Help finding the best course of action for debt consolidation (Personal Loan, NFCU, etc).

[Damikester892]

I'm going to try to make things as clear as possible to get the most accurate advice.

My CC debt is through the roof and I have been paying over 1k in just interest making minimum payments and barely lowered my Ult 4% in the last year without using any of my CC's, sock drawered all of them. (safe to say I learned my lesson the hard way). I attempted to pre-qual for a debt consolidation loan in order to get everything into one payment at a lower interest rate and be debt free in 3 years instead of making minimum payments for 9+ years.

Problem is unfortunately I'm sure you all know its hard to get a debt consolidation loan when you are extremely in debt...

A family member has offered to front me the money to pay off my credit cards to increase my scores to get approved for a loan but I have to pay them back by May 10th.

Basically what I'm doing starting today is paying off my credit cards with the money that was lended to me by family to get my Util down to about 25% showing on my reports by 5/2/19. (Note that 2 of my 13 cards will be maxed out because of their statement cut dates, which is where the 25% will be from)

I than intend to apply for a personal loan on 5/3/19 for the amount that my family member gave me to pay them back and just pay the loan payment for the next 3 years.

My question is, if anyone has experience with rates and approvals, would any of these possibly approve me with 20% Util and 2 cards showing maxed out? (Please see bottom of the post for a full break down of AAoA, cards, no lates, no collections, CC amounts, etc)

LendingClub (Already have a 2 year old loan with them with $6,000 left on it)

NFCU (stepfather is military, that enables me to be a member I believe?)

Sofi

Prosper

DCU (Have 2 cars through them and a $5000 limit CC)

Discover (Have a CC through them with $5000 limit)

Any other places I should be considering?

Here is my current EX credit report from CreditCheckTotal, the score will be increased from the Ult decreasing but this is a readout of my credit mix and AAoA: 

Score: 622 (Expecting a large jump?)

Total Credit Limits: $37,551

Total Credit Debt: $33,606

Credit Ult: 89%

Account Summary

Open Credit Cards	13
Open Retail Cards	1
Open Real Estate Loans	0
Open Installment Loans	3
Total Open Accounts	17
Accounts Ever Late	0
Collections Accounts	0
Time Since Negative	Never
Average Account Age	2 Years 6 Months
Oldest Account	4 Years 2 Months

My Debt Summary

Credit and Retail Card Debt	$33,606
Real Estate Debt	$0
Installment Loans Debt	$27,658
Collections Debt	$0
Total Debt	$61,264

Amex BCE: $5,869/$6000 (Will be reported as $0 on 5/2/19)

Barclays: $1,171/$1,300 (Will be reported as $0)

Cap One QS1: $2,450/$2,500 (Will remain maxed out)

Cap One Secured: $471/$551 (Will be reported as $0)

Chase CSP: $7,116/$7,200 (Will be reported as $0)

Chase Freedom: $1,757/$2,000 (Will be reported as $0)

Citi Double Cash: $1,742/$1,800 (will remain maxed out)

CreditOne: $8/$600 (PIF but cuts at $8 for membership fee, I know, got to close it)

DCU CC: $4,852/$5,000 (Might not report in time, it doesn't report the same day every month like the others do)

Google Store: $0/$1,800

Marvel Card: $949/$1,000 (Will be reported as $0)

WF Student Card: $1,312/$1,500 (Will be reported as $0)

WF Cash Wise: $2,466/$2,850 (Will be reported as $0)

Thank you in advance to anyone that is able to offer any advice.

[SlideOrInsert]

from what I can recall, a discover personal loan will require 70% of the loan amount go directly from them to creditors. so they are probably out if you already got the money from a relative.

sofi denied me with a 750ish pull, I forget the stupid reason why.

prosper will give you all the particulars with a soft pull. also they will charge some 3%+ origination fee taken out of the amount you ask for, so plan for that. my experience with them was almost unbelievable, no POI asked or even so much as a signature was required. my scores were in the 750ish range, no lates no derogs.

which brings up the question of your income... what is it compared to your mountain of debt? that will be one of the biggest factors in acquiring any kind of loan.

and if you are going to get a loan, why not ask for the amount you owe your relative plus the two cards that are maxed? I have seen ~15 point drop when maxing out a card to even 88%, even with overall util < 11%.

lastly, most credit cards will let you overpay up to a certain percentage of your balance. might want try paying +$8 on that creditone so that it reports with a zero balance.

[Damikester892]

Thank you for the response, @SlideOrinsert , 

Good to know about Discover, and was Sofi a hard pull or soft poor denial?

I will lean toward Prosper and Lendingclub. Do you happen to know if NFCU, Penfed or DCU require most of it to go to creditors as well?

My income is 65k annually. 

As for the CreditOne, its impossible to pay it down to $0. I always pay it down to $0 and never use it, the $8 is their annual fee that they apply monthly and it cuts on your statement. Which is why I need to close them soon...

[SlideOrInsert]

the sofi denial was SP only, thankfully.

I was not a nfcu member at the time so no experience there. however, a local southern CA credit union I was a member of also denied me with a HP @757 score. that is when I bailed on them and joined nfcu.

it seems to be known that nfcu is sensitive to DTI (which yours is probably high), so consider that before you think about applying with them.

[Damikester892]

Thanks for the tip, I'm curious though how the DTI will be too high? Most of the cards will be showing as 0 so the only DTI payments showing will be my vehicles and old lending club loan?

[SlideOrInsert]

just estimating really...

right, you list 3 installment loans at ~27000 and that will show 3 minimum payments on your CR, plus the ones that remain maxed or do not post in time. then any creditor will ask about your housing cost. you list no real estate debt and I am guessing you do not own outright otherwise you might have asked about a HELOC vs personal loan.  21000 for financing in vehicles has to have a you paying 400-500 at least?

65000/13=5000*30%=1500. Anything over that in minimum payments and housing and your DTI is a highish.  Realistically, those numbers are even a little inflated without taking taxing into account.

[Damikester892]

I see I see, with housing my minimums should be around $1100. 

In that case is it wise to go for two loans of $10,000 each at the same time with two different companies for approval?

[SlideOrInsert]

there is no definitive "right" answer right now.

at this point, hit up the SP loaners (prosper, sofi, marcus, sallie mae, amex, et al.) and see what kind of offers you get back. take one if it suits or come back for thoughts on each.

[Damikester892]

Understood, thank you very much for the insight. 

Will definitely update when I'm ready to apply.

[CreditInspired]

Hi OP and welcome to MyFICO

Have you borrowed the $10K from relative yet? If no, I suggest holding out longer. I don’t want to scare you but the timeline the relative is putting on paying it back is just so restrictive. What happens if you pay these balances off and the lenders close your CCs? Yes, the balances will be $0 but so will the CLs. If this happens, there’s still a possibility of difficulty getting a loan.

because the aggregate will still be high. 

And, if this happens, you won’t be able to pay the relative back in a lump sum. 

Another, thought. Does the relative have high CL CCs with extremely low UT that they can add you to?

I hope I’m being a worry wart for nothing, but I want you to be aware of another scenario. 

Now, if you have already borrowed the money but have not paid anything off yet, maybe test the waters with paying off one card at a time to guage the lender’s reaction. Then, if no AA, do the second card. 

Just my 2cents.