Personal Loans for Debt Consolidation

Anonymous · ‎06-02-2016

Mods, not sure if this is the right place or not if it is not, ship it to the right place.

3 months back, I took out a lending club loan for about 14k at high interest rate (over 20 percent). I pay 594 a month on the loan for 36 months. I have made one payment thus far and it has yet to report on my 3 CB's but I am sure it will very soon. I am going to be looking for a house next year (was preapproved last month but decided right now is not the best time). I really want to refi that loan ASAP to lower the payments to help my DTI. Well silly old me, jumped the gun and was looking at loans just now to see if I could get another personal loan to refi the LC loan at a better interest rate and in turn lower my payment. I went to lending tree and the only personal loan company that I was "pre qualified" for was discover. I thought, well they are reputable andare offering me decent rates, why dont I apply so I can refi. I applied and was turned down immediately. Is there any recon on this? Just wanted to get some advice on what I should do? Garden for 6 to 8 months and apply again when my scores are all in the 700s? Scores below reflect my current scores, plus I have low credit utilization and perfect payment history (do have a lien from 2011 that is released and aging off in 2018). I do have a decent amount of inquiries ranging from 13-17 depending on the CB. Should I just stick it out and pay 594 for three years? Is it worth another shot at refi in 6 months?

RonM21 · ‎06-03-2016

I would try looking into a credit union. The rates tend to be much better.

Total CL: $321.7k

UTL: 2%

AAoA: 7.0yrs

Baddies: 0

Other: Lease, Loan, *No Mortgage, All Inq's from Jun '20 Car Shopping

Anonymous · ‎06-03-2016

Is reconing Discover even worth a shot? Do they even recon personal loans? I was looking at their reviews on CK and man, some people were turned down with really good scores (a lot better than me). Not sure I would even get approved with a recon. I think they are inquiry sensative as well, wish I did not even apply and take that HP....ugh! Need to garden for another 6 months and look at my options than I think.

Anonymous · ‎06-09-2016

So got the denial letter from Discover today. They did not pull any CR's, they said based solely on the information provided on my application, no credit bureau report was used. They denied me for insufficient income, which is weird. I do not make a ton but I make 53k annually, have one dependant, have about 69k in student loans (pay 240 a month), car loan for about 13k (pay 262), and utilizing about 7% of avaiable credit (30k available), and have worked at the same job for three years. I am thankful they didn't HP me but kind of suprised by the reason.

Anonymous · ‎06-12-2016

I feel your pain. I posted a similiar thread regarding the same thing. My terms are 394 for 48 months! But when your desperate, you gotta do what you got to do. I agree with the other poster and look into a credit union. I'm using Alliant and i'm still trying to figure out how the "Alliant method" works. Do a search for it. The only part i'm not clear on is whether or not i get my original money back. Do not use this method if your looking to improve your score because it will probably not do anything for it since you already have an installment account. Not saying this is the method you should use but sometimes with this credit game you gotta get clever. The reason why im looking into this method is solely to "refinance" my 10k debt.

If I was in your shoes i would not want to pay that much for 3 years. I think you will be able to get a better loan and approval through any credit union probably within a 6-8 month time. Since your loan is so new, i wouldnt risk another shot anywhere until you have paid on it some more. That doesnt mean you cant join now and start building a relationshp with a credit union. Good luck to you.

Anonymous · ‎06-12-2016

I just re read your original post and forgot that you said you were in the market for a house next year. Well scratch what I said. Read up on credit and morgages because I think underwriters dont like to see new things added to the report duing a certain time frame (I think 6m to a year). So if your gonna act on refinancing, then you got to do it now unfortunately because if you wait til next year then it will be a serious flag on your report to the creditors.

Sorry for the confusion