I'm always infavor of Credit Unions for personal loans, or even Discover. The 97% utilization is going to be an issue however. With $190k in income I would think you could make some budgetary adjustments and knock that mess out in several months! Read up on the debt snowball. I don't really think you need to borrow money.
with such high utilization, even if approved for a loan the APR would probably not be favorable. might be best to budget your high income for 3-6 months to get your utilization down to ~87% and then try for a personal loan.
is there a particular reason you want to pay the auto and personal loan off first? in general credit cards carry a higher interest rate than traditional loans. finance-wise it would make more sense to pay those first and save yourself some cumulative interest.
not to mention you will see a score bump from paying off the credit cards vs having two paid off loans, one high util new loan and high util credit cards.
@Anonymous wrote:My current scores (Fico 8) 670/677/667.
I've never missed a payment, I have a good credit mix, and a decent length of history. The only thing that is holding my back is my credit utilization. It is extremely high atm (97%). I'm wanting to get a 30k personal loan to pay off 15k on Auto loan and 5k on older personal loan. The rest I would use to pay of credit cards.
Are there any credit unions or companies that will look at my 20 years of on time payments, 190k income and approve me even with my current utilization? Current have around 30k in CC debt.
If your revolving utilization is 97%, any loan you might get -- and any other money that comes your way -- should be applied to your credit card debt, not to the loans.
I don't think you would get a good interest rate on a loan until you make a dent in your revolving utilization.
How much is the CC Debt alone? Loans dont kill scores with age. Credit card util does much much more damage. As others have said. Not to repeat. Forget the loans. Get the util down. Paying off CC debt spanks what paying loans off would do to scores. Give your cards to a family member. Dont use them till its paid down. Swipe fever will subside. Then if you cant pay it. Dont charge it. Emergencies only. Good Luck!
@Anonymous wrote:My current scores (Fico 8) 670/677/667.
I've never missed a payment, I have a good credit mix, and a decent length of history. The only thing that is holding my back is my credit utilization. It is extremely high atm (97%). I'm wanting to get a 30k personal loan to pay off 15k on Auto loan and 5k on older personal loan. The rest I would use to pay of credit cards.
Are there any credit unions or companies that will look at my 20 years of on time payments, 190k income and approve me even with my current utilization? Current have around 30k in CC debt.
Even with spotless payment history, most lenders are going to be concerned with a Util that high, would you be able to provide them with a good explanation about why you have a 97% util with almost $200k/yr income? It sounds like you have $50k or so in debt (assuming no mortgages or other installment debt that wasn't mentioned) with over half of that being revolving, it will certainly warrant explination if they were going to do it. You can probably find someone, but the apr will likely be high, and the term short, so you'd be way better off using it to take care of the revolving debt. The amortized stuff isn't going to get worse.
@Anonymous, I agree with those that say to try going with a credit union, but to be honest, I don't know that you'd get approved for any sort of loan with 97% utilization, even with high income. And IF you do happen to get approved, I don't know that you'd get anywhere near $30k, nor would you get a favorable interest rate.
I'm in a similar situation (very high utilization) with worse scores and less income and I was able to get pre-approved through Upstart but the interest rate wasn't ideal. It was still significantly better than my credit cards though! Upstart looks at more than just your credit score. I didn't pull the trigger yet because I'm waiting for 5 cards I paid off to report $0 and get my utilization down a bit more so I can get a better rate. Your longterm scores will take a hit as a CFA but if you're like me and you just want to get out of debt as fast as possible it may be worth it if the rate you can get is better than the credit cards.
As others have mentioned if you are able to get a loan I would throw everything at the revolvers instead of the loans.
@Anonymous wrote:My current scores (Fico 8) 670/677/667.
I've never missed a payment, I have a good credit mix, and a decent length of history. The only thing that is holding my back is my credit utilization. It is extremely high atm (97%). I'm wanting to get a 30k personal loan to pay off 15k on Auto loan and 5k on older personal loan. The rest I would use to pay of credit cards.
Are there any credit unions or companies that will look at my 20 years of on time payments, 190k income and approve me even with my current utilization? Current have around 30k in CC debt.
@Anonymous Welcome to the Forums!
If I read your post correctly,(sorry if I missed something) your UTI is very high 97% about 30K CC +15K Auto + 5K old PL! So it's about 50K that you would need! However your income is 190K. Therefore your DTI (Debt-to-Income Ratio) is low if you can show proof of income.
You should be able to get 50K PL form a decent CU such as Penfed, Service etc. with ok APR or even single digit.
For PL DTI is very important, DCU was at 40% threshold but Penfed was under 60% DTI when I got my PL from them, APR was about 14% but after couple of months I refinanced the same loan with ServiceCU for much lower at 6.5% and then back to DCU for 3%
Note: Don't go PL shopping on random sites, they would pull your report left and right and effect your score even more!
