topic Re: Springleaf Loan in General Credit Topics

Springleaf Loan

Jarnog — Sun, 20 Apr 2014 01:37:17 GMT

I am trying to consolidate some debt. A furniture bill that has about $1000 left on it, a couple of CC that I want to pay off and close. All toll it comes to about $4500. Payments on those equal about $500 per month. The bad thing is the furniture was total about $3000 but I am ending up paying close to $5000 on it. Crazy APR apparently, but I was able to get it "credit" wise when noone else would. If I can get this loan at any rate I could lower payment to around $200 or so a month it would be great. I tried via my CU and was declined. Scores are not good enough for Lending Club or Prosper. Is it worth taking a HP on EX (Verified via a rep over the phone that they pull EX) to get a loan from this company? I know they are not a great lender, most probably consider them a "shark" operation, but are there any other options out there?

Again the rep I spoke with (local), said they pull EX, and that it would be a hard pull. Looking for advice and maybe some info from those who have experience with Springleaf or maybe some other options if anyone has any . My EX score is probably 600 or so, if it makes any difference I got an update from Credit.com that my score went up 33 points to 624, I know this is a FAKO but maybe it can give you guys and gals a general idea.

Thanks for any advice and help

Re: Springleaf Loan

Revelate — Sun, 20 Apr 2014 02:29:27 GMT

Check the APR on the Spingleaf loan before doing anything and compare it with what you have now: they are a subprime lender and you may not be saving interest with them. That's really the only thing that matters end of the day, lender annoyances and what not can be dealt with.

There's a bunch of other options out there too (I used Cashcall for a semi-similar purpose back when my scores were sub 600) and it's worth checking out the various products before signing anything to get the best one that would work for you.

The typical problem with these loans is their term and their APR: if you're putting $500 towards the loans now, keep putting that (or more) to the new consolidation loan; and get it paid off earlier; also for *real* style points if you're trying to do this well, get a loan for *more* than what you need if you can do it, which usually results in a lower APR in my experience in subprime lending, and then as soon as it funds, pay any money you don't need to consolidate your bills right back to the lender immediately and accelerate your amortization curve substantially. Absolutely do *not* go out and spend that excess money, but it is a smart method of doing things even if it's incredibly counter-intuitive. Do some napkin math with one of the bankrate calculators and see.

Oh with any subprime loan, see if there is a prepayment penalty: some have it, some don't - you don't want one that does, make certain on that fact too.

Re: Springleaf Loan

Jarnog — Sun, 20 Apr 2014 02:40:28 GMT

From what I gathered, there is no pre-payment penalty. The APR will be at most 36%. I can get a 36 month term and my payment would be around 240 a month, if I wanted the entire 5000 loan.

SO what you are saying is, if I can, get a loan for say 7500 or whatever...when I get the funds, take the 5k pay off the bills I needed the loan for in the first place, then take the remainder and pay it on the loan.

I just didn't know if it was completely worth it. I want to do it, I would be set in a payment that I know will be done in XX amount of time. The initial benefit would be removing (so to speak) payments I have now. I just didn't know if doing this or something like this would "look" bad on my reports and be considered "bad" in the future (for mortgage, better cards etc)

Re: Springleaf Loan

Revelate — Sun, 20 Apr 2014 03:06:19 GMT

@Jarnog wrote:
From what I gathered, there is no pre-payment penalty. The APR will be at most 36%. I can get a 36 month term and my payment would be around 240 a month, if I wanted the entire 5000 loan.

SO what you are saying is, if I can, get a loan for say 7500 or whatever...when I get the funds, take the 5k pay off the bills I needed the loan for in the first place, then take the remainder and pay it on the loan.

I just didn't know if it was completely worth it. I want to do it, I would be set in a payment that I know will be done in XX amount of time. The initial benefit would be removing (so to speak) payments I have now. I just didn't know if doing this or something like this would "look" bad on my reports and be considered "bad" in the future (for mortgage, better cards etc)

Go and do it. That's a huge win financially and actually will probably look good to underwriters in the future: they like smart financial people, and this is a smart decision no question. I was expecting a much higher APR as they've sent me tons of pre-approvals over the past few years even when I was deep subprime. 36% is about a third of what I was afraid of .

Re: what I was saying - that's exactly right: send anything in excess of $5K right back to them with your compliments.

Doing some quick Bankrate stuff: 36 months at 36% on 5K is $229/month (not including whatever their finance charge is) paid off in April 2017 if it were made today, and you pay something like $3245 in interest.

36 months at 36% on $7500 is $344/month, but if you make the initial baloon payment of $2500, instead of April 2017 it's paid off in Dec 2015. and your total interest paid is only $1802, or a savings of $1400 or thereabouts over the course of the loan.

