Credit Crunch - Consolidating Your Debts

During a credit crunch some forms of credit, such as debt consolidation loans, may be more expensive and/or harder to obtain. This may be because lenders are taking fewer risks with their money, or because of the limited availability of credit. However, it could also be because you have a poor credit rating.

If problems on your credit report are preventing you from obtaining a debt consolidation loan, then you may benefit from taking a look at the points listed below:

1. Look at your credit report. If you find any mistakes, you have the right to have them removed or corrected.

2. Attempt to resolve any problems you find on your credit report. For example, CCJs (County Court Judgments) cannot be removed and will remain on your credit report for six years. However, if you are able to repay the debt, then you can have it noted as 'satisfied'.

3. Register on the electoral roll. If you register to vote, it can improve your chances of being accepted for a debt consolidation loan, as it means your identity is easier to verify.

4. Open a bank account. This could also improve your chances of being accepted.

Please note that if you apply for every debt consolidation loan you find, you may damage your credit rating. This is because every application you make is recorded on your credit report - and if you've applied for multiple loans in a short period of time, lenders might be led to think that you're desperate for credit and that no-one is willing to lend it to you.

By choosing your lender carefully, and finding one who specialises in helping people in your situation, you should have a better chance of obtaining a debt consolidation loan.

By: Owen T Smith

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If you want tailored advice structured around your own personal debt then you should contact a professional debt expert.