Credit Cards Center Credit cards from our partners
Reply
Highlighted
Established Member
Posts: 12
Registered: ‎01-20-2009
0

ADVICE PLEASE!! Using my home to pay down debt??

I have $15K In CC debt...  I purchased my home a year ago and I have instant equity in the home.  I want to do some home repairs (remodel and expand the kitchen and get new flooring put in)  however I have maxed out all my cards given some bad spending habits and no self control,  my score has suffered and now im at a 643 EQ | 690 TU | 638 EX |       Whats the  chances I can get approved and which product would be best if I want to consolidate all my credit cards into the loan and have the money to use to remodel?   ALSO, is there banks that strictly use Transunions score, (since thats my best one?)..  thanks for all responses.

Moderator Emeritus
Posts: 7,225
Registered: ‎09-16-2011
0

Re: ADVICE PLEASE!! Using my home to pay down debt??


jg33 wrote:

I have $15K In CC debt...  I purchased my home a year ago and I have instant equity in the home.  I want to do some home repairs (remodel and expand the kitchen and get new flooring put in)  however I have maxed out all my cards given some bad spending habits and no self control,  my score has suffered and now im at a 643 EQ | 690 TU | 638 EX |       Whats the  chances I can get approved and which product would be best if I want to consolidate all my credit cards into the loan and have the money to use to remodel?   ALSO, is there banks that strictly use Transunions score, (since thats my best one?)..  thanks for all responses.


I would totally put off remodeling until you've paid down your CC debt... You can't borrow your way out of a mess. Going through the pain of paying it off will seriously curb your impulse... No pain, no gain.     Of course, that's my opinion, and some may advise you otherwise  Smiley Happy

 

Either way, you'll probably need to look at the mortgage forum for advice on refinancing, or HELOC loans.  


Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
MyFICO Fitness Goal: 800s Club!



Take the myFICO Fitness Challenge
Valued Contributor
Posts: 2,489
Registered: ‎01-22-2012
0

Re: ADVICE PLEASE!! Using my home to pay down debt??

[ Edited ]
You should stop spending and pay down your debt. Taking out a home equity loan is going to screw up your financial situation even more than it already is, given that you admitted to having no self control. This is remodeling, not a required project. If your roof collapsed and you needed it repaired then I might understand. However this is an optional thing, and right now you're at the edge of a very steep cliff. If you take out a home equity loan, it won't take much for you to lose your house. Stay away for your own good. It's thinking like this that started the subprime crisis.
EX 798, EQ 789, TU 784
American Express Platinum (NPSL) || Bank of America Privileges with Travel Rewards Visa Signature - $23,200 CL
Barclays American Airlines Aviator Red World Elite Mastercard - $20,000 CL || Chase IHG Rewards World Mastercard - $25,000 CL
Chase Sapphire Preferred Visa Signature - $12,700 CL || Chase United MileagePlus Club World Elite MasterCard - $26,500 CL
Citibank Hilton Reserve Visa Signature - $20,000 CL || J.P. Morgan Ritz Carlton Visa Signature - $23,500 CL
Moderator Emeritus
Posts: 7,225
Registered: ‎09-16-2011
0

Re: ADVICE PLEASE!! Using my home to pay down debt??


CreditScholar wrote:
You should stop spending and pay down your debt. Taking out a home equity loan is going to screw up your financial situation even more than it already is, given that you admitted to having no self control. This is remodeling, not a required project. If your roof collapsed and you needed it repaired then I might understand. However this is an optional thing, and right now you're at the edge of a very steep cliff. If you take out a home equity loan, it won't take much for you to lose your house. Stay away for your own good. It's thinking like this that started the subprime crisis.


+1


Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
MyFICO Fitness Goal: 800s Club!



Take the myFICO Fitness Challenge
Established Contributor
Posts: 1,035
Registered: ‎11-08-2011
0

Re: ADVICE PLEASE!! Using my home to pay down debt??


jg33 wrote:

I have $15K In CC debt...  I purchased my home a year ago and I have instant equity in the home.  I want to do some home repairs (remodel and expand the kitchen and get new flooring put in)  however I have maxed out all my cards given some bad spending habits and no self control,  my score has suffered and now im at a 643 EQ | 690 TU | 638 EX |       Whats the  chances I can get approved and which product would be best if I want to consolidate all my credit cards into the loan and have the money to use to remodel?   ALSO, is there banks that strictly use Transunions score, (since thats my best one?)..  thanks for all responses.


