Low income

[MyDataMyChoice]

Friend has a Fico on all three 740

no negatives.  

they are fully disabled receiving SSI/SSDI and SNAP.  $10,116/year and $185 in SNAP/mo

there only expense is rent which is gov controlled at $243/mo includes everything utilities etc 

they have $2000 in credit card debt - but they have it on high interest cards 

they have it on EBay MasterCard limit is 6k with just under 2k on the card

they have a chase amazon visa and a PayPal credit sync too.  Small 250 balance on both of those 

she has a cap1 Walmart card 

and a JC penny card 0.00 balance

I wanted them to consolidate to one card like DCU or NASA FCU but she was declined (after being pre approved)

due to DTI??

anyone know any issuers were they could get approved for any product to consolidate/balance transfer.  Low rate or 0%

[blindambition]

I'd look for a Discover pre-approval for BT potential. Most CU will have issue with DTI they are showing, but would probably approve when carrying lower debt.

[Anonymous]

Only having Store cards is going to make it difficult for your friend at this moment. Discover might be the best option like the other person said.

Personally I'd tell them to stay where they are at for the moment and see if the new administration will give away any new stimulus that might be enough to pay off the debt in full. Then they would have a good DTI and it might open up better options such as Cap1 then after a year or 2 of that it might open them up to Chase and Amex personal cards.

Not gonna talk politics but it does seem we are gonna see a 2k stimulus sometime in February if your friend has qualified for the previous ones.

[MyDataMyChoice]

List of what they have
JC Penny Store Card *Synchrony
eBay Mastercard *Synchrony
PayPal Credit *Synchrony
Walmart Mastercard *CapitalOne
Amazon Visa *Visa

She has


Hard Pull Attempts
They tried applying for a loan at their deposit bank - Experian
NASA FCU for credit card - Experian *Waiting on reconsideration

Soft Pull Attempts
DCU Membership, and was offered credit card pre approval - denied due to DTI
Tried Discover Prequal - No Go DTI
Apple Card Goldman Sachs - DTI

Should she try with Chase - for the SLATE? that would be a hard pull


Should she try with American express - she had a card previously but let it close due to inactivity

[blindambition]

I wouldn't app Chase, unless pre-approval in branch, and that's not guaranteed. I'd suggest making the largest payments possible, and trying to knock out those two balances of $250. Trust me, I know how hard being low income can be. Until some debt is paid down, it will be hard to obtain more credit. Just wasted HP.

[Anonymous]

I'm curious what the minimum payments are on all of the credit cards. I can't figure out the DTI that they are being denied for.  

[Anonymous]

Do not I repeat do not apply for anymore cards. Even with a high interest rate I suggest making the payments. Lock up all the cards and dont lu a penny on them until they are paid off. Looking at the money it looks like there is about 750 a month leftover. It might be difficult but I'd suggest for them to try living off of just 250 of that and putting all 500 towards the debt. Most of the time I say do highest APR but in your friends case I'd suggest knocking out the lower amounts 1st so they see progress. They can have them all paid by summer or quicker if we have more stimulus money in the next administration.

[Anonymous]

It's going to be really hard to get any creditors to give them credit at a decent rate. With that income, if they exceed $337 a month between housing payments, installments, and credit card minimum payments they are over 40% DTI. Creditors are going to be sensitive to how easily that can happen. 

[Remedios]

Trigger warning ..not so positive observation about NFCU 

I sometimes experience total NFCU migraine 

There days after BK...here is $20K. 

40% DTI Oh noes, you might default!!! 

I guess they are okay with other lenders being burned  as long as it's not them. 

[Anonymous]

---

@Remedios wrote:

Trigger warning ..not so positive observation about NFCU 

I sometimes experience total NFCU migraine 

There days after BK...here is $20K. 

40% DTI Oh noes, you might default!!! 

I guess they are okay with other lenders being burned  as long as it's not them. 

---

It's only recently that they have opened up on the BK front. It used to be 2 years before they would give you unsecured credit. I wish they would go back to the way it was before. People who just filed for bankruptcy should not be given a means to bury themselves right away, it's extremely irresponsible.