I would like to combine my first and second mortgage on my house as well as some credit card debt. There is plenty of equity; however, my business has been struggling and losing money for the past few years. Can the bank refuse me?
Each lender has its own standards of creditworthiness. One element of most credit evaluations is stability of income and the likelihood of its continuation.
If a lender views with doubt your ability to continue earning enough from your company or other sources to service your debt, it could deny your request for refinancing. The fact that your credit request would include debt consolidation could work either in your favor or against you. For example, if you haven't consolidated before, your plan will improve your cash-flow position, and you intend to ditch the credit card accounts you want to pay off, a lender may look upon your request favorably. On the other hand, if you have a track record of refinancing credit card debt only to acquire more of the same, your request will be viewed less favorably.
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Each lender has its own standards of creditworthiness. One element of most credit evaluations is stability of income and the likelihood of its continuation.