Using a Personal Loan to pay off CC Debt

[Anonymous]

I am hoping that someone can help- I have about 14,000 in credit debt that I'd like to pay off in order to increase my credit scores (trying to buy a new home). I was offered a personal loan that could pay them off- how will taking out a personal loan from lending club affect my score if I'm using the funds to pay off credit cards?

[Anonymous]

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@Anonymous wrote:

I am hoping that someone can help- I have about 14,000 in credit debt that I'd like to pay off in order to increase my credit scores (trying to buy a new home). I was offered a personal loan that could pay them off- how will taking out a personal loan from lending club affect my score if I'm using the funds to pay off credit cards?

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It will likely help your scores by improving your utilization, but many times it's advised not to take on any new debt when you're about to apply for a mortgage.

It's my belief that people are in dangerous financial territory when they need to do this. If your CC balances are tanking your scores, it's because they are a problem.

I moved various things around on lousy high interest personal loans only to have my CCs ran back up again shortly after plus the loan I thought would fix things. 

[Anonymous]

Good luck actually getting their "pre-approved" offer!

Companies always send out mailers with the same "you're pre-approved" with a bunch of fine print. They don't tell you that it takes a pristine credit score, no debt, and a huge income to actually get their "up to" ammounts.

I'm in the same boat. Could use a similar sized loan to pay off high interest CC debt and have an installment loan reporting, but that's only for people who don't need it.

[Anonymous]

Was in a similar situation I had around 9k in credit card debts. Around 30% until, 695-700 fico scores, 75k income, charge off from 2015, and late payments around two years ago. I was able to get a sweet personal loan for 10k from best egg 5.99% and 7.49% real apr after the origination fee which is hell of a lot better than 23% from Amex/chase. I would also consider myself a rebuilder as I still have a ton of late payments some up to 120 days late from 4-5 years ago  so check around.  I think the 5.99% is the best rate possible from best egg too.  I used the prequalifier tool on the CK website to compare all of my options.