topic Re: Not sure which board to put this on...Discover "Debt Eraser" Loan in General Credit Topics

Not sure which board to put this on...Discover "Debt Eraser" Loan

Tony275 — Mon, 20 Apr 2015 23:13:43 GMT

Hey guys,

It's been a while since I've posted an opinion thread, but here goes:

I got a mailer for the Discover "Debt Eraser" Loan good for up to $25k

Obviously, it's a typical Discover mailer "APRs as *low as* 6.9%". My question is, has anyone USED them as a personal loan before? And recently approved? I searched this topic on CK, here, Google, and a lot of the reviews are from like 4 years ago. I want to see if anyone with a similar score has applied and been approved for one. My current score is in my signature. My hopes are a little higher on this topic because they recently handed me $1k instant CLI online only 2 months after they auto CLId me. So I'm doing something right by their algorythm, right?!

Anyway, bills have piled up since we've been upgrading the house and want to consolidate to one payment per month! Tried Lending Club and Prosper, not interested in their 20%+ loan offers. Talked with a few local CUs and they're sensitive about my inquiries which (which all fall off in July) and will loan up to $10k, and I'm looking more towards $20k (ouch, I know). About $2k of this balance is 0% and am budgeted to pay those cards off before the promotions expire.

I've been trying to find my way into Navy Fed, but haven't found my deceased Grandfather's DD214 yet. My DCU account is approaching a year old and have considered doing the HP for a CLI since I know they're famous for huge 1 year CLIs. A few of my cards a near max, always pay 120% of minimum payment at least, usually 200% min payment on all cards. I've exhausted all SP CLIs, Barclay said I should try for a Ring card, but I just know I won't get a $20k limit so I'm really hesitant. I'm 9 months into my gardening, which is why I'm super hesitant with everything I do, in 3 months my inquiries fade away, do I keep doing what I'm doing? I hate to say but my credit debt climbs about $200/month at least.

Income is at about $47,000 annually, could go up to $60,000 if I get this new job! So for that, I'm very hopeful!

Re: Not sure which board to put this on...Discover "Debt Eraser" Loan

taxi818 — Mon, 20 Apr 2015 23:34:53 GMT

@Tony275 wrote:
Hey guys,

It's been a while since I've posted an opinion thread, but here goes:

I got a mailer for the Discover "Debt Eraser" Loan good for up to $25k

Obviously, it's a typical Discover mailer "APRs as *low as* 6.9%". My question is, has anyone USED them as a personal loan before? And recently approved? I searched this topic on CK, here, Google, and a lot of the reviews are from like 4 years ago. I want to see if anyone with a similar score has applied and been approved for one. My current score is in my signature. My hopes are a little higher on this topic because they recently handed me $1k instant CLI online only 2 months after they auto CLId me. So I'm doing something right by their algorythm, right?!

Anyway, bills have piled up since we've been upgrading the house and want to consolidate to one payment per month! Tried Lending Club and Prosper, not interested in their 20%+ loan offers. Talked with a few local CUs and they're sensitive about my inquiries which (which all fall off in July) and will loan up to $10k, and I'm looking more towards $20k (ouch, I know). About $2k of this balance is 0% and am budgeted to pay those cards off before the promotions expire.

I've been trying to find my way into Navy Fed, but haven't found my deceased Grandfather's DD214 yet. My DCU account is approaching a year old and have considered doing the HP for a CLI since I know they're famous for huge 1 year CLIs. A few of my cards a near max, always pay 120% of minimum payment at least, usually 200% min payment on all cards. I've exhausted all SP CLIs, Barclay said I should try for a Ring card, but I just know I won't get a $20k limit so I'm really hesitant. I'm 9 months into my gardening, which is why I'm super hesitant with everything I do, in 3 months my inquiries fade away, do I keep doing what I'm doing? I hate to say but my credit debt climbs about $200/month at least.

Income is at about $47,000 annually, could go up to $60,000 if I get this new job! So for that, I'm very hopeful!

Well i can't say ive used them. but i can say for sure that i got a personal loan 3 weeks ago. i know for sure that Disco will mostly pull EQ. and looking at your score. i can't really say that there will be a problem.

