Installment Loan at a 620 fico?

adamkingadam · ‎03-16-2016

Anybody have any luck with finding a reasonable apr for an installment loan with a fico at 620? I want to consolidate my CC debt but the rates I have been quoted so fare are above my CC apr's. Thanks!

Starting Scores: 1/1/2016
EX 600 EQ 598 TU 610
Current Fico Scores (9/2016):EX: 674 EQ: 678 TU: 689

Anonymous · ‎03-16-2016

Just "620 FICO" alone is hard to tell (which model? where did you get the score from? how's your overall debt/credit situation?).

With the assumption that you're in financial distress and all of your credit cards are used more than 50% or so, I would say that there's no way you can find an installment loan on the internet that offer favorable rates. Your best bet would be a credit union. Many of them offers fantastic BT credit card and/or installment loan options.

Edit:

DCU, for example, offers up to $25,000 at as low as 8.75% APR for 60 months.

https://www.dcu.org/loans/personal.html

If you want better advice you gotta give more details

Anonymous · ‎03-16-2016

The above poster is correct, I would say a credit union is probably your best bet. One that we have out here is 9.5% fixed interest - and their credit requirements are extremely laxed in my opinion. I have their credit card also which allows free cash advances on any amount up to my credit limit at 9.5%. If I ever get overextended and can't pay off the entire monthly balance in full, I get a new card with 0% APR on purchases. Instead of spending on my cards accruing a balance, I put puchases on the new cards and pay off the old ones. Basically its a free way to do a balance transfer to a 0% card, but it only works if you spend more on your credit cards monthly than you have in balances - or you have multiple 0% APR cards. If you can get approved for a couple of 0% cards - make all of your purchases on those cards and use your cash saved to pay down the balances with any APR.

adamkingadam · ‎03-16-2016

@Anonymous wrote:
Just "620 FICO" alone is hard to tell (which model? where did you get the score from? how's your overall debt/credit situation?).

With the assumption that you're in financial distress and all of your credit cards are used more than 50% or so, I would say that there's no way you can find an installment loan on the internet that offer favorable rates. Your best bet would be a credit union. Many of them offers fantastic BT credit card and/or installment loan options.

Edit:
DCU, for example, offers up to $25,000 at as low as 8.75% APR for 60 months.
https://www.dcu.org/loans/personal.html

If you want better advice you gotta give more details

Thanks for the reply! That score was based on a equifax denial from sofi. My scores from this service range from the 620-630 range.

The reasons for the installment loan are twofold, 1. Reduce 5,000 in CC debt to a single payment and less interest. 2. Have an installment loan on my credit profile to improve the types of credit on my CR.

Yes my UTI on the CC's is fairly high at the moment.

Starting Scores: 1/1/2016
EX 600 EQ 598 TU 610
Current Fico Scores (9/2016):EX: 674 EQ: 678 TU: 689

adamkingadam · ‎03-16-2016

@Anonymous wrote:
The above poster is correct, I would say a credit union is probably your best bet. One that we have out here is 9.5% fixed interest - and their credit requirements are extremely laxed in my opinion. I have their credit card also which allows free cash advances on any amount up to my credit limit at 9.5%. If I ever get overextended and can't pay off the entire monthly balance in full, I get a new card with 0% APR on purchases. Instead of spending on my cards accruing a balance, I put puchases on the new cards and pay off the old ones. Basically its a free way to do a balance transfer to a 0% card, but it only works if you spend more on your credit cards monthly than you have in balances - or you have multiple 0% APR cards. If you can get approved for a couple of 0% cards - make all of your purchases on those cards and use your cash saved to pay down the balances with any APR.

In your opinion, would an existing relationship with the CU need to be in place prior to applying for a personal loan through them?

Starting Scores: 1/1/2016
EX 600 EQ 598 TU 610
Current Fico Scores (9/2016):EX: 674 EQ: 678 TU: 689

Mdg1307 · ‎03-16-2016

Please do share this credit union
How are they about high utilization?

takeshi74 · ‎03-17-2016

@adamkingadam wrote:
Anybody have any luck with finding a reasonable apr for an installment loan with a fico at 620? I want to consolidate my CC debt but the rates I have been quoted so fare are above my CC apr's.

It's never just about score though the score was generated based on your Experian report data. Keep in mind that creditors do not all use Experian. The issues with your credit profile including high revolving utilization are going to work against you as far as qualifying in general and getting good terms. Your credit profile not only determines approval but things such as rates and limits with revolvers. A CU with easier approval criteria is probably your best bet but even creditors with lax approval critieria aren't just just going to overlook significant issues. See if there's anything that you can address. Is your Payment History 100% without any derogs? If not, hit the Rebuilding subofurm.

If you can't qualify for the rate you desire then you may just have to get your revolving utilization down. If you haven't addressed the reasons why you have high revolving utilization then that may not be a bad thing as you really don't want to rack it up again after transferring your prior revolving debt into installment.

Anonymous · ‎03-18-2016

@adamkingadam wrote:
@Anonymous wrote:
The above poster is correct, I would say a credit union is probably your best bet. One that we have out here is 9.5% fixed interest - and their credit requirements are extremely laxed in my opinion. I have their credit card also which allows free cash advances on any amount up to my credit limit at 9.5%. If I ever get overextended and can't pay off the entire monthly balance in full, I get a new card with 0% APR on purchases. Instead of spending on my cards accruing a balance, I put puchases on the new cards and pay off the old ones. Basically its a free way to do a balance transfer to a 0% card, but it only works if you spend more on your credit cards monthly than you have in balances - or you have multiple 0% APR cards. If you can get approved for a couple of 0% cards - make all of your purchases on those cards and use your cash saved to pay down the balances with any APR.
In your opinion, would an existing relationship with the CU need to be in place prior to applying for a personal loan through them?

No, I applied and was approved for a loan with them without an existing account. I did have to open an account with a $50.00 deposit. The CU that I am talking about is Hughes Fed Credit union in Arizona.