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Bill Consolidation Loan

bill consolidation loan, consolidation loan

The paying off of the loan you borrowed is known as” Consolidation Loan”. The lender considers every aspect of your loan request in order to determine its feasibility; in other words, he looks into your loan request to know the source and means of paying back the loan you are about to borrow.

Your loan package should contain certain data that could urge him to grand your request. To do this, he looks into your financial statement in order to know your income and expenses and your personal assets some of which could be assigned as collateral.

Sometimes, you may get the loan approved without using your collateral for the fact that the lender is satisfied with your financial status despite the fact that you cannot not be able to meet up your current financial obligation due to unforeseen circumstances. You must have lost your job, business, involve in accident etc and the Lender you owed also want you to pay back the loan together with the interest. This is where you need a consolidation loans.

There could be other bills that you are not able to pay as part of your monthly obligation just for the fact that your source of income is limited. These other monthly bills could be your monthly installmental payment of your past debts, electricity bills, telephone, house rent, children school fees etc. So you find yourself in a financial mess and facing embarrassment from your creditors.

Now what do you do to avoid it? It is possible for you to obtain a consolidation loan to clear up your bills . Your consolidation loan may either be approved or may not base on the following condition:

You must establish a good credit history; in other words, your frequent payment of other loans obtained from other lenders could help you out because is evident that you can be able to pay back this consolidation loan. Your former lender could help you out without even collateral and will believe in you although you should also provide sufficient information of your ability to pay off this debts.

It is very important that you try to establish a good credit history involving different lenders. This is a very common practice even in the global financial market which includes the Multilateral and Bilateral aid agencies. Some of the multilateral aid agencies are the World Bank group, the European Economic Community and others formed by several nations; some of them operate within their geographical region.

The Bilateral Aid agency is formed by a government of a particular country and there are several of them. Both the Multilateral and Bilateral agencies do borrow from the world financial markets who then re-lend them to viable projects within member nations.

In other to determine their credit rating, independent agencies are used to determine their credit history involving borrowing and paying back. Even the World Bank is to be accessed by them. The most common standard is the ‘AAA’ rating. Based on this standard, such international financial institution can borrow from the world financial markets and the loan could be approved without hitch. Their annual financial reports reveals loans borrowed and paid back as well in their international operations.

You see how it is important to establish a good credit history. Now the lender considering granting you a consolidation loan will depend on your former credit history before he takes his decision. Where your credit history is poor as you go about borrowing from one Lender to another without evidence of paying back, then you are a credit risk. Some people do develop the habits of borrowing and never pay back even though they are of good financial stand. They give the Lender tough time to get his money and some even ended up in Judiciary court.

So you should establish a good credit history in case you approach a lender when things goes bad, it will help you out without even a collateral.

In case your credit history is sound, the lender you have approached have not known you and you have not done any business with him; so may not accept your claims as regards your credit history revealed in your loan package. The package should include list of lenders you have dealt with in the past and how far you have been meeting up the bill before your current situation.

To ensure that your information is correct, the lender will cross-check your information through independent credit investigation experts. Make sure all your information you stated as regards your dealing with other lenders and credit history is correct when verified. If the report from the credit investigation is negative, the loan request will be rejected.

My advice to you is that if you are of good financial standing, do borrow from different lenders although your bank may promise that she could do everything for you but in certain cases, could only finance some portion of the loan and you have to look for other source of loan.

Now if your credit history is poor, you need a Co-Signer or a Guarantor who will assist you signing the consolidation loan with you. This Co-Signed or Guarantor should be of a good financial stand with good credit history as well who may collect a fee from the part of the loan if approved.



Good luck
Published: 2006-04-11
Author: Goodnews Adolphus

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