Loan Purpose and if it effects loan decision

kilasuit

Have always wondered if you were more likely to get a loan for say a car than for debt consolidation or for the purchase of Electrical goods?

I mean at the end of the day it is another variable that they must consider as a possible reason to be accepted or declined.

Or you do not agree?

jon_boy75

kilasuit wrote: »

Have always wondered if you were more likely to get a loan for say a car than for debt consolidation or for the purchase of Electrical goods?

I mean at the end of the day it is another variable that they must consider as a possible reason to be accepted or declined.

Or you do not agree?

yes, the reson for the loan does have an effect, unless you go to a specialist lender. these days, consolidation may be tougher to get, even though they are intended to reduce your monthly outgoings...illogical but true.

Rafter

In theory, consolidation loans should be lower risk: you are transfering existing debt (which hopefully you are managing ok) to a new loan.

However:

The new lender has no guarantee that you will consolidate though or that you won't run up the debt again on the cards repaid.

Generally people who are applying for consolidation loans are struggling with their minimum payments and aren't great at managing their finances.

So as jon_boy says, you will often have more luck if applying for car purchase or home improvement loans, although you won't get them if you already have too much unsecured debt in the eyes of the lender.

R.