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Personal Loan / PLOC Lender Recommendations?

Jazee
Regular Contributor

Personal Loan / PLOC Lender Recommendations?

My scores are currently in the 715-735 range. Any recommendations on best place to go for a Personal Loan or Line of Credit.  I've got some old debt I need to settle but am cash poor right now. I also am a Sole Properietor so not sure if I should instead apply for a Small Business Loan for more favorable terms? 

 

Also, wouldn't a personal line of credit but more advantageous as can't you keep those indefinitely and therefore build a long payment history as opposed to a 3/4/5-year personal loan?  I bank with Chase and have a DCU (Digital Credit Union) account that I've never used. I only opened the DCU account a couple years ago to get an Auto Loan but ended up using a different lender.  I heard their credit card cash advance interest rate is the same as the regular rate.  Seems like the rate on the Personal Loan/LOC would be better than a DCU CC?

 

Other names I've heard thrown around are SoFi, Upstart, Lightstream, etc.  Also I have USAA Checkin/Savings/CC.

 

 

 

Message 1 of 13
12 REPLIES 12
Remedios
Moderator

Re: Personal Loan / PLOC Lender Recommendations?

@Jazee  if money flow is an issue, I don't think it's wise to attempt to get a loan right now. 

With an open charge off, good ones like Lightstream and SoFi probably aren't happening. 

With others, I'm not sure the apr on the loan would be any better than credit card from CU.

Have you tried pre-approvals for PLs to get an idea on what your rate would be?  

Message 2 of 13
Jazee
Regular Contributor

Re: Personal Loan / PLOC Lender Recommendations?

I just took a look at the terms on the DCU Platinum Visa.  They show a score range for qualifying from 630 up, so I'm guessing I may not get their best rate of 8.5% but maybe around 10-11%.  I've seen Peronal Loan rates all over the map from 6 to 16%.  DCU is 5.99%.  I doubt I'd qualify for the lower end of the spectrum on Personal loans.  Seems for whatever reason, they are harder to qualify for even though they are essentially unsecured loans like credit cards.  I expect to be able to pay the loan off in 12 months.

 

My thinking now is getting their Visa card is the way to go as the cash advance rate is the same as the regular rate, there's no balance transfer fees, and I can use it to build a payment history indefinitely.  If I was appoved I'd probably get maybe what 2-4% lower interest on a Personal Loan but the account would eventually close and they payment history would roll off my credit report.  The interest savings would amount to minimal amount of money if I only needed 12 months to pay back.

 

The only problem is, I'm guessing the credit limit they extend is going to be conservative from what I read a\nd probably be about half what I want to take out ($2500 versus $5000) but who knows until you apply?  I wonder where they pull credit from?

 

Message 3 of 13
Remedios
Moderator

Re: Personal Loan / PLOC Lender Recommendations?

Well, the appeal of personal loans is a longer repayment period, which also makes them riskier. Additionally, they require set payment amount, whereas with cards you can pick the amount yourself as long as minimum payment is satisfied. 

 

 

 

 

Message 4 of 13
Jazee
Regular Contributor

Personal Loan or Line of Credit? Best Lenders?

I've got a project that I need funding for.  I can spread the project out over time (like 6 months) or complete it in 1 month.  My preference is to get it done quickly but if strategy-wise from lending aspect it's better I spread it out, then that's fine.

 

I'm an NFCU member but I'm only 2.5 months with them and got their Visa card and would like to get their AMEX Rewards card after my third statement.  My overall UTI is < 5% amongst 4 cards.  My scores are currently 751 TU Vantage, 746 EQ Vantage, my EX FICO 8 is 723 (the cards I've applied for in recent months have all pulled EX except for my one NFCU Visa card.)  My debt to income ratio is 7% without rent, 27% including rent payment.

 

No matter what the term of the loan, I will have it paid off in 2 years.  My two questions are (1) personal loan, or personal line of credit?  And (2) Which lenders to consider other than NFCU?  I feel I'm going to the well too much, too early with NFCU if I open an account and 1-2 cards then also ask for a loan.  I'm also a DCU member but only opened that up a couple years ago to see what their auto loan terms would be and never used them for anything. Who's giving good terms to people like me right now other than NFCU?

 

 

Isn't there some website like Lending Tree or something that will do soft pulls and let you compare terms and *probably* approval chances? 

I think the info from users at myFICO is potentially more useful/reliable than those comparison sites and then you end up getting a bunch of junk email or spam calls from lenders!

 

Message 5 of 13
dragontears
Valued Contributor

Re: Personal Loan or Line of Credit? Best Lenders?

Regarding loan vs line of credit: please be aware that a line of credit is included in your revolving utilization which could be a good, bad, or neutral thing depending upon your profile, CL, payoff rate and need for additional credit in the near term. 

Scores hover around 800
Haven't been AZEO in over a year
Rome was not built in a day, neither is a good credit profile
Message 6 of 13
Janus
Senior Contributor

Re: Personal Loan or Line of Credit? Best Lenders?

I would opt for Personal Loan over LOC mainly due to the above mention revolving utilization issue. Secondly because having an installment account on your CR satisfies that whole "credit mix" aspect, if you don't already have one.

 

Some poeple like LOC's because of the ablity to keep going back to the well, while Loans a one time thing.






Message 7 of 13
Jazee
Regular Contributor

Re: Personal Loan or Line of Credit? Best Lenders?

I have an auto loan so does that satisfy the for having a mix? 

 

Message 8 of 13
Jazee
Regular Contributor

Re: Personal Loan or Line of Credit? Best Lenders?

Oh and it looks like I probably would not get approved from SoFi or Lightstream as my score is borderline and I do have a little dirt on a 4-year old account.  I think my best bet is DCU based on what I've read since.

 

 

Message 9 of 13
Mr_Mojo_Risin
Valued Contributor

Re: Personal Loan or Line of Credit? Best Lenders?


@Jazee wrote:

I have an auto loan so does that satisfy the for having a mix? 

 


My auto loan is the only installment loan I have and it satisfies the credit mix part. 

So yes, your auto loan will be fine. 

NFCU More Rewards 24K CL
AODFCU Visa Signature 5K CL
NFCU Cash Rewards 4K CL
Discover IT 1.5K CL
Cap1 Quicksilver 600 CL
NFCU auto loan
Message 10 of 13
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