Since you are paying more than the $344/month now, take the highest loan if you can qualify for (and is less than your current monthly on the assumption you can continue to afford it), and do exactly this... on the assumption it's the same APR in all cases: it might even be lower in some but find out on their loan products explicitly. For comparison purposes a 10K loan at the same terms is paid off in June 2015 at a payment of 458/month and $1370 in total interest. Diminishing returns, but I hope this illustrates the advantages.

ETA: I really like the idea, taking the 10K loan example, and assuming you don't re-rack up the debt, you're free and clear in just over a year. Seriously, just do it: cannot state enough how big of a win I think this is.

Re: Springleaf Loan

Jarnog — Sun, 20 Apr 2014 03:08:47 GMT

Thanks for the wonderful information.

Now to figure out where to go. Springleaf, One Main, I dunno LOL. I was thinking of these 2 because there are local branches here. Tried a search on the net, and it brought up every payday loan place LOL. Nothing "good".

The only thing that makes me hesitant is that I would qualify but only for say $1000 or something....which wouldn't help me as much as I would like.

Re: Springleaf Loan

Anonymous — Sun, 20 Apr 2014 03:17:20 GMT

If I was in this situation, I think I might hit the local CUs really hard, and tell them that I'm looking for a fresh start, and arrange to direct deposit my paycheck with them.

I'd also ask whether there's something (like a car) that I can pledge for collateral on a loan.

Re: Springleaf Loan

Jarnog — Sun, 20 Apr 2014 03:19:45 GMT

Yea I already tried with NFCU. I have a relationship with them. They declined me .

I just refinanced my car with them 2 weeks ago. LOL. I could try other CU's in my area but wouldn't be able to commit to them fully as I am trying to build a stronger relationship with NFCU. I like the suggestion though, and did actually think about it, but would hate to get in with someone and not really be committed to them, if that makes sense.

Re: Springleaf Loan

Anonymous — Sun, 20 Apr 2014 03:22:26 GMT

@Jarnog wrote:
Yea I already tried with NFCU. I have a relationship with them. They declined me .

I just refinanced my car with them 2 weeks ago. LOL. I could try other CU's in my area but wouldn't be able to commit to them fully as I am trying to build a stronger relationship with NFCU. I like the suggestion though, and did actually think about it, but would hate to get in with someone and not really be committed to them, if that makes sense.

Well, if you're trying to build a relationship with NFCU, and they denied you, and some other CU is able to help you, then maybe that other CU is more valuable in the long run.

Re: Springleaf Loan

pizzadude — Sun, 20 Apr 2014 03:27:04 GMT

I'm not sure that you'd make out much better with this type of loan, as I'm not sure that it's a simple interest loan. Be sure to read the fine print.

Are you only paying the minimum on your CCs and loans?

Re: Springleaf Loan

Jarnog — Sun, 20 Apr 2014 03:45:14 GMT

For the CC's yes unfortunately.

The furniture only allows me to pay whatever is due that month. I cannot make multiple payments or anything like that. It is either, pay the monthly payment or pay it off completely. If I was able to this would have been paid off a long time ago LOL.

The main thing is the furniture. I am ending up paying almost triple what I financed due to being naive but needing the furniture badly at the time, and my credit was in the dumps, so I was just happy to be able to get it. Worse comes to worse I can proverbially "eat" the credit cards, if I can get rid of this furniture bill.

There is one other option....sorry forgot to mention this in my original post. I could get rid of the furniture bill by paying it off via my credit cards....but that would put me basically at 100% utilization across my 3 cards, and I still would have the ones I would want to get rid of (per the original post) and then I would be stuck around the same payment as I am currently....it would just be on CC's instead of CC's and a furniture bill. If that made sense.

And I appreciate all of the insight and help everyone has given so far.

Re: Springleaf Loan

ambivalent — Mon, 21 Apr 2014 17:42:35 GMT

I had a loan with Springleaf a few years back. I was VERY uninformed and ended up taking out a secured loan with them, so be aware if they start asking you for stuff you have and what you'd value it at. They would call me (a LOT, like 3x a day) 1 day after the payment was due threatening to take my stuff. Like I said, I had no clue it was a secured loan, they never used that word and I didn't even know you could do a secured loan with anything other than a house/car. Thankfully, I was able to include them in my bk and I'd never do another loan with them!

Re: Springleaf Loan

Jarnog — Mon, 21 Apr 2014 18:10:54 GMT

@prettylady wrote:
I had a loan with Springleaf a few years back. I was VERY uninformed and ended up taking out a secured loan with them, so be aware if they start asking you for stuff you have and what you'd value it at. They would call me (a LOT, like 3x a day) 1 day after the payment was due threatening to take my stuff. Like I said, I had no clue it was a secured loan, they never used that word and I didn't even know you could do a secured loan with anything other than a house/car. Thankfully, I was able to include them in my bk and I'd never do another loan with them!

