Consolidation Eligibility Checklist: Know Before You Decide

Why eligibility prep matters

Loan approvals are often decided within minutes, but the terms you accept can echo for years. A short eligibility check helps you avoid teaser-rate traps and surprise fees.

Minimum signals to confirm

• Debt-to-income (DTI): Estimate your DTI with your current balances and minimum payments.
• Average APR: Know your weighted APR so you can judge savings accurately.
• Payment capacity: Decide the monthly payment you can commit to without straining essentials.
• Credit snapshot: Check for any errors or recent delinquencies that may impact approval.

Decision thresholds to set in advance

1. APR range you will accept (ex: at least 4–6 points below your current average).
2. Fee ceiling (origination or transfer fees that still allow a break-even in 12–18 months).
3. Rate stability (prefer fixed or understand the variable adjustment schedule).
4. No prepayment penalty unless savings are substantial.

Red flags to walk away from

• High pressure to sign without seeing the full amortization schedule.
• APR ranges that reset within 6–12 months without clear caps.
• Fees that erase savings within the first year.

Next steps

Use the consolidation checklist download to compare options side-by-side, then run your numbers in the Consolidation Savings Analyzer to see exactly when a switch pays off.