follow these 5 steps in using a personal loan

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So you’ve decided that consolidation is your best bet for getting your debt under control. Consolidating through a personal loan could allow you to pay off high interest debt, simplify your payments, and reduce your debt faster.

Here are five steps to getting a personal debt consolidation loan, from checking your credit to closing the loan.

1. Check your credit

A bad credit score (300 to 629 on the FICO scale) may not disqualify you for all loans, but consumers with a good to excellent credit score (690 to 850 FICO) are more likely to get the loan. approval and get a low interest rate.

Ideally, the new consolidation loan would have a lower rate than the combined interest rate on your current debts. A lower rate reduces the overall cost of your debt and shortens the repayment period.

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