Personal loan to pay off remaining CC debt

[amieric88]

After the loan yes it should drop to about 0%

[pizzadude]

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@amieric88 wrote:
If I pay off the rest of the utilization with a lower rate loan, then ill be right about 5%Uti

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@I'd expect your FICO scores to reflect a nice bump if your %util drops that low.    So NFCU will loan you enough @Anonymous% for 60 months ?

[enharu]

Are you planning to apply for any new loans / credit besides this personal loan?

Are the cards presently in any 0% apr promo period, and if they are not, what's the lowest and highest apr rates?

What's the dollar amount of the debt itself and what's your income around?

Getting a personal loan to pay off revolving debt will help your scores, but what's important right now isn't your scores, unless you plan to get a mortgage or something. You should instead focus on how to minimize the amount of interest fees you are getting charged. All this is also based on the assumption that you can get approved for a loan for that amount of money at a reasonable rate. It will also depends on your current DTI ratio.

[amieric88]

I do want a mortgage by the end of next year. But right now my income is good. My DTI is 20% (on account of CC payments) and my interest rates are from 19-25%. NFCU (who my largest limits are with) advised they will not lower it on request and they randomly review the account and will raise/lower as they see fit. And my other cards are so old that if I closed them out It would be credit suicide; but cap1 won't lower my rates. Either way the only option is to get a fixed rate where I can pay it back quicker and easier than various dates through the month. But rebuilding my credit after a terrible and devastating 2008 my options are limited. Trying to get back to the 800 club

[amieric88]

And to the loan question in addition - either refi my ridiculous auto loan to a lower rate and no Co-signer or trade the Bish in and get a new car

[E78K]

First post, I apologize if it needs bump etc...  My situation is similar.

If the answer is just to pay down the debt, please do not respond as I know that is the best option.  I am just looking to see if another option will help.

A few years back I was advised, ' to close credit cards and work off one or two as this will increase your score'  as we all know that was dumb advice.  My debt to income is now destroyed.  My score went from 760s to around 625. 

The only bad issues I have: 

1. 60 day hit for missing payment back in 2010, this was paid in full. 

2. I set up a payoff on an old car lease in 2010.  Not realizing how it would affect my credit. I have since paid it in full as of 2011.

My cards:

NFCU card Limit 20k owe 16 k

USAA 16k owe 12k

I already own a home and two cars.

1.  Consolidate with a loan, BTW my house appraised for 10k less than what I owe so home equity is not applicable.

2. Take one day and as mentioned on this site, apply for a bunch of cards in order to increase my available credit.  I assume I will be denied for most cards and will have to try and request reconsideration of the application.  Therefore I can hope to decrease the debt to income and boost my credit after the inquiries etc.. Come off the report.

Questions:

Are there any balance transfer cards out there?

Are there any lenders that help with this issue?

I appreciate the help in advance.

[09Lexie]

@E78K

Welcome to the forum. So that replies to this thread are addressed to the OP, I'm going to suggest you start a new thread. That way, replies will be addressed to your issue.

Copy your post to a new thread and I'm sure members will be ready with advice for you.

[OptimalCS]

I think it's a dangerous potential trap to take out a personal loan to repay CC debt. The fact that you are unable to pay your CC debt is a sign you've probably overextending yourself.

IMO it is unlikey that you'll be qualified/approved for a personal loan with such a high util. If you do get apporoved for a loan the interest rate would most likely mirror your current credit card rates.

My honest advise is:

1. STOP using your cards!!!

2. Focus on paying your debt off in full.

3. Revist your budget to identify areas you can cut back on. 

If you're unable to do this, you'll most likey go deeper into debt.  If you do get this loan it would only be a bandad to a bigger problem. 

I was were you are a few years ago. I was trapped in CC debt because I managed my credit poorly. I willed myself to payoff more that $25,000 in debt. You can do it!

Edit for Typo

[amieric88]

:-) thanks for the concern. I can pay for my credit cards just fine. It's not that I cannot afford it - I actually just want a fixed rate, with one payment a month vs small little payments scattered around the month. My affordability of it has never been the issue (note: if my question came off as I cannot pay it, that's not the case...) I'm wanting stability and simplicity. But - if it matters the reason why my credit cards are charged up is due to a medical reason...So my usage of the cards hasn't been frivolous. My budgets are definitely aligned. But I do appreciate your constructive opinions. Thanks.

[enharu]

Try talking to a banker to see if you can get pre approved for a personal loan. The Iraq step is to make sure they are willing to loan you that amount of money and that the rate is reasonable. If that isn't a problem and the savings is substantial, I say go for it.