Consolidating Student Loans & CC Debt

[cdtotten]

I currently have about $15,000 in student loans outstanding - most at 6.8% (the cap). I recently obtained a very nice Alliant Platinum CC w/ a $15,000 limit.

My question is, I know that Alliant offers student loans based on credit... current rate of 3.75%. Since they have already done the pull and allow you to use that pull for 30 days, should I ask my loan officer about taking out a student loan to pay off my current student loans and tack my CC debt into there (about $4k). It seems like moving some revolving to installment is a good thing, and going from 6.8% and 14.24% on CC to 3.75% installment would be a huge savings a month.

What do you all think?

[cdtotten]

Lots of views... any thoughts?

[MarineVietVet]

It would be worth talking to a LO about. Just make sure if you do this that you don't pile up debt on those CC's again. Then you'll be worse off than before.

From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
6/10 TU -772

You can do the same thing with hard work

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[RobertEG]

Excellent questions!

If i can first summarize your current situation, you have current installment loans totally around $15K in balance, with an installement APR of around 6.8%

You recently received a revolving line of credit with Alliance with a CL of $15K, at an APR of 14.24%

You apparently have a balance on the revolving account for $4K, giving you a current % util of revolving credit of approx 26%.

Your new CCC now tells you of an additional offer to potentially finance your existing student loans at their reduced rate of 3.75%.

You want to know whether to bite on their offer?

I have several questions/concerns.

First, but certainly not formost, I would not expect that, if you apply for their installment loan offer, that they wont do another credit check.

You have a 26% util on the revolvng account with them, and they will probably want to see what else you have done.

Dont rely on no credit pull.

Second, if they are offering this reduced rate of 3.75%, that is apparently based on the risk of investment on repayment of the student loans alone.  I doubt highly that they will let you fold existing revolving debt, especially if it is owed to them, into the grant of any installment loan at a lower rate,

Third, you will have to qualify for the new installment loan.  Their offer of its availability is not an assurance of approval.  Approval of a CL limit of $15K is not an instant payment out of their pocket of $15K,  Approval of a new installment loan of $15K is an immediate hit to their wallet.

I think your plan and logic is good, but I dont see it being a gimme.

[cdtotten]

Thanks for your response Robert.

Let me correct a couple things you had inferred:

The Alliant CC I just opened has a 10.24% rate, and the $4,000 in CC debt I have is not with them... it's with AMEX. Everything else you stated is correct.

It has apparently become a well known fact on the boards, and directly from the loan officer, that with Alliant, any hard pull for a credit product can be used for up to 30 days for any other credit product... i,e. you take out a CC, you can also open a car loan at the same time no extra pull.

They also just cut you a a check for whatever amount your student loan is, you can use the funds as you want. My question is simply if theres anything I am missing moving higher interest debt to lower interest with no fee?