Is this the best way to deal with my store cards?

[quarius]

I tried to get new cards and stuff with zero interest to deal with my store cards and pay them down. So after doing some investigating on my store cards i just learned that im paying an insane amount of interest on these 7 store cards that are mostly all maxed out, interest ranging from 25%-29% on about $11,000 that I owe on them. So I found a place that will give me a personal loan to pay them all off at a much lower interest rate and the payment plan amounts to the same amount.

What im asking is how much will my fico score have a good impact after all these cards report zero? I also recently paid down all my other cards to zero except my BOA card which i owe 11k on the 12k limit. Its just the store cards that were really messing me up.

So when u take all these good factors into account what am i expecting? I get an added open installment loan on my report, 7 cards with high balances will report zero now on my revolving accounts, im paying less for interest. So this is a win win. And when my scores get better i can try a CU or something to try and pay less interest on the loan but thats later.

[Creditaddict]

Who gave you the personal Loan?

Paying off all that should probably give you quite a nice little jump.

[bobbay]

that looks like boot camp to me.  Any downturn or strain on lenders and they will want to reduce their default exposure.  I would focus on the high rate store cards first with lowest balance first and try to knock it out.  the store cards are least likely to CLD you as you pay them down.  Each card at $0 will make you look stronger and free up cash flow(alot).  Conversly at 25-30% interest if you pay down BAC and they CLD you to just over your balance you continue to operate in a high stress, pressure, risk environment.

looks like you have some nice card so you likely already know everything I said.  Depending on the loan i.e. consumer finance v.s. personal loan the ding would be very different.  If it is the latter you could possible see a score bump because the utilization drop offsets the inq and new account ding.

This is my opinion and the way I would attack it.  To each their own.  Good Luck.

[quarius]

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@Creditaddict wrote:

Who gave you the personal Loan?

Paying off all that should probably give you quite a nice little jump.

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It's called LendingClub and from what i have read about them that they are just great, all good reviews.

[Creditaddict]

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@quarius wrote:

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@Creditaddict wrote:

Who gave you the personal Loan?

Paying off all that should probably give you quite a nice little jump.

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It's called LendingClub and from what i have read about them that they are just great, all good reviews.

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You borrowed $12k from them? at what rate? what score did they give you?

[quarius]

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@bobbay wrote:

that looks like boot camp to me.  Any downturn or strain on lenders and they will want to reduce their default exposure.  I would focus on the high rate store cards first with lowest balance first and try to knock it out.  the store cards are least likely to CLD you as you pay them down.  Each card at $0 will make you look stronger and free up cash flow(alot).  Conversly at 25-30% interest if you pay down BAC and they CLD you to just over your balance you continue to operate in a high stress, pressure, risk environment.

looks like you have some nice card so you likely already know everything I said.  Depending on the loan i.e. consumer finance v.s. personal loan the ding would be very different.  If it is the latter you could possible see a score bump because the utilization drop offsets the inq and new account ding.

This is my opinion and the way I would attack it.  To each their own.  Good Luck.

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The good thing about what im doing is there is no HP because of the lender im using which is great. I'm not sure i understand what u mean? R u saying wheni get this loan to pay it off gradually versus all at once? I could care less if they CLD me, my idea was to just pay them off and then just sockdrawer them until they close the cards themselfves. And look for a few CU's after this gets fixed.

[quarius]

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@Creditaddict wrote:

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@quarius wrote:

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@Creditaddict wrote:

Who gave you the personal Loan?

Paying off all that should probably give you quite a nice little jump.

---

It's called LendingClub and from what i have read about them that they are just great, all good reviews.

---

You borrowed $12k from them? at what rate? what score did they give you?

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I'm in the process for 12k yes. 12.99%. Not sure what score they gave me but i can get my walmart tu score.

[Creditaddict]

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@quarius wrote:

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@Creditaddict wrote:

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@quarius wrote:

---

@Creditaddict wrote:

Who gave you the personal Loan?

Paying off all that should probably give you quite a nice little jump.

---

It's called LendingClub and from what i have read about them that they are just great, all good reviews.

---

You borrowed $12k from them? at what rate? what score did they give you?

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I'm in the process for 12k yes. 12.99%. Not sure what score they gave me but i can get my walmart tu score.

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wow, what a fantastic rate especially considering how maxed out you were.

and I agree with you aobut the other post... who cares about "possible" CLD, you need to pay off those high rates and work on getting overall debt down way more than worrying about possible aa that probably won't even happen.

[quarius]

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@Creditaddict wrote:

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@quarius wrote:

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@Creditaddict wrote:

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@quarius wrote:

---

@Creditaddict wrote:

Who gave you the personal Loan?

Paying off all that should probably give you quite a nice little jump.

---

It's called LendingClub and from what i have read about them that they are just great, all good reviews.

---

You borrowed $12k from them? at what rate? what score did they give you?

---

I'm in the process for 12k yes. 12.99%. Not sure what score they gave me but i can get my walmart tu score.

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wow, what a fantastic rate especially considering how maxed out you were.

and I agree with you aobut the other post... who cares about "possible" CLD, you need to pay off those high rates and work on getting overall debt down way more than worrying about possible aa that probably won't even happen.

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Yeah tell me about it, i'm so happy about this. It sure seemed like i was only paying interest on these cards and they never went down. It will take me 36 months to pay this loan off, after my score gets better i will try and get a rate lower from a CU or something for the rest of the loan. Trust me i tried to get other cards and 0% interest but it was getting out of hand. The way that i was looking at it was if i pay off my good cards if i get in a emergency i could use them so i paid them down but those store cards i cant get that money back and this works out as a really good situation for me.

[bobbay]

It sounds like you have a good plan.  I agree, I would SD the store cards.  After a few months with $0 bal you should see a nice score jump.  I did not kow that lending club was no hp?  that is sweet if that is the case.  I have heard a lot of good stuff about lending club and the like.  They are really filling a niche.  I was concerned you were referring to something like Onemain or the like.  Those signature personal loans are aweful.  1/2 the rate amortizing vs 25-30 revolving is a homerun in itself.