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Max - out Credit Carts .. loan for relief

The last post in this topic was posted 1594 days ago. 

 

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It's been a while since I have been on the creditboards .. I always got great advice on here and with the help of CB over 10k in credit lines ( credit cards) and

a over 30k auto loan.

 

The bad thing about credit is you tend to max it out.. lol

 

On new years resolution is to don't pay any fees ( banks etc. ) and no more interest ( or reduce it as much as I can)

 

I managed to max out my credit cards and a now paying around $250 interest a month. My plan it to pay the cards off the cards with a loan and reduce the

APR to a minimum .. maybe 5% or what ever is possible.

With maxed out credit cards it probably the worst time to apply for a loan. ( other than that my Credit Report is pretty clean)

I had my auto loan for almost 12 months and I'm hoping that will give me some leverage for a loan!?

 

What are you tips on this topic ?

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With everything maxed out I think 5% on a loan will be near impossible. If you have a plan to keep spending down\ pay down it may still work out to get a loan even if its offered at 15-20% then in a month or two get another loan or card to transfer it to once your reports update. I would try somewhere like advant or your CU which doesn't charge an origination fee if you plan to refi shortly.

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Yes, multiple maxed out cards is a horrible time to attempt to get a loan.

 

Before you do anything else, you need to figure out a way to pay those loans back. Now would be a good time to make a budget, figure out where your money is actually going, start eating in more, cut back on unnecessary bills (easy: kill cable for 12 months; that's a quick $1.5k for many folks; reduce the service level on your cell phone; get on a family plan and save $30/mo; use your iphone a year longer), etc. Otherwise, you're going to be back in a year with $9k remaining on a $10k personal loan and maxed out cards a second time. Make no mistake, your lifestyle is going to have to take a cut because you were living a lifestyle you can't afford and using borrowed money to do so.

 

What is your income?

 

Try DCU for a personal loan, or perhaps prosper/lending club. I'd guess you're at 12% with either, though that probably beats the pants off your current interest rates which I'd guess at probably 20-25%.

 

Maybe DCU has a 0% BT offer? You'll pay probably 3% as a fee, but that will give you a bit of breathing room.

 

Still, this is all a waste of time until you start spending, on average, less than you earn each month. It will also make your life much less stressful; try it!

 

 

Annual income twenty pounds, annual expenditure nineteen [pounds] nineteen [shillings] and six [pence], result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

-- Dickens

 

The upside is if you pay $1k/mo, in a year you'll have excellent credit and have set yourself up for increased credit lines and a mortgage. It's a good xmas gift to yourself.

Edited by earlh

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ok @haydono I never got a loan other then my auto loan which stated at 1.9 % .. I ended up with around 5% so I was assuming personal loans would be similar .

@earlh year life style arrangements will have to be made.. I'm well aware of that ... but I'm already pretty good in saving money but cutting down costs .

The debt is def. a result of the life style . I have my own business so sometimes I make 5k-10k out of a deal but times been a little rough lately thats what I had to pay alot with the credit cards but I'm not in a situation where I can calculate with a monthly fix income.

@camerasnaps I will try my credit union first and see what they can offer. The problem are my high balances on the CC so I will have to find a solution for that before I apply !?

As the chances of trying to apply again are not as good as with the first shot right ? Due to the credit inquiries / applications ?

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Thanks @haydeno , @earlh @cameraSnaps for hour advice so far..

I have gotten some more information and possible options to go about this in the mean time:

I have talked to a company name Balance ( Financial Counseling ) in California which hast been recommended to me by my Credit Union DCU.

- Then suggested to request a loan extension or loan modification from my car loan lender to integrate one of my credit cards which is also at Capital into the car loan.

- I also have gotten an offer ( letter ) from a company Called DMI from Plano TX. ( Which I never contacted .. which is not a good sign.. because obviously any company can look up my credit and sees my debt without my consent ) This company offered a renegotiation of my credit card balance. Which sounds kind like it will hurt my credit..!?

Has somebody heard about something like that?

 

I have not made any moves yet ... ( but always paying my cc bills on time to not have a late payment ) because I know to get turned down because I started with the wrong option , will just

lower my chances to be approved for a loan.

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I will stick with a local credit union and see if you can get your car refinanced and get a consolidation loan. Has your finances improved since you posted this? It will be difficult to get a lower APR with your utilization right now. What is the APR on the card/s?

 

Maybe give us more details about what type of card(s) and their APRs, car loan and its APR and other loans you currently have to give us a better picture and help you strategize.

 

 

 

:)

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@TampaDude .. have you had any experience with them? What are they heck offering anyway ??

@CameraSnaps I have not been able to pay any of the cards down yet .. their APRs are all around 18% the lowest to 24% highest .. my car loan is 5%

thats why I would like to put the cc debt together with the loan if thats what a consolation loan is ( ore load extension / modifications ) so the month payments would be around what I pay now only in interest .

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What are your current tradelines & cards. What are the balances?

 

Honestly.. I've read through some of your older posts, and it seems like you have no reportable income on your personal taxes for a 4506-T.. which may make it very hard to obtain a personal loan.

