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NFCU Loan consolidation APPROVAL

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NFCU Loan consolidation APPROVAL

Hello all,


I pulled the trigger and applied for a NFCU consolidation loan. With a EQ credit score of 731 I was approved for 16,000 at 17.85% (48 months). I would like to consolidate my AMEX and Discover cards both have an interest of 20.24%. I plan on paying the personal loan off within 6 months to a year. I was hoping that NFCU would give me a lower interest rate. Is a savings of approx.. 2.39% worth it? Aside from only have one bill to pay instead of two? Also, which weighs heavier credit score wise: installment loans or credit card debt? 


Thoughts???

Message 1 of 5
4 REPLIES 4
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Valued Contributor

Re: NFCU Loan consolidation APPROVAL

Congratulations on your approval.

 

Without knowing exactly what your situation is, I'd say:

 

* removing the CC debt (this reducing util%, perhaps dramatically) will help your scores;

* starting a new account will hurt your score;

* reducing age of youngest accounts will hurt your score;

* adding a loan far from paid off will hurt your score;

 

So three obvious minuses & one obvious plus. Yet the net result should be a nice overall improvement to your FICO scores because the minuses are smallish while the one plus is large. Again, it depends exactly how much you would be improving your util%.

Starting Score: (5/24/2018) -- FICO 08 EXP: 643; FICO 08 TU: 642; FICO 08 EQ: 677
Current Score (09/16/2020): FICO 08 EXP: 747; TU: 758; EQ: 775
2020 Goal Score: 760 across the board


Take the myFICO Fitness Challenge
Message 2 of 5
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Re: NFCU Loan consolidation APPROVAL

Thank you for replying and thank you for your wisdom! It is greatly appreciated! I researched the forum a bit more and decided to shop around a bit. I applied for a loan with LightStream and was given a 10.39% interest rate so I am going for the offer. I have already cut the cards and I do not plan on using them.

Message 3 of 5
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Valued Contributor

Re: NFCU Loan consolidation APPROVAL


@CreditTara16 wrote:

... I applied for a loan with LightStream and was given a 10.39% interest rate ...


Good for you. Much easier decision now. Congrats!

Starting Score: (5/24/2018) -- FICO 08 EXP: 643; FICO 08 TU: 642; FICO 08 EQ: 677
Current Score (09/16/2020): FICO 08 EXP: 747; TU: 758; EQ: 775
2020 Goal Score: 760 across the board


Take the myFICO Fitness Challenge
Message 4 of 5
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Frequent Contributor

Re: NFCU Loan consolidation APPROVAL

What were your loan DPs with Lightstream? I've been considering them for awhile now. Did you have to provide documentation? POI? Which bureau did they pull?
Thanks



Current Scores 10/11/2019
TU 724 Inq 20, EX 699 Inq 15, EQ 743 Inq 8 -- UTL 4% FICO 9 757
[Previous] 10/05/2018
EQ F8 [696] 5 Inqs, EX F8 [666] 14 Inqs,
TU Fico 8 [702] 18 Inqs.
Gardening since 11/08/2018.
EQ-Fico 8 [699] EX-Fico 8 [639] TU-Fico 8[652]
UTI 14% NFCU Flagship $6K, Care Credit $20K, TFCU Platinum Visa $20K, DCU Rewards Visa 10K, USAA Platinum Visa 6K, Costco Visa $7.5K, NFCU AMEX $15K, Citi Rewards+ $16,800, Wells Fargo Cash Wise 9.5K, Barclays AAdvantage MC $2K, NFCU GoRewards 10K, Home Depot Commercial $1k, Best Buy Visa $15k, ExxonCard $1500, PenFed Visa Sig $10k, NFCU CLOC $10K, Boscov's $13.3K, Overstock $12.5k, Sportmans $3900, Amex Cash Magnet $1500, Amex Bonvoy 2K, BarClay Arrival $2k, DiscoverIT $16k, AmazonCard $6000, PayPal MC 8K, Mercury MC $5.5K, CapOne Silver $16.5K, Lowes Credit $25K, Wal-Mart Store Card $9K, Wayfair $14.4K
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