Credit Cards Center Credit cards from our partners
Reply
Established Member
Posts: 34
Registered: ‎06-05-2012
0

Personal Loan to pay Delinquent Debt. Good Idea?

Do you all think its a good idea to obtain a loan to pay off delinquent debt. I am thinking of doing this.


Starting Score: 635
Current Score: 644
Goal Score: 700


Take the FICO Fitness Challenge
Super Contributor
Posts: 9,674
Registered: ‎01-28-2010
0

Re: Personal Loan to pay Delinquent Debt. Good Idea?


AprilShowers4 wrote:

Do you all think its a good idea to obtain a loan to pay off delinquent debt. I am thinking of doing this.


It's hard to know without the details of your existing debt and also the personal loan ~ things like interest rates, balances, loan terms, etc....

 

In general in can be good to consolidate revolving debt into an installment loan if the terms are favorable.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Moderator
Posts: 17,419
Registered: ‎07-14-2009
0

Re: Personal Loan to pay Delinquent Debt. Good Idea?


AprilShowers4 wrote:

Do you all think its a good idea to obtain a loan to pay off delinquent debt. I am thinking of doing this.


I agree with pizzadude. It depends on several factors. We'll need more information.

Established Member
Posts: 34
Registered: ‎06-05-2012
0

Re: Personal Loan to pay Delinquent Debt. Good Idea?


pizzadude wrote:

AprilShowers4 wrote:

Do you all think its a good idea to obtain a loan to pay off delinquent debt. I am thinking of doing this.


It's hard to know without the details of your existing debt and also the personal loan ~ things like interest rates, balances, loan terms, etc....

 

In general in can be good to consolidate revolving debt into an installment loan if the terms are favorable.


Existing debt: 2306 to hunter warfield, 340 suntrust acct, 310 att acct, 50 parking ticket, 112 to nationwide insurance, 700 to asset acceptance, 150 bal on target card, 200 on walmart card, 140 on victoria secrets card, 200 on cap one platinum card. 3900 bal remaining on cap one auto loan.

 

Now I have received some pre-approved offers from one main financial regarding a personal loan but i googled and people were saying the rates were 48 months. i have another preapprove offer for 5250 for 48 months and 26.14 apr.


Starting Score: 635
Current Score: 644
Goal Score: 700


Take the FICO Fitness Challenge
Super Contributor
Posts: 9,674
Registered: ‎01-28-2010
0

Re: Personal Loan to pay Delinquent Debt. Good Idea?

 

I don't know the terms of your loan offer from OneMain, but you might want to closely scrutinize the interest and how it is applied.

 

Here's a recent post you should take a look at also:   http://ficoforums.myfico.com/t5/General-Credit-Topics/One-Main-Loan/m-p/1478502/highlight/true#M1641...

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Blogger
Posts: 2,876
Registered: ‎02-02-2012
0

Re: Personal Loan to pay Delinquent Debt. Good Idea?

Are these all closed and negative accounts reporting on your credit report?

Follow my financial journey: http://www.frugalrican.com


EQ FICO (01/16/2012): 656 - EQ FICO (02/16/2012): 743 - EQ (02/24/2012): 760 - EX (04/28/2012): 739 - GOAL 2013: 800+

AMEX BCE (0/10K) --- BOA 1-2-3 (0/15.9K) --- Discover More (0/6K) --- Chase Freedom Visa (0/1.4K) -- Hyatt Visa Sign. (0/5.8K) -- Barclay's NFL Card (0/7.5K) -- Chase Sapphire Preferred (0/5K)

Established Member
Posts: 34
Registered: ‎06-05-2012
0

Re: Personal Loan to pay Delinquent Debt. Good Idea?


pizzadude wrote:

 

I don't know the terms of your loan offer from OneMain, but you might want to closely scrutinize the interest and how it is applied.

 

Here's a recent post you should take a look at also:   http://ficoforums.myfico.com/t5/General-Credit-Topics/One-Main-Loan/m-p/1478502/highlight/true#M1641...


I meant to say I googled that the rates for one main financial are 36% Smiley Indifferent


Starting Score: 635
Current Score: 644
Goal Score: 700


Take the FICO Fitness Challenge
Established Contributor
Posts: 586
Registered: ‎07-20-2008
0

Re: Personal Loan to pay Delinquent Debt. Good Idea?

Since your credit score is 640+ I STRONGLY suggest you try for a Prosper (prosper.com) or Lending Club (lendingclub.com) loan OVER any and all other financial institutions.  Peer to Peer lending is amazing and more people should try them.  

 

Not too many people know about these and I'm a lender on Lending Club, have had a previous prosper loan.  

Sigh... Starting over... OpenSkycc $300 08/15 *Chap7 discharged 7/29/15
Senior Contributor
Posts: 3,491
Registered: ‎07-25-2008
0

Re: Personal Loan to pay Delinquent Debt. Good Idea?

I'd try a bank or CU before jumping on a high interest loan. On top of that, I'd research the bejesus out of the companies here to see how/when/if people had success with PFDs and find out exactly how they can be repaid without further harm to your credit.

 

There are times people figure interest rates don't matter, they think the score rebound will net them a cheaper BT option. Addressing the bad debt incorrectly will make that pretty much impossible.


Starting Score: 675
Current Score: EX 753 FICO, EQ 737FICO, TU 738
Goal Score: 776 FICO


Take the FICO Fitness Challenge
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.