@njames33 P. Installment loan; try to lower individual usage on cards higher than 50% before applying for the loan to get a better interest. If the loan doesn't cover the whole debt then look for cards with 0% balance offers, this can help also to lower utilization % which Fico is very sensitive about, then when cards are at around 30% ask for credit increases with soft pulls.
Above was my strategy to crush 12'500 in cc debt + $5k motor installment. Consolidation helped me focus and stay motivated. My Lender was Marcus by GS, I recommend it.
@njames33 wrote:Started a new business and as usual start-up cost was much higher than expected. Ended up putting around $40k onto credit cards to help get everything launched. Income is coming in slower than expected so wanted some opinions on what the best option is for consolidating?
Currently have 2 cards maxed out totaling the $42k NFCU & Chase.
Some consolidation loans I've looked into require proof of income and since this is a new business that won't work.Would appreciate any suggestions as to the best way to unwind from this mess. Thanks in advance!
My suggestion is to get the NFCU & Chase cards out of maxed out territory, get all cards to 48% or less, then see where your scores are after the dust settles.
Make sure you pay yourself on a W2, so when the time comes to apply for something you can submit recent paystubs as proof of recent income.
If your at 745ish. Paying down those cards will boost your scores very well. Paying yourself and filing W2's will look like your an employee of your business. You'll have proof of income just like us working folks with an employer. Plus you want to contibute to your SS now. Dont end up like my friend who didnt and now gets SSI at the lowest rate. Doesnt even pay rent on his shop and he lives in it. Didnt listen for years.
