Will I Qualify?

[Anonymous]

Hi, I'm seeking to get a personal loan of 20k. My credit history is only 1 year and 2 months old but my score is 750 for all three bureaus. I'm active duty military and I pull in 27k gross with a less than 5% debt to income ratio because the military pays for mostly everything. I have 100% on time payments with 2 credits card and a 1k credit builder loan that is now closed. I have already factored in the payments, insurance and a little safety net for maintence. With all of this will I qualify for the loan or will I have to wait until I have 2 years of credit history?  Thanks for the help.

[Anonymous]

I think you may have a hard time getting a personal loan of 20k based on an income of only 27k.  All your stats seem good enough.  Are you a member of USAA?  I would start with them, but my fear would be the loan amount would be too high without any collateral.

[Anonymous]

Thanks for the reply. Since one 20k loan is unlikely, would it be more feasible to try and get two 10k loans from different lenders?

[Anonymous]

You could certainly try, and if they are close enough to each other when applying they may not show up on your CR yet.  This is in the auto loan section, are you looking to finance a car?  If so, we are talking about something different since the car is collateral.

[Anonymous]

With your 5% DTI ratio I don't think it will be a problem as long as the loan term is 4-5 years long. Surely you can pay it down sooner as with anything but they would want to make sure before they gave you a 2 year term and have to worry about you being able to spend half of your income for 2 years for just the loan itself .Which is why 4-5 years is more feasible as it would only be about 5k per year or less and would only be 1/5 of your income or less each year which is alot better than 1/2. NFCU or USAA is Probaly gonna be your best bet as they are used to working with military salaries and will be able to help you a lot more. I dont think 20k is asking too much. I say apply at one or both of those creditors and see what they can approve you for if not for the full amount .It will only cost you a HP. So if your serious about it just apply when ready and see what happens. Worst case scenario they will give you a counter offer that you can work with .