Pre-Approved for Unsecured Loan to Pay Cards,Yes/No?

[bodine1231]

I've been pre-approved by my bank for an unsecured loan for $7500 @19% interest ($275mo/36mo) to use towards paying my cards. They said I'll have to close these accounts as part of the loan aggreement. I'm just wondering if this would be a better route than paying them off using,say the snowball method. 

Right now I have around $9000 in cc debt. I have ~$3000 in savings that I could put towards paying off 2 of the cards fully. I also got pre-approved for a no interest transfer card for $1000 for 10 months which could be used as well in paying the remaining balance. 

*Cards and Interest rates*

Barclay - $4600 (140mo/23%)

Capital One - $1700 ($81mo/25%)

Amazon - $800 (26%)

Best Buy - $1700 (0 interest for 13 more months)

[Anonymous]

Have you shopped around for a consolidation loan, or is this the only one you've looked at? You may be able to do better than that APR if your scores are decent and your overall profile is good. There are many web based lenders that are only a soft pull to see if your qualify. Payoff.com, Sofi.com, Prosper.com, LendingClub.com, Avant.com, Upstart.com, BestEgg.com, CircleBackLending.com, Pave.com, LoanDepot.com, and PromiseFinancial.com are all soft pulls to see if you qualify, how much you can get, and at what APR.

[Creditaddict]

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@bodine1231 wrote:

@I've been pre-approved by my bank for an unsecured loan for $7500 @Anonymous% interest ($275mo/36mo) to use towards paying my cards. They said I'll have to close these accounts as part of the loan aggreement. I'm just wondering if this would be a better route than paying them off using,say the snowball method. 

Right now I have around $9000 in cc debt. I have ~$3000 in savings that I could put towards paying off 2 of the cards fully. I also got pre-approved for a no interest transfer card for $1000 for 10 months which could be used as well in paying the remaining balance. 

*Cards and Interest rates*

Barclay - $4600 (140mo/23%)

Capital One - $1700 ($81mo/25%)

Amazon - $800 (26%)

Best Buy - $1700 (0 interest for 13 more months)

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NO!

Check credible.com sofi.com avant.com to see what you get offers for there on interest rates and approvals (all are sp untiil you choose an offer and move forward with applying)

If you don't get something for less than 13-15% I would say no and take your $3k and pay off your Amazon and Cap1... I bet you if you eliminate a couple balances on cards completely you would get pre-qual for a couple new cap1 like venture 1 and quicksilver which have 0% with them or how about a discover card?

[Kevin86475391]

I agree, 19% APR on the personal loan is too high. You may be able to find a better loan rate and even if you don't qualify for one, I personally don't think this is a good enough deal to make it worthwhile. Good luck with whatever you decide.

[Creditplz]

I agree with creditaddict, I feel like the best overall route you have now is paying off your Amazon & capital one with the 3k you have. After that see if you pre-qualify for a card like Venture, maybe even try a CU out for a balance transfer.

[SouthJamaica]

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@bodine1231 wrote:

@I've been pre-approved by my bank for an unsecured loan for $7500 @Anonymous% interest ($275mo/36mo) to use towards paying my cards. They said I'll have to close these accounts as part of the loan aggreement. I'm just wondering if this would be a better route than paying them off using,say the snowball method. 

Right now I have around $9000 in cc debt. I have ~$3000 in savings that I could put towards paying off 2 of the cards fully. I also got pre-approved for a no interest transfer card for $1000 for 10 months which could be used as well in paying the remaining balance. 

*Cards and Interest rates*

Barclay - $4600 (140mo/23%)

Capital One - $1700 ($81mo/25%)

Amazon - $800 (26%)

Best Buy - $1700 (0 interest for 13 more months)

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1. Forget the loan; it's a joke. The interest is very high, and closing your credit cards will tank your scores. Just say no to that loan. Period.

2. Yes you should be using your savings to pay off credit cards, but don't worry about paying anything to zero just yet. First pay everything to 49%, then bring everything down to 29%, then bring everything down to 9%, then pay off one at a time to zero, with 1 reporting a balance of 9% or less.

3. OK to take out balance transfer card, if and only if it's a good card, but don't use more than 49% of available limit.

[myjourney]

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@bodine1231 wrote:

@I've been pre-approved by my bank for an unsecured loan for $7500 @Anonymous% interest ($275mo/36mo) to use towards paying my cards. They said I'll have to close these accounts as part of the loan aggreement. I'm just wondering if this would be a better route than paying them off using,say the snowball method. 

Right now I have around $9000 in cc debt. I have ~$3000 in savings that I could put towards paying off 2 of the cards fully. I also got pre-approved for a no interest transfer card for $1000 for 10 months which could be used as well in paying the remaining balance. 

*Cards and Interest rates*

Barclay - $4600 (140mo/23%)

Capital One - $1700 ($81mo/25%)

Amazon - $800 (26%)

Best Buy - $1700 (0 interest for 13 more months)

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If you were approved for that limit with that APR things are not as bad as they seem 

You just need to do as suggested shop around a little more for a better rate 

Good luck 

[Yepitsme]

Check SoFi it is SP to see if you qualify, then a HP if you app. I lending club offered me 18% on 15k and SoFi offered me 6% so I went with SoFi. They have been great.