Frequently Asked Questions(FAQ)

What credit score is needed for a debt consolidation loan?

Most lenders require a minimum credit score of 670 to approve a debt consolidation loan. However, certain alternative lenders have much more lenient requirements.

Do debt consolidation loans hurt your credit?

Debt consolidation does hurt your credit, since applying for a debt consolidation loan results in a hard credit inquiry. However, hard inquiries only affect credit scores for one year.

Should I get a debt consolidation loan?

Whether getting a debt consolidation loan is a good idea will depend on your specific financial situation. If you have too many loans and other debts to stay on top of, a debt consolidation loan may be beneficial.

Why can’t I get a debt consolidation loan?

You may not be able to qualify for a debt consolidation loan if your credit score is too low, if you don’t have sufficient income, or if you already have too much debt.

About the Authors

Tetiana Sitiugina-Babiuk

Written by: Tetiana Sitiugina-Babiuk

Financial Sector Specialist and Content Strategist

Independent writer, content strategist, and financial sector specialist. Tatiana has an extensive experience in working with financial institutions such as Bank of Canada and Risk Management unit at FinDev Canada. She holds an MA in Financial Risk Management from the University of Toronto.

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