Applying for Debt Consolidation Loan, where should a I apply and where first?

[simicalif]

I’m going to be asking for $30k, but I need $25k. Current FICO 9 is 666, no baddies, no missed or late payments, credit history is 5 years old, income is about $60k a year. High individual credit card utilization. Between loss of employment last year, and my wife being a full time student on the GI Bill, we had to rack the usages up across the board. Already downsized a lot, sold things we didn’t need, cut back our spending habits a lot. I was injured on the job 2 months ago, just got back to work last week, but due to the injury and workers comp processes had to rack back up what little I had paid down. My wife loses her income in December, her last year of school is out of pocket, and I can’t keep our bills all paid with the multiple credit card payments and high interest so I need to get this done quickly. I just had all but 1 inquiry from 2017 fall off my reports.

I bank with NFCU, but they hold all my debt, minus the Home Depot card I had to max out recently to replace my front door after my dog literally put her paws through it.

I am going to apply with my local county credit union I also bank with (been with them since 2012), as a friend of mine recently got the same loan, same amount, he makes slightly more than I do, but his score was less than mine by 20+ points. I wanted to ask about where else I should apply. I was looking to check out SP providers like SOFI, but looking for other recommendations as well.

Also, should I apply with my local credit union first and get the HP or do the SP checks first? I would really prefer to apply with the best chance at my credit union but I don’t know if the HP would screw me with the SP organizations?

All my credit cards will be locked away after I pay them, with the exception of my cash rewards card which will be used for fuel to work and PIF every month.

Anyone who can point me in the right direction? It would be most appreciated!

Thank you!

[Anonymous]

To my knowledge, Sofi requires a minimum 680 to be considered.  I think you have the right idea about trying your local credit union and I would say that you'll get a much better interest rate there than you would at some of the online lenders.

[simicalif]

Thanks for the reply, and the info! I had not yet read about SOFI’s minimum credit scores, just that they offered good luck to others in a similar position such as myself. My concern was if my credit union saw multiple soft pulls that they wouldn’t consider me, since my utilization is high as it is. My friend asked for $35k, got approved for $15k, recon’d and got $25k. I need $25k, going to ask for $30k to take care of some much needed maintenance on my truck so that I don’t have to unexpectedly scramble for money later, but if they do similar with me and I get $25k I’ll be alright.

[Anonymous]

My first question is can wife work atleast partime and goto school partime or take a year or so break and work?   When I got my MBA many many years ago I worked partime. When my daughter went for BA  she picked a not so cheap school. WE paid for most of tution but not all. She worked either full time or partime the whole time  to pickup what we could not afford to pay.   In the end it took her 6 years to get her BA but is was paid for when she graduated.  

[simicalif]

She’s in an accelerated BSN (nursing) course, she literally has one free day a week and usually spends that at school studying, after this semester she plans to start working part time but it’s gonna be tough, and she had tuition and her own bills (and debt).

We’ve been actively trying to cut back, sold all my toys, cancelled a lot of plans, no cable, still have internet but she uses it for school so can’t cancel it, we meal plan and eat cheap. Only thing we haven’t cut back on is our cell phones, which we both need, so cutting back $30 a month isn’t really gonna help so I’m not gonna waste my time calling to cut back my phone plan. Tight spot. This isn’t a case of being stupid, I got all my bad credit decisions out of the way at a young age lol

[Anonymous]

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@simicalif wrote:
Thanks for the reply, and the info! I had not yet read about SOFI’s minimum credit scores, just that they offered good luck to others in a similar position such as myself. My concern was if my credit union saw multiple soft pulls that they wouldn’t consider me, since my utilization is high as it is. My friend asked for $35k, got approved for $15k, recon’d and got $25k. I need $25k, going to ask for $30k to take care of some much needed maintenance on my truck so that I don’t have to unexpectedly scramble for money later, but if they do similar with me and I get $25k I’ll be alright.

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They won't see your soft pulls at all, only you can.  There are really no consequences to checking your rates and even though I'm not in the market for a loan, I still play with prequals often.  IIRC, my last Sofi prequal had a 5 year loan at somewhere around 12-14%.  I'm not real sure how you would qualify for the lowest rates there.  I know they have you fill out your educational background but not entirely sure how that factors into your rates.

[JTC-137]

Hi!

May I ask what your income is? General range is fine if you’re comfortable providing it.

At first glance it seems a consolidation loan will help to simplify the number of bills more than anything. You mentioned navy holds almost all of the debt, I think the highest APR on their cards is 18%. With mid 600 scores I wonder if your rate would be that much better, at least enough to make a noticeable difference. Unless you’re planning to pay cards off to lower UTIL and boost scores, then get another, lower rate consolidation loan to pay off the first one. Personally I have used that method in the past (Lending Club—>payoff cards—>Upstart—>payoff Lending Club) but now I wouldn’t recommend it to someone else. Better to tackle it head on. And to answer your question I would just check the plethora of SP lenders’ sites, like LC and Upstart, and compare them to your local CU.

Ps...one other thing I wanted to mention is when you dig out of this, set your emergency fund up asap. Murphy has whooped up on yall a little bit, and not having cash reserves set aside really effects your ability to get ahead and stay ahead.

[simicalif]

JTC, my rates are 18% across the board. I plan to do what you did, I just wanted to get some confirmation I was on the right track. So thank you!

We had a safety net, ended up having to use it for my wife’s school and to repair her car. Such a pain.