Debt consolidation loan may be the solution to your credit card debt problems. A debt consolidation loan is the most popular loan. It’s basically getting a new loan that has better terms and a significantly lower interest rate that helps pay off your other debts through a single loan. If you are looking to consolidate your debt, you need to look for a trusted company that has been in the debt relief industry for a long time. Loan Center Canada provides Canadians a variety of loans such as Car title loans, personal loans, car loans, Mortgages, business loans debt consolidation loans; among-st many others.
Will a Debt Consolidation Loan Affect My Credit Score?
Through the use of debt consolidation loan, a borrower can combine all of his debts into one loan resulting in a smaller monthly payment. Once the borrower pays off the consolidated debt carefully and on time, it actually helps improve and maintain a good credit score.
- You can pay off previous debt with the money from the consolidation loan. People usually try to close some accounts after it’s paid off. If you decide to close an account, to avoid any discrepancies, take the report to the credit bureau to show them that the account was closed at “customer’s request” so that it does not look like the creditors closed your account which may damage your credit. Also, avoid taking on additional debt, especially by charging on credit cards that you just paid off.
- Start making payments with your new consolidated loan. Make the payments on time every month until you pay off the loan as any late payment will damage your credit score. However if you can pay off a loan early or on time, it will only improve your credit score.
Advantages Of Debt Consolidation Loan:
- Low monthly payment: One low monthly payment for one loan versus multiple payments, means less stress and less to worry about.
- Savings on interest: Debt consolidation provides lower interest rates on the loan into one monthly payment. This means more of your payment goes towards paying off your actual debts instead of interest. This also means being debt-free faster!
- Improves your credit score: With a new loan, may cause a short term dip in your credit score temporarily. Don’t worry, once you start making regular payments your credit score will improve.
Apply For A Consolidation Loan Today!
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