topic Re: Personal loan help in General Credit Topics

Personal loan help

tictoc — Sun, 22 Jan 2012 10:31:21 GMT

I need some help, I currently have a car payment of $421 which is killing me because I work part-time and I can barely pay it, I'm having zero luck finding a full-time job since graduating college last June. I've tried to refinance w/ capital one but didn't get approved and I've also tried to get a personal loan & refinance at wells Fargo but got denied a couple days ago, does anybody know where I can get a $8000 loan to pay the car off and have a smaller payment with the loan?? I live in California, have one collection account that I'm disputing but that can take a while to fall off, I have a couple of paid charge off's from 2005 and some late payments on my car loan. Have 4 acct's in good standing.

EX:580

EQ:630

TU:585

Re: Personal loan help

pizzadude — Sun, 22 Jan 2012 13:53:28 GMT

What interest rate are you paying right now ??

Most personal loans that I have seen are unsecured and typically have high interest rates.....what rate did WF quote you for a loan ?

Re: Personal loan help

Revelate — Sun, 22 Jan 2012 16:39:56 GMT

Go the auto-loan refinance route rather than the personal loan one. Secured loans are ALWAYS easier to obtain than unsecured ones, and out of the traditional loan types, auto loans are far and away the easiest. The only personal loan you're going to qualify for would be something like Cashcall, and in getting a large enough loan to help you right now, that's just going to set you back even further financially.

The other question beyond what Pizzadude asked: how much is your car worth right now (blue book value or whatever). If you owe more than it's worth, it's a challenge to refinance, That said, Capital one is wierd and very picky, you probably would've had better luck at Wells even for an auto loan. It seems strange but I got an auto loan for a used car from Wells and Chase, but I didn't from Cap One,,, and you can see my current scores in my signature.

A little math: even a 3 year refinanced auto loan for 8K, at 20% APR, cuts your payment down to right around 300 / month. If you have decent equity in the car, you can probably do better than that even rate wise, and you might be able to get a longer loan term. I don't know how they're going to look at the lates on the auto-enhanced pull, but in your situation what you're trying to do is buy time to find a job and get stable income.

Your other option if you still have some value left in the car, go trade it in for something else and see if you can get enough value from that to bridge the gap you need to get financing on a different, cheaper, vechicle.

I know the options all sort of suck, but without a car it's much harder in most places (especially in CA, our mass transit is terrible in most cities) to get to work even if you find it... and both are miles better than simply letting them repossess the car and charge you off.

Re: Personal loan help

laz98 — Sun, 22 Jan 2012 20:04:00 GMT

Where did you get your scores from? Your real scores may be higher or lower, if the ones you have now are not real FICO scores.

Re: Personal loan help

tictoc — Sun, 22 Jan 2012 20:53:22 GMT

Pizzadude,

Im currently paying 18% with toyota, I dont care what the interest rate is just as long as I can extend the loan and lower the payment for now, eventually when I find a ful-time job I will pay off the loan asap. I got denied at WF but the loan was from 11-20%

Re: Personal loan help

tictoc — Sun, 22 Jan 2012 20:59:39 GMT

Revelate,

I am upside down on my car, I owe about 8000 and my car is worth 5500 so I couldn't refinance with capital with a cosigner or WF, and I did try and trade it in but didn't qualify because of income. I don't mind getting a high apr for now because I am trying by time right and save money until I find a stable full-time job once I have a job I will pay off the loan.

Re: Personal loan help

tictoc — Sun, 22 Jan 2012 21:01:21 GMT

I got my 3 scores from EX and also when WF & Cap1 pull my credit it was the exact same scores as EX had listed.

Re: Personal loan help

Booner72 — Sun, 22 Jan 2012 21:14:09 GMT

The EXPERIEN score you got is NOT a fico score. Are you sure you don't mean EQUIFAX?

I don't know if you can get refinanced being so upside down, unfortunately. Even our CU that we used to refinance our truck only loans 85% "LOAN TO VALUE" for a refinance.

Your best bet at any chance is to find a lender that uses Equifax as that's your best score (IF IT IS A FICO). Since banks and CU's use the EQ score you can buy here, why don't you sign up for the 10 day free trial of scorewatch to see where you are? Then you get a breakdown of why your scores are where they are, and advice on how to get them up. It could be that it's just a few simple things that you can do to up your scores, so maybe if you gave us more info on what is on your reports, we can assist you with getting your scores up, and thus, getting an approval for the refinance. To find a lender that uses Equifax, call around and ask which CR they pull. If you end up canceling SW, just be sure to do so within the first 10 days or you can charged every month for 3 months before you can cancel. BUT, if you are going to work on rebuilding your credit, SW is a great tool and it's on sale right now for less than 11 bucks a month. I know money is tight for you so I completely understand not being able to afford that.

