topic Re: Help, consolidation loan, co sign in Personal Finance

Help, consolidation loan, co sign

FicoC — Thu, 21 May 2026 12:33:19 GMT

Hello, does anyone know big credit unions in michigan or open eligibility that is known for higher approval rates and bigger loans? i cant use navyfed.

Scores: terrible probably under 500

Baddies: consumer portfolio repo $20k

Collections/Charge off: 5-6 accounts ranging $7.5k

Income W2: $110,000

Chapter 7: Discharged 2.5 years ago

Co signer: Friend, 722 score, $115k W2 yearly, Mortage and car loan.

I filed chapter 7 and got burned and sucked into preditory and sub prime lenders that put me in a pit of agony so i decided to just let them all go and charge off to settle w them. but life happend and burned all my savings up so settleing w my own cash isnt an option now.

Looking for personal loan to pay it all off, dont want to apply more than 1-2 times. A CU that will listen to explanations and view my income and previous responible use of credit rather than just an instant no.

Note. I only filed chapter 7 bc a career change and pay cut from self employed to W2 guaranteed money when I found out I was having a daughter and wanted to know i could always provide vs the uncertainty with self employment.

Re: Help, consolidation loan, co sign

AndySoCal — Thu, 21 May 2026 18:34:32 GMT

@FicoC Here is one I found in Michigan not much information on them

https://www.adventurecu.org/borrow/consumer-loans/debt-consolidation-loan

There is also Pen Fed credit union.

In addition there is list of credit unions in the American Conumser Council post look the non geofenced ones.

do your research

Re: Help, consolidation loan, co sign

FicoMike0 — Thu, 21 May 2026 23:38:28 GMT

First, under 500, really?

You can get a free equifax fico8 here at myfico. You can get free fico8s from experian.com and transunion from creditwise.com. It might help to know where you are starting from.

How much are you looking for?

Who did you burn in the bk7? Avoid all of them.

Btw, in default again 2.5 years after bk7 is going to take prize winning story to explain. Try the humility approach over excuse making.

I suppose the cosigner will be a big factor.

Almost forgot, here's a link,

https://wallethub.com/best-personal-loan-with-cosigner

Re: Help, consolidation loan, co sign

radiofrequencies — Fri, 22 May 2026 21:53:19 GMT

I don't have any advice to offer regarding CUs that will approve large loans with a less than stellar track record of repaying debts, but I have to ask why you're looking to take on interest bearing debt to pay off debts that are no longer accruing interest. It is my understanding that once an account has charged off, the balance no longer accrues interest. If that is the case, I would think that it's better to make payments on the existing debts rather than take out a new loan with a high interest rate that would come with a score in the 400s.

Lastly, I don't think it's a good idea to drag your friend into this and if you do, make sure they are aware of the implications that come with co-signing a loan for you. The loan will appear on their reports as if the account is their own, affect their debt-to-income ratio, and could make it harder for them to be approved for credit in the future until the loan is paid off. In the event you are unable to keep up with the payments, they will be legally responsible for making payments. If you miss payments and/or the account charges off, their credit score and credit profile will be impacted exactly the same way it would be if they were the primary account holder versus just a co-signer.

Re: Help, consolidation loan, co sign

Jnbmom — Fri, 22 May 2026 22:23:49 GMT

Honestly with a score 500 or less you will not be able get a loan with an reputable lender .

i would also agree with the above given your history do not involve a friend .

Re: Help, consolidation loan, co sign

Patient957 — Fri, 22 May 2026 22:56:46 GMT

I agree with @Jnbmom and @radiofrequencies .

Even if you could get such a loan, which you probably can't, it wouldn't be a good idea anyway. The best advice I can give you is to stop borrowing money, period. Stop trying to borrow money. No loans, no credit cards, no borrowing. You have a decent income, so live on your income and save as much money as you can. A loan is not a solution for you. It would only put you deeper into the "pit of agony" and if your friend co-signs, it will take your friend into the pit with you.

Live off your income and save for at least a few years, and then reasses your situation.

Re: Help, consolidation loan, co sign

JoeRockhead — Sat, 23 May 2026 11:16:20 GMT

Obtaining a meaningful unsecured loan in this scenario... especially one with terms that don't further worsen your situation is, in my opinion, highly unrealistic.

The recent BK alone isn't necessarily the issue. People recover from bankruptcy all the time. The problem is the additional defaults and charge-offs post BK. That's the part the majority of underwriters are unlikely to get past.

I don't believe even a co-signer with 800+ scores would change the outcome here unless the lender was effectively underwriting the loan based on the co-signer alone. Nor is your hardship explanation likely to be something lenders haven't heard before. Unfortunately, your current overall profile would likely be seen as showing an extremely high risk of future default.

