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My next steps: Credit Union debt consolidation loan?

WeakSauz1
New Member

My next steps: Credit Union debt consolidation loan?

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

 

Message 1 of 7
6 REPLIES 6
AllZero
Mega Contributor

Re: My next steps: Credit Union debt consolidation loan?

Are you a member of any credit union right now?

What is this 779? What are your 3 bureaus FICO scores?
Message 2 of 7
WeakSauz1
New Member

Re: My next steps: Credit Union debt consolidation loan?

@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 

Message 3 of 7
AllZero
Mega Contributor

Re: My next steps: Credit Union debt consolidation loan?

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.

Message 4 of 7
RSX
Valued Contributor

Re: My next steps: Credit Union debt consolidation loan?

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.  

Dec 16/2019. EX. 721. EQ. 723. TU 746
Dec 29/2020 EX. 729 EQ. 723 TU 746
Sept 9/2021 EX. 734 EQ. 737 TU 746
Inq. EX 5 EQ 2 TU 5 - - CC 4x24, 3x12, 0x6
Amex BCP $32k - Apple GS $19k - BMW/Elan $9k - Cap1 QS $16.7k - Chase Amazon $13.6k - Chase Bonvoy Boundless $10k - Chase United Club Infinite $26k - Citi DC $14.5k - CreditUnion1 $9k - DiscoverIT $23k - HSBC Gold - $13k - Penfed Gold - $12.5k - USBank Cash+ -$24k - HSBC LOC - $13.5k - PenFed LOC - $20k
Message 5 of 7
tcbofade
Community Leader
Super Contributor

Re: My next steps: Credit Union debt consolidation loan?

...and yes, "back end" DTI is what they'll look at.


11/01/21 Fico 8: EX 746, EQ 757, TU 758.
11/03/21 Fico 9: EX 745, EQ 758, TU No idea.

Zero percent financing is where the devil lives...
Message 6 of 7
SouthJamaica
Super Contributor

Re: My next steps: Credit Union debt consolidation loan?


@WeakSauz1 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!


Total revolving limits 698000 (605000 reporting) FICO 8: EQ 721 TU 742 EX 715

Message 7 of 7
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