 

What are your scores like?

 

You might be able to get a Citi Simplicity or Chase Slate card for a 0% Long BT. But.. if your at 99% Utilization, you might not get approved.

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What are your current tradelines & cards. What are the balances?

 

Honestly.. I've read through some of your older posts, and it seems like you have no reportable income on your personal taxes for a 4506-T.. which may make it very hard to obtain a personal loan.

 

What are your scores like?

 

You might be able to get a Citi Simplicity or Chase Slate card for a 0% Long BT. But.. if your at 99% Utilization, you might not get approved.

Not just might not. More like snowball's chance in hell.

 

As much as I hate to say it, you may just need to enter into a Debt Management Plan.

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What are your current tradelines & cards. What are the balances?

 

Honestly.. I've read through some of your older posts, and it seems like you have no reportable income on your personal taxes for a 4506-T.. which may make it very hard to obtain a personal loan.

 

What are your scores like?

 

You might be able to get a Citi Simplicity or Chase Slate card for a 0% Long BT. But.. if your at 99% Utilization, you might not get approved.

Not just might not. More like snowball's chance in hell.

 

I've seen some people with 80-90 Utilization be approved for $2-3k (Chase Slate) lines. It's a huge longshot if he's at that point, but not impossible.

Edited by Mitch19

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@TampaDude .. have you had any experience with them? What are they heck offering anyway ??

@CameraSnaps I have not been able to pay any of the cards down yet .. their APRs are all around 18% the lowest to 24% highest .. my car loan is 5%

thats why I would like to put the cc debt together with the loan if thats what a consolation loan is ( ore load extension / modifications ) so the month payments would be around what I pay now only in interest .

 

DMI of Plano, TX is a "debt settlement" company. STAY AWAY FROM THOSE KIND OF COMPANIES. All they will do is take a lot of your hard-earned $$$ for doing nothing and leave you with wrecked credit.

 

If you want to negotiate with your creditors, you can do that yourself for free. Be aware, though, that creditors generally will not cut you any deals unless you are seriously past due. Sad, but true.

 

Good luck! :good:

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DMI of Plano, TX is a "debt settlement" company. STAY AWAY FROM THOSE KIND OF COMPANIES. All they will do is take a lot of your hard-earned $$$ for doing nothing and leave you with wrecked credit.

So they use the threat of a client declaring BK7 as a "carrot-and-stick" with a creditor, and the debtor ends up with a slew of CO's.

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DMI of Plano, TX is a "debt settlement" company. STAY AWAY FROM THOSE KIND OF COMPANIES. All they will do is take a lot of your hard-earned $$$ for doing nothing and leave you with wrecked credit.

So they use the threat of a client declaring BK7 as a "carrot-and-stick" with a creditor, and the debtor ends up with a slew of CO's.

 

Basically.

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Hi, I'm back with some updates.. sorry haven't been on here for a wile , but there were no major changes in my situation until now.

 

I have some cashflow in my small company .. unfortunately I won't be able to take out alot of additional profit to pay down my cc balances , but I can make some bigger payments

.. and when I'm lucky they will report ( to the credit bureaus ) before I have to use the cards to make payments for my company costs .

.. I kind of did this that before I got approved for my car loan one year ago ( I know I kinda fake may actually score like that ) but thats the option that I have right now.

@Mitch19 .. I'm self employed and don't really have high number to show on my tax return ( the whole purpose ... when you have you own business .. because you are not really looking

to show alot of profit to make it easier to get a loan some day , but rather trying to avoid to pay lots of taxes.. )

 

My sore is around 650 now .. dropped alot but I'm positive I will be approved for another 2k credit card.. but like i said thats not the goal .. rather then getting a personal loan to pay off the credit cards ( if nothing else works I will have to start with a 0% balance trasfere card and start paying that one off..

 

@TampaDude as far as DMI .. I killed that thought .. but it's always good to relay on good people on Crediboards .. to get opinions rather than making mistakes yourself ..

( it kind of looked very suspicions )

 

As fare as "Balance" the Company in California ( associated with DCU) which I mentioned earlier in the topic .. the first representative ... had quite some knowledge and mentioned

a loan extension and a loan modification which sounded like it made alot of sense in my case.. but in order to get deeper into that subject I was supposed to set an appointment with a specialist ... which I then did.. ( 1 month later) .. unfortunately that "specialist" didn't know to much about "special" stuff , but kept trying to explain to me how to read my credit report ..

so at the end of the 30 min conversation which I didn't get any additional knowing out of .. I referred him to Creditbards and told him if he was ever not to sure about stuff .. he can always register and ask here.. because people WILL have an answer for him ( I didn't mention it in a kaki way .. just as a good advice )

 

My questions for today are..

-what do you guys think about making some bigger payments on credit carts and wait until they post on the credit repost to then apply for a loan.

- what kind of loan should I apply for first .. loan extension ( I guess with my car loan lender .. I have been making payments for 12 months now) or another 0% balance transfere credit card .

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