HSBC Personal Loan

[Anonymous]

Morning All,

Question.  I have a $10k personal loan with HSBC/ 32.99% interest rate/ $308 payment.  The balance of course is not going down and the interest is eating us alive.  Any suggestions on how to knock this balance down or should we try to do a debt consolidation loan> We have been hard pressed to get a refi on our house, scores were too low, they are on the rise however we need to be at a 620 to get a better rate, so I have heard.

Can someone help me out here?

Thanks

Eve

[chartley3]

My first question is how they can charge you 32.99% since anything over 25% on a loan is considered loansharking and is illegal. I would try to see if HSBC will lower your rate. Consolidation loans are robbing peter to pay paul unless you can get a significant drop on the interest rate.

[Anonymous]

I don't know but that is what they are doing and we know we are being ripped off but what can we do?  I will try to get a lower rate and see what they say.  Should I mention that loans over 25% are considered loan sharking or no?  I am going to call them today.

Thanks

[Anonymous]

Hello,

Just read your message on Hsbc personal loan.  My dw and i just received an offer through them HSBC credit center, inc for a $5,000 loan.  We have a cc with hsbc already and just wanted to ask you if you also have a cc with them? and do you know what your fico scores were?  I do not know what our interest rates would be, we need to take the offer in person to one of their locations.  It also states that the loan is subject to credit approval.  Thanks for any information you might give me.

Ray

[Anonymous]

Hello Ray,

No we dont' have a cc with them because they approved us for $300.  We can't do anything with that low limit, so we declined the card and they stalked us for weeks to get us to change our minds.  This was after the loan.  Remember though, you cannot write off the interest on the personal loans unless you are using the money to do some work around your house otherwise whatever you pay in interest is just lost money for you and a great gain for them.  Hope this helps.

[Anonymous]

Holy Sh!t!  I am griping because Cap One just approved my personal loan for 25,000 and gave me 9.99% instead of the 6.99 'come on' they post.  BTW, Cap One sucks because my FICO is in high 700s. 

On your credit report BEWARE w/Cap One.  They do NOT list your credit limit, just the highest amount you ever put on the card, so using Cap One LOWERS your FICO - if you care.  Why?  Let me illustrate:

Real Credit Limit = 10,000

Highest Balance you ever had =  5,000

Current Balance = 2,000

Your debt ratio SHOULD be 20% because 10k is your limit.  But Cap One does not report that amount.  Only the Highest Balance.  So effectively that makes your debt ratio 40% instead.  20% is good, 40% is bad.  They screw you by doing this.  Avoid Cap One if you are trying to clean up your score to buy something big.

It's Crazy Credit!