Debt consolidation loans with bad credit are almost always secured loans, meaning that you've got collateral (such as a car or real estate) on the line to ensure that you repay what you've borrowed. Debt consolidation services can help an individual avoid filing for bankruptcy and help them to keep a good credit score: it takes years to build a good credit score and only moments to destroy it.  If you have no money to put down on a property you should consider back to back financing so it offers an opportunity to re finance without a deposit.

Consumer generated inquiries within the past 365 days from mortgage loan or auto finance related industries are ignored for credit scoring purposes for the 1st 30 calendar days. After that multiple inquiries within the next 2 weeks are only counted as one. Consumers are encouraged to shop around, but every time they seek credit, it’s another hit! That’s not necessarily the case these days. Consumer credit reporting agencies sell the information in your credit report to creditors, insurers, employers, and other businesses with a legitimate need for it. They use the information to evaluate applications for loans, credit cards, insurance, employment, and real estate.

Consumers can apply for a loan to satisfy their specific needs. Consumers with less-than-perfect credit ratings may be tempted to enlist the assistance of a company promising to "clean up" or "erase" bad credit. Credit repair companies can do nothing for you that you cannot do for yourself for free, and they may charge you hundreds of dollars to do it.