Unsecured Loan - which scenario will likely get me approved but not cost too much?

[Anne1208]

I have an upcoming home improvement project and I have a few questions.  Everyone on here is always so helpful!!! My credit score right now is about 735-740.

1. So I have an installment loan for $5k (started out at $7500) that was for a fence for my yard. I pay $160 a month. 
2. I have a credit card that has a $3000 balance and a $100 a month minimum, rate is like 29% or something. 
3. I have a $17,000 home improvement project I want to do (we dont have enough equity yet to use equity).
4. I have $5000 in cash im willing to offload onto one of the above-mentioned items. 

Here are the diffferent options I have, and the concerns with each one:

1. Pay off credit card with $3000 cash, use $2000 cash + $15000 unsecured loan to do project, keep fence loan. Pro: Get rid of highest interest debt quicky.  Concern: will the bank be less inclined to approve an unsecured loan if I have that $5000k one outstanding? Monthly Payments Left: $160 unsec loan, $300 unsec loan
2. Pay off fence loan with cash, get $20k loan to pay off $17k project and credit card. Pro: Eliminate $160 a month payment and replace with $400 a month payment, so only like im increasing monthly debt payment by $240.  Concern: This unsecured loan amount is higher - is it really hard to get a $20k unsecured loan with an $85k a year income? Monthly Payments Left: $400-425 a month unsec loan
3. Keep fence loan, Keep paying on credit card separately, put $5000 toward house project and take out $12k loan for remainder. Pro: Less total unsecured loan money i am asking for, so maybe more likely to be approved? Con: maybe LESS likely to be approved with the other unsecured loand and credit balance hanging out there??? Monthly Payments Left: $160 fence loan, $100 min credit card (plus any paydown i devote to it) and $240ish a month unsec loan

I can afford the resulting monthly payment totals in any of the above scenarios - my MAIN concern is which setup is likely to get me the approval to do the home improvement project. And then of the scenario(s) in which i am likely to get the approval, of those, which one is the cheapest debt total to carry?  

Any thoughts would be helpful! I have other debts (student loans i pay timely and will be until theyre forgiven) and a few other credit cards with under 30% utilization but those are all carrying balances from my husband so im not bothering with those. 

Thanks!

[CreditInspired]

OP
There are a lot of questions so I’m going to try.

First, do you belong to a CU because I’m thinking NFCU or Penfed may be the way to go for the $17K project. Your scores look good for a decent size loan if your UT is low.

Second, IMHO, I would pay off that 29% interest loan. You’re paying 72.50 in interest and only 27.50 toward principal. At this rate, the loan won’t be paid off for 9 yrs. Oh Gawd, I hope my calculation is wrong!!!

Third. What is the interest on the installment loan? Hopefully not as outrageous.

Fourth, have you looked at 0% APR CCs to BT the CC and installment loan to? This will put more money toward the interest bearing accts.

Finally, can you tell us what your total UT is and what your individual UT is (or all these combined accts for you and DH). I know you say you can afford the monthly payment but it will depend on the banks algorithm.

IMO,, I think looking at CUs may be your best route to get this size loan.

[Anne1208]

thanks!

1 - Yes i belong to a credit union. its where i have my checking and current installment loan.

2 - yes that 29% apr cc stinks!

3 - installment loan rate i cant remember i think it may be like 13%

4- i hvent looked into those

5 - total utilization i am not sure somewhere around 30% on all cards i either have jointly or alone

which brings me to my final concern about using the credit union which may be not an issue i dont know - the card with the biggest balance is our credit union one. prob 70% + and we have other cards w little or nothing on them. that bigger balance on our CU card is all my husband not me, and hes paying it down, its a 9% card. anyway, i was worried maybe the CU wouldnt want to lend to me when they see that one card has high ut?? i mean maybe that one bad thing isnt that bad....

[CreditInspired]

Are you saying the CU CC is only in your DHs name? If yes, I see a light at the end of the tunnel for you. Now, if you’re an AU or joint and the card is at 70% UT, that could possibly create a problem with getting the amount you want.

[Anonymous]

I would definitely pay of that $3K CC balance at 29% ASAP. And allow it time to post to your CR before applying for another Loan. 

I also would consider putting the leftover $2K toward the existing Loan balance, bringing it down in the 50% paid range.

This will look much better when appling for the new Loan.

If your CU is unabe to give a $20K loan, you might look at Marcus or other Online Loans. I took out a $15K Loan with Marcus, and my Income is about half of yours. So i dont think you'd have a problem there. But it truly depends on your DTI on whether they feel you can afford the monthly payment. You'll just need to demonstrate that you can afford the new Loan payment, in additon to having Money leftover afterwards. 

[Anne1208]

Thanks! Yeah now I am definitely leaning toward just paying that card off. It's just so much interest each month. I could do that by the end of the month here, and also pay a couple thousand to the installment loan in last week of December, and then throw extra money at the installment loan in Jan and Feb while i am waiting for the december stuff to report to my credit.  The company from which I would be purchasing the stuff for the home improvement has its biggest sale at the annual home and garden show at the convention center, which happens at the end of February.  So, my hope is whatever I do last week of December is on my credit report early Feb, and I can apply then and have the cash to get the biggest discount possible on the home improvement stuff during the home show, possibly even getting the project for a better cost than the $17k I was quoted earlier in the year.