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Hello all. I'd like to get your feedback regarding my situation and the best route for me to take. I will need to finance a new (used) car soon, as my old truck is on her last legs (blown head I think). I'm ok for right now, as I'm borrowing a relative's car, but that won't last forever (another few months maybe). I'll be staying in the $10-15k price range. And I'll have about 2k for down payment.
As for income, I only make about $30k a year. I work for the public school system, and while the benefits are great, the pay is not. Espcecially here in overcrowded Central FL where wages are pretty low. I also make some extra money on the side doing computer repair work, buying/selling on CL, etc. That might equate to ~$5k a year.
Credit Report:
Debt:
I've been reading about personal loans from Sofi, Lending Tree, etc. and wondering if it would be a good idea to take one out to pay off my CC's and student loan? I went ahead and did the pre-appoval for Sofi which I was offered...
Would it be beneficial for me to do a personal loan to pay off the CC and student loan debt, so that it boosts my credit score to get a better auto loan interest rate? Or does it impact me adversly when the auto loan underwriters see the personal loan? Also, *if* a personal loan is the recommended way to go, I have no problem cutting up my cards except one (which will go in a drawer for emergencies only), until the personal loan is paid off. I also know that a mortgage refi is an option, but I'm a little hesitent about going that route. Any other suggestions are welcome. Thanks in advance.
One more question as well. *If* a personal loan is the recommended way to go, how often does Sofi recalculate APR/rates? I know the ~12% rate I'm getting isn't all that great as compared to my CC APR's. However, I recently made a couple payments to the CC's that should drop the utilization down a few points. I don't think those have been reflected on my CR yet though. But I'd like to re-apply again in a few weeks to see if I can get the Sofi APR lower.
Anyone?
Can you pay down your cards at all? As you've observed, that would be a big help.
Also, you should get your FICO scores. You can sign up for a $1 free trial through CreditCheck Total. Cancel within the trial period. There are people here who grab a free trial frequently and can fill you in if you have questions.
Finally, FICO dings you for loans obtained through finance companies. It's much better to go through a bank or credit union if you're able to. Don't discount that possibility until you've investigated it.
I know you prefer not to go the mortgage route, but I would at least look into it because I think you might find a short term 5 year second mortgage will have a better rate. You would be better off to consolidate to a rate lower than what you are paying now. Are you a member of NFCU or any credit union?
@medicgrrl wrote:I know you prefer not to go the mortgage route, but I would at least look into it because I think you might find a short term 5 year second mortgage will have a better rate. You would be better off to consolidate to a rate lower than what you are paying now. Are you a member of NFCU or any credit union?
I agree with medicgrrl on this one. Not only will the rate be better, you will also be able to write off the interest. Kill two birds with one stone so-to-speak.