Hate to break it to you, but debt consolidation loans are for people before they need them. Most people won't qualify once they're already in a position where they need it. Makes no sense, but you have a better chance for a personal loan for something like a vacation before you'll be able to get a consolidation loan. The belief is banks will be reluctant to give you the loan thinking that you'll run up your cards again, be in the same position, but owe them for the loan also. In this case, I think what's hurting you is you already have 3 loans.
Your best option is to snowball or avalanche your debt. Pay down cards strategically to cross utilization thresholds to grab back as many fico points as you can, as quickly as you can. While doing that, check soft pull pre-qualification for consolidation loans until you get a decent one. Stay away from predetory banks. Discover has one that starts at a 640 fico and it won't hurt your credit to check.
A bank is the place to go for a loan ... if you can proove you don't need the money
Long time lurker , with that said I want to begin this post with a " thank you " to all of those who take time out of their day to help others by posting on this forum . You men and women help people change their lives . You all are amazing !!!
With that said I have a question lol . I was considering trying to acquire a NFCU Debt Consolidation Loan to pay off some loans and credit debt .
I filed for BK7 Dec 2017 .
Discharged April 4th 2018
Since my discharge I've opened the following credit lines
Discover it May 2018 $500 limit ( $450 balance )
Capital one Quicksilver April 2018 $500 Cli to $750( zero balance )
Credit one May 2018 $400 Cli to $600 ( zero balance )
Gamestop CC July 2018 $300 Cli to $950 ( $550 Balance )
Capital One Quicksilver One Oct 2018 $1000 Cli to $1500 ( $500 balance )
Tropical Financial CU rewards Oct 2018 $500 ( $420 Balance )
Kohls card Nov 2018 $300 ( $100 Balance )
Target Red Card Dec 2018 $300 ( $270 Balance )
NFCU Rewards $700 opened yesterday ( zero balance )
I also have 3 loans
Avant $3500 Nov 2018 ( 35% very high interest rate I know lol )
Opurtun Loan $1300 Nov 2018 ( owe $700 )
Tropical Financial Kool Cash Loan Feb 2019 $1000
I was thinking about this loan more for the Avant loan that's at 35% but I figured if I'm going to apply I might as well try and include the rest of my debt .
My scores are as follows
21 INQ since discharge . Besides BK7 no no neg . Everything paid on time . My income is about 85k my wifes income is about 30k .
With all that said do u guys think I have a chance at a debt Consolidation loan with NFCU ? Or should I just wait ?
Thanks in advance for all your help and comments !!!
I am actually scared for the financial predicament you’re in right now. So many new accounts in such a short time and many of them 50% to near max.
I know you didn’t ask for advice, but I hope you accept this in the spirit it is given.
Honestly, IMHO, it’s time to create a budget, not time to get another loan. After you subtract all your living expenses from your and DW’s net income, use the remainder to pay down debt. Try to get in the habit of paying in full.
BK is a harsh reality and I want you to remember what you went through so you won’t repeat the same mistakes. You got credit again after being discharged in a year and now here we are—needing to consolidate debt.
I suggest not using your cards any more until you can get a handle on the debt by paying it off or substantially lowering it. I suggest not applying for anything until your overall UT is less than 28.9%. And a 35% APR loan—get that loan paid off pronto! It’s not fun being in debt.
But you have income, which is good, so this is doable.