One thing Susie Orman might not tell you is that you can minimize your costs around debt consolidation with a great debt consolidation rate when you understand how to speed up your credit approval? The people who provide loans (debt consolidation or otherwise) tend to go to a single credit reporting agency based on where they are located geographically. Yea, really; based on geography.
Here’s the rub. Just like there are multiple credit reporting agencies, there are multiple databases that each agency pulls from to determine your credit worthiness (which directly impacts your debt consolidation rate and impacts your costs; suzeorman always says we need to manage your costs when consolidating debt). You could have a great track record with one reporting agency and bad items with another. If you pulled four different credit reports from different agencies, each one could have different damaging information! So, before you consider your debt consolidation options, pull your report from all of the credit reporting agencies to make sure you have the best debt consolidation information. Getting your credit report in advance will help you know which lender to approach for credit. Choose one that is situated geographically with the credit bureau that has the most favorable rating. Neat trick hu.
When you know which bank you want to target, the next goal is to get them to want to help you with your debt consolidation (remember, suzeorman wants you to have a plan). Consolidation debt refinance is something that can be complicated and a good banker will make it come together for you. But what makes these bankers tick? How do you get them on your side?
Bankers need you as much as you need them. Their business thrives on extending credit to people like you. Taking the right steps to avoid credit bureau that have bad information on you and taking steps to makes sure the banker is pulling data from a credit agency that has good information will make you more favorable to the banker and thus increase the likelihood you’ll get the consolidation loan at a great debt consolidation rate.
Here are the steps you should take (these are not Susie Orman steps but important to get an understanding of none-the-less):
- Get your credit report from just one of the credit agencies to find out if you have any bad information that could cause your request for a loan for debt consolidation to be turned down.
- Contact several lenders/ banks and ask the teller/ receptionist which credit agency they use when they are reviewing applications and deciding who to loan money to. If the person you’re talking to says they don’t know, ask them to ask someone who does.
- Find a bank or lender that uses a credit agency that is not typical for the banks in the area.
- Get a credit report for yourself from that particular credit reporting agency that your target lender/ bank uses.
- Repeat this until you are able to locate a credit agency report that is positive or favorable (i.e., it has the least number of negative items).
- With this completed, the last step is to apply with the bank or lender that uses the credit agency that has the best credit report on you.
- This is only one great way to get a great debt consolidation rate and minimize your costs.
(Please note that this information is provided for entertainment purposes only and should not be treated as professional advice. Susie Orman and others will tell you that it is always smart to consult with a finanical or legal professional before making any financial decisions.)
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