Our Chances of a Personal Loan

[Anonymous]

My husband and I decided to take a personal loan to pay off his student debt. We need 6,000 to be done with it permanently.

Our financial situation is the following:

I have no debt, no collections, FICO between 718-726 ( short history, not a diverse portofolio).

Him - student debt, one account in collections (less than 300 dollars, but the collection company is shady from what I've seen - more than willing to pay and get it done with), we only know one FICO score, which is 636 (just dropped 30 points because that collection popped up). He is rebuilding.

We are both employed, making 70,000 a year. Paying 800 a month for rent.

What do you think our chances are at getting that 6 k at a resonable rate?

[manyquestions]

What is the rate on the student loan? 

[takeshi74]

---

@Anonymous wrote:

What do you think our chances are at getting that 6 k at a resonable rate?

---

No idea as we're not loan underwriters.  However, chances and terms will be better without that collection. Carefully research in the Rebuilding subforum to see if anything can be done about it.  Pull all of his reports, carefully review and see if anything else can be addressed before applying.

[Anonymous]

You can test the waters for a loan without incurring a hard pull credit inquiry. Payoff.com, Sofi.com, Prosper.com, LendingClub.com, Avant.com, Upstart.com, BestEgg.com, and PromiseFinancial.com are all soft pulls to see if you qualify, how much you can get, and at what APR.

[Anonymous]

Know also the credit reporting agencies each loan people use so u spread out the risk

Avant/Promise Financial/Lending Club/SOFI/ use TU

Prosper: Experian

More importantly, if the loan rates are so high (which actually is very likely with AVANT/Promise Financial) then forget it.

Avant told me they tried verifying the banking information and did not see any deposits of income and hence rejected the loan.

in fact, they told me they couldn't verify or my bank wouldnt verify the login info. Its USAA bank.

[Anonymous]

---

@manyquestions wrote:

What is the rate on the student loan? 

---

+1 If it's an actual student loan and he's been in school recently, it's likely at a lower % than any kind of PL you'd get even with better scores. I finished grad school in the 90's (eek) and my SL debt was at 6 or 8%. I refi'd with SoFi for 4+% a couple years ago. (I was treading water on that debt for many years, but am finally crushing it.) But DH just finished school a couple years ago and his debt is at 2+%. No hurry to pay that down. 

If you decide to do something to refi it, with his scores, one question that will come up is are you willing to take on HIS student loan debt solely on YOUR credit. That would (potentially) get you the best rate because of your score differentials. But do you want to be saddled with that? 

How long are you thinking it'll take you to pay it off? I'd do lots of calculations as to what kind of $ you'd be saving by doing something with it vs. just being dilligent and getting it paid down. It's not that big, even with a not-great rate, you'd probably be ahead just sucking it up and paying it as quickly as you can. (Unless by student debt you mean it's tuition on a CC at 29% or something.) 

[Anonymous]

1) how much are you paying now 

2) what's the rate

i always try to get away with the least amount of $$ with anything.

if you are in a state where you can put your husbands income along with yours, I would apply for slate (it's 70k combined and not 70 each right?)

At 15 months, you'll have to dedicate $400 a month to it to pay it off BUT that's at 0% interest and 0 transfer fees. There are other lenders that will give you a bit more time (citi at 18 months) but, there is 2-3% transfer fee which may not be worth it.

I kind of did a quick math assumption of gross 70, tax around 30, so take away is 49k a year / 12 is roughly 4083 - 800 and again 400 = 2883, definitely a doable # for you guys to work with in paying bills, retirement and savings.

if you have a higher income when applying with chase (I would do it under you obviously) you have a good shot at getting a higher CL, high enough to get the full 6k transferred over