HELP!! NFCU Home Improvement Loan Acceptance Decision

[orky626]

Long story short I have been a member of NFCU for 20 years.  I messed up two credit cards that were closed in 2015 that I am still paying on NRewards ($5,100 balance)/Cash Rewards ($2,800 balance).

I have a pretty good solid income of a $133k that is direct deposited to NFCU and I've been trying to get back in good with them.  Today I applied for a $2000 personal loan as was approved. I accepted the offer.  I was really surprised by the approval so I decided to apply for a home improvement loan as I am currently doing renovations and was approved for $25k home improvement loan.

I'm glad to finally be back in good standing with NFCU and I don't want to mess this up.  I was thinking of accepting the 25k, not use it and just use the loan to pay it of in 60 days.   Or, decline the offer and just be happy knowing I'm back in good standing with them and be happy with the $2000k personal loand.

Will it look bad if I declined the home improvement loan?  I don't want to mess up with them again.

Current Scores:

Equifax-656

Transunion-658

Experian-645

[M_Smart007]

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@orky626 wrote:

Long story short I have been a member of NFCU for 20 years.  I messed up two credit cards that were closed in 2015 that I am still paying on NRewards ($5,100 balance)/Cash Rewards ($2,800 balance).

I have a pretty good solid income of a $133k that is direct deposited to NFCU and I've been trying to get back in good with them.  Today I applied for a $2000 personal loan as was approved. I accepted the offer.  I was really surprised by the approval so I decided to apply for a home improvement loan as I am currently doing renovations and was approved for $25k home improvement loan.

I'm glad to finally be back in good standing with NFCU and I don't want to mess this up.  I was thinking of accepting the 25k, not use it and just use the loan to pay it of in 60 days.   Or, decline the offer and just be happy knowing I'm back in good standing with them and be happy with the $2000k personal loand.

Will it look bad if I declined the home improvement loan?  I don't want to mess up with them again.

Current Scores:

Equifax-656

Transunion-658

Experian-645

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My humble opinion ... Take the loan ..re-pay substantial payment's

But don't pay it completely off. Just less than 8.9% ...

Let Navy see that you can handle large a loan.

Maybe use some of the money to pay back the CC's?

Lot's of options .. I am sure others will have some good advice for you,

possibly better advice than mine

Take time and think it through.

ETA: Congratulations!

[AllZero]

+3

What is the length of the loan? What is the APR?

Maybe use the loan for home improvement?

[orky626]

@M_Smart007  Thanks for the advice.  I have fifteen days to electronically sign so it gives me time to think.

[orky626]

@AllZero here are the details of the home improvement loan:

Loan Amount: 25k

Rate: 18%

Loan Term: 84 months

Monthly Payment: $527

[M_Smart007]

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@orky626 wrote:

@M_Smart007  Thanks for the advice.  I have fifteen days to electronically sign so it gives me time to think.

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Wishing the best outcome for you, no matter what you decide

[AllZero]

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@orky626 wrote:

@AllZero here are the details of the home improvement loan:

Loan Amount: 25k

Rate: 18%

Loan Term: 84 months

Monthly Payment: $527

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Loan amount is excellent

Rate not so excellent

Loan Term is fantastic if you wish to play reindeer games and let it float at 8.9% utilization for a very long time but at 18% you'll have to do the math.

You can also decline the loan. I do not think Navy will hold it against you.

As suggested by Smartie, consider what your needs are or for home improvement and if the loan may benefit you.

[Anonymous]

Wait - what?  18% interest?  That’s like credit card interest!  Unless you can immediately pay this off to 8.9% or less of the original loan, and you’d be doing this strictly for credit score benefits, this won’t help your financial well-being.

If you own your home, and have enough equity, AND you need the money, try to get a Home Equity Line of Credit, known as a HELOC.  You should be getting something under 4% interest. Given your scores, you’d have to ask over in the mortgage forum for specifics on the probability and likelihood, but it would be better than 18%.

If you’d be doing this to just get righteous with Navy again, do a Navy SSL (search that on this site) if you want to boost your score AND prove to Navy you can handle a loan.  Small investment for the payoff.

If you need the money for a specific project, check out their HELOC rates, first, rather than take an 18% interest loan on $25k.  Just because they offer doesn’t mean you have to take it.  You can do better. Remember, loans can charge fees and points and things, so you’d be paying those on top of the interest.

If you don’t NEED the money for a certain project, walk away and continue to improve your scores.

As others have said, you need to determine the who-what-why of this, and how it benefits you, and not a financial institution.

[orky626]

Thanks for all of your for this helpful discussion.  I walked away from the 25k home improvement loan and will take on home projects one at a time.  The $527 payment made me nervous because I didn't want to play around with that payment for the sake of building a good relationship with NFCU.  

I appreciate all your comments.

[AverageJoesCredit]

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@orky626 wrote:

Thanks for all of your for this helpful discussion.  I walked away from the 25k home improvement loan and will take on home projects one at a time.  The $527 payment made me nervous because I didn't want to play around with that payment for the sake of building a good relationship with NFCU.  

I appreciate all your comments.

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Im curious with your income why dont you just pay off the credit cards you owe with them? That would go alot further cemenring your relationship  than anything else.