What new FICO model? Where did you read that?
Also, with only one CC and it being maxed out, to be honest I think it'd be hard to get any type of installment loan for that amount, let alone at a favorable rate that'd be better than your current 18.49% CC rate. Do you maybe have a family member/friend you could ask to borrow money from, even if it's not for the full amount, maybe for like 50% or even 33% of your total debt. At least then you could apply that to your CC and bring it down from being maxed and then *maybe* at that point you could qualify for a personal loan for the full $26k, or at least like half of that or something.
@Threeof5 wrote:I'm considering a personal/debt consolidation loan. My credit is decent, 700ish average. I only have one CC with a balance but it's nearly maxed out at 93% currently. $26k at 18.49% is taking a bite out of my monthly budget, even when I pay more than the minimum. I've read that the new FICO model frowns on unsecured loans. Does anyone else have experience with this?
No FICO scoring models 'frown' on any type of credit product unless you're talking about Consumer Finance Accounts (CFA) that is a molehill turned into a mountain by some on the MF boards. If a debt consolidation loan makes good financial sense for you to get your high interest CC debt into a lower rate installment loan, go for it. You will likely see the usual score loss that comes from opening a new account, but it may be offset or more depending on how much your revolving utilization decreases when you pay off the credit card debt.
@SoonerSoldier33 wrote:
@Threeof5 wrote:I'm considering a personal/debt consolidation loan. My credit is decent, 700ish average. I only have one CC with a balance but it's nearly maxed out at 93% currently. $26k at 18.49% is taking a bite out of my monthly budget, even when I pay more than the minimum. I've read that the new FICO model frowns on unsecured loans. Does anyone else have experience with this?
No FICO scoring models 'frown' on any type of credit product unless you're talking about Consumer Finance Accounts (CFA) that is a molehill turned into a mountain by some on the MF boards. If a debt consolidation loan makes good financial sense for you to get your high interest CC debt into a lower rate installment loan, go for it. You will likely see the usual score loss that comes from opening a new account, but it may be offset or more depending on how much your revolving utilization decreases when you pay off the credit card debt.
Two things here:
1) Finances over FICO, right? :-)
2) I have a Lowe's Project Card on my Credit Report (closed a long time ago....was with the now ex-wife when we were married) and that shows up as a CFA and I see on my FICO Scores the "Too many accounts are Consumer Finance Accounts" Reason Code on the below score breakdowns:
Transunion Auto Score 4
Transunion Mortgage Score 4
Equifax Auto Score 5
Equifax Bankcard Score 5
Equifax Mortgage Score 5
Now, it is possible that this Reason Code shows up on the others but is just not "showing up" (read: is viewable).? Isn't it true that we see (up to) four reason codes but that there are something like six that are actually there? Does that make any sense? I know what I am trying to ask.....just not sure that this question paints the picture I am shooting for.....
Starting Score: Exp 627
@HowDoesThisAllWork wrote:
@SoonerSoldier33 wrote:
@Threeof5 wrote:I'm considering a personal/debt consolidation loan. My credit is decent, 700ish average. I only have one CC with a balance but it's nearly maxed out at 93% currently. $26k at 18.49% is taking a bite out of my monthly budget, even when I pay more than the minimum. I've read that the new FICO model frowns on unsecured loans. Does anyone else have experience with this?
No FICO scoring models 'frown' on any type of credit product unless you're talking about Consumer Finance Accounts (CFA) that is a molehill turned into a mountain by some on the MF boards. If a debt consolidation loan makes good financial sense for you to get your high interest CC debt into a lower rate installment loan, go for it. You will likely see the usual score loss that comes from opening a new account, but it may be offset or more depending on how much your revolving utilization decreases when you pay off the credit card debt.
Two things here:
1) Finances over FICO, right? :-)
2) I have a Lowe's Project Card on my Credit Report (closed a long time ago....was with the now ex-wife when we were married) and that shows up as a CFA and I see on my FICO Scores the "Too many accounts are Consumer Finance Accounts" Reason Code on the below score breakdowns:
Transunion Auto Score 4
Transunion Mortgage Score 4Equifax Auto Score 5
Equifax Bankcard Score 5
Equifax Mortgage Score 5
Now, it is possible that this Reason Code shows up on the others but is just not "showing up" (read: is viewable).? Isn't it true that we see (up to) four reason codes but that there are something like six that are actually there? Does that make any sense? I know what I am trying to ask.....just not sure that this question paints the picture I am shooting for.....
