Need Advice: NaVCheck or Springleaf, pay it off or hold on?

[Anonymous]

Hi All:

I have a dilemna and could really use some advice and my time is clocking so I need to make a decision sooner than later! I took out a loan from Springleaf last week and they offered 1 week guaranteed... I was given a 24% interest rate (not an interest bearing loan either). Anyway, I just now got approved for NaVCheck @ 15% and will be able to use the funds if its the best approach to pay off this loan. 

I think I will be able to pay it all in full within 3 months at most 6 months. My questions are -

Should I leave the loan since it doesn't affect my UTI but it does affect my DTI and spread out payment and pay it in full within 6 months?

Should I take out from a BRAND NEW NavCheck credit line and pay off Springleaf before it shows on my CR and before the 1 week is up?

* Will this spook NFCU to take out a big amount $5,000 right off the bat and just right was approved?? it's my largest TL at this time and CLOC and would hate for anything to happen to it.

Your advice is greatly appreciated!

Springleaf x 6 months = $982 (Interest paid = $391)

NavCheck x 6 months = $960 (interest paid = $258)

Clearly I would pay less through NavCheck - but my credit would take a hit with 33% UTI??? 

[gdale6]

I would keep the installment loan and pay it off over 3 months, I would not want a 33% util.

[Anonymous]

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@gdale6 wrote:
I would keep the installment loan and pay it off over 3 months, I would not want a 33% util.

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Thank you! since you are the only one that replied... question - Springleaf will report $8800 that includes the interest for the $5000 loan. My student loans are all considered installment loan. So with that said, leaving this will it hurt my DTI? is it better to hurt DTI than UTI for short period of time? which is worst? which would prevent CLI in the future? My AMEX $5K SL 61 days is due on 9/18 and wondering if Springleaf started to report that will hurt my chance? and do you know the effect of personal loan on credit profile? I did the score simulator and it didnt add/subtract anything IF I add a personal loan.

Thank you for the advice! I was hoping to get more result... since today is the day I have to make a decision. 

On the side note I did write the check from NavCheck and already cleared my account so the funds are 

1. Ready to pay off Springleaf

2. Take back to CLOC

[Appleman]

You are talking about a $133 difference. 

The personal loan will be scored differently and will not affect your revolving utilization.

I do have a questions, did you prepay all of that interest? (Wondering why they are going to report $8800 on a $5000 loan). Also not sure what you mean by it is not an interest bearing loan?

You could do a hybrid method and utilize 9% of the Nav line to pay down the personal loan. 

[Anonymous]

Appleman - what is a hybrid loan? $133 difference a month is pretty big

[Anonymous]

When it comes to things like this, go with what saves you money, always! This is what credit is for. Who cares what impact it has on your score in the short run, after you pay it off in a few months it won't matter anymore.
The point of managing your credit is to save money, so don't spend a bunch of extra money just to manage the short term impact of your score.

In short, go for the Navcheck!!!

Btw, if it were me, I would check and see what BT offers Discover is giving you right now and maybe go with that, or potentially even sign up for a new card with 0% BT offer.

Good luck, but don't let your score scare you into making a bad decision!