Okay, I appears that they are giving you a debt consolidation loan w/fixed pymts(unlike a line of credit that you can borrow available amounts whenever you please by writing your own check). I really don't see why they cannot convert it to a line of credit,because they virtually are they same thing liability wise(did they explain why you can not have this type of account & the reason?). Peace, Sister Girl
When I called the loan center, the nice rep told me that they were essentially the same, it was just a matter of how it was coded. When I got there and I told the mgr that I wanted it a line of credit, he called the loan officer and the loan officer was like, "No...it has to be closed" and then the mgr told me that it was because they wanted to control who was being paid. At first I was upset by this, but then I was like, whatever....it didn't really matter too much since I was going to use it for debt consolidation anyhow. I just wanted to be the one in control of when I used it and how I mailed the payments. I looked over my papework and I didn't see anything that said I would have to close my accounts but I'm still going to call. I can't get another Plat card with teaser rates because I've had too many inquiries in the last 6 months. They'd deny me for that alone. Plus, it seems everyone wants to use TransUnion or Experian...both of which are not my best reports...still a work in progress.
I think that is real STUPID of the credit union;besides you always have the option to "change your mind" about closing an account & that can be handled by a simple phone call(each vendor will have varied criteria....to pull recent inquiry or not...they can tell you if you call then beforehand & ask). Oh well,there has to be a blessing in disguise somewhere. Just wait....when you take this loan & pay it back,they will kiss you wherever to get you to take on another loan. Then demand.....LINE OF CREDIT !!!!!!! Peace, Sister Girl P.S.---Good luck with your dispute w/the CRA.
Thanks Sistergirl for the support. TU and Experian are being bulls about this stuff but hey....we'll keep chipping away.
Sistergirl- I had a similar experience with First Chicago (now BankOne). VERY willing to work with me - it was after a BK (medical stuff, all my consumer debt was kept out of it). As a matter of fact- I only applied for an overdraft line of credit- it was their idea to do a line of credit on top of that for $7500 (later upped to 10k) at prime +2%. I was thrilled. Of course First Card (now FirstUSA) wouldn't even consider a $500 credit line for a Visa (go figure)... but I still keep my accounts at BankOne open even after I moved out of their service area. ------- Shantel- my "moving too fast" line was regarding the number of accounts you've opened. It sounds like you have a lot of intro rates that will expire close to each other - and you opened this new loan "too quickly". I've done that too- Discover Plat., Amex Blue, and Chase Plat. all within a month or so of each other --dumb me, I should have spaced them a little better so I could have a non-stop intro rate. I had a serious case of "better get it while I can" syndrome. I think just about all of us who went through some kind of credit "famine" may do that to some degree : ) Good luck to 'ya - and look at the bright side, now you have an installment loan to help your FICO score! best- mj
MJ.... They must have me on hold when they are talking to you because we mirror our experiences exactly !!!! I started my line of credit(after they suggested I apply)& was approved in 3/95 for $2,500;then 2 yrs later I called & asked "how will I know if I'm eligible for line increases". They said that I would have to re-certify/re-apply for line increase....which went immedicately to $5,001. A year later was going to do some work in my house & needed about $750.00 for a minute;called to see if eligible for add'l amount....was approved to increase from $5,001 to $10,000 !!!!! I almost FAINTED because I was so overjoyed !!!! I have never had any creditor to be so kind to me as Bank One;First USA Visa(which I have had since 8/93 is a JOKE since they were acquired by Bank One & they were much easier to deal w/before them). I understand that they are functioned under to different operations,but it is UNBELIEVABLY different when dealing w/them individually). They woud not increase my Visa line just prior to my $5,000 unsecured line of credit increase(smile). Bank One Line of Credit.....BRAVO !!!! Sister Girl
Shantel, Hang in there sister... you will acheive what you need;just go ahead & play the game w/the credit union for now(something better WILL come along because it will make you credit report look better & better). Peace, Sister Girl
Actually MJ....the only card I got recently with a teaser rate IS Discover Plat. I was applying for the loan from the CU so when my teaser goes away, I could transfer that to the new loan. I wasn't anticipating that they would make it closed end. If it were a line of credit, I could use it at will, as credit cards came in. And I understand what you're saying, but again, I don't know if they would have given me the loan (the CU) if they saw that new Discover up to the limit on my CRA. So while it's not showing, I have a better chance at getting it. And I wanna thank you MJ for the help...really. It helps just "talking" it through sometimes.
I finally called the CU and asked if I would be required to close any accounts that I transfer to their debt consolidation loan and I was told no. I inquired harder because this is the same chick that told me that it wouldn't be a problem having a line-of-credit vs. a closed-end loan. So she put me on hold and went to ask. She came back and said, "No". I still don't believe her, so when I go to close on the loan, I'll ask again and if I have to close the account, I'll only transfer my already-closed account and walk away from the rest of the money. I don't want to close my Sears account....closing Sears would be STUPID. The other accounts that I would transfer are more than a year old and that would make me look like I have a lot of new credit versus having older accounts. So....looks like August is my date with destiny. Wish me luck. I have it all planned (if nothing else goes awry).
