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Consolidation Loans

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babbles
Established Contributor

Consolidation Loans

When does one consider a CL?  What debts should be rolled up?  I have a high Debt ratio but oustanding credit which may be my issue in getting one.  Debt income is above 50%.

 
 
Message 1 of 14
13 REPLIES 13
youdontkillmoney
Valued Contributor

Re: Consolidation Loans

You CL when you can package all your loans together and have a single lower overall interest rate, plus there is convenience of making a singl payment.

Message 2 of 14
Anonymous
Not applicable

Re: Consolidation Loans

be carefull who u use I almost got coned once but caught on and could back out.

Message 3 of 14
babbles
Established Contributor

Re: Consolidation Loans

With high debt ratio and great credit, is it worth attempting? I was going to apply with my wife and she has a much lower DIti @ about 25% or so. We both have outstanding files but I'm almost afraid I may be the one who pulls us down. My DIti is about 70%
Message 4 of 14
Anonymous
Not applicable

Re: Consolidation Loans

It won't hurt to do a little checking to see what kind of rate you can get. Both Prosper and Lending Club are soft pulls for the approval process. If you go through with a Prosper loan, it becomes a hard pull. A Lending Club loan remains soft.

Message 5 of 14
babbles
Established Contributor

Re: Consolidation Loans

Is it possible to get a joint consolidation with your spouse??   Also, does the lender look at what your debt to income would be after the consolidation or before the CL??  Thanks.

Message 6 of 14
Revelate
Moderator Emeritus

Re: Consolidation Loans


@babbles wrote:

Is it possible to get a joint consolidation with your spouse??   Also, does the lender look at what your debt to income would be after the consolidation or before the CL??  Thanks.


Both.  Not certain on the joint loan, probably?  Depends on lender, would talk to a CU in particular regarding that one.

 

Are you certain you're using the correct DTI calculation?  Or are you suggesting that's your revolving utilization number?  Very big difference when we're talking underwriting a loan, and I am a little confused based on your statements and it's really hard to get to a DTI of 70% without being seriously cashflow negative (like impending BK level unless you have a large asset base) if you're referring to the standard Debt-To-Income ratio used in mortgage lending. 

 

You mentioned you have a strong file, do you know what your FICO scores are?  I'd second CAPTOOL's comment of it wouldn't hurt to check Lending Club and similar.

 




        
Message 7 of 14
babbles
Established Contributor

Re: Consolidation Loans

Sorry for the confusing information on my post and appreciate the reply.  My scores are up about 746 or so across the board with a debt ratio of 69%.  NFCU called me back late last night after I posted to their FB page and commented that they will take off the things I am consolidating.  My wifes scores may be a little higher and debt income of 19%.  She's willing to do whatever for us but I am scared to raise her debt income even though I will be paying back anything we take out and on time!   I used the debt calculator on bankrate.com.   My cash flow would be our rental homes and retirment and disablility pay if that counts. 

Message 8 of 14
Anonymous
Not applicable

Re: Consolidation Loans


@babbles wrote:

Sorry for the confusing information on my post and appreciate the reply.  My scores are up about 746 or so across the board with a debt ratio of 69%.  NFCU called me back late last night after I posted to their FB page and commented that they will take off the things I am consolidating.  My wifes scores may be a little higher and debt income of 19%.  She's willing to do whatever for us but I am scared to raise her debt income even though I will be paying back anything we take out and on time!   I used the debt calculator on bankrate.com.   My cash flow would be our rental homes and retirment and disablility pay if that counts. 


Do you mean that 69% of your monthly gross income goes to servicing debt? Does that include a mortgage payment? That's what debt to income ratio means. Or do you mean that you are currently utilizing 69% of your credit card limits?

Message 9 of 14
babbles
Established Contributor

Re: Consolidation Loans

Yes that does include mortgage payments and I am high in credit card usage. I need another year to get those homes off me.
Message 10 of 14
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