Debtconsolidationcare.com - the USA consumer forum

Forums
  • Latest topic

Will revolving credit prevent us getting a loan?

Date: Sun, 05/29/2005 - 19:59

Submitted by anonymous
on Sun, 05/29/2005 - 19:59

Posts: 202330 Credits: [Donate]

Total Replies: 2

Will revolving credit prevent us getting a loan?


We have alot of debt but we pay our bills on time our credit score is between 600 -620 because of too much revolving credit is there a debt consolidation loan for us that will help us but not screw up our credit like a bankruptcy, i hear that is what alot of these companies do is hurt your credit more because you asked for help


Hi Wendy

Welcome to the debt consolidation care forums. A debt consolidation loan is taken to pay off other loans and credit cards. A person takes this loan to pay other debts with a single payment keeping in mind the low rate of interest.

However, the decision of taking a debt consolidation loan does not work if:

  • If a person is not committed to repay his debt
  • Sometimes, debt consolidation loan tempts a person to use the "Freed up" money and thereby accumulates more debt.
  • If a person sold the unsecured debt for secured debt, he will risk losing his assets like home or car.


    At this stage, you can get all debts paid by enrolling yourself in a debt consolidation program. The purpose of the debt consolidation program is to reduce the monthly payments with lower rates of interest. All your multiple payments are combined into one loan amount which is used to pay off the debt and thus improve your credit report.

    Please let us know your feedback. We will appreciate in answering your queries further.

    Regards
    Roxette


    • lrhall41

    Submitted by roxette on Mon, 05/30/2005 - 13:06

    ( Posts: 4009 | Credits: )


    Hi Wendy
    Welcome to the forums.

    As regards to your query, having too much revolving credit may affect your credit rating. It may decrease your credit rating. Since your credit rating is an important factor to the lenders who will be giving a loan, hence it is better to avoid too much revolving credit account.

    In addition, you may not use the credit today but in future, you may charge your expenses against the total credit available. As a result you may sink into deeper debt. So you will face problems in obtaining a debt consolidation loan and simultaneously you will find yourself in a debt trap.

    Maintaining fewer revolving credits will be the better option, in order to obtain additional loans like debt consolidation loans.

    Hope you will find this information useful.

    Please do return with further queries.

    Regards,
    Peter


    lrhall41

    Submitted by peter on Tue, 05/31/2005 - 01:16

    ( Posts: 285 | Credits: )