*Reposted from another forum, I think I posted in the wrong spot*
I'm considering taking out another personal loan...I got a good rate on Upstart, which I have a current loan on that is coming up on 3 years old in a 5-year term. By taking this I can pay off remaining credit cards while also building a little cushion should something come up (car or home repairs for example). It would extend my current debt pay off plan by 1-2 months which I can live with if it gives me peace of mind in the here and now. Here are a couple of notes:
1) Doing this would mean I would be adding another personal loan to my credit report. I currently have two, as well as one that is entirely paid off and one that is an Upgrade LOC...I wouldn't use this LOC if I got this loan. So I would be looking at 3 personal loans with balances (not counting auto and mortgage loan)
2) I'm confident in my ability to not reuse credit cards. I've been good with that so far. I would probably pay my cell phone bill and a utility bill on my two best cards (they currently have limits of 10k each with rates of 11.5% and 12%) and then immedialely pay those off. The other cards I would mothball entirely. Maybe I'll use and repay right away on some of them but if they close due to inactivy its not the end of the world.
3) I recently refinanced my mortgage and i'm a couple of years into my auto loan. God willing I wont have any credit needs for several years. So any short term hit to my credit profile wont necessarily bother me. I realize that having multiple personal loans will negate the score boost I get from paying off cards. I also understand that there would be several recent inquiries. Again, not ideal but also would seemingly be okay since I wouldn't be needing anything for a while.
4) However, I would like to potentially move to a new house in early 2024. By that time all 3 personal loans would be paid off and aside from mortgage and auto i would be debt free. That's all good but I want to make sure this strategy isn't a detrement to my credit profile then. I'm not sure what impact having 3 paid off personal loans showing up on the report would have to potential lenders at that point.
Curious about any thoughts or advice on this plan. On the surface it gives me some peace of mind but I also want to make sure i'm aware of any potential consqeuences that could arise that I haven't already considered. Feedback is appreiciated.
