Debt consolidation is popular among fund borrowers as multiple debts can be tuned into one single loan favored by a low interest rate. The creditor of loan consolidation would close the existing loans and you will pay back the amount of the new loan provided by them. It helps to manage loans with ease and high chance of increasing credit scores.
In present times, there are many lenders providing loan consolidation. To opt for the best reliable fund provider among them isn’t an easy task. Fortunately, there are online platforms to check the creditability of the finance providers. Crixeo is one such website posting Point Break Financial reviews that support many Americans to understand clearly to opt for genuine loan consolidation providers.
Sometimes unfortunately, the debt consolidation application is rejected. The applicants are frustrated as they are unable to understand the reasons for the rejection of loan applications. There are many facts considered before sanctioning the loan consolidation.
Few of the prime facts are:
- The loan amount is more. Sometimes the total of the existing multiple loans is more and the Finance firm rules aren’t liable to sanction a loan when the debt amount to be foreclosed is high.
- Your credit history isn’t up to the mark. The non-payment of monthly credit dues results in the lowering of your credit score. Hence, in such circumstances providing loan consolidation is doubtful.
- Your income is low or your job isn’t permanent. Low income and temporary jobs always play a hindrance to gain loan. If your salary slip or trading account portrays your income quite low, then they may reject the loan application. Most finance providing companies prefer their client to be having a permanent job so that there aren’t any issues regarding repayment of the loan.
You can’t provide collateral as a surety against the loan. An unsecured loan for hefty sum isn’t always favorable for the borrower as there are high chances of rejection and even the rate of interest is great.
You can use a debt ratio calculator online to check your chances of getting loan consolidation when your existing debt amount is more. If the ratio shows less than fifty percent, then there are high chances of getting the loan.
To improve your credit rating, try to have payday loan or any short term loans. You just need to payback at the right times. Then, within few months your credit score will improve and you would be able to apply for the debt consolidation to get sanctioned easily.
You can provide a guarantor, an asset documents or even turn in your credit cards to avail the consolidation loan. A co-signer enjoying a good income can help you out in gaining the consolidation debt. You can even have the loan in lesser interest and payoff easily. Always try to have the loan from genuine finance providers who don’t charge high processing fees and no hidden cost to pay while signing the loan sanctioned documents. You can apply again after few months of boosting your credit score and reducing the total loan amount.
