Loan Consolidation

Loan Consolidation questions and answers

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Q: Loan Consolidation?
Hello, I am seriously considering applying for a bill consolidation. I have a credit card with an extremely high interest rate 31% and need to shift the balance to an account with a lower interest rate. My credit rating is so-so...and I have only been approved for other accounts with half (if that) of what I owe. I don't want to hurt my credit score any further by applying for more and more accounts. I would like to know if you may have any idea about what type of collateral a bank would accept on a loan totaling $4,000. I am leasing my car & have no property in my name.

A: Try this first: The first thing you will need to do is call the three major credit reporting agencies and request a free copy of your credit report. www.equifax.com www.experian.com www.transunion.com Then once you get those in the mail (7-10 days) there will be a dispute form attached to the reports. Fill those out for every negative account on your report regardless. Fax, mail go online whatever it takes to get those submitted as quickly as possible. Then those companies must answer your dispute within 30 days or it is removed from your credit report completely. So that will eliminate some things, hopefully. Then make sure you pay all your revolving accounts to below 50% of your credit limits. Make sure that you make all your payments no more than 20 days from the date it is due. Good Luck!

Q: what is the catch with loan consolidation?
Why would a student loan company advertise loan consolidation? Is there a cost to consolidting student loans, or any other loans? What is the lowest rate you can expect if you consolidate now? When is a good time to consolidate?

A: The best time to consolidate is when interests are starting to get charged to you. (different according to the type of loan you get). There's no catch, but you need to understand that you'll pay 2 times the loan if you consolidate over a long-time.

Q: Are there any banks or agencies still doing student loan consolidation?
I'm a recent college graduate, and it seems that all of the banks which used to offer consolidation services are no longer. Do you know of any banks or loan agencies that are still consolidating?

A: All of the banks should be doing that because student loans are protected from bankruptcy. You just need to find a bank with the capital to purchase your loans. Look at midwestern founded banks and some that really specialize in student loans like western union.

Q: Does anyone know of any good Loan Consolidation companies?
I previously posted a question re: my husband being a co-signer on his father house. He is in a bind where he has two delinquent accounts that he was trying to get one loan and pay for. Being that this house is on his credit he can not get approved for a loan. I do not know what else to do but debt consolidation. The two bills are of high interest and I am running out of ideas. Please someone help

A: Yes! I consolidated my debt using a company called Auriton- they have a wonderful customer service team and it was easier than you'd believe. Less than three years later and I am 100% debt free!

Q: Is there are good consolidation loan for people with bad credit?
I have several small laons, and I would like a debt consolidation loan, but I have bad credit and no collateral. Can anyone recommend a service or program?

A: Generally, these loans require collateral that can be either your home or some costly property. But sometimes, you can get these loans as an unsecured personal loan. But they charge high interest rates. When going for a debt consolidation loan, you should consider some important factors. They are: cost of taking the loan, the annual percentage rate (APR), period of the loan, and the total amount borrowed. Ensure that the debt consolidation loan charges a lower interest rate than the rate for your current loans. Interest rates are usually decided by factors like loan amount, loan terms, and personal details. If the repayment period of debt consolidation loan is longer, you can end up paying a lot more in interest. This makes it vital to compare the interest rates and repayment periods of various lenders. Debt consolidation calculators offered by various financial organizations can be used to achieve the same.

Q: If I get a consolidation loan will it help or hinder me getting a home loan for a first time buyer?
We have poor credit and trying to repair it; however we want to purchase a home by the end of the year. Will it adversely affect my chances of getting a home loan if we take out a consolidation loan to kick start the credit pay offs? So if I can not get a loan, how do I pay off $7000 of dept in less than one year?

A: You probably will not qualify at the end of the year unless you pay off all your debts in full. Can you even qualify for a consolidation loan? Doubtful and PLEASE do not respond to these idiot SPAMMERS who come here just to sucker people in trouble, such as yourself, into givinging money up front for anything!

Q: Can I get a debt consolidation loan with bad credit?
I would like to get a debt consolidation loan for my outstanding debt from closed credit cards, old utility bills, etc I have student loans, but I would like to consolidate them separatley and not through another loan. Also, I have an auto loan, would the loan be able to cover that as well? Please, real answers, and no opinions/judgements. Thank You.

A: You probably could however the interest rate may be high. I would start with your own bank as they know you the best. I work as a customer service agent with GMAC where I deal with people asking about refinancing all the time and I refer them to their own bank or credit union. They might be able to work out a deal because you have a "professional/personal" relationship with them.

Q: When getting a consolidation loan, what happens to your credit cards they are consolidating from?
Do they stpo the accounts? Put a halt on them, or do they keep them open? I dont mind putting a halt, but to close the accounts after all is paid on the consolidation loan, i would like to know i have an open line of credit with my card company. Any input will be gladly appreciated! Thanks!

A: They will close all your credit account which you list for consolidate.I did it few year ago,the one you did not list,it remain open.

