NetCredit Loan

[dicemoney6]

I'm in a situation, I got a approved for a loan with NetCredit for $8000 at just under 35% apr. I have a few high cc balances which are hurting my credit score right now. I also have a couple loans I want to pay of to consolidate so I can free up more money every month. What I was planing to do is to get the loan and pay everything off to bring my credit up, then once my credit score goes up, possibly get the Netcredit Loan refinanced at my credit union for the amount due and pay it off so I wouldn't have to worry about paying so much back in the long run. I was also thinking, once everything is paid off, I would get offers for balance transfers with 0% for 18 months and I could use those to pay it off but I figured the personal loan would be better because it would just be a new installment loan which would help me build credit rather than another card carrying a high balance. I wanted to know if anyone has ever dealt with NetCredit before and if how they report would hurt my score? I also plan to check to make sure is it a simple interest loan, and to verify the is no prepayment as this was all stated when I was approved but I call tomorrow to verify. Any help or feedback would be great, thanks in advance.

[Anonymous]

Unless those CC balances and loans you're going to pay are 30% or more interest rate already, you're not doing yourself any favor by borrowing more at 35%. IMO, doing this is just digging the hole deeper.

If it was a more reasonable interest rate, like 15% or less (or lower than the combined interest rates of the money you want to pay off) then it might be a good idea. But not at 35% - thats borderline loanshark rates.

We might be able to suggest a plan if you list all of the cc balances, limits and the installment loan balances and payment, as well as what you have leftover each month to throw at this monster. 

[dicemoney6]

Even if I'm just using it short term to pay down accounts raise my credit and refinance the loan with a year? I have a $300 car payment of ($1500 balance) , and 150$ personal loan ($1700 balance) . I have about 400$ a month in credit payments, have a Barlcaycard with a balance of $1644 (Limit $1800)(22.99%APR) Walmart $2175 (Limit $2280)(22.90%APR) Lowes Card of $960 (Limit $970)(24.99 %APR). I've tried a few credit unions and have been denied. I even tried to reapply with a cosigner and still got denied. I have other monthly bills as well, so I only have maybe $100 extra that cold sometimes go to the loan. I am also looking for another job to help get everything down but I just feel like this would give me a bit of breathing room but I don't want to put myself in a terrible situation

[Anonymous]

Thing is, there is no guarantee that paying those balances down will get you to a point that you *would qualify* for a lower interest rate loan. You could very well end up worse off than before.

You need to look at WHY your scores are so low and address that first. Yes, your UTI% is very bad, but I suspect there is more at work here than just high UTI%

Am I correctly seeing that your car will be paid off in about 5 months? ($1,500 balance). If so, lets look at a one year "debt snowball" plan using that. Throw an extra 100 dollars each month on that, and its paid in four months. Ok, so now we have $400 a month 'extra'. The personal loan would be next - in four months it should have a balance of less that $1200 - with an extra 400 on it, its gone in three months, with $200 extra in the third month to put toward Lowes (month 7 of the plan). OK, now you've got $550 a month extra - Lowes Card is paid in two months, with at least $300 left to put on something else. OK, now in nine months we have freed up about $600 a month just on your current income. By the end of the twelve month plan you've got the car, the personal loan, Lowes and Barclays paid off, and at least $600 a month to attack the Walmart balance with. Three more months and its gone. All without taking out a ridiculously high interest rate loan.

[dicemoney6]

I understand, and I am kind of leaning towards what you are saying. The reason I feel that my score will go up it because that is pretty much all this on my credit right now, I also have 2 late payments for someone I co-signed for within the last 12 months which is also hurting me (is there anyway to get that removed because it it not my loan?), my score is around 622 TU, about 590 for the other because they report more. I also forgot about my student which comes out of deferrment in January, so I'm not sure if I will have that extra 100$ because my payments $237 a month. I will try to see if I can deferr them again. Thanks again for all the help, I really appreciate it.

[Anonymous]

Ouch - multiple lates within 12 months are probably hurting as much or more than high UTI. Unfortunately, thats the risk of being a cosigner. GW requests would be the only way to remove them, and its difficult enough to get your own removed, much less a cosigner. You can ask, and the worst they can do is say no. Then you ask again, and again, and again....until they say yes, or you get tired of asking. Its usually like a staring contest, first one to blink loses...

Good luck with the deferment, I've no idea how hard that is. Getting it, even for another 12 months will make a huge difference.