, such as your house. They give greater reassurance to the lender, because if you can’t meet the repayments on your loan, they can repossess your property and recoup their money that way. As such, they’re a bigger risk for you, although you may get a better interest rate on your loan to reflect this.

What are unsecured bad credit debt consolidation loans?

With an unsecured loan, you won’t need to ‘secure’ your loan against a big-ticket item like your home or car, as you would with a secured loan. But your interest rate on an unsecured loan may be higher than it would be for a secured one. And if for some reason you can’t repay the unsecured loan, your lender will still be legally entitled to recoup any money they have lent to you.

How many debts can I consolidate into one loan?

There is no limit on the number of debts you can put into one bad credit debt consolidation loan. You can consolidate a wide range of debts, regardless of the urgency attached to them. For example, credit card debt can be included, alongside debts attached to a payday loan. Limits on these loans are unique to each borrower. The amount you can borrow to consolidate your debt will depend on a number of factors, including what repayment amount you can afford.

What risks come with bad credit debt consolidation loans?

If you decide to repeatedly request a number of consolidated loans over a short period of time, this could have a negative impact on your credit score, as lenders may consider this to demonstrate an excessive reliance on credit, increasing the risk to lenders. Consolidated loans are designed to streamline the payment of existing debt, as opposed to financing new debts.

Do I have to pay off all my debts with a bad credit debt consolidation loan?

No, you don’t have to include and pay off all your debts with a bad credit debt consolidation loan, although you can if you want to. But it’s up to you how you choose to handle your various debts and repayments. If you do decide to leave some unpaid, be prepared to show how you will cover their repayments alongside your debt consolidation loan.

Will the money from the loan be paid directly to my other lenders?

Usually what happens is you’ll be paid the loan amount directly, and it will then be up to you to clear your individual debts. This may vary by lender.

What happens if I cannot make my repayments?

If you can’t afford your repayments on your bad credit consolidation loan, you risk being charged a fee on top of your interest, and it may also have a negative effect on your credit score. This is why it’s very important to choose the right loan in the first place, and to be certain you can make repayments for the length of your term before you commit to borrowing.

Does a bad credit debt consolidation loan affect my credit score?

Taking out a bad credit debt consolidation loan could have either a positive or a negative effect on your credit score, depending on your financial behaviour as soon as the loan hits your bank account.

Clearly, if you’re late with, or miss, any monthly repayments, this will negatively affect your score. But if you make your repayment on time every month, this could actually help to repair your score, as it will show lenders you’re responsible and reliable, with the ability to pay back what you borrow.

About the author:

Hannah has been writing about money since 2013. Formerly a copywriter for Virgin Money, covering credit cards, mortgages, pensions, and more, she now writes on personal finance for NerdWallet UK. Read more