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Bad Credit History Debt Consolidation Loans

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  • Borrow £1,000 to £8,000
  • Repay over 12 to 60 months
  • Check eligibility with no impact on your credit score
Check my eligibility now This won't affect your credit score

Representative example: Amount of credit £2,000 for 24 months. Interest rate: 41.2% pa (fixed). 24 scheduled monthly payments of £123.64. Total amount payable: £2,967.43. Representative 49.9% APR.

Can you consolidate debt with a bad credit history?

Yes, it can be possible. If you have a bad credit history, a debt consolidation loan could help you bring existing borrowing into one monthly repayment that is easier to manage. 118 118 Money is a direct lender and looks beyond a single score, carrying out credit and affordability checks to understand whether the repayments are right for you.

If accepted, you could borrow from £1,000 to £8,000 and repay over 12 to 60 months. You can also check your eligibility before applying, so you can see whether you are likely to be accepted without affecting your credit score.

Check whether a debt consolidation loan could be right for you
Use the eligibility checker to see whether you are likely to be accepted before you apply.
Check my eligibility This won't affect your credit score
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Why people look for debt consolidation loans with bad credit

If your credit file is less than perfect, the goal is usually simple: make repayments easier to manage without adding confusion or unnecessary stress.

One repayment to track. Bringing several debts together can make your monthly budget easier to follow and reduce the chance of juggling multiple payment dates.

A clearer plan. A fixed repayment schedule can help you see what you owe each month and how long it may take to clear the borrowing.

Check first. Use the eligibility checker before applying to see whether you are likely to be accepted without affecting your credit score.

Built for less-than-perfect credit. 118 118 Money is designed for people whose credit history may not fit the criteria used by mainstream lenders.

Know the trade-offs. Consolidating debt can simplify payments, but a longer term or a higher rate than your current borrowing could mean paying more overall.

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3 simple steps to check for a debt consolidation loan

  • Check your eligibility with no impact to your credit score
  • Review your offer, set up your Direct Debit and sign
  • Receive funds in 15 minutes*
Check my eligibility This won't affect your credit score. *This can vary from 15 minutes to 2 hours depending on your bank.
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What to consider before applying

A debt consolidation loan is designed to replace several existing debts with one new loan. That can make monthly budgeting feel simpler, especially if you currently have balances spread across loans, credit cards, store cards or overdrafts.

Before applying, add up the balances you want to clear and compare the total cost of your current borrowing with the cost of the new loan. If your new loan runs for longer than your current debts, or if the rate is higher than what you are paying now, you could end up paying more overall even if the monthly payment is lower.

Once you receive the funds, it is important to use them to repay the debts you planned to consolidate. Keeping old balances open and borrowing again on top can make your situation harder to manage. If you are struggling with debt, free and impartial guidance is also available from MoneyHelper.

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Debt Consolidation Loan FAQs

It can be possible. 118 118 Money looks at more than a single score and carries out credit and affordability checks. If the repayments are affordable, you may be eligible.

No. Our eligibility check lets you see whether you are likely to be accepted before you apply and it will not affect your credit score.

If accepted, you could borrow from £1,000 to £8,000 and repay over 12 to 60 months, depending on your circumstances.

A debt consolidation loan can combine existing borrowing into one loan. The loan is usually paid to you and you then repay the debts you want to clear, leaving one monthly repayment to manage.

Yes. If you spread borrowing over a longer period or move debt from a lower rate to a higher rate, the total amount you repay could be higher overall.

See whether you are likely to be accepted before you apply

Use the eligibility checker to look for a debt consolidation loan that fits your circumstances. It will not affect your credit score.

Check my eligibility
118 118 money helpers illustration
118 118 money helpers illustration

Credit is subject to status, affordability and credit checks. Credit is only available to UK residents aged 18 and over. Terms and conditions apply.