Needed advice please!! Personal loan to then refi

[Anonymous]

Hey everyone. So my husband and I are in a little over our head with the cc it's not anything nuts but it puts pressure on us monthly we have about 60,000 in equity of our home. So we decided let's do a cash out refi up to 80% ltv which would give us about 27,000 cash. So I spoke to our bank and the problem is our bathroom is gutted because it needed to be redone but we haven't had the funds to do so. It's small so probably only need about 4000 to get it up and going. So the appraisal wouldn't go through without it being done. The loan officer told me to do as followes...go to lending club. Get a personal loan for 17,000 fix bathroom and pay off credit cards in 30 days. Once that has finished allow for the credit score to rise to get above 700 then we will get the appraisal and the refi done because it will put me into a better interest rate being about 700 as well which will only make my mortgage payment 46.00 more then I am paying now because by doing the refi it will remove my mortgage insurance I am currently paying. When I get the cash back from the refi then we will pay off the personal loan and my husbands truck payment and only be left monthly with our house and utilities. Saving about 700.00 a month in expenses. I feel a little nervous about doing the personal loan we were pre qualified with lending club when I went online but apr is high. Loan officer said don't worry about the apr because we are going to turn around and pay it off. So I'll only have to make 1 or 2 payments on it. Our scores right now are all between 654-676-660 Does anyone see the personal loan and us paying off the cc effecting the credit badly instead of positively ? I don't want to be stuck with a high payment on top of everything else? Thank you guys in advance!!!!!!

[medicgrrl]

Leaving one card with a small balance of $10 will help your scores. Without knowing balances on CL on each card, it's hard to say how much it will help.

[Anonymous]

There are no baddies on our CR and no charge offs or collections. Clean file

Cc are as follows

Venture1. 4,279. Cl 5300.
QS. 2,159. 2500
BOA. 1,168. 2500
Gander. 206. 860
Credit one. 552. 1350
Kohl 919. 2500
Dicks. 374. 4300
Hi Gregg 1,410. 4000
Rooms2. 858. 4000
Car care. 2,178. 4300

All paid on time.

[Anonymous]

Sorry if that's confusing I am on my phone

[medicgrrl]

If you paid all of those off and left a small balance on 1 card, you should see a very good increase in scores. Your overall utilization is ~45% so you have two scoring thresholds you'll cross there, not to mention having high utilization on a few of the cards.

I think you'll be able to get your middle score over 700 if those were your mortgage scores you've got listed above.

[medicgrrl]

YMMV but here's what I experienced last week on my TU which is my clean report. I went from overall utilization of less than 9% to overall utilization of 21%. This was based on 1 card updating with a balance of 45% of it's CL. I lost 23 points. I think you'll achieve your goals with the LO's plan.