As loans seem to be easier to get than actual credit cards.

i know when i went to my credit union. which is probably easiest of all. they did not pull the scores you have there.

For some reason they are still using Equifax beacon score 5.0. which was completly different than my fico -08.

In my case. the eq score they pulled was 661. beacon 5.0.

i was in shock that it was that low. but in any case the loan officer said i was B tier and could not get best rate. instead i got apr 11.99. which i did not think was too bad. i only asked for 5k. in after about 15 minutes the money was in my account. as i said 3 weeks ago. Im inclined that Discover will be simular. as it is a sig loan. which more than likely will not be as strengent as their credit cards. good luck. just my 2 cents.

Re: Not sure which board to put this on...Discover "Debt Eraser" Loan

Tony275 — Mon, 20 Apr 2015 23:42:01 GMT

Thank you for your input! It's good to hear our mid-upper 600 scores aren't considered "bad" all the time!

Re: Not sure which board to put this on...Discover "Debt Eraser" Loan

Tony275 — Mon, 20 Apr 2015 23:59:58 GMT

Well...pulled the trigger for the Discover loan and the representative on the phone said they are not concerned about my inquiries because they are not in the last 6 months (I believe I had 13 total from mortgage process and wife buying a car and me co-signing and a couple credit card inquiries), though I got denied, not sure why, have to wait for a letter in the mail explaining why. Now I'm just annoyed.

Re: Not sure which board to put this on...Discover "Debt Eraser" Loan

taxi818 — Tue, 21 Apr 2015 00:00:54 GMT

@Tony275 wrote:
Well...pulled the trigger for the Discover loan and the representative on the phone said they are not concerned about my inquiries because they are not in the last 6 months (I believe I had 13 total from mortgage process and wife buying a car and me co-signing and a couple credit card inquiries), though I got denied, not sure why, have to wait for a letter in the mail explaining why. Now I'm just annoyed.

Sorry to hear. keep us informed. but if you really wanted to consolidate. even with that score. Credit union is the way to go. they will loan you the money no problem.

Re: Not sure which board to put this on...Discover "Debt Eraser" Loan

Tony275 — Tue, 21 Apr 2015 00:02:06 GMT

Problem is, my local CU said they do up to 40% of income and that's all they will do

Re: Not sure which board to put this on...Discover "Debt Eraser" Loan

Anonymous — Tue, 21 Apr 2015 00:03:25 GMT

With the rep who said it wasn't inq, did you talk to them after the denial? Did you ask why over the phone instead of waiting and try to recon?

Re: Not sure which board to put this on...Discover "Debt Eraser" Loan

Tony275 — Tue, 21 Apr 2015 00:06:09 GMT

I called and asked initially if they were inquiry sensitive and they gave me the run around "well it depends on your whole credit profile" which I understand, and had all intentions of applying online after I asked. He said I'd have to call in to verify information anyway, so I told him I'd just do the application over the phone. I'm probably gonna call and have them reconsider, if they don't require another HP. All hesaid on the phone was I'd receive a letter in the mail telling me why I was denied

I like your Avatar, BTW, I'm watching The Office as I type this haha

Re: Not sure which board to put this on...Discover "Debt Eraser" Loan

Anonymous — Tue, 21 Apr 2015 00:06:18 GMT

40% of 47k puts you pretty darn close at $18,800.

When will you find out about new job?

Re: Not sure which board to put this on...Discover "Debt Eraser" Loan

Tony275 — Tue, 21 Apr 2015 00:08:11 GMT

Should find out if I get an interview this week, just took all the pre-employment tests and such. So hopefully in the next 3 weeks I'll know if I'll be leaving my current job and how much I'll be making at the potential job.

The 40% number was a type, they said 20% is as high as they will go, my apologies

Re: Not sure which board to put this on...Discover "Debt Eraser" Loan

Tony275 — Tue, 21 Apr 2015 00:15:17 GMT

And personal loan department is now closed, will have to call tomorrow to ask for reconsideration

Re: Not sure which board to put this on...Discover "Debt Eraser" Loan

Anonymous — Tue, 21 Apr 2015 00:18:27 GMT

I like your Avatar, BTW, I'm watching The Office as I type this haha

Excellent!!! Probably the best show out there.

