If I Have No Assets How Can I Get a Debt Consolidation Loan?

You can get a debt consolidation loan without offering assets for collateral. Unsecured debt consolidation loans do not require collateral and are available from banks, credit unions and other lending institutions. Unsecured loans are guaranteed only by your signature and promise to pay. Examples include unsecured signature loans and unsecured personal lines of credit. The website Bankrate reports that people with good credit scores and a record of on-time payments on their current debts are the most likely to be approved for unsecured loans. Others may still qualify but could be forced to accept a high interest rate.

Instructions

1

Get a copy of your credit report from Annual Credit Report (see Resources). The Federal Trade Commission reports that Annual Credit Report is the only website authorized by the government to offer completely free reports under the terms of the Fair Credit Reporting Act. You're entitled to one free credit report every 12 months from major credit bureaus TransUnion, Equifax and Experian. After receiving your report, order your credit score separately, for a fee, by following instructions on the report.

2

Review your credit report for past-due or delinquent items that may be affecting your score. Privacy Rights Clearinghouse, a nonprofit consumer information company, reports that credit scores range from 300 to 850, with 620 considered the cutoff for "good" credit. A credit score of 720 or higher is considered excellent, according to the agency.

3

Make payments to bring all your open accounts current, if necessary. Also contact creditors or bill collectors to resolve old debts, such as credit card accounts that were closed for nonpayment. Find the contact information listed on the credit report with the accounts. Wait about 60 days for the updates to be reflected on your credit report and in your credit score.

4

Gather billing statements for the accounts you wish to consolidate. Total the amount needed and apply for a loan at a bank or credit union. Apply in person, online or by telephone. Supply all requested information, including the balances and account numbers of the bills you wish to consolidate. Also offer other information, if asked, such as pay stubs and tax statements. Try another lender if you are turned down.