Can consolidated credit be denied? Find out why

Consolidating credits can be a solution for those with multiple payments and want to simplify financial management. But applying for a consolidated loan does not guarantee approval.

As with any financing, the institution will assess the client's financial capacity and the risk associated with the operation.

A consolidated loan may be denied

Among possible reasons are insufficient income, high debt level, defaults, unstable professional situation, excessive credit responsibilities, or an operation not considered suitable for the client's profile.

Poupança no Minuto consolidates several loans into a new operation, but the new institution remains obligated to assess the client's solvency.

What is a consolidated loan?

A consolidated loan results from combining several previous loans contracted by the client into a new operation.

For example, a person can have a personal loan, a car loan, and a credit card balance.

In certain situations, these credits can be integrated into a single consolidation operation.

Instead of multiple installments and different payment dates, the customer now has a single installment linked to the new loan.

Why might it be rejected?

Insufficient income

The bank needs to understand if the income is enough to support the new payment.

Even if consolidation reduces the monthly payment, the institution assesses the client's overall financial capacity.

2. High level of debt

If the customer already has many credit responsibilities regarding their income, the operation may represent too high a risk.

The institution checks the available information about existing credits and analyzes the set of responsibilities.

3. Breaches

Late payments can significantly hinder approval.

Poupança no Minuto includes information about regular credits and overdue credits. The existence of overdue payments may lead an institution to reject new credits.

4. Professional situation

The type and stability of returns can also be considered.

The bank seeks to understand if the presented earnings are sufficient and sustainable to support the new commitment.

5. Amount requested

A consolidation may include several credits, but this does not mean any amount can be financed.

The higher the amount of the new operation, the greater the impact on solvency assessment.

6. Operation features

Also important to note that not all consolidations are the same. An operation may involve only personal credits and cards, while another may involve secured credit by mortgage. Conditions, costs, and applicable rules may differ.

Being rejected by a bank means you cannot consolidate?

Not necessarily. Each institution has its own risk criteria and commercial conditions.

A rejection may be related to the profile presented or to the specific criteria of that institution.

Therefore, when an operation is rejected, it can be useful to understand the reason and assess if there is another suitable solution.

What can you do before asking for consolidation?

Before proceeding, gather information about:

Debt balance of each credit

Current payment

Time left to finish

Interest rate

Costs associated with early reimbursement, when applicable

Monthly returns

Other credit responsibilities

With these data, it becomes easier to understand if a consolidation makes sense.

Do a simulation

If you have multiple credits and want to know if you can combine your installments into one operation, make a personalized analysis.

Frequently Asked Questions

Can I consolidate credits if I have a late payment?

It may be more difficult. The existence of defaults is a relevant factor in assessing solvency.

Does consolidation ensure a lower payment?

No. It depends on existing credits, the new amount, the term, and the operation conditions.

Can I consolidate credits from multiple banks?

Yes, depending on the available solution and the institution's analysis.

Does a consolidated loan appear in the Banco de Portugal?

Yes. The new credit responsibility is reported to the Credit Responsibility Center.

Should I give up if a bank refuses consolidation?

Not necessarily. It's important to understand the reason for the rejection and evaluate other suitable solutions for the financial profile.