Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Paying Your Bills
Profile Image

Question By
SidaLee

0 Contributions
0 People Helped
Do Lenders Consider the Purpose of a Personal/Debt Consolidation
You would think it was obvious, but based on some comments I've seen, maybe it's not. While each case if different, if you're applying for a personal/debt consolidation isn't it a given what you are going to do with the loan? If someone has $10,000 of credit card debit (which the lender can see on a credit report) and the loan request is for $10,000, that's pretty obvious. Based on the numbers I ran, I could take the same minimum monthly payments I'm making (never missed a payment) and pay off the personal/debt consolidation loan off in 36 months.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
784 Contributions
298 People Helped

Depending on how people handle credit; it's not a "given" what people will do with the funds. Some people pay their debt(s) off, and then go right back and charge their limits again. Then they're stuck with two gigantic loans.  Depending on credit score, many lenders are not quick to give unsecured loans. They will generally insist the credit cards be closed and the lender may even insist paying the credit card agencies directly; rather than give all the money to the client. 

$10,000 is a lot to have been charged on credit cards. Making minimum monthly payments, even on time, is a tremendous amount of wasted money in interest. Making only minimum payments is not impressive to lenders either. 

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.