Personal loan

[princee18]

hello, i want to know about the chances of traditional bank financing on real estate without a personal guarantee? Can you tell me what are the things that i should do to get financed?

[delci06]

Hello,

I need a personal loan to pay off some payday loans. My credit score has gone down a lot. It is now in the mid 550's. I have 3 things in colletions and everything else I pay on time(car, credit cards etc). My step mother has offered to co sign on a loan for me, her score is a 780. I have called my credit union and several other banks and they said that I would more than likely be turned down b/c of my credit report(collections & low score). Is this true for all banks? I really need to pay off these payday loans(1200 a month for interest only) and I am getting married in 4 weeks and need to finish paying off my dress, shoes etc.

Thanks

[hjm331]

If your step mother's score is 780, I would advise you to allow her apply for a loan in her name and give you the money to pay off your loans. Even if you co-sign with her or she co-signs with you, you are going to get approved for a really high interest rate which is going to make your payments higher than what they could be if your step mother applied for the loan by herself. Make sure that you have the funds to pay her the payments monthly or else she will have to make up for the payments in order to not mess up her credit.

[jeepy1983]

Go check out a finance company. Yes your rate will be higher but it will help you re-establish credit w/ your step-mom co-signing with you. I am a branch manager at a finance company and we get this all the time. You could have a 450 score, but as long as you have someone with good credit backing you, I would put both customers on the loan.

[hjm331]

Jeepy, would Delci06 have to put a down payment on the loan?

[ColoNative]

Okay, not to sound dumb, but what is a finance company? I mean compared to a bank?

I remember The Associates was a finance company but Citi bought them out years ago.

If it were me, I would go to my credit union and apply for a signature loan (personal loan).

[cireone]

Nowadays all I see is secured personal loans for people with poor credit. Credit Unions provide personal loans, but the CUs have criteria for getting the loans and if your scores are below 600 and you have derogs on your report then your more than likely to get denied. There are few finance companies left out there. I only know of two major banks that have financial co brnaches, CitiFinancial and Wells Fargo Financial, and ye they too have very stringent criteria to even get one.

[jeepy1983]

A finance company usually deals with customer with not so hot credit (anywhere from 500 score and up), and borrow their money from a bank. Which is why the interest rates are around 25 or 26%. An example of a finance company would be (depending on your area) a citifinancial (they get their money from citi bank), and American General. A finance company also does not deal with any sort of banking. Just the lending portion Also, most finance companies do their own collections in the same office.

hjm331 no money down would be required. Depending on the amount of the loan they may require some sort of security (car title, motorcycle, dirtbike, atv, etc....) usually any amount under 5k, and depending on your credit, you can do unsecured with just a personal property listing.

[Meya]

I wish you luck with your personal loan where ever you apply to. I know that banks are pretty cautious with offering loans to those with poor credit. I went to my bank (US Bank) last year, to apply for a refi (using my car as collateral) after reviewing my cr, the branch manager told me to wait until my baddies fall off, and try to lower my util before applying again. I was actually denied, he is a very cool guy, so I took his advice. By the way, my scores were in the low 600's and I had a few baddies (Co's) myself so we are basically in the same boat.

As of last week, I stopped by and told him that I was almost ready for the loan and he told me just make sure that what he said above was corrected and we can go for it. But, he also mentioned that their criteria (terms and conditions) has changed due to the economic crisis. It's OK though, I can still wait, especially since Chase put my private student loan on my credit report as an "unsecured personal loan."

You got some good advice above, and more will come. I agree with everyone so far, your best bet is to let your family do it for you, or use collateral. What ever you do, don't fall for the Payday advances or short term loans from the online rip-offs.

[ColoNative]

A finance company usually deals with customer with not so hot credit (anywhere from 500 score and up), and borrow their money from a bank. Which is why the interest rates are around 25 or 26%. An example of a finance company would be (depending on your area) a citifinancial (they get their money from citi bank), and American General. A finance company also does not deal with any sort of banking. Just the lending portion Also, most finance companies do their own collections in the same office.

hjm331 no money down would be required. Depending on the amount of the loan they may require some sort of security (car title, motorcycle, dirtbike, atv, etc....) usually any amount under 5k, and depending on your credit, you can do unsecured with just a personal property listing.

Got it. Kind of like Beneficial. Sounds to me that this person should just have her stepmonster open a new credit card with a choice rate and request balance transfer checks to pay off the payday loans.

[Meya]

Sounds like a winner to me!

[delci06]

Thanks to all of ya'll for the advice

[branpayne]

Are there any good personal loans out there..? Looking to get a few grand if possible to pay off debt..anybody have any feedback as far as unsecured loans? Thanks, Brandon

[Meya]

Hi branpayne, welcome to the Network! I have just one quick question, could you please provide us with a little more about your credit background? Personal loans are not that easy to get around this time, and members would be able to help out more if they know where your credit direction is headed. Thanks!

[branpayne]

Thanks Meya! Well let's see my Credit History goes back to about 3 years and I have around 6 credit cards and 3 store cards my scores are Equifax-605 Transunion-659 and Experian-629 and i pull in around 18000 a year. My utilization is around 60-70% i would say and I'm roughly 3,000 in debt