Mortgage Land Prosperity

In a credit crunch, debt consolidation loans, along with any other form of credit, may well be more difficult and/or more expensive to obtain – particularly for people who have a poor credit rating – as creditors are being more cautious with their money.
How could your credit rating prevent you from obtaining a debt consolidation loan?
As mentioned, a debt consolidation loan may be more difficult to obtain if you have a poor credit rating. So to give you an idea of why this may be – and what you could do – take a look at the information below:

• Look at your credit report – are there any mistakes?
o Study your credit report for mistakes, and if there are any, you are legally entitled to have them corrected.

• Try to sort out whatever problems there are on your credit report.
o Entries like CCJs (County Court Judgments) can’t be removed, and will stay on your credit report for six years. However, it may be possible – if you can settle the debt – to get them noted as ’satisfied’.

• Open a bank account.
o You could enhance your chances of obtaining a debt consolidation loan if you open a bank account.

• Register to vote.
o If you’re registered on the electoral roll, creditors can confirm your identity more easily, and your chances of obtaining a debt consolidation loan may be improved.

• Search for ‘the right lender’
o Rather than applying for every single debt consolidation loan you find, try to find a lender specialising in helping borrowers in a situation like yours. Applying for as many loans as possible can damage your credit report, because each application you make will show up, and if these applications aren’t followed by an offer of credit, it may look as though you are desperate for money, but no-one is prepared to lend to you.

To find out if a debt consolidation loan may be right for you, or if you have any questions regarding your credit report, you should seek professional debt advice.

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