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I have posted here before, and got great feedback!
In short, I recently took out a personal unsecured loan (with Lending Club) to clear up ALL of my credit card debt and a personal line of credit with my bank.
As I expected, my FICO score jumped from 670ish to about 779! That's exactly why I did this "shifting" of debt: To better my chances of now getting a lower interest rate consolidation loan.
The Lending Club loan I took out is high interest and subpar.
I didnt sweat it very much, because I figured the credit boost it provided me would allow for an awesome loan from somewhere like LightStream..
Details:
I have impeccable payment history
$75k annual income
779 credit score
I am paying $1,853/month for $42,250 in debt! Insane.
Loan 1:
36 mo Term
$22,029.52 remaining
$900.35/month
25.65% Int
30.39 APR
Loan 2:
36 Mo term
$17,519.67
$690.61/month
11.31% Interest
15.65% APR
Loan 3:
$2,687
$262/ month
24.36% interest
Total: $1,853.17
With a 779 Score, shouldn't I be able to walk into a Credit Union, join up, and explain the situation and get a much better loan?
I would probably be able to save $1,000/month!
The $1800 per month on top of my $1150 mortgage is making my DTI look horrific.
But, Logic should tell any lender that with $1,000+/ month free'd up, the payment will absolutley get made?
Thanks
@AllZero
I am not a member of a credit union now.
My LendingTree account along with my PNC Banking App are showing the 779 FICO. I am not sure where I stand otherwise re: 3 bureaus
I've read some good reviews for LightStream. This might be a solid choice.
Pentagon Federal Credit Union. $25,000 max loan amount. Starting at 6.94% Not all applicants will qualify for the lowest rate. Rates quoted assume excellent borrower credit history. Open membership. Expect a hard pull inquiry EQ FICO 9 for membership. Expect another hard pull for loan application. I wouldn't recommend unless you can spare the EQ pulls. However, once a member, they've been known to mail soft pull pre-approved $25,000 loan checks. Lowest one I received so far was 9.99%. As far as the frequency, I don't know.
Are there any local credit unions near you?
You can get your 3 bureaus FICO scores at creditchecktotal.com for $1 (part of Experian). Cancel in 7 days or less to avoid the reoccurring charge.
I would try to crush Loan 3 before applying for a new loan to cover loan 1 and 2
it is high interest, but a low balance. So throw everything at that one. Get it gone
by then your new loan (lending) will likely be over 6 months which may help you get the new loan
however, some places don't like when you get a brand new consolidation loan and Then go looking for another one.
so you may need to wait 6-12 months. By then util on loan 1 and 2 will be lower and then you can get your final single loan to cover them.
...and yes, "back end" DTI is what they'll look at.
@Anonymous wrote:I have posted here before, and got great feedback!
In short, I recently took out a personal unsecured loan (with Lending Club) to clear up ALL of my credit card debt and a personal line of credit with my bank.
As I expected, my FICO score jumped from 670ish to about 779! That's exactly why I did this "shifting" of debt: To better my chances of now getting a lower interest rate consolidation loan.
The Lending Club loan I took out is high interest and subpar.
I didnt sweat it very much, because I figured the credit boost it provided me would allow for an awesome loan from somewhere like LightStream..
Details:
I have impeccable payment history
$75k annual income
779 credit score
I am paying $1,853/month for $42,250 in debt! Insane.
Loan 1:
36 mo Term
$22,029.52 remaining
$900.35/month
25.65% Int
30.39 APR
Loan 2:
36 Mo term
$17,519.67
$690.61/month
11.31% Interest
15.65% APR
Loan 3:
$2,687
$262/ month
24.36% interest
Total: $1,853.17
With a 779 Score, shouldn't I be able to walk into a Credit Union, join up, and explain the situation and get a much better loan?
I would probably be able to save $1,000/month!
The $1800 per month on top of my $1150 mortgage is making my DTI look horrific.
But, Logic should tell any lender that with $1,000+/ month free'd up, the payment will absolutley get made?
Thanks
Yes!