Bill consolidating mortgage people poor credit

Peer-to-peer (p2p) loans are, as the name suggests, loans between people that are mediated by a third party.

In some p2p loans, the borrower writes a proposal and investors choose whether to fund the loan.

However, in practice, most people who want or need an unsecured loan to consolidate debt do not qualify for an unsecured loan. Lenders want three things in a perfect borrower: Two items on the list, credit history and low debt-to-income ratio, trip up many people seeking a debt consolidation loan. You wouldn't need a debt consolidation loan if you have excellent credit and a low debt-to-income (DTI) ratio.

A home equity loan is a popular type of debt consolidation loan.

Tighter lending guidelines along with a significant drop in property values in many parts of the country have made this kind of secured debt consolidation loan more difficult to obtain.

In other p2p loans, an intermediary funds the loan, combines the loan with others, and sells shares in the loans to investors. There is no tax consequence for a 401(k) loan that is repaid.

Two p2p loan resources you may want to explore are and Lending Club. A 401(k) loan is a withdrawal from your account that you repay with a modest interest rate. The risk of a 401(k) loan is the tax penalty you must pay if something prevents you from repaying the loan as agreed.

The more you can increase your credit score, the better loan terms you will be able to obtain.

Last modified 28-Mar-2015 09:40