Which route to take? Personal Loan?

[steelholder]

I'm hoping to reduce credit card debt with a personal loan. My total debt is around 12k spread around 10 credit cards. My utilization is around 12% and my credit score is around 720-740. I'm being charged a pretty high interest rate from every CC every month and was hoping to consolidate this by making one single payment with a lower rate. Would a personal low interest loan be the best option? Something around 9 or 10% for 24 months? What other options are out there to help me reduce paying so much interest? Ive heard of balance transfers but is that only for a single credit card?  Thanks all!

[RSX]

a personal loan is perfect for your situation - and with a 720-740, you should get lower than 9-10%

check Lending Club - i have had good luck with them

avoid OneMain - they have high % no matter what your score is

[steelholder]

Thank you RSX, I thought 9% was good, around what rate could be expected with my score? Need wallet shows their rates begin at 10%.

[RSX]

not knowing the total amount or anything beyond your credit score, i would guess 6-7%

you can model the loan once you ask for the total amount - they will give options for different pay down duration, and the rate moves accordingly

ask for slightly more than you need - you can always lower it if you decide to

only negative is there is an origination fee - but their service and rates have more than made up for it for me

Also, i used Lightstream once and was happy with their service and rates as well

[barca]

try many lenders that have soft pull.

Most of the lenders will do soft pull and you can see your rates.

Sofi, Discover, Lending club , Prosper, quicken etc.

make sure it specify soft pull, before you go ahead.

[Anonymous]

I would honestly check for BT offers among existing creditors before taking a personal loan. Personal loans not only make a new trade line but a good bit of them are designated as consumer finance companies (you risk this with any of them that aren't coming from a bank or CU especially) which is an added score penalty until they drop off your report. If you don't have BT offers, start checking with your existing creditors and see if they offer personal loans. For example Discover has a personal loan that starts at 6.9% and US Bank starts at 6.49%. Many CUs have great personal loan rates too. Sofi, Lending Club, etc should be your last resort. 

[steelholder]

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@Anonymous wrote:

I would honestly check for BT offers among existing creditors before taking a personal loan. Personal loans not only make a new trade line but a good bit of them are designated as consumer finance companies (you risk this with any of them that aren't coming from a bank or CU especially) which is an added score penalty until they drop off your report. If you don't have BT offers, start checking with your existing creditors and see if they offer personal loans. For example Discover has a personal loan that starts at 6.9% and US Bank starts at 6.49%. Many CUs have great personal loan rates too. Sofi, Lending Club, etc should be your last resort. 

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I am member of Alliant and Navy fed,  im not sure if I understood correctly but if I get a loan from them or any other company its a ding on my credit right? 

[CYBERSAM]

@steelholder  "Would a personal low interest loan be the best option? "  YES

I did the same thing and may scores jumped to 800.

Try CUs. I had few CC with 20+ interest rate and after getting PL, now I'm at mid 6%

Look for DCU, Penfed, Service CU. etc

You should be able to get a good rate. Try not to app just because, look at all the fine lines and pick the one that you want to go with.

Also if your having hard time making payments, you can get a longer term PL to lower your monthly payment till you stabilize your finances! Knowing that you can pay them off anytime you want or pay double the payment is a good thing.

Good luck!

[Anonymous]

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@steelholder wrote:

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@Anonymous wrote:

I would honestly check for BT offers among existing creditors before taking a personal loan. Personal loans not only make a new trade line but a good bit of them are designated as consumer finance companies (you risk this with any of them that aren't coming from a bank or CU especially) which is an added score penalty until they drop off your report. If you don't have BT offers, start checking with your existing creditors and see if they offer personal loans. For example Discover has a personal loan that starts at 6.9% and US Bank starts at 6.49%. Many CUs have great personal loan rates too. Sofi, Lending Club, etc should be your last resort. 

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I am member of Alliant and Navy fed,  im not sure if I understood correctly but if I get a loan from them or any other company its a ding on my credit right? 

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No you can get loans from Alliant and Navy because they're CUs. It's companies like SoFi, Lending Club, and Prosper that you want to avoid. 

[steelholder]

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@Anonymous wrote:

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@steelholder wrote:

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@Anonymous wrote:

I would honestly check for BT offers among existing creditors before taking a personal loan. Personal loans not only make a new trade line but a good bit of them are designated as consumer finance companies (you risk this with any of them that aren't coming from a bank or CU especially) which is an added score penalty until they drop off your report. If you don't have BT offers, start checking with your existing creditors and see if they offer personal loans. For example Discover has a personal loan that starts at 6.9% and US Bank starts at 6.49%. Many CUs have great personal loan rates too. Sofi, Lending Club, etc should be your last resort. 

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I am member of Alliant and Navy fed,  im not sure if I understood correctly but if I get a loan from them or any other company its a ding on my credit right? 

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No you can get loans from Alliant and Navy because they're CUs. It's companies like SoFi, Lending Club, and Prosper that you want to avoid. 

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How is a a loan from a CU different than another type of lender on a credit report?