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Getting a debt consolidation loan when you have bad credit can be tough, especially if you seek help from the wrong source. While your bank or credit union may offer various consumer loans for debt consolidation, it's possible you won't qualify if you have blemished credit.

Consumer loan can be used for just about anything. Because a consumer loan often has no collateral-it is 'unsecured'-the interest rate will probably be higher. There are also secured consumer loans if you want to lower your costs.

To get a secured loan, you'll pledge some sort of collateral, which the credit union can take if you fail to make your payments. You don't need to pledge your house, car, or jewelry cash secured loans use money in your account to help you get approved. A cosigner can also help you get approved.

If you're hopelessly drowning in debt, know that you can't negotiate any lower interest rates with your credit card companies or creditors, or if the math works out, a debt consolidation loan may be a good decision for you. If it may be a good time to strike, pay it all off, and walk away.

A consumer loan is an installment loan so debt on that loan won't hurt your credit score as much as debt on a credit card that's almost to its limit, thereby making available credit more accessible. A consumer loan can also help by creating a more varied mix of credit types.

While consumer loans from reputable online lenders can be good options for many borrowers, you first visit your local credit union when shopping for loans. Most credit unions offer flexible loan terms and lower interest rates than online lenders, especially for people with bad credit.