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Refinancing a Credit Card

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Anonymous
Not applicable

Refinancing a Credit Card

Hi all, I'm new here so I apologize in advance if I'm not asking my question in the right topic. I'd really appreciate any advice that you might have.

 

I was sick for a while and I missed two payments to one of my cards (the ones with the highest balance ($19K )and very high utilization) this lead to my account being closed which in turn took a big toll on my score(it's around 600 now, it used to be above 700). Now this card (it's Chase) have a very high monthly payment as well as APR.

 

I'm looking for ways to lower the monthly payment and APR. I have received some offers from payoff, upgrade, etc. Is this kind of offers my best option?

I was also looking into CreditKarma recommendations, I haven't filled the form yet but do you have any experience with going with credit Karma preapproval?

 

Any other company or method that you recommend? What would be a realistic APR that I can look for?

Or you recommend anything else? credit union? negotiating with chase via NFCC?  

Thank you very very much

 

 
 
 
2 REPLIES 2
Jnbmom
Credit Mentor

Re: Refinancing a Credit Card

What kind of offers are you referring to with regards to payoffs, upgrades, negotiate via NFCC not sure what this means?

 

Yes chase like most banks don't mess aroundSmiley Sad You can try to find another credit card that you could possibly BT to, but with the drop in your scores and the amount you owe chase , thats highly unlikely.

 

CK is a site that pushes their advertisers, I don't take much stock in them.

EXP 780 EQ 791TU 795
Message 2 of 3
Dalmus
Valued Contributor

Re: Refinancing a Credit Card

 If you don't mind my asking, what's the monthly payment and the interest rate that you're paying to Chase right now?   Other than not wanting to make that high payment and pay all the interest, are you able to afford the payment?  Do you have any savings stashed?

 

 With your credit score near 600, you'll have a hard time (probably impossible) getting a loan even from the semi-legit lenders like Prosper and Lending Club.  You may find one of the lower-tier lenders that will give you something, but it'll be at a 20% plus rate over a 5 year term at best, which would RAISE your payments.  I doubt that they'll give you the 19K that you would need, though.

 

 The best option would be to see if Chase would negotiate with you to reduce or eliminate the interest, and just pay them directly.  They may have a hardship program available to do just that.  Call and ask them directly before you try to use a 3rd party to negotiate.  Your account is already closed, so as long as you make your monthly payment, they can't do anythign worse to you.

 

 If you have savings stashed away, you can always joing a local credit union and do a share secured loan.    Although I assume you don't have 19K saved after what you went through.

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