topic Re: Decisions Decisions in General Credit Topics

Decisions Decisions

SeattleBorn — Tue, 08 Feb 2022 01:10:31 GMT

I've been approved for a $40k Amex personal loan at 5.9%. It amortizes over 3 years with monthly payments. I am considering this as I can use some cheap cash and to avoid selling some stocks that return much more than the interest I will be charged.

I also have been preapproved for a Chase Freedom Unlimited with a $200 bonus and 0 % for 15 months on new purchases and card transfers.

812-815 TU EX EQ

I only have 1 hp in the last year that was done last month when i got a OBEE Visa.

Any downsides to my moving forward on both of these?

Re: Decisions Decisions

FireMedic1 — Tue, 08 Feb 2022 12:25:21 GMT

Without proving any info about your file. Why a 40k loan? And the "cheap cash" part means?

Re: Decisions Decisions

SeattleBorn — Tue, 08 Feb 2022 16:06:15 GMT

By cheap I mean low interst rate at less than 6% and its unsecured.

Re: Decisions Decisions

FireMedic1 — Tue, 08 Feb 2022 18:10:55 GMT

Your asking us if you should go for it. Your scores are fine. But thats a decision that you need to make. Grab the card. Why? The card doesnt put you into 40k in debt without knowing any history. I'm not touching the 40k one. If the forum knew why your taking such a large loan. Then maybe you'd get some answers from the gang. Good Luck.

Re: Decisions Decisions

Phana24 — Tue, 08 Feb 2022 18:47:02 GMT

@SeattleBorn wrote:
I've been approved for a $40k Amex personal loan at 5.9%. It amortizes over 3 years with monthly payments. I am considering this as I can use some cheap cash and to avoid selling some stocks that return much more than the interest I will be charged.
I also have been preapproved for a Chase Freedom Unlimited with a $200 bonus and 0 % for 15 months on new purchases and card transfers.

812-815 TU EX EQ
I only have 1 hp in the last year that was done last month when i got a OBEE Visa.

Any downsides to my moving forward on both of these?

The only downside I can see is the hit your score will take for a while on the loan. The real interest rate will be close to zero assuming your income can keep up with inflation over the short and intermediate term. Absent any other developments, once you have the loan more than half paid off, you should recover to your present score. As was mentioned earlier, absent any more specific info, it's hard to comment, but from a general macro level, if your investments can outperform the 6%, that's a good rate for an unsecured loan.