Q: Where can I find a personal debt consolidation loan for people with bad credit?
I am in dire need of a debt consolidation loan and I have bad credit. I can make things work with $5000, but I do not know where to start. I have seen people with yahoo addresses claiming they can loan money but they sound fishy as it is not a company email, their emails always seem to be yahoo. Any info will help. I fell on hard times and am now able to pay my monthly bills but I cant seem to catch up what I fell behind on. PLEASE help asap. I have a 5yr old and I do not want him to suffer us loosing our home or car.

A: Debt consolidation is an option, and you should look into it. Just be careful about WHAT you're getting into. Some plans, because of their higher APR rates get you into more trouble than you were. Also, some lenders look poorly upon it later on. Some institutions believe that it really is a black mark. It will depend upon the types of deals that your particular company or lender work out, and of course, your own individual circumstance. For some with absolutely NO way out, debt consolidation is a welcome option. Take a good hard look at all the options and plans offered, and don't let a single company pressure you into something you just can't do. Make sure that you're comfortable with the plan offered before you commit to it. In any case, it doesn't hurt to investigate debt consolidation as an option. It doesn't cost you anything to find out more information about it. If you want a place to start your investigating, there's information and listings for debt consolidation providers on the page listed below. You'll probably find something of use there: http://axalda.info/debt-consolidation.html

Q: difference between a home equity loan and a consolidation loan?
What is the difference between a home equity loan and a consolidation loan? Which one looks better on your credit report?

A: A home equity loan is secured by your property and a consolidation loan may not necessarily be a secured loan. It may be just a large personal loan with the purpose of consolidating debts into one payment. A home equity loan may be used to consolidate debts but may also be used for home improvements, college costs, or any other expenses that come about. Visit http://www.nmtw.org/99/second-mortgage.html to know more about the home equity loan. Also you will get low loan rates for NMTW membership.

Q: Is it possible to get a consolidation loan with really horrible credit?
I was in the hospital a while back and bills started piling up. I lost my job, was kicked out of school, and then my car broke down. I had no way to pay my bills and now that I have a job, I can't pay any minimum payments on anything including my student loan. I was just wondering if it was possible to get a consolidation loan to pay one low payment with my extremely horrible credit.

A: As far as your student loans go, you should be able to put them into a deferment or forbearance, so you don't have to pay right now. As long as you haven't gone into default on your student loans, you can consolidate those, and lower the payments by 50%, and still qualify for deferment and forbearance. As far as other consolidation with really bad credit, I don't know. All I can say is be careful. If you do decide that federal student loan consolidation is in your best interest, let me know.

Q: where can I get a Debt Consolidation loan for my credit cards without owning a home?
I am looking for somewhere to get a consolidation loan for my credit cards even though I dont own a home?

A: Are you a member of a credit union or do you qualify to join one in your area? If so, check with them about debt consolidation loans. If you can't join a credit union, talk to your bank or investigate banks in your area that may have loans. There are programs out there that don't require a mortgage. Typically, they allow you to borrow up to a certain percentage of your salary. Once you have shopped around for loans, you may want to use this calculator below to compare them with what you're currently paying to your creditors.

Q: How can a person get a Real Consolidation Loan?
I have a considerable amount of unsecured debt. I have several charge offs on my credit but I'm still sending those companies payment. Everything is being paid monthly though its not reported. Those companies will not report this on my credit and I understand that. Is there any REAL lenders out there that will give me a consolidation loan?

A: Any loan can be used to pay your debt. The rest is only fancy words. It all boils down to companies lending you money (yet again) for a price. There are many companies out there that will give you a consolidation loan, that's a very lucrative business. The trick (from your point of view) is to find someone that'll loan you money charging you less interests that the previous lender. So theoretically you will be able to pay off your debt quicker. In actual practice this is rocket science to your average borrower who will often borrow money at a higher interest rate. That's financial suicide so why do they do it? it must be something to do with the approval process, the thought of 'getting approved' seems appealing to many out there..

Q: What Do I need to Qualify for Debt Consolidation Loan?
Not credit counseling, but debt consolidation loan. Can't find any good info on the web, so your educated opinion would be helpful. What are credit requirements, home equity requirement, debt service ratio and other factors? If you know a good resource that would be very helpful as well!! Thanks.

A: I get this question all the time as a senior loan officer for a large mortgage brokerage firm. Credit requirements are a little tighter now, but there are still lender who will offer to consolidate your debt if you have the following: 1. Credit score of 680 or higher. 2. Debt to income ratio of 45% or lower (if CR score is higher, then ratio can be higher) 3. Home loan to value can be as high as 95% for more information go to my website: www.windsorcap.com/rlicon

Q: Anybody know where to get a consolidation loan if your credit score is low?
I have a good credit history, but my credit cards are maxed out and its effecting my score big time. I want to get a consolidation loan to combine my debt around 5000, not too much. Any info would be helpful.

A: You don't need a consolidation loan. If you get one, you will think you have this problem all fixed. You should cut up your credit cards, then take your smallest bill and pay that, pay the next one off too if you have enough money after sending the rest a minimum payment. Get a part-time job on the weekends if necessary to get this cleaned up. You are wasting so much good hard earned money on interest charges. You could be enjoying yourself on a nice vacation with what you are spending for interest every year. Start attacking those bills today. You will be so proud of yourself. List them all from smallest to largest. Get going.