subject: How do I know if I qualify for a debt consolidation? [print this page] A debt consolidation loan is a good way to consolidate debts into one monthly payment usually at a reduced rate. However, if you apply for a loan is rejected, the rejection may lower the credit score, which is even more difficult in future benefit from a consolidation loan a. This makes sense because if you repeatedly refused a loan, why are other lenders do not want to give you a debt> Consolidation Loan.
What should I do? If your opportunities and apply for the loan, knowing that if he refused to be even more difficult to qualify next time?
The answer is that the probability of obtaining the loan according to initial estimates, and then apply for a loan only if it is likely that qualify. Most of the banks to determine their ability to pay taxes based on gross return, before the percentage of gross income ()needed to cover monthly payments of debt (like mortgages, car loan payments and payments for other liabilities). If your gross ratio is above 35%, is less likely that the bank offers a debt consolidation loan.
This calculation is relatively simple: Take your monthly gross income and multiply by 30% (which is below the maximum allowed by the bank). If income is $ 2,000 a month, your maximum borrowing capacity was set at $ 600. If you have already paid $ 400 a month toward your debts, you may only grant a loan that has monthly payments of $ 200. If the month of loan payments require more than $ 200, you probably do not qualify, then AT is in your interest to wait your income is higher or lower are your debts before applying for debt consolidation loan.
