Consolidating credit cards-secured personal loan

sueblue34 · ‎02-02-2018

So I called in to Penfed to inquire about home buying and I got to talking with a rep about where my current credit profile stand. I curretly have about 4 credit cards and my UTL is kind of high with total balance of about 16k. I know that I need to bring this down before entering the home buying process. She was telling me that they can give me a secured personal loan with lower APR to pay off all my cards bring my UTL down. I would have to secure it with $250 but the personal loan would not show on my credit report and I would make one monthly payment on it. Plus by eliminating the CC debt my score would increase......Just wondering what everyone's thought/experience is with this. Any advice is appreciate

Anonymous · ‎02-03-2018

wrote:
So I called in to Penfed to inquire about home buying and I got to talking with a rep about where my current credit profile stand. I curretly have about 4 credit cards and my UTL is kind of high with total balance of about 16k. I know that I need to bring this down before entering the home buying process. She was telling me that they can give me a secured personal loan with lower APR to pay off all my cards bring my UTL down. I would have to secure it with $250 but the personal loan would not show on my credit report and I would make one monthly payment on it. Plus by eliminating the CC debt my score would increase......Just wondering what everyone's thought/experience is with this. Any advice is appreciate

Is the % rate lower than the credit cards? If so and you would be good at not running the cards up again it can be a good move. paying less interest. Once your cards are at zero your credit score would rise due to less utilization.

Anonymous · ‎02-04-2018

But make sure they won't require the cards to be closed. Did this once with a personal loan years ago (was not secured) and they made even the low cards be closed. Of course this was with Community First Credit Union who are totally NOT community first with ANYTHING. Glad I moved to NFCU.

sueblue34 · ‎02-04-2018

She did say the interest the would be lower but she didn’t quote me an exact date. I hope they don’t require closing the card because if so I’d just continuing paying on time and paying them off on my own