So yesterday I was exploring my credit union’s loan application process, and I ended up applying for real! It didn’t give you a any type of final submission warning; I’m glad I put in legit information and not my usual blah bah when I’m just checking something out. The site said a representative would call me with a decision by today, but just kind of weird, because I hadn’t fully decided I wanted to go to the personal loan route. It sounds odd but there’s a little voice inside of me that says, “You made this mess, clean it up yourself, the hard way.” Obviously, that doesn’t make as much sense fiscally, but it’s almost like I want to punish myself just a bit.
In any case, I’m happy with either outcome I think. If they do approve me for the loan, I save on interest and the hassle of managing multiple cards. If they don’t approve me, I just have to suck it up.
Either way, I’m going hard.
3 Comments
September 19, 2007 at 2:40 pm
Do some research. And when the rep calls you, grill them for as much info as you can. Repayment penalty? Interest rate? Monthly payment? Making additional payments? Etc.
Then take some time to evaluate taking out the loan vs not taking out the loan. Call your credit card folks and attempt to get your rates lowered. If you can get the rates to be lower than that of the loan then stick with your cards.
Analyze and make a sound decision after your analysis. And if you do decide to go with the loan then pay off your credit cards and close them as soon as you do (maybe wait a month). That way you won’t be able to charge back up more debt.
Let me know how it goes.
September 20, 2007 at 4:26 pm
Careful about closing out the cards. As your credit lines age, the history on your report ages, which helps your credit score. If you can’t resist using the cards, then close them, but otherwise, the silly “freeze the cards in ice” or lock them in a box approach may be wiser. Two or three years from now, with your debt-free life and a nice emergency fund, those extra 10-50 points on your credit score (the difference between a 10 year history and 3 year history) might save you .25% or .5% on your mortgage.
September 27, 2007 at 12:57 am
[...] offer for a $5,000 personal loan. This one actually gave me pause, seeing as how I still haven’t heard back from my old Credit Union at home. The CitiFinancial offer claims I’m all set up to “Come and get my check [...]