How does this sound? Does it seem true that banks view debt consolidation as a bankruptcy? Will you be able to
Feb 14, 2009 in
Credit
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get a loan after a debt consolidation? Does it depend on the amount of debt or ?
get a loan after a debt consolidation? Does it depend on the amount of debt or ?
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2 comments
pinkpigs_flying on February 15, 2009 at 8:50 pm
dont understand realy depends on the bank
ActressStar on February 17, 2009 at 12:13 pm
banks do not look at a debt consolidation as bankrupcy. in fact a consolidation is what can help someone who is on the brink of filing bankrupcy get back on track and improve their credit. Just make sure that when you consolidate everything that u check ur credit report about 3-6 months later to make sure that the bills that got paid in the consolidation are reporting as being closed and with a 0 balance. As long as you can make your monthly payments on time each month for about a year u should have no problems getting approved for another loan in the future.
The amount of the consolidation and how that can affect ur credit is dependent upon a number of factors- how much debt you have out there already, how many inquiries are on your credit report, any public records, if you were ever late… etc…. basically if you have other bad marks on ur credit and then u add a big loan onto ur report it can have a negative affect at first but then as u pay that balance down it should help u out.
the only way it may hurt you is if u enroll with CCCS (consumer consolidated credit) or a debt management company because often times it will show on ur credit bureau report that u are enrolled with that agency and therefore no additional credit can be given to u while u are on that program.
If ur a homeowner i suggest that you use some equity in ur home to consolidate- that way u can at least get a tax deduction at the end of the year for the interest that ur paying each month.
good luck and i hope that helped