Requesting free debt consolidation quotes is not a complicated task. You can contact a lender trough different means and request information on their consolidation loan programs so you can analyze them. There are, however, some things you need to take into account when requesting loan quotes from lenders and comparing them later.
Credit Pulls and Credit Score
Each time your credit report is pulled, this fact is recorded into your credit history. Eventually, if there are too many credit pulls of your credit report, this can alter your credit score negatively because lenders will infer that youâ€™ve been requesting too many financial products in a short period of time.
Thus, when requesting free debt consolidation quotes, you need to make sure that your credit report wonâ€™t be pulled and that you are actually not applying for a loan instead of just requesting a free debt consolidation loan quote. Otherwise, you may end up with your credit score diminished and when you finally decide to apply for a consolidation loan you may find out that you canâ€™t qualify for one due to the resulting bad credit.
Things To Compare
The most important thing you need to compare when deciding which debt consolidation loan is best for you is the APR. The APR shows an overall cost analysis of the money borrowed including the interest rate and other fees and costs associated with financing. Generally speaking the APR should be low enough so you actually save money by consolidating and get lower monthly payments each month instead of those overwhelming credit card payments.
Thus, regardless of your credit, the APR of a debt consolidation loan should be lower than the average rate of your combined credit card balances and lower than any unsecured loan in the financial market. The only reason why you should accept a slightly higher or similar APR than the average of your current debt is if you get a significantly longer repayment program and thus, lower monthly payments easy to afford.
Consequently, the loan length is another important factor to take into account when comparing debt consolidation loan quotes. This variable determines how affordable your monthly payments will be, how long will it take for you to be debt free and how much money youâ€™ll be spending on interests over the whole life of the loan.
Finally, there are other fees and costs not associated with the actual financing that these loans tend to include. Examples of these are: administrative costs, insurance, prepayment penalty charges, etc. Under certain circumstances these costs can turn an otherwise good deal into a too onerous transaction. Thus, make sure to include them in your analysis and ponder how they affect viability of the loan repayment as well as its expensiveness.
Mary Wise, a professional consultant at Badcreditloanservices.com with twenty years in the financial field, prevents consumers from falling into the hands of fraudulent lenders. In her website you will find more useful tips and interesting financial articles on this and many other related topics.