Confusion

[junior88]

So in the past month I did do a new loan to pay down my credit card balances. Everything has updated and of course my scores have went up a lot. All I have left is a 3 small unsecured personal loans that I was just trying to put into 1 payment. 2 banks have ran my credit, seen that my DTI is less than 17%, tell me I have great credit but they both have come back saying they want it to be secured. One bank changed and have underwriters now and even the banker and branch manager is upset with this decision as I have always been a great customer with them and they said they would approve me in a heartbeat. The other bank was onboard until they saw my 8 year old Chapter 7.   Updated scores are all right at 700 or higher. Was I wrong to pay off the revolving? Maybe I should've paid off the installements?  Am I missing something?  A bank to turn me down with an 8 year chapter 7 is odd I feel.  The amount of the loans are $5000 total....half tempted to just do a balance transfer at this point.

Just looking for your thoughts.

Thanks!

[user5387]

Paying off revolving will do more for your scores than installment, in general.

Both factor into DTI calculations, but revolving utilization is a much big deal for scoring.  Moving installment debt back to revolving will reverse things.

A couple of suggestions would be to talk to some local CUs, and look at Lending Club.

[Creditaddict]

I would look at the Chase Slate for $0 BT Fee and 0% for 15 months and see if you can consolidate all these loans into 1 for the next 15 months and then if anything left maybe go back to 1 personal loan.

[junior88]

Went to my CU that I am a member of. Within minutes I was approved for this unsecured loan. Good deal, but what a joke with the regular banks.  Just wanted to update you guys.