@Slabenstein wrote:
@credit8502020 wrote:
@tcbofade wrote:
@CYBERSAM wrote:
That is actually excellent IF she can get that loan. By moving revolving balance to a loan her FICO score is going to improve significantly, then once everything is reported she can get a NEW loan in about couple of months for very low interest rate and payoff the high INT one. 👍👍
^ This.
times 100
Good luck!
Thank you! @tcbofade They initially offered her to close the accounts and I told her not to because that would hurt her credit for many reasons. I'm looking forward to the boost they are going to get in their scores and how they will be able to improve their credit profile overall and get out of and stay out of harmful debt!
They likely suggested closing the cards so the loan would be her only outstanding uns debt. Every person they suggest that to and actually does it is one fewer person they lend to that can get into the situation I talked about in 1) above. It's a soft way of trying to manage the risk on these loans; they're just watching their bottom line. As long as your family member can stay out of further credit card debt, keeping the cards open should be better for her score. It's also an opportunity to learn responsible card use, though getting a handle on finances should be the first priority.
It's definitely a learning experience for them throughout this process. I'm looking forward to the progress that will be made.
