No one likes playing the waiting game.
This is especially true when you’re drowning in credit card payments, late fees, and sky-high interest rates.
When you apply for a debt consolidation loan, you don’t have time to waste. You need approval yesterday so you can get back on your feet and start paying down your mountain of debt.
Thankfully, guaranteed debt consolidation loan options are possible. You just need to know where to look and how to apply for them.
Today, we’re discussing 10 ways you can improve your odds of walking away with the plan you need. Put down that calculator, stop stressing, and read on!
1. Choose Your Loan Type First
The clock is ticking, and you don’t want to get stuck in analysis paralysis.
Before you begin the application process, go ahead and narrow down your options by deciding which kind of debt consolidation loan you want: secured or unsecured.
With a secured loan, you’ll prove your trustworthiness by putting up collateral that your lender can possess if you default on your payments. This usually means putting your car or home on the line.
While that scenario can sound scary, these loans usually have more relaxed credit requirements and offer quicker approval rates. Most also feature lower interest rates and extend greater borrowing power to applicants.
An unsecured loan doesn’t require any collateral. Instead, lenders will look at your overall creditworthiness to assess your ability to repay. As such, the application process for these loans can take longer. You may also see higher interest rates if you go this route.
2. Determine Your Needs
Don’t wait until you’re on page three of the loan application to consider how much money you need to borrow.
Figure this out as early as possible, so you can speak confidently about your financial situation, as well as your short and long-term goals. To get this number, simply add together the outstanding debts that you want to consolidate.
Why is this so important? Often, applicants will overestimate the amount of money they need and request an exorbitant number that far exceeds their real needs. This leads to a rejection notice and requires them to start all over again.
3. Understand Your Credit
Regardless of which kind of loan you apply for, lenders will almost always check your credit score before approving your request.
That’s why it’s smart to know your credit standing before you apply. In addition to your actual score, go ahead and review your credit reports, too. You can request one per year from each of the three main credit reporting bureaus.
If you see any information that looks incorrect or suspicious, reach out to learn more about it. You may be able to dispute it and have it removed from your credit history. While you don’t have to have a perfect credit score to obtain a loan, the higher it is, the better.
4. Analyze Your Options
In recent years, there have been more debt consolidation resources available than ever before, both online and in-person.
That said, shop around! Check out several different lenders to see which one is the best fit for your needs. Review all the fine print, read through the terms, and make sure you understand the process fully before signing on the dotted line.
Want to expedite this process? Our quick and easy application form matches you to a range of opportunities in seconds!
5. Add a Co-Signer
Is your credit score nowhere near where it needs to be? If that’s the case, some lenders will allow you to add a co-signer to your application. This can help you better qualify for a debt consolidation loan and secure a lower interest rate.
The only caveat? Your co-signer’s credit score must meet or exceed the lender’s requirement, so make sure you choose someone who can improve your odds of approval, rather than hurting them!
Also, keep in mind that your co-signer will be equally responsible for the loan and is putting his or her credit on the line alongside yours.
6. Lower Your Debt-to-Income Ratio
If you aren’t in a total time crunch, you can take steps to lower your debts and raise your earning over the course of a few months. In turn, this will improve your debt-to-income ratio.
Lenders will often check this ratio when deciding whether or not to accept your application. In some cases, you’ll have to apply as-is, regardless of where that number stands. Yet, if you can afford to wait a little while, this is a smart move that could improve your odds.
7. Pursue Pre-Qualification
Many online lenders will allow you to pre-qualify for a debt consolidation loan. This way, you can see estimated rates and learn more about the loan.
The process is usually quick and only involves a soft credit check, which doesn’t harm your credit score. Another benefit of applying online is that you can eliminate the hassle of paperwork and in-person interviews!
8. Eliminate Late Payments
Lenders want to know that you’ll be able to make your required monthly payment on time. That said, applying with a slew of late charges on your record could work against you.
To the greatest extent possible, stay on-time with all your debt payments, especially during your loan application period. This sends a clear signal to your prospective lender that you’re a trustworthy client.
9. Make a Checklist
While online platforms simplify the process, traditional loan applications can be in-depth, time-consuming and complicated. You don’t want to show up for your meeting and realize that you’ve missed an important step.
Work with your creditors, employers, and financial advisors to make sure you’re on the right track. It’s best to create a checklist of all the lender’s requirements so you know exactly what you need to do. Give yourself plenty of time to get everything in place, as an incomplete application could result in a swift rejection.
10. Gather All Your Documents
It’s equally important to have all of your applicable financial data in hand before you apply for your loan. This might range from payment stubs and taxes to credit card bills and business receipts.
Once you know what you’ll need to show, create a new folder to store all of the data. If you’re applying online, this can be a virtual folder stored on your desktop. Otherwise, create a real folder and keep it at your desk until it’s ready. Then, you’ll have quick access to the numbers, forms, and documents that your lender needs.
View Guaranteed Debt Consolidation Loan Options Today
When you’re over your head in debt, uncertainty lurks at every corner.
That’s why it’s such a relief to find guaranteed debt consolidation loan solutions that can take the guesswork out of the process.
When you’re ready to see all of your lending options, we’re ready to help. Our online platform makes it easy to match your financial requirements with the lenders you need.
Fill out this form and see all of your offers instantly!