Hey everyone. I am getting a little frustrated here. This is my situation: I am about $10,000 in credit card debt and have been applying for debt consolidation loans only to be turned down. I have never missed a single payment in my life. My FICO score is 740 and yet I cannot get a single approval for a loan. Can anyone offer any advice at all? I would like to stay away from debt consolidation companies because of all the bad things I have heard about them. I just need a loan with my good credit and cannot get one! P.S. I am not a homeowner. Maybe that is why I am getting turned down?
first of all, a term loan only works if you STOP using credit cards - otherwise your just screwing yourself. an unsecured term loan is going to give you an outrageous rate (worse than a card), so your better off figuring out how much you would need to pay your towards your credit cards each month to pay that off in X number of years (bankrates calculators are helpful). $10,000 isn't that bad - think of it as a small auto loan. you could have it paid in 2-3 years. if you need a term loan and your auto is free and clear, secure it with that (given it is worth more than $10k) but again, term loan rates aren't as good. if you have a bank you work with a lot, go in and talk to a personal banker about your options.
