topic Re: DCU loan in Personal Finance

DCU loan

razzy116 — Mon, 01 Feb 2021 04:51:17 GMT

DCU offered a quick loan, should i get it to pay off my credit card balances? Thank you and be safe.

Re: DCU loan

AllZero — Mon, 01 Feb 2021 04:57:17 GMT

@razzy116 wrote:
DCU offered a quick loan, should i get it to pay off my credit card balances? Thank you and be safe.

I don't know your overall credit profile.

DCU Loan at the most is $2,000 and 10%* APR if you meet the lending criteria. I would vote no, do not get the loan. See if you can do the debt snowball or avalanche technique depending on your needs.

Re: DCU loan

Jnbmom — Mon, 01 Feb 2021 05:04:56 GMT

@razzy116 wrote:
DCU offered a quick loan, should i get it to pay off my credit card balances? Thank you and be safe.

Do you need a loan to pay off your credit cards????

Re: DCU loan

OmarGB9 — Mon, 01 Feb 2021 05:32:58 GMT

@razzy116 wrote:
DCU offered a quick loan, should i get it to pay off my credit card balances? Thank you and be safe.

If your CC debt is around $1k-$2k, then maybe I guess. Though if you need to get into more debt to pay off existing debt, that doesn't bode well for your finances. I'd honestly close your current cards and focus on paying them off. Or at least cut them up/lock them up somewhere so you won't be tempted to use them.

Re: DCU loan

TGG_1976 — Mon, 01 Feb 2021 23:34:25 GMT

Like everyone else said, taking on new debt to pay off debt is just not a good recipe for success. You need will power to actually USE the loan to pay off those cards and not go on a shopping spree instead. Next, how do you avoid the habit of maxing out those cards again after you used the load to pay them down?

I would say (as mentioned before), cut them up or develop a methodology to pay them down consistently. Speaking from experience, cutting up my cards was the only thing that worked for me when tackling that debt and now I only carry low balances on 3 cards to keep them active and to collect cashback.

Re: DCU loan

cr101 — Sun, 21 Feb 2021 03:27:17 GMT

@razzy116 wrote:
DCU offered a quick loan, should i get it to pay off my credit card balances? Thank you and be safe.

This could actually help you IF

1-The rate DCU is offering is going to save you a lot of money on the interest that you would have paid on the credit cards

2-You're currently being penalized for util (maxing out a card, for example) and transferring some of the cc debt to a diff loan will get rid of that penalty

3-Your credit profile can take the hit that I assume you'll get from opening the new line of credit. This would actually be my main concern.

Good luck, and please don't close your cards. It seems like you may actually need them in an emergency situation, so you'd have to apply for cards all over again and may even be declined. ...I'm also wondering if you somehow get your acct flagged when you ask for it to be closed while you owe a large balance.

Re: DCU loan

razzy116 — Sun, 21 Feb 2021 03:39:55 GMT

@cr101 wrote:
@razzy116 wrote:
DCU offered a quick loan, should i get it to pay off my credit card balances? Thank you and be safe.
This could actually help you IF
1-The rate DCU is offering is going to save you a lot of money on the interest that you would have paid on the credit cards
2-You're currently being penalized for util (maxing out a card, for example) and transferring some of the cc debt to a diff loan will get rid of that penalty
3-Your credit profile can take the hit that I assume you'll get from opening the new line of credit. This would actually be my main concern.

Good luck, and please don't close your cards. It seems like you may actually need them in an emergency situation, so you'd have to apply for cards all over again and may even be declined. ...I'm also wondering if you somehow get your acct flagged when you ask for it to be closed while you owe a large balance.

I"m not closing any cards just to pay off the cards. Thank you for your response.

Re: DCU loan

AverageJoesCredit — Sun, 21 Feb 2021 14:30:00 GMT

If you pay off your cards and save on interest, this might be a good option. Than, only use your cards like a pay in full method. If you buy something on Amazon for $20 , when the charge posts or if you let the statement cut, pay it off completely. This is what i try to do. Im not in financial well being to pay off debt completely so i try to pif any charges i do while paying down my loan and my 2 ccs with high balances.