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Mon 31 Oct, 2005 08:16 am
I am biting my nails down to the knuckles waiting today to hear back from our bank loan officer regarding the personal loan we applied for....I am trying to prepare myself to hear the word "denied" because our credit is bruised, but feel hope at the prospect of hearing "approved" because we've not made one late payment in 2 years to any of our credit cards or cars. The loan lady said they take that into consideration but I am still worried. It isn't like a home equity loan where you have some collateral.
**sigh**
Anyone have experience with personal loans? Are they really that hard to get as everyone has told me?
I am going to go nuts before this afternoon.
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We were denied. Apparently, they have a minimum credit score that we didn't meet. I am very sour because 1) I was told that they looked at more than the score and 2) I was assured that the score they required was much lower than it actually needs to be (it's 100 points higher). I am not sure where to go with this now. We have unsecured debt that is taking forever to pay off. We are needlessly paying oodles of interest. But we can't get any reprive. Can't get our interest rate lowered. Can't get a loan to consolidate. Can't do sh*t and I am mad as hell about it. How are we suppsose to get back to good when no one will let us???? This is extremely frustrating. Unless you have a big pile of money, it takes quite a while to pay off old cards with high (20%+) interest rates. I am just really not sure where to turn as we have been struggling with this sh*t now for 2 years and I am getting to the end of my rope and want to just make it easier.
Thanks for the vent.
Bella--
I have no idea how much you tried to borrow, but would going back to the bank and asking for half that much help?
Also, have you talked with your Credit Card companies about a lower rate of interest?
You can usually get them to lower the interest rate if you have six months of solid payments.
Alternately, you can get a new card that will allow you to transfer at a lower interest rate, then never charge any additional items.
That's the biggest trick, IMO; paying off while not adding any NEW debt.
My best friend swears by Dave Ramsey
www.daveramsey.com/
for getting out of debt. I know if the advice could help her, it could help anyone. She was drowning in credit cards, a school loan and a mortgage payment. Her husband left her with all kinds of sundry bills. She turned her life around by following Ramsey's advice. Sorry I don't know the details, but you can probably get his books at any library.
Never apply for a loan unless you are certain your application will be accepted. There is no easier way to lower a credit rating than being turned down, even by Shylock Visa, Inc.
I agree, you should consult an expert in this area who knows how to lower your interest rates by debt consolidation and/or refinancing. But, you can't avoid having to suffer for a spell, just not making late payments (even if it's only minimum payments) to build up a good record for about 6 months.
Lucky you, not having that personal loan approved, those interest rates are sky high. Maybe everyone does this in their lifetime at some point. Good luck to you.
I've made solid payments for 2 YEARS and no one is willing to lower rates, nor is anyone willing to offer me a loan with lower rates.
sunlover, personal loans may have "high rates" to you, but 15% to someone paying 20%+ on some credit cards is a blessing.
I can't get a new card with enough credit to transfer.
I can't get a loan (fairly small 10K) to pay off and consolidate my credit cards and other debts.
roger, i agree with you about not applying if you know you can't get it but I was told that the credit score minimum was below what my score was, so I applied thinking that my score, combined with my history of fantastic, flawless payments in the past 2 years would slid me through. My loan officer was less than honest with me and it was a complete waste of time.
I am still really bent about this because there are so many obstacles! When I was 18 with 0 credit, I had people throwing their credit at me...$5000, $8000, $10000 worth of credit. Now, I can't even get a second look, and while my credit is lower than it should be, it isn't awful. I just don't know where to go from here. I am extremely put out.
GW, I might check that out at my local library. I am willing to try anything at this point. I am so frustrated.
The problem is that it seems like 2 years has been for nothing and that the progress made is not really progress. Nothing has changed.
It IS progress.
Have you pulled your credit report to see if something else is pulling your score down?
If they turned you down for a loan, then you can make them give you a copy of your credit report.
You say you can't get enough credit to transfer? Transfer some of it to lower rate cards, can only help.
Bella, your problem is a common one and $10,000 is do-able. I don't think the banks are going to help you and credit card companies all work together in their favor, not yours. You need to get organized and write down all the debt from the highest interest to the lowest. You want to pay off the high interest loans first with every penny (and I literally mean every penny) you can get together. Other cards just keep paying monthly what you can. Is is possible to take a part time job for a few months with all earnings going to the cards? You need to eliminate all but survival spending (rent, electric, basic food) - no cable, no dinners out, no Starbucks coffee etc. Most people spend $10,000 a year in little bits and pieces. If you can save just $10 a day that's $3,520 right there. You can do this, it's only money. Do check out the Dave Ramsey stuff, I know my girlfriend was in the hole for almost $100,000.
Green Witch wrote:Bella, your problem is a common one and $10,000 is do-able. I don't think the banks are going to help you and credit card companies all work together in their favor, not yours. You need to get organized and write down all the debt from the highest interest to the lowest. You want to pay off the high interest loans first with every penny (and I literally mean every penny) you can get together. Other cards just keep paying monthly what you can. Is is possible to take a part time job for a few months with all earnings going to the cards? You need to eliminate all but survival spending (rent, electric, basic food) - no cable, no dinners out, no Starbucks coffee etc. Most people spend $10,000 a year in little bits and pieces. If you can save just $10 a day that's $3,520 right there. You can do this, it's only money. Do check out the Dave Ramsey stuff, I know my girlfriend was in the hole for almost $100,000.
That is a lot of money.
I know this can be done but it's such a slow process and it's frustrating. I am more upsest about the 2 years I feel like has done nothing more than I am about the debt. It's like running up hill for 2 years only to find you're still at the bottom.
Thanks guys....I appreciate your advice!
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