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Consolidation of loans

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Established Contributor

Consolidation of loans

In anyones  opinion, does it make sense to  combine my two personal loans?  These are the specifics:

 

1st loan balance $23078 (14 day pay off)   $495  mo   15.65%       exacatly  72 mo remaining for both

2nd loan balance $18648 (14 day pay off)   $398 mo   15.69%

 

combined @ about  $41678 or roughly 42k

 

total payment now is $893 between the two  according to FICO report 

 

current credit scores across the board  (FICO) above 775.

 

USAA could possibly be as low as 9.49% with excellent credit also.

 

 

these loans are between NFCU & USAA with whom I've done all my business with.  I would apply with NFCU.

Thanks!

 

 

current DTI is 25% and would drop to about 24%.   

Message 1 of 8
7 REPLIES 7
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Established Contributor

Re: Consolidation of loans

sorry for the long post but probably answered the question myself, thanks anyway!

Message 2 of 8
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Contributor

Re: Consolidation of loans

If it was me and I could get a significantly lower rate and payment, I’d do it.

FICO 8 Scores 4/1/2018: 694 EX 714 EQ 740 TU FICO 8 Scores 6/16/2019 770 EX 798 EQ 791 TU

Wells Fargo Cash Wise $20,000 [] PenFed Power Cash $20,000 [] HSBC Cash Rewards $3,750 [] Discover It $5,100 [] Maurice’s $5,000 [] CO Savor $15,000 [] NFCU Flagship $18,000 [] Amex Rose Gold [] Walmart $800 [] Kohl’s $1000 [] Amazon Store Card $300 [] American Express Cash Magnet $1000 [] USAA Cashback Rewards Plus American Express Card $4500 []
Message 3 of 8
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Established Contributor

Re: Consolidation of loans

 sometimes I get  jitters in being declined and wasting an inquiry.

 

I did go for it and ended up getting  9.74% for 72 mo @$767 mo, saving 5.95% per month in interest which equals saving  $124 per month.

 

I guess I would take two or three hits for this on my credit files;  one  for the inquiry, one for the consolidation, and one for the old accounts being closed out?

Message 4 of 8
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Contributor

Re: Consolidation of loans

Congrats on your consolidation loan approval!

FICO 8 Scores 4/1/2018: 694 EX 714 EQ 740 TU FICO 8 Scores 6/16/2019 770 EX 798 EQ 791 TU

Wells Fargo Cash Wise $20,000 [] PenFed Power Cash $20,000 [] HSBC Cash Rewards $3,750 [] Discover It $5,100 [] Maurice’s $5,000 [] CO Savor $15,000 [] NFCU Flagship $18,000 [] Amex Rose Gold [] Walmart $800 [] Kohl’s $1000 [] Amazon Store Card $300 [] American Express Cash Magnet $1000 [] USAA Cashback Rewards Plus American Express Card $4500 []
Message 5 of 8
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Established Contributor

Re: Consolidation of loans


@babbles wrote:

 sometimes I get  jitters in being declined and wasting an inquiry.

 

I did go for it and ended up getting  9.74% for 72 mo @$767 mo, saving 5.95% per month in interest which equals saving  $124 per month.

 

I guess I would take two or three hits for this on my credit files;  one  for the inquiry, one for the consolidation, and one for the old accounts being closed out?


Congrats on improving your loan terms!

 

You should only take a "hit" for the inquiry and the new account.  You might get a temporary hit as the new account might report the balance of $42K before the old loans report $0, but that should fix itself within a month or two.  You shouldn't see any hit from the other loans being closed out.

NFCU MR: $25K | Venture: $21K | Amex ED: $18K | NFCU CR: $18K | Amex BCE: $15K | IT #1: $15K | PNC Core: $15K | PPMC:  $12K | Wells Fargo: $11K | Savor: 12K | Cap1 QS: $8.5K | Barclays Rewards: $7.75K | IT #2: $6.8K | MLife: $6.5K | Sportsman's Guide: $8.7K | PenFed PR: $5.5K | Elan Plat: $2.3K | TRV: $2.8K | BotW: $3K


Current FICO 8 Scores: EQ: 735 | TU: 741 | EX: 733

Message 6 of 8
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Established Contributor

Credit mix is terrible now!

I did a consolidation and I think my credit mix may not be too good at this point:

 

rolled up two loans  within the last week and both were only open 1 year even 

have two credit cards reporting with 0% utilization, one with a high of 24k and one  @ $500  

one auto loan only been open 6 months (refinanced)  72% utilization

oldest account  15yr 8 mo  average 8yr 9 mo

one of the consolidated loans  paid off on experian this morning and got an amazing 10 point drop

 

Is that a weak credit mix?

 

 

 

 

 

Message 7 of 8
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Community Leader
Senior Contributor

Re: Credit mix is terrible now!

No, it’s not bad by any means. You have credit cards and an installment loan, so you’re doing well. I suppose you could add another card for the “ideal” number of credit cards, but don’t feel like you absolutely have to if you don’t need one. 

Discover It: 19.7k
Amex ED: 18k
Citi DC: 6.7k
Citi Rewards+: 3.6k
Bank Americard: 2.8k
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Once you go Berner, you never go back.
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