I know what you're trying to say. The reason codes exist to basically tell you which particular metrics are either negatively affecting your scores the most, or to tell you which metrics are not fully optimized. You really have to take them with a grain of salt a lot of the time. There was a post the other day where someone had a 'length of accounts too short' or something to that effect, and his AAoA was like 15 years. The code was basically telling him that there's nothing negatively impacting his scores, but he hasn't fully optimized aging metrics which go up to like 25 years I think. Anyway, CFAs obviously affect scoring on certain models. How much? Wouldn't we all like to know, but it's really overblown IMHO. There are documented DPs of 800+ FICOs with CFAs reporting.
Back on topic. I agree with @OmarGB9 . @Threeof5 it will be a tad difficult getting a loan with one card with such a high balance. If it was spread out over 5,6,7 accounts is one thing. Having it all on one card the lender would hesitate due to you let it get that high and looks like you cant handle 1 card. Like Omar said. Maybe family can lend you 1/3 or 1/2 and get it down. No interest with them. Your balance will be lower and your monthly payments will go down also. Dont know where your scores are at. Join a CU like the ones we all talk about on here and see if you can get a balance transfer card with a much lower APR. Best of luck.
@FireMedic1 wrote:Back on topic. I agree with @OmarGB9 . @Threeof5 it will be a tad difficult getting a loan with one card with such a high balance. If it was spread out over 5,6,7 accounts is one thing. Having it all on one card the lender would hesitate due to you let it get that high and looks like you cant handle 1 card. Like Omar said. Maybe family can lend you 1/3 or 1/2 and get it down. No interest with them. Your balance will be lower and your monthly payments will go down also. Dont know where your scores are at. Join a CU like the ones we all talk about on here and see if you can get a balance transfer card with a much lower APR. Best of luck.
Yes, appologies for the digression. Meant (and intended) to state "Don't mean to hijack your thread, but....". Will be more mindful moving forward.
@HowDoesThisAllWork wrote:
@FireMedic1 wrote:Back on topic. I agree with @OmarGB9 . @Threeof5 it will be a tad difficult getting a loan with one card with such a high balance. If it was spread out over 5,6,7 accounts is one thing. Having it all on one card the lender would hesitate due to you let it get that high and looks like you cant handle 1 card. Like Omar said. Maybe family can lend you 1/3 or 1/2 and get it down. No interest with them. Your balance will be lower and your monthly payments will go down also. Dont know where your scores are at. Join a CU like the ones we all talk about on here and see if you can get a balance transfer card with a much lower APR. Best of luck.
Yes, appologies for the digression. Meant (and intended) to state "Don't mean to hijack your thread, but....". Will be more mindful moving forward.
Pfft. No worries. Dont want anyone to see the blue letters of death from the Mods. 
Runs..........
@Threeof5 wrote:I'm considering a personal/debt consolidation loan. My credit is decent, 700ish average. I only have one CC with a balance but it's nearly maxed out at 93% currently. $26k at 18.49% is taking a bite out of my monthly budget, even when I pay more than the minimum. I've read that the new FICO model frowns on unsecured loans. Does anyone else have experience with this?
Your FICO scores are fantastic. Basing that off of your signature (which is from June, 2021). Your current individual credit utilization - for that card - is really high (93%). But you knew that already. I would guess, after some basic math, that the Credit Limit on that card is some $28,000?
Is it possible at this point for you to get one, maybe two additional revolvers?
And, as others have suggested, possibily borrowing money from family/friends? Getting the utilization down to under 30% (assuming that the CL is some $28,000 then that would be roughly $8,100) would help with your score immensely. It would also help you get ahead of this and improve your daily finances. But, that translates to borrowing some $18,000.
Maybe getting one or two more revolvers with credit limits "high enough" could off-set this. Now, as I am sure that you know, credit utilization is counted for each individual credit card and then also for the aggregate. So, this one card will still have the very high utilization.
So, possibly a combination of both suggestions (get one or two additional cards and borrow some funds from family/friends)?