Beware of Saxton Associates: Don’t Count On A Debt Consolidation Loan With Bad Credit

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Who is Saxton Partners? They send out direct mail offering you debt consolidation loans at ridiculously low rates even if you have bad credit. The name may be new, but the method is all too familiar. Saxton Associates is also called Hornet Partners, Polk Partners, Ladder Advisors, Corey Advisors, Jayhawk Advisors. They have flooded the market with debt consolidation and personal loan offers by mail. The problem is, the terms and conditions are confusing, if not suspect, to say the least. The interest rates are so low that you would need almost perfect credit to be approved for any of their offers. Best Reviews 2020, the personal finance review site, has been tracking this industry for some time now.

What is debt consolidation? It is the act of taking out a loan to repay other debts. This can be any consumer debt, which is usually unsecured. With debt consolidation, several debts are often combined into one large debt that can then be paid off. This type of debt payment has more favorable repayment terms.

This can relieve the debtor in question. However, many find it difficult to get a debt consolidation loan with bad credit. This is quite natural, as people with bad credit tend to be untrustworthy when it comes to paying off their loans. Yet it is very often people with bad credit who have to pay off the debt the most. If you are struggling with bad credit, this is one way to get debt consolidation.

Why Debt Consolidation is a Good Decision for Bad Credit Holders

If you have bad credit, start it debt consolidation process can be a good move for you. Bad credit means a FICO score of 669 or less. This is in the fair or poor credit range. Some lenders specialize in providing people with a debt consolidation loan with bad credit. They look at things other than your credit score to deem you worthy. They look at your education, work history, and current income. If these factors meet the general requirements of these companies, they will offer you loans.

These loans often have a much lower interest rate than your current debt. Therefore, even with a bad credit score like 669 or less, you can qualify to pay them off. Their low interest rates also ensure that you are freed up much more economically than before. You can afford to make better decisions with your money now that you are likely to save more.

The places you can go for a bad credit debt consolidation loan are credit unions and online lenders. Online lenders often offer better terms than banks because it is in their best interests to offer better terms. This is how they differentiate themselves from brick and mortar and traditional businesses. Credit unions are often created to help middle class workers and blue collar workers escape the spiral of debt. As a result, their loan repayment programs have lower interest rates than the banks they claim to hate.

How To Get A Debt Consolidation Loan With Bad Credit?

There are several factors that go into your application for a debt consolidation loan. Some have already been covered in this article, such as your education, income, and work experience. However, there are other things that can help you qualify, including certain purchases you’ve made that demonstrate forward thinking and financial strength. Alternatively, you can search for the best deal out there.

Monitor your credit score

The first thing to do is watch for fluctuations in your credit score. Your financial decisions are reflected in your credit scores. Every deferred payment, every overdue loan is a mark that stays on your credit report for a long time. The lower the credit score, the higher the interest rates offered on any loan, secured or unsecured, are.

Your credit score doesn’t have to be the best in the world. Just make sure that it meets the minimum requirements for a bad credit debt consolidation loan. This can, of course, vary from one lender to another. So shop around and find the one that’s right for you.

Buy the best deal

Don’t go there for the first deal you see. Be sure to compare and contrast all of the options for a bad credit debt consolidation loan. With online lenders, this can be very easy as the flexible credit checks allow comparisons quite quickly. It doesn’t even hurt your credit score.

You can also view the fee structure and repayment terms specified by credit unions and lenders online. Find out which ones offer the best terms and which ones don’t affect the cost of the loan. It may take a while, but it’s worth it when you have the best deal on hand. It can save you hundreds of dollars or even thousands.

Get a secured loan

As you can probably guess, a bad credit debt consolidation loan is often insecure. Unsecured loans do not require collateral that can partially repay a loan if you are unable to pay for any reason. However, if you cannot get approval for an affordable unsecured loan, you should consider a secured loan. It is not only much safer than an unsecured loan, but it is also a responsible investment. It will be seen as a much smarter purchase and possibly help improve your credit score. It also has a much better interest rate than an unsecured loan.

Be aware that secured loans often require collateral which can take the form of a vehicle or a house. Therefore, it involves risks. Your house or your car or a piece of jewelry can be taken back if you do not pay it back. However, the item or items considered as collateral must be of sufficient value to repay the loan.

Improve your credit

Once you’ve tried these options for getting a bad credit debt consolidation loan and nothing worked, improve your credit. This is the only way to hope to get a loan that will pay off all the existing debts. This will be a laborious process as it will require financial planning and a reduction in some expenses. However, you will need to do this if you want greater financial freedom and better prospects for the future. Otherwise, you could be doomed to the debt cycle forever.

Some things you can do to make sure your credit improves include paying your monthly debts on time. You can also pay your utilities on time and work tirelessly to improve your payment schedules. You can also check your credit reports and check for errors. If you find even one, you can have the report revised. This is linked to improving your credit score. Even if you improve slightly, it will help you get a debt consolidation loan with bad credit.

If you follow these steps, you can still get a debt consolidation loan even if you have bad credit.

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