Re: Not sure which board to put this on...Discover "Debt Eraser" Loan

jamie123 — Tue, 21 Apr 2015 02:49:30 GMT

Tony275 you need to STOP RIGHT NOW!

You are being denied because your credit behavior screams HIGH CREDIT RISK when the lenders look over your reports.

If like you stated briefly in your original post, your credit balances are climbing by $200 per month, you are using credit wrong. You need to get a handle on this right now and quit using credit at all. The road you are headed down has bankruptcy at the end and it seems to be only a year or two away. You just can't see it yet.

You need to create a plan of action and get your wife on board with it or it won't work.

This is what you need to do:

1. Take all your credit cards including your wife's cards and seal them in an envelope. Put it away to be only opened in case of emergency. And no, that awesome power tool on sale at Home Depot or those cute shoes at the mall do not count as an emergency.

2. Open a savings account. Do you have one? This is where you will put some money away from each paycheck to build an emergency fund. Yes Tony, you will find as you go through life that bad things happen to good people all the time. You need to have an emergency fund because you WILL have emergencies. I would suggest that you put at least $30 a week in this account.

3. Start paying off the credit cards. This will hurt! A lot! Pay the minimums on all the cards except the one with the smallest balance. Put as much extra cash as you can on the one that has the smallest balance until it is paid off. Rinse and repeat.

4. You need to live on a cash only basis. This will be an enlightening experience. You will find out exactly where you are spending or wasting too much money. You will have to change your lifestyle and it won't be easy.

Tony, you should only carry credit card balances month to month in cases of extreme emergencies! None of us make enough money to pay 20%+ interest rates on borrowed money. You need to be able to pay off your credit cards in full each and every month. That is the proper use of credit.

The house has to wait for updates/upgrades until you can pay for them in cash. Once you have the cash, use the credit cards to buy the materials and earn point/rewards but make sure to pay them off in full each month.

Sorry about the rant but I see a good person headed down a bad road. Believe me, I've been down this road and I went there in a similar fashion as you. It's time for you to turn around.

Re: Not sure which board to put this on...Discover "Debt Eraser" Loan

Anonymous — Tue, 21 Apr 2015 05:46:25 GMT

Amen. Be careful Tony; nobody wants to see you get burned later on.

Re: Not sure which board to put this on...Discover "Debt Eraser" Loan

Tony275 — Tue, 21 Apr 2015 19:38:16 GMT

I understand how credit works and that I'm not using it as I should, that's why I'm trying to consolidate debt into one payment?

Called Discover back and asked to be reconsidered, to which he said they don't tend to reconsider once denied? Then he told me my balance to limit ratios were high, which I understand, but figured as a debt consolidation loan, that would be understood initially, I guess I was wrong.

When I say my balance is increasing $200/mo, it's one card only, none of the other cards have been touched in months, and I'm paying them down as quickly as I can. I would just prefer to have them all in one payment rather than spread out throughout the month, I get paid weekly and it's very easy to budget and plan payments this way. But having them all consolidated would enable me to pay them down quicker.

I've turned around on the road, I promise, now it's getting out of the debt I've racked up, obviously. I do have a savings and we do contribute money to it from each check, to the tune of about $150/mo. I've been picking up as much overtime at work as I can manage and put the expensive hobbies on hold, obviously. I also have a 401(K) that Target has a great match policy on, and if worse comes to worse, I'm 24, I can cash that out and pay off about 60% of my debts, that's absolute worst case.

I don't struggle month by month, by any means and I've been paying down the cards that have the highest interest first, and then working my way to the next card and so on.

This was simply an option for me to consolidate and be able to manage/pay down the number quicker and at my own pace.

Re: Not sure which board to put this on...Discover "Debt Eraser" Loan

Tony275 — Tue, 21 Apr 2015 20:16:51 GMT

And I do appreciate the tips and advice, I'm doing my best to get to that point where the credit cards are benefits only. I'm just getting frustrated and I know it shows in how I talk sometimes, so I apologize!