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Question about CC debt consolidation

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vbulljon
Valued Member

Question about CC debt consolidation

My FICO is 592.

 

 

 

Hello, first post here.

 

This is my debt outline at the moment.

 

16k Student loan debt through uncle sam.

 

3.6k CC debt. 

 

 

 

and thats it.

 

 

Make $19,000 yearly after taxes

 

 

I want to consolidate just my CC debt but nobody wants to loan it to me. 

 

 

What could be other factors that are keeping them from loaning that to me?

 

oldest CC account is 3 years, never missed a payment, but I do have like 10 inquires waiting to fall off because I was un aware of the hard pulls. (my fault, should have not messed around with my credit before learning about it first).

 

 

Is it the inquires holding me back? Or does that matter? If so how bad?

 

 

Thanks for the future advice!


Starting Score: 592
Current Score: 596
Goal Score: 680


Take the myFICO Fitness Challenge
Message 1 of 5
4 REPLIES 4
notfancy
Valued Contributor

Re: Question about CC debt consolidation


@vbulljon wrote:

My FICO is 592.

 

 

Hello, first post here.

 

This is my debt outline at the moment.

 

16k Student loan debt through uncle sam.

 

3.6k CC debt. 

 

and thats it.

 

Make $19,000 yearly after taxes

 

I want to consolidate just my CC debt but nobody wants to loan it to me. 

 

What could be other factors that are keeping them from loaning that to me?

 

oldest CC account is 3 years, never missed a payment, but I do have like 10 inquires waiting to fall off because I was un aware of the hard pulls. (my fault, should have not messed around with my credit before learning about it first).

 

Is it the inquires holding me back? Or does that matter? If so how bad?

 

Thanks for the future advice!


Hi there and welcome to the forum.

 

It sounds like a number of things are affecting you. To start at the top- your credit score is seriously holding you down. Do you feel comfortable discussing why? What negative tradelines you have, late payments elsewhere, etc? High UTL is also going to hurt your score.

 

The inquiries definitely don't help, because it makes it appear that you're desperate for financing even if you are not. How old are they? How many credit cards do you have total? What are the balances compared to the limits? When were each of them opened?

 

Perhaps we can help you come up with a more comfortable repayment plan if you can not consolidate, because a loan looks unlikely right now. What are your interest rates, and minimum payments? What is your total debt outside of credit? (Rent, utilities etc,) Do you have an auto loan?

 

With more information, we can offer more targeted help. Good luck to you!

625 EQ FICO Current Score: 660 DCU EQ FICO/ 645 Scorewatch EQ FICO , EX FICO 664, TU FICO 737 (08/2014)
Goal Score: 700   Seedling again as of 07/29/14
Message 2 of 5
vbulljon
Valued Member

Re: Question about CC debt consolidation

Hey, thanks for the prompt reply.

 

There has never been a late payment reported against me, all on time.

 

I have 4 CC's and they all are maxed out, total debt equals $3,600.

 

My oldest account is 3 years old, average of all accounts is 1 year, youngest account is around 8-12 months I think.

 

My monthly payments with just the CC's is $129 a month, thats the minimum payments. I usally try to do more though.

 

 

 

 

My thinking was, sense my Credt usage is at 100%, get a unsecured loan to pay off that balance to show it at 0% and to have a unsecured loan I am paying back. Would this hurt or benifit my score if I was approved?

 

 

Also, no car loan.

 

 

Thanks!


Starting Score: 592
Current Score: 596
Goal Score: 680


Take the myFICO Fitness Challenge
Message 3 of 5
coldnmn
Mega Contributor

Re: Question about CC debt consolidation

Welcome to the forum! Unfortunately with your credit score, utilization at nearly 100% and your income it would be impossible to get a unsecured loan or credit card in my opinion. It's the old banker if they don't need it then we give them credit. Especially after the credit meltdown of 2008. In order to get more unsecured credit you will have to get your utilization down. Good Luck!

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Message 4 of 5
notfancy
Valued Contributor

Re: Question about CC debt consolidation


@vbulljon wrote:

Hey, thanks for the prompt reply.

 

There has never been a late payment reported against me, all on time.

 

I have 4 CC's and they all are maxed out, total debt equals $3,600.

 

My oldest account is 3 years old, average of all accounts is 1 year, youngest account is around 8-12 months I think.

 

My monthly payments with just the CC's is $129 a month, thats the minimum payments. I usally try to do more though.

 

 

My thinking was, sense my Credt usage is at 100%, get a unsecured loan to pay off that balance to show it at 0% and to have a unsecured loan I am paying back. Would this hurt or benifit my score if I was approved?

 

 

Also, no car loan.

 

 

Thanks!


I agree with Cold. With your income, scores and having all accounts maxed out, you're very unlikely to get approved for anything, unfortunately. A credit union might consider it, but again, very unlikely.  If you could consolidate to an unsecured loan, yes that would help your score significantly.

 

Your best bet is to try and get them all paid down to at least 60% and then try to get a CLI from each card's bank. It might not work, but if you can get a CLI, it would help your UTL significantly. You said that you usually try to do more than the minimum, and that is a good thing, but in your case, it sounds like you're struggling to keep up.

 

You definitely want to pay double to triple of the minimum if you can, but in the same token, you can not then go and recharge stuff onto that card. Can you stash a couple of them away so you're not tempted to use them? I know somewhere on this forum is a wonderful payoff thread / challenge. Posting there might give you the ideas and encouragement that you need.

 

You said that you make $16k after taxes, which means you pull in about 1300 per month. If you put $387/month on your ccs (triple the minimums) that will leave you with $913 for any other bills that you have (about 228 per week) can you live off of that? Pinch a few corners, go out less, etc? If you can, you'd have your debts paid off in about 9-10 months, assuming that you stop charging on them. It will take a lot of discipline and it will not be fun, but for your long term financial health, making a budget, sticking to it, and being careful with your spending will cause your inquiries to age off (no more applying for anything during that time) and your scores will improve in a big way. You also want to save on interest as much as possible.

 

Some people like the snowball method, where you pay off one card at a time (highest interest, or card with the smallest balance) and then as a card is paid off, increase the amounts paid onto the next card, til all the debt is gone. What are the 4 cards that you have? What are each card's limit and balance? What are the interest rates and minimum payment per card?

 

I hope we can help! Good luck to you!

625 EQ FICO Current Score: 660 DCU EQ FICO/ 645 Scorewatch EQ FICO , EX FICO 664, TU FICO 737 (08/2014)
Goal Score: 700   Seedling again as of 07/29/14
Message 5 of 5
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