CreditHela App: The Single Jab you Need to Keep Your Financial Health in Check as the Pandemic Surges on?

 

In this article:

• When Debt Consolidation May Be a Good Option
• When Debt Consolidation May Not Work for You
• Where to Get a Debt Consolidation Loan
• What if Your Loan Application Is Denied?

Having several loans scattered across many lending platforms and which are about to fall due, especially during such a time when the pandemic has left many Kenyans' pockets perforated, can really be a total headache, if not an absolute nightmare.

Should that be the case for you, there is at least a way out for the time being and which any financial expert worth their title, would recommend you - Going for a debt consolidation loan.

A debt consolidation loan is a personal loan you can use to pay off high-interest loans. Consolidating debt allows you to use just one loan to pay off one or more loans which can simplify your repayment plan and save you money.

When Debt Consolidation May Be a Good Option

You can use a personal loan for just about anything you want. But if you're thinking of using it as a debt consolidation loan, here are the times when it's worth considering:

a). You already have a good credit score. 

Personal loans are available to borrowers across the credit spectrum. But if you want favourable terms and a low interest rate, you'll generally need at least a good credit score.

b). You have high interest loan

If you can qualify for a lower rate than what you're paying now, consolidating your debt could allow you to save some money on those interest charges.

c). You have a solid repayment plan

Bear in mind that personal loans, have a set repayment term, so they can be an excellent alternative if you're motivated to have a repayment plan and stick to it.

When Debt Consolidation May Not Work for You

Although there are some clear benefits to using a debt consolidation loan to pay off other loans, there are some situations where it might not be the best fit:

a). Your repayment plan is simply vague. 

While a consolidation loan may sound appealing because it gives you a sigh if relief for the time being, it is important to note that you're basically transferring or postponing your debt. This could end you up in an even worse financial situation if your repayment plan is just vague. 

b). You have fair or poor credit score 

While it's possible to get approved for a personal loan with a poor or fair credit score, the possibility is that you'll likely end up with a higher interest rate loan which could complicate your repayment later.

Where to Get a Debt Consolidation Loan

When deciding on this question, you need to consider the loan amount, repayment terms, origination fees and other features to make sure you find the right fit. The best debt consolidation loans offer low interest rates, flexible repayment terms and low or even no fees.

For instance, CreditHela loan app has the widest loan amount margin in the market which ranges between Sh1,500 and Sh80,000 with a repayment period of up to 365 days and maximum APR at 36%. 

One of the best fits, one must admit especially when you further consider the ease with which you get the applied loan. All you require is: 

• Register on CreditHela App
• Apply and fill in your information
• Wait for approval
• Confirm and get money

What if Your Loan Application Is Denied?

If your loan gets denied especially on CreditHela, it is only advisable you find out why because the app is not known to deny loans for no apparent reason. Be sure to check your credit score and credit report to get an idea of where you stand and what actions you can take.