Am I a good candidate for Debt Consolation Loan

[Anonymous]

I recently considered doing a debt consolidation loan with PenFed.

While researching, I came across a few boards discussing debt to income ratio being a big factor. My DTI is 38%

I just wanted to share my info, and allow some options and feedback please and thanks.

Fico 8 scores are all 700-710
No misses payments.
AAoA is 3 years.
Credit utilization is 40%
Income $50k
$5k car loan.
$2000 personal loan.
3 credit cards
$600 limit. $1500 limit. $12,000 limit.

[tcbofade]

You didn't mention interest rates on existing debts... while you may be a good candidate for a consolidation loan, it may not be worth it.  Check your existing rates vs a potential personal loan.

PenFed is fine.

Best Egg, Sofi, etc offer calculators and soft pull inquiry qualifications if  you want to check them first.

[Anonymous]

Interest rate on Auto 18%, $220/mo payment. 2 years left on loan life.

Unsecured Loan One Main, opened October 2017, interest 26%, $140/mo payment. 19 months left on loan life.

$1500 limit Credit Card = 14.9% apr
(Carry a $300 balance)

$600 limit Credit Card = 26.9% apr
(Carry a $40 balance)

&12,000 limit Credit Card = 26.9% apr
(Carry a $3000 balance)

[CreditInspired]

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@Anonymous wrote:
Interest rate on Auto 18%, $220/mo payment. 2 years left on loan life.

Unsecured Loan One Main, opened October 2017, interest 26%, $140/mo payment. 19 months left on loan life.

$1500 limit Credit Card = 14.9% apr
(Carry a $300 balance)

$600 limit Credit Card = 26.9% apr
(Carry a $40 balance)

&12,000 limit Credit Card = 26.9% apr
(Carry a $3000 balance)

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I do think you’re a good candidate for consolidation or 0% BT because the interest you’re paying on the car loan, One Main, and $12K card are extremely high. For me, it’s more about how much interest you’re paying vs DTI. 

[SouthJamaica]

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@Anonymous wrote:
Interest rate on Auto 18%, $220/mo payment. 2 years left on loan life.

Unsecured Loan One Main, opened October 2017, interest 26%, $140/mo payment. 19 months left on loan life.

$1500 limit Credit Card = 14.9% apr
(Carry a $300 balance)

$600 limit Credit Card = 26.9% apr
(Carry a $40 balance)

&12,000 limit Credit Card = 26.9% apr
(Carry a $3000 balance)

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In my opinion you should not take out a new loan, unless you can get a low interest loan from a credit union.

Otherwise:

You should leave your installment loans in place, paying them down gradually.

You should pay off your credit cards, and once you've done that let 1 report a small balance each month while the other 2 report zero balances.

[Anonymous]

hi

Is your income of $50k self employment income or W-2 income? it will matter if you are doing debt consolidation?

If you dont get an interest rate between 4% & 8% max, the debt consolidation may not be in your best interest.

[Five6Two]

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@CreditInspired wrote:

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@Anonymous wrote:
Unsecured Loan One Main, opened October 2017, interest 26%, $140/mo payment. 19 months left on loan life.

&12,000 limit Credit Card = 26.9% apr
(Carry a $3000 balance)

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I do think you’re a good candidate for consolidation or 0% BT because the interest you’re paying on the car loan, One Main, and $12K card are extremely high. For me, it’s more about how much interest you’re paying vs DTI. 

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+1, and; you're paying too much in interest on that $3000 balance and the unsecured loan with One Main. Before getting another loan, try to find a 0% intro offer for 12-18 months on a new CC OR...pay down the $3000 balance and see if they'll extend a BT offer. The way I computed it, you have $2660 left on the One Main loan?