Personal Loan Qualification?

[thompson12]

FICO Scores:  TU 728, EQ 721, EX 721

Revolving Debt: 5%

Limits - $36,500

CC Amount Owed - $1800

** 8 Cards total - 5 retail, 3 CC

Car (6 mo), Motorcycle (9 mo), Student Loan (18 yrs) - $53000

Home Loan - $230K (9 mo)

Front end DTI - 19%

Total DTI - 31%

Credit History 18 yrs

Yearly earnings Gross - $88,168

I am looking to secure a $20K loan to (1) Pay off CC's (2) Refi Car $17K, Bike $13K, and (3) Whatever the Heck I want!!   With the loan, granted CC's paid off, my total DTI only raises to 34%.  The scores above reflect my revolving debt at 17%, as the reporting cycle has not run it's course.  Once all catches up I am sure my scores will be much higher.  Please take this into consideration when answering below.  I currently have (2) 30-day late pays 5 years ago.  That is the only blemish on my report.

I have been working really hard to raise my score, and get my DTI to a manageable level.  Have I done enough to secure the loan I want?  Please advise!!

[user5387]

I expect that you could get a loan without too much trouble, from somewhere like Lending Club, Prosper, or a local CU.

However, paying off your CCs, that have low utilization, would not benefit you much in this scenario.

If you use an unsecured personal loan to refinance vehicle loans, it's not clear exactly how you would benefit, since vehicle loans tend to have low APRs due to the fact that the loan is secured.

Perhaps I'm missing something about what you're trying to do.

[thompson12]

Well, I am just trying to secure the loan for $20K.  Let me be more specific, I know paying off the CC's is not the best idea.  So I would probably just pay the minimum due and keep them below 10% utilization.  As far as the vehicles, YES the APR is not bad and the payments are very affordable.  So, not much to do there either!  I will begin to pay them off in the coming year.  I guess I really just want to be dang sure I have all my ducks in a row before I apply for the loan!  I think I am where I need to be, and just hoping for a YES!!  I am looking for the loan to build my off road vehicle, no other reason.

[user5387]

I expect you can get a loan, with an APR somewhere around 10-20%.

Such an APR means that the loan is not really very good for refinancing vehicles, but may be good for other stuff like you mention.

I think Lending Club allows you to check out your prospects with a soft TU pull.

[thompson12]

The loan I want is from USAA and the APR is 9.99% for 72 months = 332 monthly

I guess I am just asking everyone if I have the numbers and the credit file to obtain the loan? 

No one wants to be DENIED!!

[user5387]

The 9.99% rate is the best terms, and I don't know what percentage of applicants receive this rate.

The web page says that "excellent credit" is required for this rate.  The term "excellent credit" is a vague one, but I wouldn't be surprised if USAA thought you were a notch or two below this category.

Suppose that you are approved, and the rate is higher, like 13.99%.  Would this still be a good deal for you?

Have you considered other angles like an HELOC?

[thompson12]

At 13.9% the loan may not be so desireable!  My CU was a little higher.  And YES that is my concern, that what I believe to be excellent credit and what USAA believes are two totally different things!!  I do not have the equity in my home yet, as I just purchased it and home prices plummeted!!

At 13.9%  I would probably just do a lower amount.

Thank you for your input

[user5387]

I would suggest trying to find out the details of the approval process.

For example, if you are intent on 9.99%, and they will only approve for 13.99%, can you back out without a hard pull?

Or if you ask for $20K, can they approve you for a lower amount like $10K?

The ideal situation is an "all or none" one, where you tell them the terms you want, and they either say yes or no.  But it may not work this way.

[thompson12]

Yeah, well I guess I need to make another call to them and ask about the hard pull vs. soft pull. 

They have said that there are 3 possible answers, NO, YES, or Counter offer.  A counter offer would be nice, I just dont want to hear a NO!!  Especially with all the hard work and finances I have put into getting where I am.

LOL, all or none would be ideal, however, my credit isnt that good, where I can call the shots!!