As mentioned above, I think your best path forward right now is to stop focusing on obtaining new credit and instead focus on resolving the existing debt with the income you have coming in. Have you spoken with any of the creditors about settlement arrangements or payment plans?

I'd also strongly suggest at least consulting with a bankruptcy attorney regarding whether a Chapter 13 following the Chapter 7 would even be feasible for you.

Re: Help, consolidation loan, co sign

AndrewF — Sun, 24 May 2026 00:09:12 GMT

@FicoMike0 wrote:
First, under 500, really?
Btw, in default again 2.5 years after bk7 is going to take prize winning story to explain. Try the humility approach over excuse making.

My cousins, one of them filed bankruptcy 3 times, the other one is trying for a 4th, and about a month after they get a discharge they'll be going to Disney World.

For people like me who try to pay our bills, when you file bankruptcy it hurts like hell for 10 years. For people like them, they find ways to game the system, they keep the house and reaffirm so there's no landlords to deal with that say "no bankruptcies", so they escape most of the consequences and just get rid of the debt over and over.

Re: Help, consolidation loan, co sign

Patient957 — Sun, 24 May 2026 00:34:50 GMT

@AndrewF wrote:

My cousins, one of them filed bankruptcy 3 times, the other one is trying for a 4th, and about a month after they get a discharge they'll be going to Disney World.

It's like winning the BK Super Bowl!

IMG_20260523_173259.jpg

Re: Help, consolidation loan, co sign

AndrewF — Mon, 25 May 2026 04:37:54 GMT

@Patient957 wrote:
@AndrewF wrote:
My cousins, one of them filed bankruptcy 3 times, the other one is trying for a 4th, and about a month after they get a discharge they'll be going to Disney World.
It's like winning the BK Super Bowl!

It really is. In one of them, the cousin that's trying for the fourth bk7 even included bounced checks written to Dominos and Papa Johns, and told the court part of their household budget was $350 a month for cigarettes.

Then their mother passed and the life insurance paid out, each one got a million dollars. It was gone in three years and they needed bankruptcy again. One of them bought her husband a Ford F-350 then something happened and they took it to a hillbilly to work on it, and all the dashboard lights came on and they took it to the dealer, who informed them that the hillbilly used stereo wiring to do electrical.

The other one bought her boyfriend a Ford Mustang that turned into a garden planter because the engine failed and the battery died so apparently you can't even get in the thing because there's no mechanical key. Still in the driveway.

Nobody at the court seemed to say anything about "I don't know maybe stop smoking and going to Disney World." in the bankruptcy from 2011.

Judges are supposed to take a closer look at you the more times you're in there, but I am not seeing this happen.

Re: Help, consolidation loan, co sign

AndrewF — Mon, 25 May 2026 06:29:40 GMT

@Jnbmom wrote:
Honestly with a score 500 or less you will not be able get a loan with an reputable lender .

i would also agree with the above given your history do not involve a friend .

Dave Ramsey said he lost his best friend over a financial arrangement. His best friend co-signed on his Jaguar loan and then when Ramsey couldn't pay it anymore, his friend ended up making the payments, and was not happy about it, but was doing it to save his own credit rating.

The friendship gets destroyed the first time they have to make one of your payments and start getting Negative Impacts from your loan on their credit.

Even if your story has a happy ending like Ramsey's (he's a multimillionaire now, hates FICO scores, hates debt products, and doesn't use or need them), but he never got his friend back. He repaid everyone after his bankruptcy even though he did not have to (legally).

He even walked into the bank that called all his loans at the same time and made him instantly broke, and wrote them a check for all the money.

Every time he tells that story, about the Jaguar, it reminds me never to co-sign anything for anyone.

There's nothing in it for the co-signer and everything for them to lose. If the person defaults, you make their car payments but you don't even have any legal right to force them to give you the car.

Re: Help, consolidation loan, co sign

2b2rich — Sun, 31 May 2026 07:19:04 GMT

@FicoC wrote:
Hello, does anyone know big credit unions in michigan or open eligibility that is known for higher approval rates and bigger loans? i cant use navyfed.

Scores: terrible probably under 500
Baddies: consumer portfolio repo $20k
Collections/Charge off: 5-6 accounts ranging $7.5k

Income W2: $110,000
Chapter 7: Discharged 2.5 years ago
Co signer: Friend, 722 score, $115k W2 yearly, Mortage and car loan.

I filed chapter 7 and got burned and sucked into preditory and sub prime lenders that put me in a pit of agony so i decided to just let them all go and charge off to settle w them. but life happend and burned all my savings up so settleing w my own cash isnt an option now.

Looking for personal loan to pay it all off, dont want to apply more than 1-2 times. A CU that will listen to explanations and view my income and previous responible use of credit rather than just an instant no.

