Credit Card Debt Consolidation Help

Are you looking for credit card debt consolidation help? You have come to the right website. This website has tons of free information pertaining to debt consolidation. If you have debt, like most people do, don’t worry there are solutions. This is the main reason this website was built to help people who need information about debt consolidation.

Were you aware that when you go to apply for a debt consolidation loan your credit will get checked from all three of the credit bureaus? This is to determine if you are eligible for a loan. The three credit bureaus are called Experian, Equifax, and Transunion. The three main credit bureaus issue historical information about your credit reports which include credit scores, current debts, paid debts, and any foreclosures and/or bankruptcies a person has had. The credit report will also help the lending companies understand the borrower’s debt to income ratio.

How Debt to Income (DTI) Works

1. Jill makes $1,000 (1K) per month; her debt every month is $250. Therefore, Jill has a DTI of 25%. If Jill’s debt were $500 per month, Jill would then have a DTI of 50%.

2. To calculate the DTI of Jill at $500 a month take: $500 / Divide by 1K = 50%, making Jill’s DTI at 50%.

The DTI factor is another way that the lending companies, landlords, and credit card companies look at how well a person is handling their financials. A lot of people are misled that their credit score is the only source that banks and lenders look at for issuing loans. This is not true, the DTI factor is a major part of this as well and can have a huge impact on the decision of issuing a loan.

Additional Credit Card Debt Consolidation Help Solutions

Credit Scores

The credit score can range from a score of 350 to 850. The lower the score the more risk and less chances a potential borrower is going to have for a loan from the lending companies. If a person who wants to borrow money has a high DTI and a low credit score, chances are, the interest rate on the loan will be high, if they get a loan at all.

Here is what usually happens when a company checks a borrower’s credit report. The company usually checks all three credit bureaus as you already know and the credit scores will come back as three different scores. Here are some examples a score of 620 from Experian, a score of 610 from Equifax, and a score of 630 from Transunion. The company looks at 610, 620, and 630, and uses the middle score of 620 as the main factor to determine the financial risk for the person applying for the loan.

I hope this webpage has helped you to find solutions to your credit card debt consolidation help questions.

Additonal Referances

See additional articles about credit card debt consolidation.


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