Large Debt Consolidation Loans

Many people in the United States have large debts they are trying to pay off. Starting from credit cards with high interest rates to small loans with high monthly repayments, borrowers are typically having to choose between continuing their monthly payment plan or using a different solution to achieve more financial freedom.

Securing a large Debt consolidation loan is one way to accomplish the task of improving bad credit over time and making life less complicated from a money management angle.

So How and Where do I Find Large Debt Consolidation Loans?

We gather a list of loans for bad credit behind the button below, active companies that approves many applications. One recommendation we always give when someone is trying to secure amounts over $30,000, is that you might have to split the sum over 2-3 lenders. First try to secure the full amount, but if that fails continue your search for the rest of the amount. Over time with better credit score you might be able to only have one large loan. Going from bad credit to good credit is possible, but it just takes some time.

Read more recommendations below.

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Important Things to Keep in Mind, Before Applying

  • The ideal repayment period would be somewhere in the middle between the short term and the long term. A longer pay-off term means you pay more. Whereas, a shorter pay-off term means that the monthly payments would be more expensive and burdensome. So, it is important to figure out which one works best with your financial situation.
  • If you need a loan larger than $30,000 or more, it is advisable for you to split the sum into two and try to apply for two separate loans instead. Naturally, it is relatively easier to secure a couple of loans with less amount of money compared to securing a single loan for the exact same amount combined.
  • Apply to at least two money lender companies so you would be able to compare the interest levels, the additional terms and the conditions. Almost all money lenders will perform a soft credit check that doesn’t have a negative effect on your credit score.

Details to Keep an Eye Out for When Considering Large Debt Consolidation Loans

When you are deciding whether a combined (debt consolidation) loan is a wise move for you or not, there are certain details you need to be aware of. For a start, quite a few loan providers charge additional fees for large debt consolidation loans.

The list of possible charges includes:

  • Prepayment fees – which is incurred when a loan balance is paid off before its final repayment date
  • Late payment fees – which is imposed when a monthly repayment is paid later than its due date
  • Funding fees – which is charged when a loan is funded or approved
  • Origination fees – which is incurred when a loan is approved
  • Application fees – which is charged when the application is submitted

These charges are in addition to the interest rates provided by the loan providers on any new large debt consolidation loan. It is essential to know exactly which premiums will be charged on the loan you are going to apply to, so that you would find a manageable solution for your debt repayment in the long run.

Charge like the prepayment fee which is imposed when the borrower repays the loan balance before the repayment term ends is often disregarded. Bear in mind that, if your goal is to pay off your loan before its repayment term ends, it might not be a good idea to use a debt consolidation loan to repay an existing debt that has a prepayment charge or to use one that includes a prepayment premium.

Denied a Large Debt Consolidation Loan – What Should I Do?

Truth be told, not everyone that apply for a debt consolidation loan will be approved.

However, there are a few strategies you can try for your next debt consolidation loan application to be approved. Here are what you can do.

1. Find Out Why You Were Denied
The loan provider companies are obligated to send you information pertaining to your loan application. The information usually includes a reason why your application is denied. The reason could be because of there are adverse entries in your credit report, low credit rating or too many monthly debt obligations.

2. Double Check You Credit History and Fix any Errors
You can access your credit history without cost once every twelve months by using Annual Credit Report or alternatively by writing to them.

If you find any error in your credit report, go through the dispute procedure to amend them. The process could take a long time, but it is worth the wait.

3. Raise Your Credit Score
All loan providers like to see that you have a good history of making your payments on time , that you don’t max out your credit cards or obtain lots of loans. Additionally, they also need to see that you have several different credit accounts that you are managing and repaying. The ideal mix would be three cards, two of them are empty and another one with as minimal balance as possible.

Taking these abovementioned measures will surely help boosting your credit score. However, the result won’t be instantaneous, so be patient and take it one day at a time.

4. Try Another Money Lender
If your application for a debt consolidation has been denied but you reckon that you do have a credit rating that’s enough to qualify for one, you can always try to apply to other loan providers. Each of the loan provider has its own unique set of criteria that they look at to establish if a borrower is or isn’t a good candidate. So, your application might be accepted by other loan providers if you meet their criteria.

5. Wait It Out
Your last resort after being refused a debt consolidation loan is to just wait. If you are carrying out the strategies stated earlier, and other enquiries about your credit standing for new accounts disappear from your credit report. Also, you make sure to pay all your bills on time. Gradually, your credit standing will eventually get better. By that time, your next application for a loan has a higher chance to be successful.

Guaranteed Debt Consolidation Loans

If you have previously been denied a personal loan, opting for guaranteed debt consolidation loans may sound tempting. However, there is no money lender company that can guarantee anybody a loan, there is always some type of credit check will be performed. The difference between some money lender companies can sometimes be huge. For example, some lenders only consent to above 700 credit scores while others might agree to 500-550 credit score loans, and sometimes there are companies that except even lower.

A High-Interest Loan Isn’t Always That Bad

You as a borrower should put into consideration that there is a possibility the debt consolidation loan offered to you includes a higher rate of interest than you anticipated. The money lenders will look at your credit history, your income, and even your other assets such as your savings accounts, to determine whether you are eligible for a new loan. If these qualifications are not fulfilled, a higher rate of interest may be offered.

If that is the case, you have the choice either to wait until your credit rating improves, and then reapply when you’re a better prospect for a loan or just go ahead with the debt consolidation loan with higher interest rate especially if you think that your current debts are difficult to cope with each month or you prefer to pay a single monthly payment instead of several separate payments.

The Conclusion

Having to consolidate your debt is never easy. It is important to take your time to figure out which debt consolidation option works best for you, how well your credit score is to enable you to get a large debt consolidation loan or alternative assistance by means of a debt settlement service, and what costs are associated with either option. It is also very crucial for you to consider your capability to commit to your monthly installments as time goes and to the duration of the repayment term for the combined loan.

Give some thought and put focus on your ability to qualify for a consolidation loan, your need for debt consolidation, and your desire to minimize your other debts before signing a new debt consolidation loan.

Go Directly To Large Debt Consolidation Loans

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