Should I take a personal loan?

[Anonymous]

Hello all!  Not sure if this is posted in the right spot or not. I have an offer for 18k personal loan @ 26% for 3 years. Score not that great 697 Experian 656 transunion and 687 Equifax

This loan would be used to pay off other loans/ cards at higher rates.

One loan 7k left  is 35% still have 4yrs on it

One is 29% 3.5k left 2.5 years left and the 3rd is 25%  2.5k with 18 months left.

One card 19.99% 3k balance 

One card at 29% 1.5k

It would be one payment instead of 5

Would also save me about 50.00 a month that I plan on putting toward the new loan to save a little interest on it.

Thoughts please. 

[RSX]

yes you should

then - after about 6 months of payments, and hopefully your score will have bumped over 700, you should look to refinance that 26% loan with something in the 9-16% range (lower if possible of course, but that is my guess on what you will be able to get)

as you know 26% is awful - BUT - the best way to limit the amount of interest you pay, is to pay it off sooner - so add that $50 you mentioned to every month - but make extra payments whenever you can - even $25 makes a difference when the rate is that high

throw every dollar you can at this loan 

good luck to you

[pizzadude]

Have you shopped around at all for a better rate ?  26% is not a great rate and you might be able to save more per month if you can find a better deal

[SouthJamaica]

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@Anonymous wrote:

Hello all!  Not sure if this is posted in the right spot or not. I have an offer for 18k personal loan @ 26% for 3 years. Score not that great 697 Experian 656 transunion and 687 Equifax

This loan would be used to pay off other loans/ cards at higher rates.

One loan 7k left  is 35% still have 4yrs on it

One is 29% 3.5k left 2.5 years left and the 3rd is 25%  2.5k with 18 months left.

One card 19.99% 3k balance 

One card at 29% 1.5k

It would be one payment instead of 5

Would also save me about 50.00 a month that I plan on putting toward the new loan to save a little interest on it.

Thoughts please. 

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If I were you I would join a good credit union and see if I could get a better rate.

[Anonymous]

Yes I have shopped around and the others are 29% plus.

[RSX]

one other note

only keep 1 CC in your wallet and i wouldn't put more than $200/mnth on it until the loan is paid off

you can cycle between the 2 CC's every 3-4 months so that they each get use 

but don't run up any card amount again, until that loan is over and done with - otherwise you will dig back into a hole

[Anonymous]

Yes I have tried a couple of credit unions denied. After I accept or decline the offer I have I am back to the garden.

[CYBERSAM]

Yes Credit Unions are the best way to go!

4 Years ago I was in similar predicament as you, but could not get any banks to give me a Personal Loan. I went with Penfed with 15%. Consolidated bunch of CC debt to one loan and then got under 10% loan with Service CU! As my Fico Score went up, I was able to consolidate everything to one loan at 3%.

I believe within couple of months you can get much better rate then 20s

[Anonymous]

Thanks. Should I close out cards except a couple of them? I do plan on closing out any that have an annual fee when the fee rolls around. 

[chiefone4u]

@Anonymous have you checked into PenFed CU? If you qualify for membership I suggest checking your rate with them.

My scores are similar to yours and they offered me $20,000 for 60 month's at 11.49%. A shorter term usually has a lower rate.