Personal Loan for Self-Employed with high DTI

[phoenix12]

I have accumulated a lot of credit card debt that I want to consolidate into a personal loan and then freeze the credit cards so I stop spending. However, when I try online lenders, I get a denial due to my high DTI. Does anyone in the community know a good lender or bank that helps with self-employed income and is not as sensitive to DTI? I have been self-employed for about a year and a half and only have one year of tax return. Would appreciate any help. I'm looking for between 10-15k in a personal loan. My FICO 8 are around a 680 across the board. Thanks! 

[SouthJamaica]

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@phoenix12 wrote:

I have accumulated a lot of credit card debt that I want to consolidate into a personal loan and then freeze the credit cards so I stop spending. However, when I try online lenders, I get a denial due to my high DTI. Does anyone in the community know a good lender or bank that helps with self-employed income and is not as sensitive to DTI? I have been self-employed for about a year and a half and only have one year of tax return. Would appreciate any help. I'm looking for between 10-15k in a personal loan. My FICO 8 are around a 680 across the board. Thanks! 

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I would suggest joining PenFed, and then applying for a personal loan.

[phoenix12]

I did try and apply to PenFed using their pre-qualification tool, and they also denied. I think I will speak to a local bank/credit union and see what they can do. 

[MarkintheHV]

I went through one of my local credit unions awhile back when I needed to pay off my credit card debt.  They gave me 22k almost immediately.

[Kforce]

I agree with the others, best bet is a good CU.

However be careful, it is easy for a loan to backfire and you end up in more debt.

I would make a budget and see where you can cut expenses, freeze cards, and

stop using all but a couple of them.

Good luck

[phoenix12]

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@Kforce wrote:

I agree with the others, best bet is a good CU.

However be careful, it is easy for a loan to backfire and you end up in more debt.

I would make a budget and see where you can cut expenses, freeze cards, and

stop using all but a couple of them.

Good luck

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Definitely, @Kforce. If I get approved, I plan on moving most, if not all, my non- 0 % interest debt onto the loan and then freezing those accounts. That way, I only have my debit card active. Live and learn from mistakes and recover from them! I plan to see what they can do for me at a local CU. Do they typically work with self-employed with only one-year tax return? 

[Kforce]

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@phoenix12 wrote:

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@Kforce wrote:

I agree with the others, best bet is a good CU.

However be careful, it is easy for a loan to backfire and you end up in more debt.

I would make a budget and see where you can cut expenses, freeze cards, and

stop using all but a couple of them.

Good luck

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Definitely, @Kforce. If I get approved, I plan on moving most, if not all, my non- 0 % interest debt onto the loan and then freezing those accounts. That way, I only have my debit card active. Live and learn from mistakes and recover from them! I plan to see what they can do for me at a local CU. Do they typically work with self-employed with only one-year tax return? 

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Things change monthly depending on economy and each CU/Bank's policies

Times are rough and rates are high

Young profile, short time as self-employed,~30% utilization, ? income, maybe a little to aggressive with credit seeking.

Maybe, Maybe not, I would try but keep expectations in check, it might not happen

If you stop using cards, start paying them down, scores will rise.

Then in 6 months, maybe a better chance at a loan.

I would start the fix and not be waiting for the loan as a stimulus. 

[joxnard805]

did you ever find someone to give you that loan?

[Guyatthebeach]

@phoenix12 ,

Since you are already a NCFU member, see if you have a preapproval for the Platnium card. It's a great BT card and have a loan interest rate. I would also see to see if you have a preapproval for an American Express personal loan.  If those don't work, look at the local CU's near you.

Guyatthebeach

[phoenix12]

Sorry, just now seeing this. 

No, no one would approve me. The DTI was too high.