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Regular Contributor
Cheezy
Posts: 169
Registered: ‎02-29-2008

I would like opinions on using personal loan to consolidate, (I was offered by Discover)

My husband and I both received "you're super special" type invitations from Discover to consolidate CC debt with a set payment over a specific number of months.  I am very tempted to put all the little card balances together, plus a few of the bigger and split this over the 2 loans we were both separately offered.  I did some math and the payments seem to be in line with what we're paying already to each card.

 

The only acct I would not do this with is my Nordstrom as I've got a 20+ years good acct and would not want to lose that history on the fico.

 

I would love to hear opinions on this plan.  I have googled and couldn't find anything negative about Discover personal loans, except one "rip off report" of a woman who said no matter when she mailed her payment it was late, but I don't use snail mail and have had no issues with my Discover acct thus far.

 

I am low 700's, hubby mid 700 on all 3.  Is this a good move?  I sure would like to see an 'end in sight' on the pay off that seems to be going very, very slow.

We gave up the fight and filed BK in 2010. :smileysad:
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haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: I would like opinions on using personal loan to consolidate, (I was offered by Discover)


Cheezy wrote:

... The only acct I would not do this with is my Nordstrom as I've got a 20+ years good acct and would not want to lose that history on the fico.

?

No reason you should lose your history on any accounts. If I'm reading this correctly, this is just a bill consolidation loan, or possibly a CC BT. I don't see any requirement that you close the accounts from which you transfer balances.

I would never accept a loan or similar deal that required me to close my accounts.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Regular Contributor
Cheezy
Posts: 169
Registered: ‎02-29-2008

Re: I would like opinions on using personal loan to consolidate, (I was offered by Discover)

Well duh!! Never post a question or quandry when sleep deprived.  I feel silly.... thanks hauling.  Why I didn't realize that I'll never know.
We gave up the fight and filed BK in 2010. :smileysad:
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009

Re: I would like opinions on using personal loan to consolidate, (I was offered by Discover)

What is the APR on the Discover offer and is this from Discover Financial Services and running separatly from any CC you may have with them?
Regular Contributor
Cheezy
Posts: 169
Registered: ‎02-29-2008

Re: I would like opinions on using personal loan to consolidate, (I was offered by Discover)


creditwherecreditisdue wrote:
What is the APR on the Discover offer and is this from Discover Financial Services and running separatly from any CC you may have with them?

 

They said I wouldn't know the APR until I apply; based on credit worthiness.  It is from Discover Financial and separate from our CCs (both DH and I have a discover card).
We gave up the fight and filed BK in 2010. :smileysad:
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009

Re: I would like opinions on using personal loan to consolidate, (I was offered by Discover)


Cheezy wrote:

creditwherecreditisdue wrote:
What is the APR on the Discover offer and is this from Discover Financial Services and running separatly from any CC you may have with them?

They said I wouldn't know the APR until I apply; based on credit worthiness.  It is from Discover Financial and separate from our CCs (both DH and I have a discover card).


Interesting. When I got this offer last year I think it stated a rate of 7.99%. I ignored the offer and a little while later they offered me a More card. When I accepted that offer I got a good CL ($8.1K) and a decent rate (11.0%V). Since then my APR has been lowered to 9.9%V.

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MarineVietVet
Posts: 14,084
Registered: ‎07-14-2009

Re: I would like opinions on using personal loan to consolidate, (I was offered by Discover)

They said I wouldn't know the APR until I apply; based on credit worthiness.  It is from Discover Financial and separate from our CCs (both DH and I have a discover card).
 

That's the kicker. You won't know your rate until you apply. I've gotten several of these. For some people it might make sense. You just need to run the numbers very carefully.

 

7/09 (myfico)
TU-742
EQ-779

 

CC interest free as of 8/09
Time can heal all wounds and a low FICO.
"Hello my name is Sandy and I'm a recovering crediholic".

Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009

Re: I would like opinions on using personal loan to consolidate, (I was offered by Discover)

I didn't give you much of an answer before. Can you give us an invetory of the debt each of you have and what TL's would like to move to the installment loan (source, amount, APR)? Include everything. Then I will offer you an opiion. This could be a very good move!
Established Member
JeremyATL
Posts: 28
Registered: ‎04-29-2009

Re: I would like opinions on using personal loan to consolidate, (I was offered by Discover)

Hi, I dont know about DiscoverCard's debt consolidation loans, but I recently last week just got one from UPBC  web:  http://www.upbcusa.com/personal-finance/consolidation-loans 

 

They approved me for a fixed rate 9.5% APR $ 28,400 debt consolidation loan for 36 months. They also approved me for a $10,000 personal line of credit which is like a credit card because it comes with a MasterCard. From their website it does not look like they offer credit cards but the line of credit they offered me is cool because it is just like a credit card, but with better interest rates.

 

So far I'm very pleased with them and there quick credit approvals, for me I applied for the debt consolidation loan and when they called me to tell me I was approved they tried to cross-sell me the line of credit by telling me I'm already approved for that product as well. I have a credit score of 688 and they only pull and report to EquiFax. As a quick note for some reason or another my personal line of credit reports under two different account numbers to EFX one is the line of credit account number and the other account is the MasterCard that is linked to my line of credit so this really helped out my UTL ratio.

****************************************************************************
As of : 5/17/2008 EFX- 695 EXP- 707 TUC- 727
****************************************************************************
Credit History : 3yrs 4mos
Current Accounts : USAA Amex =10K, USAA Platinum MC=10K,
Discover =2.5K, Amex Hilton =2K, Alliant Visa =5K, RBS Kroger
MC =6K, Chase Marriott Visa Signature Premier =5K, Chase Presidential Plus World MC =10K, AT&T MC =4K, NFCU Platinum
MC =20K, NFCU Platinum Visa =17.5K, Cabelas Visa =2K.
**Cards I Closed** : Walmart, AE Visa, & HSBC (all low CL's)
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009

Re: I would like opinions on using personal loan to consolidate, (I was offered by Discover)

Interesting. Unfortunately not appropriate for many, but if it is it could be great:

 

To apply, you must be:
  • 18 years of age or older
  • Live within the state of Georgia
  • Agree to provide additional personal and business information, if requested, such as tax returns and financial statements
  • Certify that all information submitted in the application is true and correct
  • Authorize UPBC and or a credit bureau to investigate the information on the application

This application is not intended for joint applicants, sole proprietors, other businesses or trusts. All information received by UPBC will be kept confidential.


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