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Debt consolidation loans

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Valued Member

Debt consolidation loans

Will having a debt consolidation loan hurt my credit?  I applied for one through Navy Fed.  How will it appear on my credit report?

Message 1 of 6
5 REPLIES
Moderator Emeritus

Re: Debt consolidation loans

 


OntheHorizon wrote:

Will having a debt consolidation loan hurt my credit?  I applied for one through Navy Fed.  How will it appear on my credit report?


 

It will hurt some for having a new application for credit and a new account which affects your AAoA but the fact it is for debt consolidation won't matter at all. In my experience this type of loan will show as an installment account.

 

 

 

From a BK years ago to:
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

You can do the same thing with hard work

Credit Scoring 101
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Message 2 of 6
Valued Member

Re: Debt consolidation loans

Thank you for the response.  I was a little worried it would be considered a CFL which I have read about are bad.  I suppose I can expect quit a nice jump in my scores since I'll be paying of several credit cards and two loans with this money.  Should be worth it in the end.

 

Message 3 of 6
Moderator Emeritus

Re: Debt consolidation loans

 


OntheHorizon wrote:

Thank you for the response.  I was a little worried it would be considered a CFL which I have read about are bad.  I suppose I can expect quit a nice jump in my scores since I'll be paying of several credit cards and two loans with this money.  Should be worth it in the end.

 


 

Reducing CC utilization is the fastest way to improve a score so good luck to you. Just make sure you don't run those CC balances back up because then you will have the loan to pay off plus those same CC bills.

 

 

 

From a BK years ago to:
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Credit Problems Which Is Worse?
Whats In Your FICO Score

Message 4 of 6
Community Leader
Epic Contributor

Re: Debt consolidation loans

If you get a loan through NavFed, you are part of the biggest and soundest CU in the world,.  Wise choice!

They are NOT, most assuredly,  a CFL lendor.  They are THE premier CU.  No credit scoring dispersions associated with NCFU.

CUs offer the best rates and best service, and NavFed is absolutley the top rung of all CUs!

They will post it as an installment loan. Yeah, it mayy result in a hard inq, but well worth it!

 

You dont ever hereafter refer to the reason for the loan,,  It was a personal loan that let you shift debt from revolving to installment, at assuredly a lower APR.

Once you are in with NavFed FCU, you will never go anywhere else for credit.,  I promise you.

Build a year or two with NavFed, and you will get from them auto and mortgage loan rates that  few in the private sector can match.

 

Message 5 of 6
Frequent Contributor

Re: Debt consolidation loans

 

I'm not in a credit union, but I could certainly benefit from a debt consolidation loan.

My scores have tanked primarily due to high utilization. (615 - 619 - TU98 =637, TU04 = 681).

 

Any chance at all I could get a consolidation loan? If so, where?

 

Thanks!

Rust never sleeps and neither does my fico score...
Message 6 of 6