@JS45 wrote:@SouthJamaica so what can I do with an excellent fico score? What does it mean?
and I also have excellent credit score
BUT dti not good.
I think your credit score is powerful. I think it will help you get a nice credit union, non-rewards, low interest, no balance transfer fee, no cash advance fee, platinum card, with a 15k starting limit.
Your good credit score will also help you get business credit. E.g., a business credit card with a 0% APR promo rate for balance transfers, such as FNBO Business Evergreen. At least that way you will save the interest for a year.
@SlideOrInsert wrote:what is @JS45 realistic budget for the payments on accounts?
does @JS45 personal 1 offer balance transfers at all?
@JS45 references other accounts with zero balance, what are their limits and do they offer balance transfers?
some unanswered questions.
@JS45 wrote:@SlideOrInsert I've managed to make more than minimum payments each month on all 3 credit cards yet with income getting tighter mag not be able to.
this is troubling. even if you got all $20k down to zero percent, most credit cards require something like 2% minimum payments. that's like ~$400 monthly and my estimations at current aprs is not that much more. which brings back question 1.
| limit | apr | balance | int $ /mo | min pmt | nper | |
| business 1 | 10000 | 20.49 | 7500 | 128 | -165 | 88 |
| business 2 | 10000 | 12.49 | 6900 | 72 | -152 | 62 |
| personal 1 | 27000 | 14.99 | 5700 | 71 | -125 | 68 |
| TOTAL | 47000 | 16.18 | 20100 | 271 | -442 |
| limit | apr | balance | int $ /mo | min pmt | nper | |
| business 1 | 10000 | 00.00 | 7500 | 0 | -150 | 50 |
| business 2 | 10000 | 00.00 | 6900 | 0 | -138 | 50 |
| personal 1 | 27000 | 00.00 | 5700 | 0 | -114 | 50 |
| TOTAL | 47000 | 00.00 | 20100 | 0 | -402 |
you mention a possibility of a business loan at 11-13% to consolidate the business credit cards. even if you stretch the term out you have ~$400 in payments monthly. which brings back question 1.
| nper | apr | balance | pmt |
| 60 | 13 | 14400 | -328 |
| 48 | 13 | 14400 | -386 |
| 36 | 13 | 14400 | -485 |
I'm not as optimistic about new accounts with your HIGH DTI and self employment income as others are. this might actually be doable, at least on the personal side as it is not a monumental balance. which brings back question 2/3.
again with the auto refinance, I do not think it is a priority. even if you can get a rate in the 3-4% range, you are saving ~$15 monthly max in interest which adds to maybe a few hundred in total savings. yes you could extend the term and lower the payment, but that usually means interest is more expensive in the end.
| limit | apr | balance | int $ /mo | pmt | nper | |
| student | 3.75 | 11500 | 36 | ? | ? | |
| auto | 5.29 | 11500 | 51 | ? | ? | |
| nfcu auto refi | 4.50 | 11500 | 43 | -342 | 36 | |
| nfcu auto refi | 4.50 | 11500 | 43 | -406 | 30 | |
| nfcu auto refi | 4.50 | 11500 | 43 | -502 | 24 |
so again I suggest start with the three questions at the top.
then personal loans that offer you a rate with a soft pull and no fees (discover, marcus, etc) AND will not affect your credit if you do not accept. I think this will give you a sense of how banks view your income with current credit score AND your borrowing power.
@JS45 wrote:"My preference would be not to saddle yourself with an installment loan over what is a temporary situation.
As to paying down the business cards, I would concentrate on paying down the 20.49% card. The other one has reasonable interest."
can you tell me more about not taking the loan?
i spoke to my business banker and he's suggesting we take those 2 business Ccs and roll them into a biz loan with a lower apr.
Each month I make payments on both and both are more than the minimum payments. Of course I want to pay them
down faster but it's very slow moving right now with what I can pay.
As I said it's my "preference" to avoid saddling myself with long term debt by consolidating short term debt into long term debt. But it's just my personal preference. If that's the way you and your business banker want to go, more power to you.
It's nice to have a personal relationship with one's business banker.
Just bear in mind that all bankers these days are part salespeople; they are scoring points for each new credit product they sell. They score no points for your ontime credit card payments. But it's not the worst thing in the world to throw them a bone now and then, to help foster the relationship. If I were in your position, and had a personal business banker trying to get me to take a certain product, I'd probably jump at it regardless of my personal "preferences".
@JS45 wrote:@SouthJamaica thanks. Yes we have a personal relationship and he's fully aware of my financial situation too. We've been discussing best ways to go. As I continue digging deeper on my own I know the bigggest thing for me is this biz credit card debt at abojt 15k. Everything else I can manage. I want this stuff gone. Of course I'm not guaranteed approval of this loan but it might be worth the try.
i also do have soft approvals for a personal cc balance transfer now. My personal onky has 5k on it though. Unfort it went from 12.99 to 13.49 but that's still not too bad. My monthly payments need to be about $127 per month and I've been making $175-$200, depending on the month.
Just watch out for the balance transfer fee; those can reduce or eliminate the benefit of the balance transfer.
@JS45 wrote:I want to be sure im understanding what you shared and thanks for the chart.
when you talk about the personal loan are you talking about taking the business debt and moving it to personal? Other than the business debt I feel pretty good about the personal stuff. If I could wipe out the biz CC debt I could handle all the other debt/payments easily.
I've been looking into if my biz debt effects my personal and can't seem to find a clear answer. I do have a very high credit score, above 800 but again my DTI is poor.
thoughts?
do the business credit cards and debt show on a personal credit report you have pulled from a reputable site? that should give you an indication. even though the credit karma vantage score is no value, credit karma will list the credit report details.
if the business debt ($14400) is not attached to your personal credit, I would not take a "personal loan" for the total ($20100) of all three debts. if your banker can get you a "business loan" ($14400) with a lower apr than currently, that is an option. while it may lower the current total minimum of payments, it may just stretch out the term and cost more interest dollars. banks are in the business to make money.
if the business debt is attached to your personal credit, then "business" or "personal" loan for $20100 with a lower apr than currently is an option. while it may lower the current total minimum of payments, it may just stretch out the term and cost more interest dollars. banks are in the business to make money.
either way I think a different approach needs to be taken. as I suggested, determine your realistic budget for the minimum payments you can make monthly. is it 300, 400...$XXX? you have been kind of vague. then work from there to find the solution through balance transfers, loans, etc.
Google the term "debt snowball."
Follow it to the letter.
