Credit Cards Center Credit cards from our partners
Reply
Established Member
Posts: 30
Registered: ‎06-21-2016
0

Re: Refinancing Auto loan or take personal loan?

Hi,

 

it's been a while and I let the topic rest for a while, but now it's come up again. Dear mods, if there is a better place to ask about pesonal loans (I didn't see a subforum but maybe I've missed it?) could you move my post?

 

I'm considering taking out a small (<5,000) personal loan to pay off my car loan and cover some other expenses that have come up. But, I'm reluctant because I'm worried that my request will be denied because of low credit score and short credit history.

 

I have a credit history of about 18 months, which isn't great.

I have one credit card with a 1,000 limit that I'm using frequently and pay the full balance each month.

I have a sceond credit card (Barcley's) with a 2,000 limit, that I used to buy a Macbook with 0% APR for 18months, that I'm slowly paying off, but still have a fairly high balance because I only got in December.

I have a small car loan  (<4000) that I've been paying of since January 2016.

 

Because of my second credit card, my score dropped and according to my FICO from Experian is in the 660s - which isn't great, obviously.

 

Do you think there is even a chance I could get a small personal loan with that score and my very short credit history? Or is it too risky?

 

Thank you very much, any thoughts are much appreciated.

 

Valued Contributor
Posts: 1,544
Registered: ‎12-16-2014
0

Re: Refinancing Auto loan or take personal loan?


Ankaa wrote:

Hi,

 

it's been a while and I let the topic rest for a while, but now it's come up again. Dear mods, if there is a better place to ask about pesonal loans (I didn't see a subforum but maybe I've missed it?) could you move my post?

 

I'm considering taking out a small (<5,000) personal loan to pay off my car loan and cover some other expenses that have come up. But, I'm reluctant because I'm worried that my request will be denied because of low credit score and short credit history.

 

I have a credit history of about 18 months, which isn't great.

I have one credit card with a 1,000 limit that I'm using frequently and pay the full balance each month.

I have a sceond credit card (Barcley's) with a 2,000 limit, that I used to buy a Macbook with 0% APR for 18months, that I'm slowly paying off, but still have a fairly high balance because I only got in December.

I have a small car loan  (<4000) that I've been paying of since January 2016.

 

Because of my second credit card, my score dropped and according to my FICO from Experian is in the 660s - which isn't great, obviously.

 

Do you think there is even a chance I could get a small personal loan with that score and my very short credit history? Or is it too risky?

 

Thank you very much, any thoughts are much appreciated.

 


I don't think there will be anyone who can answer your question defininitively, my suggestion would be to work with a credit union and see what options they offer. Understand though that unsecured loans like this always carry higher interest so your not likely to get anything less than 16 percent at best and likely more with the scores you have.  SInce your car loan is pretty small I would probably focus as much as my efforts as possible on making extra princple payments on that car loan and get it paid off asap. Wish there was an easier answer but I don't think there is but like I said touching base with a credit union to discuss options is a good use of a few minutes of your time.

NFCU Go Rewards 18k, NFCU Go Rewards AU 22k, NFCU CLOC 15k, NFCU N Rewards 14k, Amex ED preferred 12k, Amex BC 1k, USAA CL 2k, Hawaiian Air Barclay 1.2k, Venture One 10.1k, Target 7k, Citi Costco 2k, Citi AAdvantage 7k, NFCU Platinum AU $14K, Penfed Platinum Rewards $5.5k. PayPal 2.2K, Discover IT 6k

Gardening till 2018, Goal of 700's by the end of 2017
MyFico Scores June 2017: EQ 692 TU 703 EXP 698
Valued Contributor
Posts: 1,204
Registered: ‎01-31-2008
0

Re: Refinancing Auto loan or take personal loan?

There is a Personal Finance section above where you can post about Personal Loans.

 

As you have experienced the high utilization is depressing your scores. The second credit card will help once you get the utilization down. Milestones for score improvement may include paying balance to below 90% (90% is considered maxxed out), below 70%, below 50%, below 30% and below 9% reported utilization.

 

Try Lending Club, Prosper and SoFi.com to see if you qualify. All have a SP pre-qualify option last I checked.

Highlighted
Established Contributor
Posts: 599
Registered: ‎08-07-2011
0

Re: Refinancing Auto loan or take personal loan?


Appleman wrote:

There is a Personal Finance section above where you can post about Personal Loans.

 

As you have experienced the high utilization is depressing your scores. The second credit card will help once you get the utilization down. Milestones for score improvement may include paying balance to below 90% (90% is considered maxxed out), below 70%, below 50%, below 30% and below 9% reported utilization.

 

Try Lending Club, Prosper and SoFi.com to see if you qualify. All have a SP pre-qualify option last I checked.


Agreed. If you go to one of the suggested sites (Lending Club, etc), you can key in your info and get a rate without a hard pull. If you choose to finalize the loan, they will then complete a hard pull. I used Lending Club in the past when I needed a quick $15K loan due to some unexpected major expenses. My score was similar to your score and had a rate of 11%. Including all fees, etc it was actually around 16%. Of course, results will vary. It was a 3 year loan that I paid off in less than a year.

More than enough credit. --- As of 7/19, gardening for a very long time ---

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.