Our present client is applying for a $60,000 debt consolidation loan and lives in the city of Dayton Ohio. Both he and his wife have six credit cards together, which unfortunately they have run up to their maximums and now are faced with payments that are much higher than they wish. The payments are high due to the high interest rates.
Regarding their credit rating, it is actually verging on the level of bad credit due to the number of cards and the balances on these cards. If they failed to make any payments and this failure was reported, they would definitely fall into the bad credit area. They have an excellent record of meeting all of their monthly obligations at this time and their credit rating is being held up by this record of payment. This shows just how important it is to manage your debt and also your monthly payments in order to maintain your credit rating. An excellent rating will ensure that consumers will be able to enjoy some of the most competitive interest rates.
They also do not have any equity to put forward in an effort to be able to secure a lower interest rate. This is a personal loan with no security which will command a higher interest rate than a secured loan.