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Need Advice on Best Loan Option

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Need Advice on Best Loan Option

Hi everyone!  I'd like to know what loan option(s) I have available based on the below criteria.


I am a full-time student and full-time employee.  This year my income will be slightly higher than $65,000.  I am a senior with a 3.9 GPA.  However, I have a 671 Transunion FICO credit score due to the following factors:

  • $17,000 in credit card debt (73% utilization)
  • Defaulted on a previous student loan that was succesfully rehabilitated and brought into good standing
  • Last, (and only) late payment was 120+ days late over 6 years ago (Sallie Mae)


My wife and I recently bought a new home, (in May) and so my savings has been depleted.  The MyFICO credit simulator shows my credit score would be over 750 if not for the incredibly high revolving debt.  Can you guys recommend a lender that I should get a loan through?  Ideally, I need $2,500 for my next college semester that will not be covered by federal loans but I would also like $17,000 more, if possible, just to eliminate high interest rate credit cards which will also help build my score back up. 


Should I apply for a high interest loan where I can qualify just to get the loan and then, with a better credit score, have that loan refinanced through a better lender with a lower APR?  In short, if you were me, what would you recommend as the best path forward.


Thank you all in advance!

Valued Contributor

Re: Need Advice on Best Loan Option


Have you thought about using the snowball method? Depending on what you can save and cut out, using your existing income, I would suggest starting with the smallest debt and working your way up. Remove expenses you can, get a cheaper place, etc. Whatever you can do to lower your expenses.

You can apply for a loan - I would suggest checking out CU's as they usually give pretty good rates. There's a few other sites that do loans such as SoFi, LendingClub, and a few others.

Personally, if it was me in that situation - it would be more gratifying and fulfilling for me to tackle my debt head on by figuring out what my expenses are, reducing those, taking my existing income, hitting my lowest debt while continuing to make the minimum payment + few $ extra on the others. If I could, I would add any extra income that I save from removing stuff I don't need and work my way from the smallest to largest.

Good luck!

Scores - All bureaus 750 +/-
TCL - Est. $275K
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Valued Contributor

Re: Need Advice on Best Loan Option

I agree with the above (except for getting a cheaper place because you just bought a house!! Congrats on that!!). A credit union is your best option for a personal loan but if you choose to go that route instead of the snowball method then you must be committed to paying off your debt before incurring more or you could put your financial health at risk. Good luck!
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