Note. I only filed chapter 7 bc a career change and pay cut from self employed to
W2 guaranteed money when I found out I was having a daughter and wanted to know i could always provide vs the uncertainty with self employment.

Ok so this is what a potential lender will be thinking when they pull your report:

2.5 years post chapter 7 and this person already has a repo and 5 or 6 accounts that are either collection accounts or charge offs.

Now, they do not care how much your defaulted auto loan is, nor the amounts of your collections/charge offs. What's going through their mind is that you defaulted on all of them. They see you as a high credit risk and believe that you would most likely default on the loan you are applying for with them whether you actually would have or not. A co-signer probably isn't going to help in this case because, in the potential lenders mind they are already making bets on how long before they willhave to start calling the friend for past due payments.

I am not trying to make you feel bad, I just feel you should look at it from their POV.

Re: Help, consolidation loan, co sign

Realist — Fri, 05 Jun 2026 02:10:20 GMT

I'm going to try and help you out with "some" information, whether this materializes I have no idea.

First and foremost, you are a credit risk and no one will lend to you what you need - neither a CU or a banking institution. There is no prosperous path for you other than to save your money.

Now, I've known of people in peril who "only" needed to borrow credit as a co-signer. I was absolutely against it, and yet, that borrower DID actually pay on time, and pay off the loan successfully. I was absolutely floored, but it did actually happen.

My first line of advice is to dig yourself out of this yourself.

My second line of advice is, if you have a friend willing to do this, have them apply for the loan themself, and then offer you a loan on that money.

My third line of advice is, don't screw over your friend. This is essentially what I read or see as a last lifeline. You are at the end of your rope. You will never be forgiven if you fail on this loan obligation. Relationships end on this type of nonsense - so don't make it an issue. Always, have payment ready to go on day one, don't be asked for payment, offer payment. It's my personal experience, I would never lend to you in this situation. If your friend does, do them the courtesy of making it convenient for them and not screwing them over.

You are working from a great disadvantage. It's going to require work to overcome it, but if you do, the world may open up to you. Everything may suddenly start to get fixed within your credit life. Consider it a second chance, a last opportunity if you will.

Re: Help, consolidation loan, co sign

walthourkatrine5 — Sat, 06 Jun 2026 02:45:15 GMT

Based on the information provided, a traditional debt-consolidation loan is likely to be very difficult right now, even with a co-signer. Here's why: Credit score under 500 Recent charge-offs and collections totaling roughly $27,000+ $20,000 repo deficiency Chapter 7 bankruptcy discharged only 2.5 years ago Multiple unresolved derogatory accounts The positive factors are: $110,000 W-2 income Stable employment Co-signer with a 722 score and $115,000 income However, many credit unions and banks will automatically decline applications with recent charge-offs and open collections regardless of income. What I'd be concerned about If your friend co-signs and you default, they become fully responsible for the debt. Their credit could be damaged, and they could be pursued for collection. That's a significant risk for a friend relationship. A more realistic approach Contact the creditors directly and negotiate settlements. Many charged-off accounts can settle for substantially less than the balance. Ask for hardship programs or payment arrangements. Consider a nonprofit credit counseling agency. Save a lump sum and settle the smallest accounts first. This can improve your credit profile over time. If I may ask, Do you manually review applications with a qualified co-signer when the primary borrower has a recent bankruptcy and charge offs? That can help avoid unnecessary hard inquiries. I'm happy to help with any advice Hampton

Re: Help, consolidation loan, co sign

ForwardLooking — Sun, 14 Jun 2026 23:58:02 GMT

Don't drag a friend into this, it is a good way to turn a friend into an enemy.

Re: Help, consolidation loan, co sign

Kforce — Mon, 22 Jun 2026 17:38:04 GMT

@JoeRockhead wrote:
Obtaining a meaningful unsecured loan in this scenario... especially one with terms that don't further worsen your situation is, in my opinion, highly unrealistic.

The recent BK alone isn't necessarily the issue. People recover from bankruptcy all the time. The problem is the additional defaults and charge-offs post BK. That's the part the majority of underwriters are unlikely to get past.

I don't believe even a co-signer with 800+ scores would change the outcome here unless the lender was effectively underwriting the loan based on the co-signer alone. Nor is your hardship explanation likely to be something lenders haven't heard before. Unfortunately, your current overall profile would likely be seen as showing an extremely high risk of future default.

As mentioned above, I think your best path forward right now is to stop focusing on obtaining new credit and instead focus on resolving the existing debt with the income you have coming in. Have you spoken with any of the creditors about settlement arrangements or payment plans?

I'd also strongly suggest at least consulting with a bankruptcy attorney regarding whether a Chapter 13 following the Chapter 7 would even be feasible for you.

^^^^^ This