Changing a refinance loan

Hils753

Looking for advice please.  My 24 yo daughter had a 5 year consolidation loan which she took out 3 years ago.  Needless to say her credit history was terrible.  She also had a Debt Management Plan.  The DMP was paid off this year and so the only loan she has now is the consolidation loan.  The interest rates are phenomenal and 3 years in still has more than half to pay - she only missed one payment in the first few months (3 years ago)  on but that was cleared.  But she is worried about applying for another loan (to move it) in case it affects her credit score (which is 181 on Equifax).  Any recommendations? Are there any sites that you can find out if you are eligible without them doing a hard credit reference first? Or is she stuck with the incredibly high interest rates?  Thanks

[Deleted User]

She should use an eligibility checker. Most lenders have them, as do many other sites.

However, with her history of bad debt, missed payment and affordability problems, she's probably unlikely to improve the rate. Disregard anything to do with her credit score. Instead, get to the DFW boards for help on dealing with the debt.

[Deleted User]

As above.
And, more due diligence needed regarding consolidating, this is not an option people should go into lightly.

Hils753

Deleted_User said:

She should use an eligibility checker. Most lenders have them, as do many other sites.

However, with her history of bad debt, missed payment and affordability problems, she's probably unlikely to improve the rate. Disregard anything to do with her credit score. Instead, get to the DFW boards for help on dealing with the debt.

Thanks. Affordability is not an issue thankfully. It just seems harsh to still be paying for her earlier bad credit history 3 years on through interest rates which are extortionate. The risk has lowered for the lender. But if that is the way it is so be it. Thank you for the advice. 

[Deleted User]

Affordability will definitely be an issue as she needs to double her indebtedness. Hence the higher risk for the lender.

DCFC79

Hils753 said:

Deleted_User said:

She should use an eligibility checker. Most lenders have them, as do many other sites.

However, with her history of bad debt, missed payment and affordability problems, she's probably unlikely to improve the rate. Disregard anything to do with her credit score. Instead, get to the DFW boards for help on dealing with the debt.

Thanks. Affordability is not an issue thankfully. It just seems harsh to still be paying for her earlier bad credit history 3 years on through interest rates which are extortionate. The risk has lowered for the lender. But if that is the way it is so be it. Thank you for the advice. 

She needs to look at her spending and cut back.
Consolidation loans dont deal with the root cause, it just shifts it, if the issues that occured in the past are still there then it will just occur again (needing a loan).