  1. Buy a copy of Total Money Makeover by Dave Ramsey.
  2. Read it.
  3. Stop thinking: "If I tweak Dave's plan just a little, I could make it work for me!".
  4. Read it again.
  5. Live it.
  6. ???
  7. Profit!

Those are the seven pre-steps to his 7 Baby Steps.  As for #3: Literally millions of people have followed his plan without modification and are now happily debt free.  It doesn't need "adjusting".

 

-SM

 

I am not an attorney and none of what I write should be construed as legal advice. For legal advice please consult an attorney.

Starting Score: ~470 preBK(8/2010)
Current Scores as of Late January 2016 All 700+. Last CR pull from a lender(housing) was mid-score 749.
Goal Score: 700+ - reached.
Blogger
Posts: 2,876
Registered: ‎02-02-2012
0

Re: ADVICE PLEASE!! Using my home to pay down debt??

So you want to take on more debt to pay off debt?

 

And then what happens when you have that extra equity loan and with your self-admitted "lack of control" you rack up charges on the credit cards AGAIN along with the equity loan? What then?

 

I'd say, curb spending, pay down those cards.

Leave your house alone. Do the remodeling as a reward to your newfound self control once you've paid off those cards.

Follow my financial journey: http://www.frugalrican.com


EQ FICO (01/16/2012): 656 - EQ FICO (02/16/2012): 743 - EQ (02/24/2012): 760 - EX (04/28/2012): 739 - GOAL 2013: 800+

AMEX BCE (0/10K) --- BOA 1-2-3 (0/15.9K) --- Discover More (0/6K) --- Chase Freedom Visa (0/1.4K) -- Hyatt Visa Sign. (0/5.8K) -- Barclay's NFL Card (0/7.5K) -- Chase Sapphire Preferred (0/5K)

Member
Posts: 46
Registered: ‎05-04-2011
0

Re: ADVICE PLEASE!! Using my home to pay down debt??

Refi, payoff your CC debt and don't remodel your kitchen.  Cut up your credit cards.

EX=800, EQ=814, TU=946
Established Contributor
Posts: 500
Registered: ‎05-11-2007
0

Re: ADVICE PLEASE!! Using my home to pay down debt??

Sure, i mean the worst that can happen is you lose your house and have a pile of credit card debt and no way to rent an apt once they nicely ask you to vacate the house.

Besides that, it is a perfect plan.
Established Contributor
Posts: 913
Registered: ‎06-09-2011
0

Re: ADVICE PLEASE!! Using my home to pay down debt??

Like others said, since you yourself admit that you don't have self-control, all that you're going to do is take on more debt and then run your balances back up. Which is going to put you in even more debt, and you're going to own less of your house. There's just absolutely no way it's a good decision for you financially.

Now, if you're planning on remodeling and repairing the house so you can sell it off and get a better selling price - yeah, I could see doing it. But just out of vanity and luxury, no. You're just going to dig yourself deeper into a hole.

If you can't control your CC spending, shred your cards and take the time to pay off the balances. Once the balances are paid off (or at least considerably paid down), you could consider taking out a loan for remodeling. But up until that point, you're just hurting yourself in the long term. What's the benefit of expanding and remodeling your kitchen if it decreases your long-term chances of being a home-owner? I don't think you want a fancy kitchen just so the bank can sell the house to someone else.

EQ 679 FICO (02/24/2012)
TU 721 FICO (03/10/2012)
EX 703 FICO (05/05/2012)

Cards: NFCU cashRewards $14k, NFCU Platinum $14k, USAA Amex $7k, Amazon Visa $3k, Chase Freedom $2.5k, Amex Zync NPSL, Discover More $1k, Amazon Store $1.3k, Walmart Store $700
Established Contributor
Posts: 872
Registered: ‎10-16-2010
0

Re: ADVICE PLEASE!! Using my home to pay down debt??


webhopper wrote:

CreditScholar wrote:
You should stop spending and pay down your debt. Taking out a home equity loan is going to screw up your financial situation even more than it already is, given that you admitted to having no self control. This is remodeling, not a required project. If your roof collapsed and you needed it repaired then I might understand. However this is an optional thing, and right now you're at the edge of a very steep cliff. If you take out a home equity loan, it won't take much for you to lose your house. Stay away for your own good. It's thinking like this that started the subprime crisis.


+1


+2


Starting Score: 760
Current Score: 716 Equifax 754 TU 736 Experian
Goal Score: 760

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.

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.