What’s the point of Debt Consolidation loans if...

[Anonymous]

You CANT get approved for one?

[Remedios]

In order to qualify for one, you have to have the ability to repay loan

If you're too deep in debt, it may appear as it's just moving things from left to right 

If your utilization is high or you have maxed out cards, you will need to get them down to manageable level, then attempt to get personal/debt consolidation loan. 

[Anonymous]

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@Anonymous wrote:
You CANT get approved for one?

In order to qualify for one, you have to have the ability to repay loan

If you're too deep in debt, it may appear as it's just moving things from left to right 

If your utilization is high or you have maxed out cards, you will need to get them down to manageable level, then attempt to get personal/debt consolidation loan. 

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Banks also tends to give debt consolidation loans to people who dont need it. It appears that you do need it is a "red flag" to banks.  I would suggest you to try credit unions, their lending policies is more relaxed than normal banks.  If it okay, list what debts you have so people at MyFico would get a clear picture of the situation. 

[Anonymous]

Some of these loans have been reported appearing on credit files as "credit counseling".

[FireMedic1]

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@Anonymous wrote:

Some of these loans have been reported appearing on credit files as "credit counseling".

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This is true if you use a you are working with a credit counselor from a not-for-profit organization, or if you are working with a for-profit debt settlement/consolidation firm. If it's not. Its just another credit account.