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Hey Fico Fam !
So my father is in the middle of a remodel for his detached garage and i been trying to think of the best way for him to finance some of it .
So he has a PLOC at his local credit union that he has had for about 3-5 years now . 25k @ 6%. But i know that utilization would kill his credit score once it reports 60-80%.
Therefore i thought of discover to do a personal loan and that way his utilization would stay in check.
So we pulled trigger entered all his info
Retired , 75k income non taxable , $715 monthly payments on 2 autos and 1 credit card = 11% Dti. 0/6 3/12 4/24 , Transunion Fico 826.
Asked for 35k @ 84 months and was a no go .
I figured he had it in the bag but did not happen. Discover mentioned 2 reasons . 1) Loan Term 2) Amount to High.
Just wanted to share and get your guys opinion if you think it was a income problem or term problem. Does any one know if he calls in they will have a counter offer or does discover just make you do the soft pull app all over again ?
Thanks in advance !
Other than the score impact, why wouldn't he go with his CU's existing PLOC, especially since it's at 6%, which I'm sure is lower than what Discover was offering.
How much money does he need for the remodel, is it more than $25K ? If so maybe he could ask the CU to up his limit?
@pizzadude wrote:Other than the score impact, why wouldn't he go with his CU's existing PLOC, especially since it's at 6%, which I'm sure is lower than what Discover was offering.
How much money does he need for the remodel, is it more than $25K ? If so maybe he could ask the CU to up his limit?
Other then score impact and being that the LOC is not a fixed rate vs discover fixed thats basically it . You know how interest rates going up im a little nervous about that etc for him. Total project is 40k and i think he might want to only finance half. I didnt think about asking the credit union about raising the limit i didnt know that was option so i thank you for that info . I wonder if they would being that he has only used maybe 8-10k of it doing other projects for the house. Thanks for the advice appreciate it
Discover is not the only lender who offers pl. Me personally not a fan of their loans only because they don't offer to us lower income folk lol but definetly shop around . Look for a 60 term month might help. Check out Penfed as well.
@AverageJoesCredit wrote:Discover is not the only lender who offers pl. Me personally not a fan of their loans only because they don't offer to us lower income folk lol but definetly shop around . Look for a 60 term month might help. Check out Penfed as well.
Thank you for your response . I will definitely keep what you said in mind . 👌
So pulled trigger tonight and my father was approved with penfed @4.99 %. Thanks again for the headsup !