Have you tried to get a job at Mcdonald's? ANY JOB IS OKAY. It's temporary. Your credit is super important. if you let this car go to repo, your credit will be even worse, and then you will pay for that at higher interst rates for many years to come. Even if it does get repo'd, they could still get a judgment against you and chase you until they get paid, then you will have even more money owed due to interest, fees, court costs, etc. Are you behind on your payments? Is there anything else you can "cut out" to be able to get that car paid each month? Switch to top ramen, don't go out, cancel cable, only basic internet, cancel any extras in your life and live as cheaply as you can until you can get another part time job to hold you over until you get a full time.

Re: Personal loan help

tictoc — Sun, 22 Jan 2012 21:33:16 GMT

All my money goes to paying the car, I live with my sister & she helps me out a lot, I don't pay for food, rent, or cellphone! I was one month behind but always tired to pay what I had so I never get a late payment mark on my CR, my brother helped me out and gave me $500 so now I need to pay this month but my check is going to come out to $300 I have actually applied everywhere stores, restaurant, schools and had a couple of interviews but never got hired. I am tutoring and I would be OK if my morning client didn't cancel all the time because then I would work 20 hours a week at $14 an hour I would be able to pay but she always cancels..My Equifax score is what I got from wells fargo and HSBC..I'll look into scorewatch then I am currently using freecreditreport.com but everyone says it not your real score which I didn't know there was a difference

Re: Personal loan help

Booner72 — Mon, 23 Jan 2012 01:50:42 GMT

keep tryin tictoc. I used to work with offenders coming out of prison and everyone says "those that want a job get a job" and I can verify this is true. Not such a wonderfully fun or meaningful job, but a job. If a person with felony (or 10), coming fresh out of prison, can get a job, then a college grad can too! Just keep at it every day - making find the job your other part time job. Hell, try working at a call center for a collection agency! -

Yep, cancel freecreditscore and apply that money here, before the sale ends. I started at freecreditscore, too. It's a FAKO score from Experien. I'm much happier with scorewatch bc at least with the Equifax score here, you know it is likely to be used (more so than the transunion they sell here).

Re: Personal loan help

Revelate — Mon, 23 Jan 2012 06:12:08 GMT

It's not a popular option, but you could ask for a loan from your parents or other family members if they have extra free resources cash wise.

If I ever get truly stuck, I'll wind up using this option with my dad; if you think you might have this ability, check the IRS rules for a 5-8 year mid-term loan, and the APR would be somewhere around edit: 1.24% currently. They publish it online monthly, at some percentage above the treasury rate.

All I can say is put it in writing, and absolutely pay it if you choose this route, because sacrificing family relationships over this isn't worth it. It does however get you refinanced, and out from under the current car payment, and your auto loan will be considered paid in full at least.

Re: Personal loan help

Booner72 — Mon, 23 Jan 2012 03:39:09 GMT

WHAT is an IRS mid-term loan? thanks.

Re: Personal loan help

Revelate — Mon, 23 Jan 2012 06:11:18 GMT

@Booner72 wrote:
WHAT is an IRS mid-term loan? thanks.

The IRS breaks down the Applicable Federal Rate into a few term categories:

Short-term, loans of 3 years or less
Mid-term, over 3 years but not over 9 years
Long-term, over 9 years

The AFR is pretty much the structured rate defined by the Federal government, anything below that rate in terms of a family loan is considered a "below market rate" loan and can lead to some ugly stuff.

That said though, I was way off in what I remembered: the current mid-term adjusted AFR is only 1.24%. Think I was looking at the long term category sometime last year from what I posted above, but this rate sheet is what governs family loan minimum interest rates if you don't want the IRS to start levying penalties.

The rates are all published here: http://www.irs.gov/app/picklist/list/federalRates.html

It's probalby best to throw in a bit more anyway from a loan in the OP's case, but even prime rate is only like 3.25% these days. If you or anyone else does go the family loan route, look up some various details as well to make sure you have it structured right, but FWIW in the OP's case, a 8k loan will probably never run afoul of the IRS since it's below the maximum annual gift amount anyway (13k), but it's far better for everyone involved to do things correctly anyway. For that matter, I think the family loan can even be structured to be secured against your car if you really wanted to be formal about it. Might make a difference in pitching it to a family member, might not,.

Re: Personal loan help

tictoc — Wed, 25 Jan 2012 05:22:37 GMT

thank guys I let u know what happens...