My fiancee was just approved for an AG loan. She needs it to pay off a medical bill that was sent for collection. It's for 3000. They quoted her a rate of 24.9 for 3 years at 175 per month. My finance calculator says it should be 119.00 per month. What gives or am I missing something. If you use AG's monthly, she'd be paying over what she borrowed in interest. Also, someone on here quoted that AG will give you the option of having the credit line reported now or when the loan was complated. The CSR at AG said she never has heard of this. Also, what's worse, having a medical collection for 3 grand or a finance co. for 3 grand on your report. I plan to try and have this paid off in 6-8 months. Should I take their money?
I just looked at my interest rate book. Your calculations are correct. A couple of possibilies - they may have packed the loan with a lot of fees (credit life etc), or they may be using a different way of calculating the interest. I know there is a rule of 78's, but I don't know how it works. That may account for the difference. Does anyone know? Just how urgent is the need to pay these bills? Can't she work something out with the creditor? These are very steep rates.
We were just looking to get approved before we went in to see the creditor. The bite in the a** is that the creditor is her dentist who she has sent two kids through for braces and might send another one through for the same. She had her braces from him as well, that's what this bill is. The bill got messed-up in her ugly divorce and he just sent it to the collection company. She went to his office at least twice a month and he never mentioned it. She's also sent him easily over 30,000 dollars in dental work his way by friends, family, etc. We are going to talk to him next week. We want COMPLETE removal of the collection off the credit reports. Any advice!!!!!
Actually I just want to know if the finance company line of credit will look worse than the medical collection???
A finance company tradeline only affects you in a negative way if you have comparitively good credit (720-ish). Any "paying as agreed" listing is better than a collection. BTW, all AG accounts include life and disability insurance unless you tell them to take it off. Just tell them, they'll drop it. Dancer
She told them to drop it and they did. So what you're saying is take the loan, pay it off in six months and get the collection completely deleted from the CR? Thanks for the info.!!!!
American General has been around for awhile and make their money by gouging people for loans. Only people who have no where else to go use these guys. Just beware.
