Loan consolidation: conditions for grantingPayday Loan Consolidation
You have often heard of this operation, but wonder if it is really for you? There are indeed a minimum of conditions to meet in order to have your request for credit consolidation accepted.
What is credit consolidation?
First of all, you have to understand the financial transaction that is credit consolidation. This involves combining different credits (whatever they are: mortgage, personal loan for a wedding, car financing, etc.) into one. There are two great advantages to having such a gathering. The first is to facilitate its financial management, because instead of having various maturities with different rates and different monthly payments, you have only one credit. The second advantage is that this operation allows you to adapt the total amount of your monthly payment: you can decrease it if you need a little air, or increase it if you have an additional source of income and want to pay off your loans faster.
Who can benefit from credit consolidation?
Any adult having stable income, residing in the country of the organization with which they wish to carry out a credit consolidation can claim this operation. The establishment will especially want to know if a person is creditworthy before accepting his request for credit consolidation: that is to say if he has the ability to repay his loan without getting into trouble (depending on his income and of his various expenses).
What are the main reasons for refusal?
Any credit institution has the obligation to consult the National File for the Repayment of Credits to Individuals in France, or the File of the Central Credit Unit for Individuals in Belgium, before granting credit to anyone. If you are listed as a “bad payer”, this may be reason enough for a broker to refuse your credit union request, as they will consider that they would be taking too high a risk in accepting it.
Can it be a barrier?
If you are under the age of 18, you cannot take out credit, so there is no need to consolidate your credit. In addition, some older people assume that they cannot collect their various loans via this operation, because they believe that lending institutions are more cautious, especially if this implies an extension of the repayment period. However, for most brokers, the age criterion will not be a problem if you demonstrate your repayment capacity. Each file is analyzed on a case-by-case basis and it is perfectly possible to group its loans beyond 55 or 60 years, for example.
How to take action if you enter the conditions for granting a credit union?
As you can see, these are generally the same conditions for granting as for most credits. Do you fall under these conditions and want to take action? Nothing could be simpler: choose your credit organization, simulate your credit grouping on its website, enter an online or agency request and voila!