cancel
Showing results for 
Search instead for 
Did you mean: 

Debt consolidation

tag
five22bags
Member

Debt consolidation

I'm in the process of cleaning up my credit report and it is going swimmingly. I've gotten some deletes and some late payments removed, etc etc. There are still a few negatives on there but there are ZERO collections (yay!). The main thing that is hurting my score is my available credit, as a percentage (not as an amount). I have a $2,700 balance on a $3,000 limit credit card. I am chipping away at it slightly, and payments have not been late; I have been treading water on this. I would of course like to see a jump in my credit score, because my car lease is up soon. I am confident that I will be able to lease again, but I'm shopping for a better interest rate.

 

I've read plenty of posts on here and other forums, and I know that $2,700 really isn't that much in the face of people with 10s of thousands of dollars owed to CCs. I'd like to pay this off all at once, and I was thinking a debt consolidation loan, but I fear that I would be required to close my only CC to do so (I know a lot of those types of loans require you to close the account you're paying off). So, should I seek out a debt consolidation loan? I ama Bank of America customer, and have been for a while. There are also credit unions in the area.

 

First, should I go to my bank to get a loan? Or a local credit union?

Second, should I ask specifically for a DC loan? Or should I just call it a "personal loan" so that its just money to do with as I please (which would of course be to immediately pay my CC bill in full)?

 

Thanks for your insight!

Message 1 of 4
3 REPLIES 3
newstart2010
Blogger

Re: Debt consolidation

Is there a reason why you don't want to just continue to chip away at it?  a new loan means an inquiry, a new trade line, and those two things could drop your score some.  Is there a major purchase you are trying to work towards to want this quick jump?
I live my life like I type, fast and with a lot of mistakes.
Spacebar broken. Watch for finger.

02/04/2015 || TU 08: 728 EX 08: 709 EQ 08: 748

Message 2 of 4
five22bags
Member

Re: Debt consolidation

Yes. I mentioned in the post that my car lease is up soon and I'll need to get another car.
Message 3 of 4
newstart2010
Blogger

Re: Debt consolidation

Don't know why I missed that.  Sorry.

 

Well, an inquiry for a loan can cause a drop on the score.  Also opening a new trade line can cause a drop sometimes.  It depends on what all is on your credit in total.  If you really want to consolidate i would suggest a credit union, and asking for a personal loan so they do not force you to close the credit card, like you were talking about.  A credit union is always going to be a more stable bet.  YMMV.  Someone might have a differing view.

I live my life like I type, fast and with a lot of mistakes.
Spacebar broken. Watch for finger.

02/04/2015 || TU 08: 728 EX 08: 709 EQ 08: 748

Message 4 of 4
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.