topic Re: Using a Personal Loan to pay off CC Debt in General Credit Topics

Using a Personal Loan to pay off CC Debt

Anonymous — Thu, 29 Jun 2017 18:02:50 GMT

I am hoping that someone can help- I have about 14,000 in credit debt that I'd like to pay off in order to increase my credit scores (trying to buy a new home). I was offered a personal loan that could pay them off- how will taking out a personal loan from lending club affect my score if I'm using the funds to pay off credit cards?

Re: Using a Personal Loan to pay off CC Debt

Anonymous — Thu, 29 Jun 2017 19:06:53 GMT

@Anonymous wrote:
I am hoping that someone can help- I have about 14,000 in credit debt that I'd like to pay off in order to increase my credit scores (trying to buy a new home). I was offered a personal loan that could pay them off- how will taking out a personal loan from lending club affect my score if I'm using the funds to pay off credit cards?

It will likely help your scores by improving your utilization, but many times it's advised not to take on any new debt when you're about to apply for a mortgage.

It's my belief that people are in dangerous financial territory when they need to do this. If your CC balances are tanking your scores, it's because they are a problem.

I moved various things around on lousy high interest personal loans only to have my CCs ran back up again shortly after plus the loan I thought would fix things.

Re: Using a Personal Loan to pay off CC Debt

Anonymous — Fri, 30 Jun 2017 13:08:11 GMT

Good luck actually getting their "pre-approved" offer!

Companies always send out mailers with the same "you're pre-approved" with a bunch of fine print. They don't tell you that it takes a pristine credit score, no debt, and a huge income to actually get their "up to" ammounts.

I'm in the same boat. Could use a similar sized loan to pay off high interest CC debt and have an installment loan reporting, but that's only for people who don't need it.

Re: Using a Personal Loan to pay off CC Debt

Anonymous — Sat, 01 Jul 2017 01:14:55 GMT

Was in a similar situation I had around 9k in credit card debts. Around 30% until, 695-700 fico scores, 75k income, charge off from 2015, and late payments around two years ago. I was able to get a sweet personal loan for 10k from best egg 5.99% and 7.49% real apr after the origination fee which is hell of a lot better than 23% from Amex/chase. I would also consider myself a rebuilder as I still have a ton of late payments some up to 120 days late from 4-5 years ago so check around. I think the 5.99% is the best rate possible from best egg too. I used the prequalifier tool on the CK website to compare all of my options.