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Personal loan: Use my CU that I've had a personal loan with before or try a different lender?

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Anonymous
Not applicable

Personal loan: Use my CU that I've had a personal loan with before or try a different lender?

I am looking to take out a personal loan for around $6k. I was approved for a PL through my local credit union for 3k and just paid it off yesterday. The term was for 3 years at 12.3%; however, it only took me only 6 months to pay it off. 

 

My question is, should I attempt to apply for another PL through my CU again, or try a different lender - penfed, lightstream, etc.? Back when I got my personal loan with my CU, I didn't attempt to take one out through anyone else since they approved me at what I believed was a decent IR.

 

My rationale is that if I apply for another PL with my CU it will be an easy approval since I just paid off my previous PL off with them. But I am not sure they'll go as high as 6k, and I do not know if they offer a lower IR for my score. Although my Fico 8 is 680ish, I cant remember what number they actually base their IR off (maybe it was EQ, not sure). But I do remember that whatever score they used landed me in the 12.3% IR bracket.

 

I had a CH7 discharge around 5/6 years ago. Since then I have had 2 auto loans (current auto is at 4%), around 8 credit cards that I always pay off every month (0% utilization), and no late payments on anything. I believe these factors are what enabled me to get approved for the PL to begin with.

 

If I dont go through my CU again, can you suggest any other lenders that would give me a better rate than the 12.3% I had, and who will approve me based of my credit history and 6 year old CH7? 

Message 1 of 17
16 REPLIES 16
Dumbee
Established Contributor

Re: Personal loan: Use my CU that I've had a personal loan with before or try a different lender?

Message 2 of 17
Anonymous
Not applicable

Re: Personal loan: Use my CU that I've had a personal loan with before or try a different lender?


@Dumbee wrote:

List of pre-approvers: https://ficoforums.myfico.com/t5/General-Credit-Topics/List-of-Soft-pull-PREAPPROVAL-Links-Updated-4... 


Thanks. Do you happen to know if any of those lenders won't require POI?

Message 3 of 17
Revelate
Moderator Emeritus

Re: Personal loan: Use my CU that I've had a personal loan with before or try a different lender?

Wasn't clear but what are you getting this loan for?

 

12% isn't bad for short-term money.




        
Message 4 of 17
Anonymous
Not applicable

Re: Personal loan: Use my CU that I've had a personal loan with before or try a different lender?


@Revelate wrote:

Wasn't clear but what are you getting this loan for?

 

12% isn't bad for short-term money.


A little towards negative equity to help get rid of a car and the rest towards other stuff. What are the chances of getting a lower IR?

Message 5 of 17
Jnbmom
Community Leader
Super Contributor

Re: Personal loan: Use my CU that I've had a personal loan with before or try a different lender?


@Anonymous wrote:

@Dumbee wrote:

List of pre-approvers: https://ficoforums.myfico.com/t5/General-Credit-Topics/List-of-Soft-pull-PREAPPROVAL-Links-Updated-4-23/td-p/5938753 


Thanks. Do you happen to know if any of those lenders won't require POI?


Most lenders require some proof of income, always expect it. But I have seen a few that don't require it but not sure why you wouldn't provide it for a loan ?

EXP 778 EQ 747TU 793
Message 6 of 17
Anonymous
Not applicable

Re: Personal loan: Use my CU that I've had a personal loan with before or try a different lender?


@Jnbmom wrote:

@Anonymous wrote:

@Dumbee wrote:

List of pre-approvers: https://ficoforums.myfico.com/t5/General-Credit-Topics/List-of-Soft-pull-PREAPPROVAL-Links-Updated-4-23/td-p/5938753 


Thanks. Do you happen to know if any of those lenders won't require POI?


Most lenders require some proof of income, always expect it. But I have seen a few that don't require it but not sure why you wouldn't provide it for a loan ?


Because I am currently on furlough from my employer, have been since the beg of April. Even though its temporary, I am assuming most banks/lenders will use it to deny approval...

Message 7 of 17
Janus
Senior Contributor

Re: Personal loan: Use my CU that I've had a personal loan with before or try a different lender?

If you can pay off loans that quickly, interst rates be come less of an issue. So anything around 10% for $6K should be decent, considering your profile. Paying off $3K in 6 months means you could potentially pay off $6K in 12, which is only $600 in interest. 

 

If you current lender has an SP option to see what rate you'll get, compare it with other lenders to see how low you can get it. 

Staying with you previous loan issuer doesn't automatically mean good rate in the future. My sceond loan only dropped 1% with the same Bank. I might have been able to get a lower rate had I gone elsewhere, but I didn't need to submit all new docs for the second loan.

 

So I went with the more simplified method.






Message 8 of 17
Anonymous
Not applicable

Re: Personal loan: Use my CU that I've had a personal loan with before or try a different lender?


@Janus wrote:

If you can pay off loans that quickly, interst rates be come less of an issue. So anything around 10% for $6K should be decent, considering your profile. Paying off $3K in 6 months means you could potentially pay off $6K in 12, which is only $600 in interest. 

 

If you current lender has an SP option to see what rate you'll get, compare it with other lenders to see how low you can get it. 

Staying with you previous loan issuer doesn't automatically mean good rate in the future. My sceond loan only dropped 1% with the same Bank. I might have been able to get a lower rate had I gone elsewhere, but I didn't need to submit all new docs for the second loan.

 

So I went with the more simplified method.


With the next personal loan, I wouldn't be able to pay it off as quickly. For a 6k loan, I might be able to get it paid off in 1.5 - 2 years. 

 

Also, I am in a furlough right now with my job due to tue COVID19 pandemic. I am looking for a lender who will bot require POI, or would at least still apprive me even though I am in furlough status, since I am still employed and will be returning to work soon.

Message 9 of 17
SouthJamaica
Mega Contributor

Re: Personal loan: Use my CU that I've had a personal loan with before or try a different lender?


@Anonymous wrote:

@Janus wrote:

If you can pay off loans that quickly, interst rates be come less of an issue. So anything around 10% for $6K should be decent, considering your profile. Paying off $3K in 6 months means you could potentially pay off $6K in 12, which is only $600 in interest. 

 

If you current lender has an SP option to see what rate you'll get, compare it with other lenders to see how low you can get it. 

Staying with you previous loan issuer doesn't automatically mean good rate in the future. My sceond loan only dropped 1% with the same Bank. I might have been able to get a lower rate had I gone elsewhere, but I didn't need to submit all new docs for the second loan.

 

So I went with the more simplified method.


With the next personal loan, I wouldn't be able to pay it off as quickly. For a 6k loan, I might be able to get it paid off in 1.5 - 2 years. 

 

Also, I am in a furlough right now with my job due to tue COVID19 pandemic. I am looking for a lender who will bot require POI, or would at least still apprive me even though I am in furlough status, since I am still employed and will be returning to work soon.


Lightstream is very user friendly.


Total revolving limits 741200 (625200 reporting) FICO 8: EQ 704 TU 713 EX 684

Message 10 of 17
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