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So discouraged right now just need some friendly advice

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Tropical24
Valued Member

So discouraged right now just need some friendly advice

Well I have been trying to get a home improvement loan and it has not been working out. I have like 8 inquiries from different finance companies trying to get me approved. I have Fico scores of TU 656 Exp 613 Equifax 676 . It is very hard to listen to that word declined. Unfortunately I'm going to have to finance my little home project with my credit cards. Question do you think my score will take a hit from the inquiries over the last 3 days and my credit score will probably drop tremediously also. What do you guys think I should do at this point?
Message 1 of 11
10 REPLIES 10
Anonymous
Not applicable

Re: So discouraged right now just need some friendly advice

Were you trying for an unsecured personal loan or a home equity loan?

 

What is their reason for denials?

 

Did you try with any credit unions?

 

Do any of your CCs have a decent BT offer?

Message 2 of 11
Tropical24
Valued Member

Re: So discouraged right now just need some friendly advice

Unsecured personal loan not a home equity loan. They said my mortgage score is below 600 on Experian. One is saying I need a consigner. Another is saying excessive obligation .I tried with my credit union Navy Federal but I already have a cash rewards with them for 14,000 and a CLOC of 15,000 so I was just trying my luck with the personal loan. The only balance transfer card I have available is with Navy Federal.
Message 3 of 11
Anonymous
Not applicable

Re: So discouraged right now just need some friendly advice

Sounds like your utilization is too high.  I would suggest posting every credit card you have with credit limit and balances currently.  Then also post any loan you have with initial credit given and how much is left to pay.  Also post what derogatories you have on your credit report and how old they are.

Message 4 of 11
Tropical24
Valued Member

Re: So discouraged right now just need some friendly advice

I have a 21% utiilization per Credit Check Total on accounts. I have 5 closed accounts that are reporting late. I just paid off my loan through my credit union. All credit cards are current and under 30%.
Message 5 of 11
Tropical24
Valued Member

Re: So discouraged right now just need some friendly advice

I think the credit cards that are closed and reporting late is holding me back plus my student loans that I have which are also current
Message 6 of 11
SouthJamaica
Mega Contributor

Re: So discouraged right now just need some friendly advice


@Tropical24 wrote:
Well I have been trying to get a home improvement loan and it has not been working out. I have like 8 inquiries from different finance companies trying to get me approved. I have Fico scores of TU 656 Exp 613 Equifax 676 . It is very hard to listen to that word declined. Unfortunately I'm going to have to finance my little home project with my credit cards. Question do you think my score will take a hit from the inquiries over the last 3 days and my credit score will probably drop tremediously also. What do you guys think I should do at this point?

Personally I think you're better off without "home improvement loans". They tie you down, extend the debt out over time, wreck your FICO scores for years, put a lien on your home, etc.  The inquiries won't count as much as you think, because they're clustered, and because once you get to a certain number of inquiries on a bureau, a few more inquiries don't impact your score. So be relieved you didn't get another "new account" to take down your score further, and didn't jeopardize your home with another lien.

 

 


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 7 of 11
Tropical24
Valued Member

Re: So discouraged right now just need some friendly advice

Thanks so much for your reply I haven't thought about the things you said and it does make sense thanks for bringing that to my attention. I was just looking at all options but you have definitely given me a lot to consider
Message 8 of 11
Anonymous
Not applicable

Re: So discouraged right now just need some friendly advice

 

I don't know your situation or why you need the home improvement loan so urgently. Maybe you're in process of selling the home and getting it dressed up for sale, or maybe you've suffered some major damage that  you need to repair. 

 

But if you're just looking to improve the home for your own enjoyment then I would suggest something different:

 

Instead of taking on a new loan, take the money you were planning to use to pay that loan and instead pay down your existing debt faster. That existing debt is really hurting you in many ways. Not only is it the reason you're getting all these declines, but more directly, it's taking money out of your pocket that you could be spending on something else, or even saving. 

 

So unless it's some kind of emergency I would suggest you look at actually paying your debt down to zero as your first option!

Message 9 of 11
Anonymous
Not applicable

Re: So discouraged right now just need some friendly advice

In terms of his credit scores, the OP has 5 accounts with negative information on them.  Those accounts need to get cleaned up, or his scores aren't going to improve all too much any time soon.  I'd suggest a GW letter campaign targeted at those 5 creditors.

 

As for your recent inquiries in trying to obtain this loan, their impact on your score will depend on how many inquiries you had prior.  If you had very few, the recent inquiries will impact your score more.  If you had a ton already, it's possible you won't lose a single point from them.  Chances are, you're somewhere in the middle.

Message 10 of 11
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