So my credit is going pretty good now. (current scores in sig below). I just replied for a personal loan offer from USAA. I ask for 20K and got approved at 10.75%. Should i deny the approval or accept.. if so, how to use it??? Heres the breakdown of my finances: (LIMIT/BAL/INT) CREDIT CARDS: #1(8200/5200/10.24%), #2(17500/15130/12.99); LOC: #1(15000/750/15.90); INSTALLMENTS: (BAL/INT) #1(11780/7.44), #2(2030/7.44), #3(1530/7.44). My choices were: Consoladate the 3 installments into one, pay down all the credit cards, or use the LOC to pay installment loans then use 20K to pay LOC and CCs down, or final choice dont accept 20K and just deal with what i have. I have a temp income of 6K/mth for the next 6mths if that helps. What would you guys do?
Personally, I wouldn't touch a $20k loan for 10.75%. My income is just slightly above yours, so I know it's comfortable enough to make some decent payments on what you've got. Personally, I would use some of that income to pay card #2 balance down as quickly as possible. You've got a good mix of credit & a good income that can help you bring your balances/utilization down.
I don't see much in the way of benefit by taking on that loan to pay down other stuff. Most of what you have is already at a lower interest rate than the loan, I certainly wouldn't be using the loan or the LOC to consolodate lower interest installment debt. The LOC is the highest interest rate, but your balance is very manageable. Card #2 is slightly higher interest than the loan, but you have the means to bring it down quickly over next few months. If it were me, I'd be concentrating on that. Just my two cents. :-)
Starting Score: TU 490 on 11/2012Yah..i got excited at first. Only benefit i see was that i can reduce the number of my installment loans. According to MyFico, apparently having more than 2 installment loans is hurting my credit score. But the interest for the personal loan is higher so yah. And my current credit util is only 36%...nothing i cant handle with my current income. Thanks for the input. I have about a month to accept the approval. I will just wait it out. Imma guess its prolly was a waste of a hard pull..but this was my last. I will be gardening for at least year to clean up some prior inquiries.