Debt consolidation to help your credit record

Using a debt consolidation loan to sort out your finances could have a long-term effect.

Your credit record is an important document both to you and to any lenders you apply to. All lenders and credit companies will check your credit record before they approve your loan, mortgage, finance agreement or credit cards. All the debt you have will be noted on your credit record, so the more in debt you are, the less likely lenders are to give you more money. Debts can stay on your credit record for several years – even once they are paid in some cases – so it makes sense to clear up your credit record as soon as possible.

Why debt consolidation can help

A debt consolidation loan will provide you with enough money to wipe out your current debts completely. These debts will be marked as paid on your credit record, and although a note about your debt history might remain on your record, there will be no current debts outstanding – just the debt consolidation loan that you’ve taken out. Make the effort to repay that loan on time, and your credit record will keep its healthy look.

Checking your credit record

You might want to take a look at your credit record before you take out a debt consolidation loan so that you can see what difference a loan might make. There are two major credit agencies in the UK – Experian and Equifax. You can request a copy of your credit record either over the phone or online for a very small cost. Take a good look at your record to make sure that it’s accurate. If you find any mistakes, ask the credit agency to make a note of the mistake on your record, so that lenders can see that you don’t agree with the contents of your record. You’ll also be able to see exactly how your current debts are recorded on your credit report.

Making a difference

Your debt consolidation loan will allow you to raise enough money to pay off the debts you currently have, leaving you with a single loan. Your credit record will show that you have paid your debts and that may make all the difference when it comes to applying for loans in the future. As every lender has a different way of deciding whether to accept your application or not, you can’t guarantee anything – but a healthy credit report often goes a long way to ensuring that you can get the loan you’re looking for.

If you are looking for a debt consolidation loan, let the experts save you time and money by finding the right product for you. Homebank has only the best mortgage consultants ready to advise you on all your mortgage and insurance needs. For useful debt consolidation loan advice, call us to arrange a no obligation appointment to suit you. Homebank is the ‘people’s mortgage broker’ with over 3500 mortgage products to choose from, including products that are not readily available on the High Street. Homebank’s experienced consultants could find the ideal product for you – call us now on free phone 0800 052 3604 or enquire online.