Debt Consolidation Loan Rejected: Your Options | Credit Canada

  • No Collateral 

Lenders worry about getting their money back, so they may require you to provide some form of collateral, such as your home. That’s quite a gamble if you’re having a hard time managing your money. And while there are unsecured loans, most have interest rates of 30% or higher, worse than a typical credit card, which makes it a bad option.

  • Poor Credit Score

Having a low credit score, often caused by high debt balances or payment defaults, makes lenders nervous and more likely to turn you down. There are other variables which you can read about in our credit score blog.