Seeking guidance from the gurus

[Anonymous]

I really don't know how people do it...
My mortgage is 30% of my gross WITH Taxes and insurance.

I have to forecast cash flow 90 days out to make sure the budget is going to pay everything.

[ujocka]

I have already attempted to get CLI from my cards, but they all want to do a hard pull since I have received CLI's within the last 90 days.

The second car has a balance of $12000, but I can get $7000 for it =  -$5000 equity to be rolled over to the first car with a refi.

I didnt get any clear answers from anyone. Do you think my plan is a good one or not?

Message Edited by ujocka on 09-15-2007 08:33 PM

[Anonymous]

I don't see that selling the second car will give you any boost to your FICOs. However, if you're getting a decent rate on the first car refi, and you don't need the second car, with the $5K negative equity your DTI will drop so that's a good move.

On CLIs, are you saying you've already tried on all your CCs within the last 90 days and gotten CLIs? With a median 710, I would think WAMU to be far more generous. I got $2K initially with around a 610, and DW got $4K initially with around a 650.

Any windfall cash to pay down CC debt, or were you planning to do that with the personal loan? I would still recommend you try a local CU. Rates will likely be far better that 25%.

NASA, Justice and Penfed FCUs are also very generous with their CCs. See the Friendly CC link in my sig. I'd take a shot for a NASA CC. $5K more CL CC will do wonders right now.

[ujocka]

I didnt think that selling the car would directly raise the FICO, but as you stated it will lower my total debt by $7000 and lower my DTI by the amount of the car payment difference. If I refi the negative equity of $5000 it will increase my new car loan payment from $420 to approx $510. Right now I am paying  $345 a month for the 2nd car + $420 a month on the new car ($765).  This $255 a month savings will help my DTI.

As far as the CLI, I received CLI's from all of my cards that did not require a hard pull. I am an AU on the WAMU card, but I will ask the wife if she can get a CLI on it without pulling credit.

I planned on getting the personal loan to pay off all of the cc balances and the citifinancial loan (25%). I figure the hit I will take from the new loan and inquiry will be outweighed by the elimination of util (53%) on the cc's. It should also result in a lower monthly payment that paying the two cc's and citifinancial individually.

Good plan or not?

[Anonymous]

I think you're better off taking an INQ for a CLI or for an FCU CC rather than a 25% loan.

[ujocka]

I guess I am not explaining it clearly. The current personal loan I have is through citifinancial @25%. Getting a new personal loan will eliminate the current personal loan and allow me to pay off my cc's.

[Anonymous]

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ujocka wrote:

I guess I am not explaining it clearly. The current personal loan I have is through citifinancial @25%. Getting a new personal loan will eliminate the current personal loan and allow me to pay off my cc's.

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I missed that there was an existing citifinancial loan. Definitely see about replacing it. Again, local CU or FCU would seem your best option for both CCs and personal loans.

Replacing a high interest loan with a loan interest loan will reduce your DTI.

Adding another CC or two, or getting CLIs, will decrease your util.

[ujocka]

Update....I applied for a Citibank debt consolidation loan and was denied!...They said they denied me for too many inquiries on EQ?? Apparently my 700 medium score wasnt good enough for them...Anyone know of a debt consolidation lender that has more relaxed quals, but doesnt have a ridiculous rate (I am trying to refi a citifinancial loan @ 25% + remaining revolving debt of $10,000, for a total of $17k)