What is credit consolidation?

Credit consolidation is a financial solution that consists in grouping several existing loans into a single new loan. In practice, the outstanding balances of your different credits are repaid and replaced by one consolidated credit with a single monthly payment and a global interest rate. This is particularly useful when you have multiple loans (consumer credit, car loan, personal loan, credit line, etc.) and wish to simplify your financial management.

By consolidating your credits, you no longer have to keep track of various due dates, interest rates, and different financial institutions. You only have one contract to follow, one due date, and one point of contact. Depending on the chosen duration and the conditions of the consolidation, your monthly payment can be significantly reduced, which helps you regain breathing room in your budget.

However, credit consolidation is not automatically granted. Financial institutions carefully analyze your situation before approving such an operation. Understanding how this product works and what criteria are assessed will allow you to better prepare your application and avoid unpleasant surprises.

What are the advantages of credit consolidation?

The first advantage is administrative simplicity. Instead of managing three or more different monthly payments and creditors, credit consolidation gives you a single ongoing loan and a single contact. This reduces the risk of oversights, payment delays, or confusion about due dates and amounts due.

The second major benefit concerns your monthly budget. In many cases, the accumulation of several separate monthly payments leads to much higher total repayments than if you only had one consolidated loan, even if the total amount of this new loan is higher. By adjusting the term and renegotiating the conditions, your new monthly payment is often lower than the sum of your current payments, which can help reduce financial pressure and avoid cash flow problems.

Finally, credit consolidation can also contribute to better long-term financial management. With better visibility on your debts and a single clear repayment plan, you can more easily plan your projects, anticipate future expenses, and gradually improve your overall financial profile, provided that you avoid taking on new, unnecessary debts once the consolidation is in place.

Main reasons for a bank to refuse a credit consolidation

Even if credit consolidation is an attractive solution, the bank or intermediary will only accept it if your situation meets certain prudential criteria. Below are the most frequent obstacles to obtaining a positive decision in 2026, and how they are typically assessed.

How to maximize your chances of approval in 2026

To increase your chances of seeing your credit consolidation approved, start by making a precise assessment of your current situation: list all your ongoing loans, the remaining terms, and the monthly payments. Then, check your income and your real repayment capacity without putting your essential expenses at risk.

Next, make sure you regularize any possible late payments before submitting your application and avoid taking on new debts in the meantime. Being transparent with your intermediary about your commitments and your financial history will allow them to build a solid file and guide you towards the most appropriate solution.

Finally, do not hesitate to seek professional advice. An experienced broker can compare several offers, negotiate the best possible conditions according to your profile, and accompany you at each step, from the analysis of your needs to the release of funds. In 2026, with stricter regulatory and risk management frameworks, good preparation and expert support are more essential than ever.