That is the question….
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I’ve been getting wonderful info, feedback and ideas from the forum here since I’ve started to rebuild my credit.
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After recently opening a checking and savings account with America First credit union, I spoke with their loan agent about my debt, and options for handling it. I was originally looking at refi-ing my car, but after speaking to her, realized it would be better to keep it as it is. Her idea was to do a debt consolidation loan.
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She’s cleared me for a 12.9% loan for 3 years, which I can pay off early, no penalty for doing so. And yes the interest is MUCH lower than all of my cc’s.
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The amount would be for $3900, with payments around $60-65 per/m. I can pay more than that a month, and would plan to, plus could make a substancial payment with my tax return. My utilization on my cards was at 80%, did get some increases, so I know that the percentage has changed, but the balances have not.
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I am not charging anything on my cards except $40 for gas once per month.
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Do I do it? How will this affect my scores of 605, 617, 637? By adding all my limits and this loan amount, I’d be at 38-40% utilization – knowing the loan is maxed and cards would be paid off.
