Would Loan acceptance chances improve over longer period?

Reason123

Hi all


I am looking to apply for a loan to consolidate various debts.


Would I have a better chance of acceptance if I extended the loan over a longer period of time? IE lowering the monthly payments.


Cheers

[Deleted User]

Possibly. Or it may make you look even more desperate for the loan.

MEM62

The critical thing that most lenders would look at is the amount of debt you currently have and your income. If the current debt and new loan exceed 50% of your salary you will probably have issues based on affordability.

Reason123

my new loan would 'just' go over the 50% threshold before using it to debt consolidate? would that be considered?

[Deleted User]

There's no hard and fast rules - it varies by lender. They'll also be looking at your credit history.

foxy-stoat

Just apply for a loan and see what interest rate you get offered, lets hope your not pinning your chances of reducing your monthly payments by getting the magic 3.3% interest loan....its likely you will get offered 9+% if at all.

Good lucks

Reason123

foxy-stoat wrote: »

Just apply for a loan and see what interest rate you get offered, lets hope your not pinning your chances of reducing your monthly payments by getting the magic 3.3% interest loan....its likely you will get offered 9+% if at all.

Good lucks

This^ My only interest to move my current debt would be if I can get a 3ish% loan.


Are they unobtainble?

[Deleted User]

Not unobtainable, but your circumstances are probably against it.

Pixie5740

51% of successful applicants receive the advertised representative rate. The other 49% are offered a higher rate.

Have you addressed the reason(s) you are in debt in the first place? If not then consolidating will be like a broken pencil...pointless.

foxy-stoat

I very much doubt that you would get the lowest rate for debt conslidation - it would attract one of the dearer rates for sure.

Reason123

Thanks all - I will stay with what I got.