‘I just can’t keep track of everything because it is a lot of really small things’: I want to consolidate $10k in debt with a 739 credit score and no collateral. How do I make it happen?

Hi Money Minder,

I’m a 24-year-old trying to score a 10k loan. My credit is pretty good, and I’m handling my student loan and credit card payments like a boss. I’ve got some medical bills hanging around that haven’t hit my credit report, and I want to lump all my debts together for simplicity’s sake. The bank only offered 2k, but I need 10k. I don’t have a house or anything fancy to put up as collateral. What are my options? Any websites or other suggestions? I want to clean up my debt, but I’m stuck. Aren’t credit scores supposed to help in situations like this? My credit history is spotless, so why the doubt?

Best,

Debt-Dazed 24F

Response from THE MONEY MINDER:

Hello There,

I understand your frustration and the overwhelming feeling that multiple debts can bring. It’s great to hear that you have a good credit score and are managing your existing debts responsibly. While it can be challenging to secure an unsecured personal loan for a larger amount without collateral, there are still some practical steps you can take.

One possible approach could be to explore online lending platforms or credit unions that may be more flexible with their lending criteria compared to traditional banks. These institutions often consider factors beyond just credit scores, such as income and employment stability, which could work in your favor.

Another option might be to look into peer-to-peer lending platforms where individuals or investors provide loans directly to borrowers. These platforms may have different requirements and could potentially offer you the opportunity to consolidate your debts.

It’s also worth considering reaching out to lenders directly and discussing your specific financial situation with them. Sometimes, explaining your circumstances and demonstrating your good payment history can help you secure a more substantial loan amount.

Remember to review any terms and conditions carefully before committing to a loan and ensure it aligns with your financial goals. Consolidating your debts can be a helpful step towards managing your finances more efficiently. Good luck with your loan search, and remember to stay proactive in exploring different options that align with your needs.

Farewell from THE MONEY MINDER.