Help, consolidation loan, co sign

[FicoC]

Hello, does anyone know big credit unions in michigan or open eligibility that is known for higher approval rates and bigger loans? i cant use navyfed. 

Scores: terrible probably under 500

Baddies: consumer portfolio repo $20k

Collections/Charge off: 5-6 accounts ranging $7.5k

Income W2: $110,000

Chapter 7: Discharged 2.5 years ago 

Co signer: Friend, 722 score, $115k W2 yearly, Mortage and car loan. 

I filed chapter 7 and got burned and sucked into preditory and sub prime lenders that put me in a pit of agony so i decided to just let them all go and charge off to settle w them. but life happend and burned all my savings up so settleing w my own cash isnt an option now. 

Looking for personal loan to pay it all off, dont want to apply more than 1-2 times. A CU that will listen to explanations and view my income and previous responible use of credit rather than just an instant no. 

Note. I only filed chapter 7 bc a career change and pay cut from self employed to W2 guaranteed money when I found out I was having a daughter and wanted to know i could always provide vs the uncertainty with self employment. 

[AndySoCal]

@FicoC  Here is one I found in Michigan not much information on them

https://www.adventurecu.org/borrow/consumer-loans/debt-consolidation-loan 

There is also Pen Fed credit union.

In addition there is list of credit unions in the American Conumser Council post look the non geofenced  ones.

do your research 

[FicoMike0]

First, under 500, really?

You can get a free equifax fico8 here at myfico. You can get free fico8s from experian.com and transunion from creditwise.com. It might help to know where you are starting from.

How much are you looking for?

Who did you burn in the bk7? Avoid all of them.

Btw, in default again 2.5 years after bk7 is going to take prize winning story to explain. Try the humility approach over excuse making.

I suppose the cosigner will be a big factor.

Almost forgot, here's a link,

https://wallethub.com/best-personal-loan-with-cosigner

[radiofrequencies]

I don't have any advice to offer regarding CUs that will approve large loans with a less than stellar track record of repaying debts, but I have to ask why you're looking to take on interest bearing debt to pay off debts that are no longer accruing interest. It is my understanding that once an account has charged off, the balance no longer accrues interest. If that is the case, I would think that it's better to make payments on the existing debts rather than take out a new loan with a high interest rate that would come with a score in the 400s.

Lastly, I don't think it's a good idea to drag your friend into this and if you do, make sure they are aware of the implications that come with co-signing a loan for you. The loan will appear on their reports as if the account is their own, affect their debt-to-income ratio, and could make it harder for them to be approved for credit in the future until the loan is paid off. In the event you are unable to keep up with the payments, they will be legally responsible for making payments. If you miss payments and/or the account charges off, their credit score and credit profile will be impacted exactly the same way it would be if they were the primary account holder versus just a co-signer.

[Jnbmom]

Honestly with a score 500 or less you will not be able get a loan with an reputable lender .

i would also agree with the above given your history do not involve a friend .

[Patient957]

I agree with @Jnbmom and @radiofrequencies  . 

Even if you could get such a loan, which you probably can't, it wouldn't be a good idea anyway.  The best advice I can give you is to stop borrowing money, period.  Stop trying to borrow money.  No loans, no credit cards, no borrowing.  You have a decent income, so live on your income and save as much money as you can.  A loan is not a solution for you.  It would only put you deeper into the "pit of agony" and if your friend co-signs, it will take your friend into the pit with you.

Live off your income and save for at least a few years, and then reasses your situation.  

[JoeRockhead]

Obtaining a meaningful unsecured loan in this scenario... especially one with terms that don't further worsen your situation is, in my opinion, highly unrealistic.

The recent BK alone isn't necessarily the issue.  People recover from bankruptcy all the time.  The problem is the additional defaults and charge-offs post BK.  That's the part the majority of underwriters are unlikely to get past.

I don't believe even a co-signer with 800+ scores would change the outcome here unless the lender was effectively underwriting the loan based on the co-signer alone.  Nor is your hardship explanation likely to be something lenders haven't heard before.  Unfortunately, your current overall profile would likely be seen as showing an extremely high risk of future default. 

As mentioned above, I think your best path forward right now is to stop focusing on obtaining new credit and instead focus on resolving the existing debt with the income you have coming in.  Have you spoken with any of the creditors about settlement arrangements or payment plans?

I'd also strongly suggest at least consulting with a bankruptcy attorney regarding whether a Chapter 13 following the Chapter 7 would even be feasible for you.

[AndrewF]

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@FicoMike0 wrote:

First, under 500, really?

Btw, in default again 2.5 years after bk7 is going to take prize winning story to explain. Try the humility approach over excuse making.

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My cousins, one of them filed bankruptcy 3 times, the other one is trying for a 4th, and about a month after they get a discharge they'll be going to Disney World.

For people like me who try to pay our bills, when you file bankruptcy it hurts like hell for 10 years. For people like them, they find ways to game the system, they keep the house and reaffirm so there's no landlords to deal with that say "no bankruptcies", so they escape most of the consequences and just get rid of the debt over and over.

[Patient957]

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@AndrewF wrote:

My cousins, one of them filed bankruptcy 3 times, the other one is trying for a 4th, and about a month after they get a discharge they'll be going to Disney World.

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It's like winning the BK Super Bowl!

IMG_20260523_173259.jpg

[AndrewF]

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@Patient957 wrote:

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@AndrewF wrote:

My cousins, one of them filed bankruptcy 3 times, the other one is trying for a 4th, and about a month after they get a discharge they'll be going to Disney World.

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It's like winning the BK Super Bowl!

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It really is. In one of them, the cousin that's trying for the fourth bk7 even included bounced checks written to Dominos and Papa Johns, and told the court part of their household budget was $350 a month for cigarettes.

Then their mother passed and the life insurance paid out, each one got a million dollars. It was gone in three years and they needed bankruptcy again. One of them bought her husband a Ford F-350 then something happened and they took it to a hillbilly to work on it, and all the dashboard lights came on and they took it to the dealer, who informed them that the hillbilly used stereo wiring to do electrical.

The other one bought her boyfriend a Ford Mustang that turned into a garden planter because the engine failed and the battery died so apparently you can't even get in the thing because there's no mechanical key. Still in the driveway.

Nobody at the court seemed to say anything about "I don't know maybe stop smoking and going to Disney World." in the bankruptcy from 2011.

Judges are supposed to take a closer look at you the more times you're in there, but I am not seeing this happen.