topic Re: Timing on Sofi credit card consolidation loan in General Credit Topics

Timing on Sofi credit card consolidation loan

Anonymous — Mon, 01 Jul 2019 17:38:13 GMT

I'm trying to get the best rate on a Sofi credit consolidation loan and I want to submit with the best timing.

Currently - Equifax showing a 669. This is 100% because of credit balance - I've got $52k out of $71k (yes, I'm embarrassed that I'm here). Part of the reason is that I started a new contracting gig with high pay. Problem is that my first paychecks are just starting to come in after they mislabeled my invoicing terms as 60 days and are even late on that. I also travel for work, and there's another 10k on top of that in expenses I'm owed. This isn't my only problem though - just added an additional 20k problem.

I know Sofi takes other things in consideration - my income is $320k a year as a contractor. I own my own house, which I've got about $150k in equity. All good stuff. I am starting to see those checks - but I'd like to pay off the cards with a 3 year loan and can almost pay the interest from Sofi with the savings. It will also allow me to complete my software business - which would justify that spend.

Last week I got my first check and paid off about $20k. I'm trying to figure out when to ask for the loan. As soon as possible so I stop paying credit card rates would be the best answer, but how do I time the application? I can see from Credit Karma (through Equifax), my last reported balance from the biggest card was on June 9th. I paid $15k just to that card. Should I expect July 9th to be the next pull and therefore the best time to apply? Since they are only doing soft pulls of my credit - any issues with multiple online applications until my score goes up?

Apologies for the length - appreciate any help.

Re: Timing on Sofi credit card consolidation loan

coreysw12 — Mon, 01 Jul 2019 20:13:08 GMT

I would wait until July 9th, when your new (much lower) balance will be reported.

Question, though... under your circumstances, I'm wondering why you are taking out a debt consolidation loan at all, when it appears you can just pay it all off anyways in only a few short months?

I would just keep chipping away at it with $10k a month or so, and just be done with it before the end of the year, without having to mess around with consolidation loans and whatnot.

Re: Timing on Sofi credit card consolidation loan

Anonymous — Mon, 01 Jul 2019 20:23:09 GMT

A few reasons:

I am a contractor - contract is done in Feb and I'll probably end up with a contract that is worth a bit less or in a permanent position that is quite a bit less. Want to have 4 or 5 months cash that I can lean on. I know it's borrowed ...but that's where I'm at.
I need money for my software company. At least 30k.
I'll need money each quarter for taxes. Hell of a bill to have on hand...
This past month I paid over $1000 in interest across all of my accounts. That will significantly go down.
If I pay off early - I pay off early. Seems like there isn't much downside to that outside of a ding for the hard inquiry.