Lifequestions asked:
I am 24 years old, i gross about 70K per year, I will be getting married this summer. I am looking to get a personal loan through my employers credit union. I am not yet a member, i just checked my credit report today for the first time really. I have very little debt, about 375 dollars total. I have a currently open auto loan (5500 loan, co-signed by father) that has a balance of 1500 left and the loan term will be ending in 6 months, so i will have that paid off. However in the beginning of the loan i was late often by up to 30 days or more, i have not been late on my payments in the last 6 months. I have 3 negative reports on my credit and only one positive, one of the negatives has been there for 2 years and the other two have been there for 5 years. I will be paying off the 3 negative reports very soon. I am looking to get a $8000-10000 loan though the CU which i verified does provide personal loans at 15 % APR. sorry but i had to provide all the background, but my question is do you think i should settle the negative credit reports before i even become a member of the CU. ( will it make a difference?) Is it likely they will require another Co-signer? or will i likely be turned down? what can i do to help my chances of being able to get this loan by myself? any help is appreciated, i know i am paying for my mistakes when i was younger and more careless with my credit. I appreciate any constructive responses. thank you for your help!
i also forgot to mention I do have a son, my life expenses; Rent, Bills, expenses etc. take up most of the money I earn, but I would be able to afford the monthly payment for the loan. However if i could save the money (8K) in the time i need it i would but I calculated it and its really not possible.
Lydia
I am 24 years old, i gross about 70K per year, I will be getting married this summer. I am looking to get a personal loan through my employers credit union. I am not yet a member, i just checked my credit report today for the first time really. I have very little debt, about 375 dollars total. I have a currently open auto loan (5500 loan, co-signed by father) that has a balance of 1500 left and the loan term will be ending in 6 months, so i will have that paid off. However in the beginning of the loan i was late often by up to 30 days or more, i have not been late on my payments in the last 6 months. I have 3 negative reports on my credit and only one positive, one of the negatives has been there for 2 years and the other two have been there for 5 years. I will be paying off the 3 negative reports very soon. I am looking to get a $8000-10000 loan though the CU which i verified does provide personal loans at 15 % APR. sorry but i had to provide all the background, but my question is do you think i should settle the negative credit reports before i even become a member of the CU. ( will it make a difference?) Is it likely they will require another Co-signer? or will i likely be turned down? what can i do to help my chances of being able to get this loan by myself? any help is appreciated, i know i am paying for my mistakes when i was younger and more careless with my credit. I appreciate any constructive responses. thank you for your help!
i also forgot to mention I do have a son, my life expenses; Rent, Bills, expenses etc. take up most of the money I earn, but I would be able to afford the monthly payment for the loan. However if i could save the money (8K) in the time i need it i would but I calculated it and its really not possible.
Lydia
#1 by knowitall on March 12, 2011 - 8:52 pm
Connie
The negative reports will be there for 7 years from the date of the last payment. Your score will remain low for that period. 15% is outrageous. At $70,000 a year you are doing something wrong to need to borrow $8,000 – $10,000.
#2 by bdancer222 on March 13, 2011 - 2:26 pm
Benjamin
Paying off the derogatory items will not improve your credit. The damage is done and will remain for the balance of the 7 year reporting period. However, creditors look at your whole credit report, not just the score. Paid old debt looks better than unpaid.
Frankly, you credit history looks really bad. Those late payments on the existing car loan plus 3 additional negatives makes you a very high risk. I think you will have a hard time getting an unsecured personal loan for $8K, even at a credit union. You really need at least 24 months of consistent, on time payment history to improve you score.
Go ahead and join the credit union. Set up an automatic savings. Credit unions typically offer better interest rates and are more willing to work with you. You might be able to get a smaller personal loan if the payments are set up to auto deduct from your pay.
#3 by My Take on It on March 16, 2011 - 9:06 pm
Joseph
If you make 70k a year, you should be able to have on hand 8 to 10k in the bank.
No, I don’t think you will get this loan, unless you have a cosigner again.
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