Credit Cards

[aman31]

Can anyone recommend a personal loan or maybe a credit card that may lend about $5,000. I need some home repairs done and can't get an home equity loan approved. My middle score is between around 630. No recent lates or charge offs, but i have an old HSBC card that was charged off showing a date of Nov 2008, which is incorrect. Since I can't afford to pay the collection agency, I've been scared to call and try to get it corrected.

I saw a post for Alliant credit union.. is this worth a shot?

What about American General/Citi Financial?

Thanks in advance for any information.

[txjohn]

No, Alliant likes 680 and above and with a recent derog like you described, I doubt you would be approved at this time.

I would start working on the CA.  You say it is not correct, but you also say you cannot afford to pay it.  What is "correct" way it should be reported?   How much is it? 

If you are unable to pay the past debt, most lenders will not want to lend to you now.  A CO from 11/2008 is way too recent for anyone to over look it.

[aman31]

The credit card was charged off in 2005, not nov 2008. I am assuming that the new date is when it was sold to Midland Collection Agency. I could make some monthly payments, but it is is really important that I save any money that I have for home repairs instead of paying off this debt at this time. It is less than $900 total. I was several late pays in 2005, but I was able to pay everything off except for this one credit card. I now have one open capital card card and a mortgage with no lates since 2005.

[txjohn]

You may be able to negotiate a PFD for less than owed.  Sometimes when a debt is that old (4+ years), especially if beyond SOL, they will accept a settlement.

You might consider seeing if you can get it deleted for $400 to $500.  Having this gone will give you a much better chance of landing a $5k loan.

However, just a word of caution:  If $900 is giving you a difficulty in paying, be sure you have a budget and reserves before you go more in the hole with new debt.  A $5k installement at 12% APR will run you $112 to $167 per month depending on whether it is 3 year of 5 year terms.

Otherwise you may want to do the home improvements on an "as you can afford" gradual basis.  Then if there is a tight month, no worries about a mandatory payment.

Good luck and happy home repairs.  I'm doing the same now.  Just re-sodded the yard (lost the battle with Bermuda and went to St. Augustine).  Next is new tile in the kitchen.  Then painting the interior house.  Got a few fence repairs to make.  Had a hot water leak that required some fixing, cleaning, new sheet rock, etc.  Living room needs new carpet (but we are considering wood flooring).  Ah, the joys of home ownership