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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.
@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
Either way, you'll probably need to look at the mortgage forum for advice on refinancing, or HELOC loans.
@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
@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.
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
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
Refi, payoff your CC debt and don't remodel your kitchen. Cut up your credit cards.
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.
@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
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