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Should I get a loan?

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Anonymous
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Should I get a loan?

I owe USAA $9400 from a credit card I defaulted on 3 years ago and I own a collection's agency $890 for damage to an apartment. My family runs a local bank so I would have no problems getting a $11k personal loan. I have a full-time federal job with a great salary and am looking to clean up those last two marks before I start home hunting in the next couple years and would zero problems paying off the loan. Also, does USAA typically offer PFD?

Message 1 of 6
5 REPLIES 5
Anonymous
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Re: Should I get a loan?

If you're salary is so great, then why take a loan? It would cost $10,290 to pay the debts, and it would cost 11k+ to pay back the loan when interest is factored in. And judging by your current scores, the interest rate given may not be the most favorable.  If possible, just save and pay off the debts since you won't be looking for a house until another few years.

Message 2 of 6
Anonymous
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Re: Should I get a loan?


@kokenwa wrote:

If you're salary is so great, then why take a loan? It would cost $10,290 to pay the debts, and it would cost 11k+ to pay back the loan when interest is factored in. And judging by your current scores, the interest rate given may not be the most favorable.  If possible, just save and pay off the debts since you won't be looking for a house until another few years.


I'm not sure where you implied my salary was great? I could certainly pay back ~$200/month for 5 years on a personal loan to take care of debt now so I may buy a home in the next 1-1.5 years though. Paying directly to the creditor via a payment plan would not improve my score immediately.

Message 3 of 6
Anonymous
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Re: Should I get a loan?


@Anonymous wrote:

I owe USAA $9400 from a credit card I defaulted on 3 years ago and I own a collection's agency $890 for damage to an apartment. My family runs a local bank so I would have no problems getting a $11k personal loan. I have a full-time federal job with a great salary and am looking to clean up those last two marks before I start home hunting in the next couple years and would zero problems paying off the loan. Also, does USAA typically offer PFD?


You said you have a great salary, so I took your words as truth. I'm saying that taking that loan would pay off the creditors, but it would also throw an extra $200/month on your DTI. Paying off the accounts or even leaving them alone would keep your DTI intact but a lender may frown on that.   Paying for an old collection may end up hurting your score as the account would probably update to the most recent month after it was paid.  PFD is your best bet as you stated, but I'm not 100% sure how USAA does their PFD's. It's usually a crapshoot when it comes PFD.  Some members here will say they have had success and others will state how they got nowhere.

Message 4 of 6
Anonymous
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Re: Should I get a loan?


@kokenwa wrote:

@Anonymous wrote:

I owe USAA $9400 from a credit card I defaulted on 3 years ago and I own a collection's agency $890 for damage to an apartment. My family runs a local bank so I would have no problems getting a $11k personal loan. I have a full-time federal job with a great salary and am looking to clean up those last two marks before I start home hunting in the next couple years and would zero problems paying off the loan. Also, does USAA typically offer PFD?


You said you have a great salary, so I took your words as truth. I'm saying that taking that loan would pay off the creditors, but it would also throw an extra $200/month on your DTI. Paying off the accounts or even leaving them alone would keep your DTI intact but a lender may frown on that.   Paying for an old collection may end up hurting your score as the account would probably update to the most recent month after it was paid.  PFD is your best bet as you stated, but I'm not 100% sure how USAA does their PFD's. It's usually a crapshoot when it comes PFD.  Some members here will say they have had success and others will state how they got nowhere.


Derp, you're right! Incredibly sorry! lol But thank you for the advice!

Message 5 of 6
Anonymous
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Re: Should I get a loan?

No worries!! I was kinda confused for a second lol.  My main point of advice is to say if at all possible, try to avoid getting into debt before applying for a mortgage. Don't wanna see your DTI get messy and mess up your interest rate.

Message 6 of 6
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