Does getting a debt consolidation loan help my chances?

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My fiance and I are trying to buy a house. But no where will give us a loan because he has such horrible credit. Will getting a debt consolidation loan help his credit enough to be able to get a home loan?
Also the things that are bad on his credit are all in collections if that makes a difference.

7 Comments
  1. Reply
    Ted Sheckler
    July 17, 2011 at 6:18 pm

    No, you’ll just need a bigger down payment.

  2. Reply
    DR Bears face
    July 17, 2011 at 6:27 pm

    NO Whether the loan is just one or twenty the amount you owe is the same.If you have enough money to be able to buy a house why don’t you pay off the loans instead.

  3. Reply
    Like90
    July 17, 2011 at 6:42 pm

    No.

    But if your credit is good then I suggest leaving your fiance off of the mortgage. I had to do this and it worked well for me. You won’t qualify for nearly as high of a mortgage as you would with two people, but it’s better than nothing.

    If both of you have bad credit, work on your debts and get your credit fixed. This takes time, patience and diligence.

  4. Reply
    Doee
    July 17, 2011 at 7:22 pm

    Loan Consolidation Check this Site for useful information

    http://best-online-loans.info/loanconsolidation.html

  5. Reply
    Bruce H
    July 17, 2011 at 7:38 pm

    Hi Sweety

    No it won’t and here is why.

    Your credit score is based on your credit history (in the form of your credit report) and takes into account many things. One of the most important things is whether you pay your bills/debt payments on time. By getting a new loan to pay off your old loans you don’t accomplish anything. You still owe the same amount of money, and the missed payments are still on your credit report, and thus reflected in your credit score.

    In fact, even if you paid of the debts in full your score would not change significantly in the short term. Over time the missed payments will become less of a factor, but that takes time.

    You may want to consider buying the house in your own name, but then you would not be able to include your fiance’s income on the application etc.

    Best of luck.

    Bruce

  6. Reply
    Sandy Y
    July 17, 2011 at 8:21 pm

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  7. Reply
    Gary
    July 17, 2011 at 8:55 pm

    No.

    Borrowing money when his credit is already terrible will make it worse, not better.

    If you’re overweight will eating a bucket of french fries with lard sauce make you slimmer or fatter?

    It sounds like to need to repair what’s left of your credit rating before you even think about buying a home and build a good track record to present to a lender. They want to see evidence that both you and your fiancé can handle your money properly.

    The best plan I have ever seen for personal finance is Dave Ramsey’s Total Money Makeover. I am using it to pay off $ 14,000 worth of debt (down from $ 17,000) as detailed on http://journeyintotheblack.blogspot.com and it’s absolutely first class.

    I had to understand that it was my own financial choices over many years that occasioned my indebtedness. Your hubby to be will have to do the same and get dirt honest with himself in order for you two to build your dreams.

    There isn’t any chance of you both moving forward until you have repaired that credit rating. Good luck with it!

    Gary
    Sydney, NSW, Australia

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