Would you say that if it wasn't for the "uninformed" part they would have been a good thing for you?

Re: Springleaf Loan

ambivalent — Mon, 21 Apr 2014 18:22:48 GMT

I don't think so, honestly. I can't remember what the interest rate was, but I'd have been better off just paying my monthly payment to my cc's ($225) than to them. But I was in a rush and did not make a good decision. I had no idea what I was doing.

Re: Springleaf Loan

Jarnog — Mon, 21 Apr 2014 18:42:29 GMT

Yea, this is where I am having the confilct. I am currently, basically upside down in a couple of loans and am paying about $500 a month or so. With this loan I would be down to 200-250 and that is at the highest rate they mentioned 36%.

Savings of about 250, I would get rid of the items I am having problems with and be on my way. No early payment penalty, and such. I would want to and plan to have it paid off within a year 1/2 or so. I just want to make sure it's actually worth it. Being that it'll be a HP on EXP for them to see what they can do for me. Still in that pondering stage I am LOL.

Re: Springleaf Loan

ambivalent — Mon, 21 Apr 2014 19:19:52 GMT

If it is a good deal for you then go for it. Just look at the payments and interest and such and consider the full picture. I'm sure you will make the right decision!

Re: Springleaf Loan

Anonymous — Mon, 21 Apr 2014 19:41:35 GMT

@Jarnog wrote:
Yea, this is where I am having the confilct. I am currently, basically upside down in a couple of loans and am paying about $500 a month or so. With this loan I would be down to 200-250 and that is at the highest rate they mentioned 36%.

Savings of about 250, I would get rid of the items I am having problems with and be on my way. No early payment penalty, and such. I would want to and plan to have it paid off within a year 1/2 or so. I just want to make sure it's actually worth it. Being that it'll be a HP on EXP for them to see what they can do for me. Still in that pondering stage I am LOL.

I'm still not clear on how a 36% loan improves your situation.

Re: Springleaf Loan

Revelate — Mon, 21 Apr 2014 20:02:10 GMT

@Anonymous wrote:
@Jarnog wrote:
Yea, this is where I am having the confilct. I am currently, basically upside down in a couple of loans and am paying about $500 a month or so. With this loan I would be down to 200-250 and that is at the highest rate they mentioned 36%.

Savings of about 250, I would get rid of the items I am having problems with and be on my way. No early payment penalty, and such. I would want to and plan to have it paid off within a year 1/2 or so. I just want to make sure it's actually worth it. Being that it'll be a HP on EXP for them to see what they can do for me. Still in that pondering stage I am LOL.
I'm still not clear on how a 36% loan improves your situation.

OP has at least one consumer finance loan at some absurd interest rate from the sounds of it. Getting out from under that to a single consolidated payment, especially on a simple interest loan without prepayment penalty, when the payment is less and you can kick additional money to it makes all sorts of financial sense.

Not certain even if there's still ant point for discussion: if it is simple interest (interest calculated as you go only on the remaining principal) and there's no prepayment penalty (do verify both as people have suggested), given the information presented it'd be fiscally irresponsible to not do it.

Re: Springleaf Loan

Jarnog — Mon, 21 Apr 2014 21:26:53 GMT

Took the plunge and hit on EX. Only 1 inq on it so not a big deal. Went over what I wanted to consolidate most likely. Rep stated that it looks like "we will be able to assist you". It was 5:20 pm EST and they close at 5:30. He also stated that the highest interest rate would be 35.99%. Figuring out what I needed to pay, what I was paying out and the payment for the loan I would save approximately 300 per month. Also, it is not a simple interest loan, but it's a fixed rate. And I verified once more that there is no prepayment penalty.

I will hear more/find out tomorrow around lunch time. I will keep everyone posted. Thanks for the information, assistance, advice and such....it is greatly appreciated.

Re: Springleaf Loan

ThetoriParadox — Sat, 26 Apr 2014 01:00:02 GMT

Curious to see how this turned out for you. I am in almost the same situation.

Re: Springleaf Loan

Jarnog — Sat, 26 Apr 2014 01:20:43 GMT

It didn't. They approved me conditionally with collateral. Unfortunately I do not have collateral that would cover the amount I need.

The reps were very nice and helpful, just apparently I wasn't "good" enough, even though they thought that I should be approved for the amount requested ($4500) without issue. A problem that is being resolved at the moment was that they pulled EX and EQ. I was explicitly told they only pull EX. I got a scorewatch alert about another inquiry from American General. Told the rep and he seemed just as confused as he stated they used to be called that years ago. He verified with his manager that they do indeed still pull EQ.

I told him that I was not expecting that as I had him, his manager and another rep say they only pull EX. He understood and stated he will be getting that off for me. We'll see if it actually happens.

Overall I would say that they were pretty ok. They just couldn't help me like I thought they could.