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How Can Debt Consolidation Help Me Get A Mortgage?

Debt consolidation involves taking out one loan to pay off many others. There are many advantages to having one new, low-rate of interest, especially the fact that it’s more convenient to keep track of just one loan. We have years of experience at helping people manage their loans and get out of debt faster and today we’ll be explaining how debt consolidation can help people get a mortgage.

Check Your Credit Report

Head online and you’ll find that the Canadian government’s own website lists the three companies which will provide you with a copy of your credit report. It’s free and always will be; you should be skeptical of any companies offering a ‘free’ credit report. Getting a copy of your own report lets you see what lenders see and will make it obvious what’s causing you to be turned down for mortgages. If you have a poor credit score, debt consolidation might improve your chances of getting a loan.

Investigate And Challenge Your Report

Before turning to debt consolidation, did you know you can actually ask for a reinvestigation into any negative remarks on your report? Never pay a lawyer to do this for you, you can write your own letters. You should never challenge any true and accurate remark but if you find discrepancies or out of date marks you can apply to have them removed. Once you understand this, you’ll be getting a sense of how debt consolidation can help you.  

Get Charge-Offs Removed From Your Credit Report

Charge-offs are huge black marks on your credit file as they indicate that a lender hasn’t been paid. If you have many debts, you’ll have a greater chance of missing a payment and further damaging your credit report.  Debt consolidation can reduce the chance of this happening by paying off your creditors and replacing your debt with one low, manageable monthly repayment that you will have far less chance of defaulting on.

Build A Positive Score

The simplest way to build a good credit score is challenge unfair remarks on your report and then start paying your bills on time. Debt consolidation helps you to do this. You no longer have high-interest credit card bills coming at you left, right and center, you have a single monthly repayment to make. By making the sum manageable you start to improve your credit score by paying on time. If you are stuck in a rut and paying the minimum on your credit card debt each month, it may save you money to pay one fixed interest rate instead of multiple interest rates to various lenders.

Call Us Today!

We have years of experience of helping people get out of debt fast. Call us today for a no-obligation discussion about consolidating your debt and getting into the housing market sooner. The sooner you restructure your debt and improve your credit score by building up a history of making payments on time, the sooner you’ll be approved for a mortgage. We also offer mortgages to people with a variety of credit backgrounds. There’s never been a better time to start, so pick up the phone today and see the unparalleled service that our representatives offer.

by Benson Mortgage
in Private Mortgage