Personal loans.. DCU, Penfed, NFCU, Other?

[Anonymous]

I have been working really hard the last 8 or 9 months to knock out my debt by refinancing my house and car, balance transfers, etc and I am at the point where my highest interest debt is a personal loan w/ Upstart (balance $18,549 @ 10.5%). As part of my auto refinance journey, I applied/joined DCU, Penfed and NFCU (ended up getting 3.75% for 72 months @ my local credit union though!). I am still waiting for everything to properly report.. right now my credit report shows both the old and new auto loans even though I got the payoff letter from State Farm Bank and my mortgage shows paid off,  but the new one hasn't reported yet. I am currently still within that window where DCU for example will use the original hard pull from the auto app to see if I can get approved for any of their other products. I actually just got approved for their Platinum Visa @ 10% today! It was only a $5000 limit due to my high DTI (largely caused by my old mortgage payment being over half of my monthly income!).. they actually said that normally I would have been declined, but they made an exception due to my high credit score (EQ5 Mortgage Score is 762 as of that pull).

My question is what is does anyone know what the max DTI that these 3 credit unions will approve a personal loan for? What kind of percentage can I expect? Should I just bite the bullet and wait until everything properly reports and take another hard hit later to apply? (I believe that due to my high mortgage and auto payments, my DTI was shown as like 78% at the time that I applied). What kind of odds do I have that if I call DCU back that they might look the other way on the DTI again like they did with the credit card app due to my 762 score? 

Thanks in advance for the advice! I am happy to provide whatever account info is necessary to help answer these questions if necessary.

[VanderSnoot]

Great questions! I haven't stress tested these relationships, so I'm not sure what the limits are. What precisely is the purpose of the PLOC?

[Anonymous]

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@VanderSnoot wrote:
Great questions! I haven't stress tested these relationships, so I'm not sure what the limits are. What precisely is the purpose of the PLOC?

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To pay my brother back/take ownership of the loan that he took out to bail my ass out and get me on the right track towards getting out of debt in February. It's not critical to do it now as it is a 10.5% loan currently which is really not too bad, but my score is going to suffer for awhile after all of the activity/new accounts once everything finally updates and the dust settles so if I can get this loan without having to take another hard hit/using that 762 score while it is still a 762 score I definitely want to!

[VanderSnoot]

Is this the personal loan w/ Upstart ($18,549 @ 10.5%)?

[Anonymous]

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@VanderSnoot wrote:
Is this the personal loan w/ Upstart ($18,549 @ 10.5%)?

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Yes, that is currently on my brother's plate, but it is my debt. 

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[VanderSnoot]

Gotcha. Well, my whole plan was to keep up a dialogue on your thread until the smart, knowledgeable, and kindhearted folks of FicoForums chimed in with their wit and wisdom. Sometimes all it takes is a couple of posts before people migrate to a thread. We will see if it works.

[VanderSnoot]

People may be shying away because they don't know the answer with the granularity you're looking for. My guess is that there is no max DTI for these lenders, as it varies according to borrower profiles, and certainly no one can tell you what APR you will receive. I know that NFCU is considered DTI sensitive, but that does not provide helpful guidance.

My only suggestion is to simply call and talk to a CSR. Honest and forthright seems to be the best approach.

[tcbofade]

I can't speak for anyone else, but a 10.5% APR on an unsecured note is going to be hard to beat.

You didn't mention a time line...  NFCU CAN beat that rate if you're looking for 36 months or less, but can't if you're looking for 60 months.

DCU CAN beat that rate, but I'm not sure that they WILL.

[CreditCuriosity]

Your DTI is extremely high.  No CU or bank will take on a personal loan under your name with a 70+ dti ratio.  Most CU's rule of thumb is about 40% dti.  The rate you have I believe you said your brother has at 10.5% apr isn't bad, although certainly not the best.  What is his DTI ratio would he be willing to refinance again if so that rate can be beaten by companies such as Lightstream, SoFI, etc..  I am currently with lightsream on a debt consolidation at 5.95%, but that is 36 months and my dti is considerably lower.  NFCU personal loans are pretty high APR's imo and wouldnt save much at all even if you did qualify by yourself.  What will your DTI be after mortgage loan shows paid off

[Anonymous]

After the dust settles my DTI should fall at about 54-55%. I definitely don't have to try and refi/lower the percentage on the personal loan right now, but I figured if DCU was going to ignore my DTI and use the original pull because of my score that it could be worth a shot. I will be getting my yearly profit sharing bonus in February (should be around $3,000) and 15 shares of company stock (RSUs awarded from previous years.. will lose 6 to wonderful taxes) on March 1st, plus whatever I manage to pull on my tax return which is all going to be thrown at my debt. I figure at that point I should be in a much better position overall and could probably qualify for a better loan. I'm down to $15000 of credit card debt ($4k @ 0% and $11k at 5.99%) plus that loan and I think that I should be able to slash that credit card debt in half. I am definitely on track, just trying to minimize my interest payments by as much as physically possible.