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AMEX Loan to consolidate and Auto Loan

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AMEX Loan to consolidate and Auto Loan

Good afternoon all,

 

I was hoping for some advice in regards to the most beneficial way to go about this.  I am offered a personal loan by AMEX with a 8% APR interest rate.  I currently have two other personal loans with a much higher interest rates which would be paid off by October of this year if I leave it as it is, or pay them off early through my tax refund.  I am looking at purchasing a new vehicle in May of this year and my utilization on my CC is right around 35%, if I take the AMEX loan, or my tax refund it would bump my UTI. to around 22% and would also actually help my DTI which is at 28% right now.  I know that Amex wont HP for the loan, so I would not add a Inquiry to my report ( I have 3 in the last 24 months across all three CRs). I am just wondering, curious how much it would negatively affect me with adding a new account/ lover my average age account that sits at 6yrs and 5months right now? I would think paying off two loans, bringing down my CC debt will give me a boost of my FICO score, right now around 710-720 across all three CRs auto enhanced.  Really just worried that seeking new credit three months before applying for a auto loan is a bad thing to do ? 

 

Really would appreciate all input

 

 

2 REPLIES 2
New Contributor

Re: AMEX Loan to consolidate and Auto Loan


@Shopper907 wrote:

Good afternoon all,

 

I was hoping for some advice in regards to the most beneficial way to go about this.  I am offered a personal loan by AMEX with a 8% APR interest rate.  I currently have two other personal loans with a much higher interest rates which would be paid off by October of this year if I leave it as it is, or pay them off early through my tax refund.  I am looking at purchasing a new vehicle in May of this year and my utilization on my CC is right around 35%, if I take the AMEX loan, or my tax refund it would bump my UTI. to around 22% and would also actually help my DTI which is at 28% right now.  I know that Amex wont HP for the loan, so I would not add a Inquiry to my report ( I have 3 in the last 24 months across all three CRs). I am just wondering, curious how much it would negatively affect me with adding a new account/ lover my average age account that sits at 6yrs and 5months right now? I would think paying off two loans, bringing down my CC debt will give me a boost of my FICO score, right now around 710-720 across all three CRs auto enhanced.  Really just worried that seeking new credit three months before applying for a auto loan is a bad thing to do ? 

 

Really would appreciate all input

 

 


Congrats on getting a pretty good offer for a personal loan. That interest rate is currently the national average for a PL. I would pay off the other PL as fast as you can as the rates are a bit higher, and the faster you pay is the less interest you would occur. I would personally not increase you're DTI. Loan officers do not like seeing DTI over 32% as it becomes a risk to lend. Credit unions would have to step in to help you during that cycle. The decision is obviously yours to make on this BUT IMO, I would jump all over that 8.00% APR, WITH NO HARD PULL. I would confirm before signing anything or agreeing that it is not a hard pull. BUT you have nothing to loose as you're score would probably rebound after lowering that DTI. 

 

The age on you're credit will lower a little bit, but you are still a trusted borrower in my opinion. Now, I do not work for AMEX so I do not make the calls they would make. 

Message 2 of 3
Established Member

Re: AMEX Loan to consolidate and Auto Loan

I just pulled the trigger on a loan Sunday with AMEX and was funded this morning, no HP..no POI..no changes on the offer and directly deposit in my account FYI. I just paid off the other two loans and with the lower payment now puts me at 26% DTI. I would think that the DTI and my oldest account being 19yes with my average age of accounts at probably around 6yrs will outweigh the addition of a new account,the other two hopefully will report paid and closed next month. I NEVER HAD AN EASIER LOAN PROCESS THAN WITH AMEX!!!!
Message 3 of 3
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