Can I ask a purely selfish question of our finance experts?

[ProudToBeBlueInRhody]

And hopefully it will help others here.....

I was looking into getting a personal loan from my credit union to consolidate my credit card debt. How will this latest news affect my chances?

[Angry Dragon]

1. Even if the credit union rates go up next week

it still will be cheaper than the rates the credit card companies charge you now

I have a credit card through my credit union

[customerserviceguy]

2. It should have very little effect

Right now, your credit union, just like any other financial institution, needs to lend money to have half a chance of making any money. They won't pay the bills to keep the doors open if they buy Treasury securities, or any other safe investment.

If you're a good risk in their eyes, you should get your loan. But if your credit scores are low, or job outlook is shaky, then I suppose they'd be reluctant to bail out the banks that are currently financing your credit card debt, and substitute themselves in the line of fire.

Give it a shot, try to put together a plan as to how the payments you're making right now would enable you to pay off your debt faster, and they might well consider it.

[ProudToBeBlueInRhody]

3. I'm hopeful

At least two of my scores are above 720 (don't know the third) and I've had the same job for four years and a half years. I also had a car loan with them that I just paid off with no late payments. I don't really make much money, but I've been paying monthly minimums on the damn cards for years so I can certainly pay them hopefully for less a month.

[customerserviceguy]

5. Here's the key

Say you're paying minimums that total (pulling a figure out of thin air) $300 per month. Now, if your interest rates on the cards average about 15-20%, that will take a very long time to pay down. However, if you apply that $300 to a loan at 10-12%, you'll pay the debt down a lot earlier. That's what may sell the CU on making this work for you.

You sound like a pretty good risk, if there's nothing else there to worry about, you should be approved, especially considering that you don't have the burden of a car loan anymore. The nice thing about a credit union consolidation loan is that any extra money you apply, and early on, will reduce interest paid, as well. If you have any overtime, bonuses, gifts, etc., you can apply them to principal and pay it off even sooner.

[ProudToBeBlueInRhody]

9. Trust me, I'm paying way more than 15-20%

Thanks for the advice......you pretty much nailed what I thought I should do going in.

[customerserviceguy]

10. I was hoping to hear that you weren't paying that much

But it makes the deal look even better to the credit union.

[rdking647]

4. it should have no effect

if you can repay the loan a credit union should have no problem giving you a loan provided you have a good credt score

[Ruby the Liberal]

6. The car loan is secured, credit card consolidation isn't

I assume you have the title to your car?

What I would do is take them the last statement for each card so that they can see the interest you are paying, your outstanding debt and monthly minimum obligation.

Catch is going to be that they have no way of controlling what you do with the loan. Once they cut you a check to "pay off credit cards", you could just as easily take it and use it for a new flat screen or a vacation. That isn't personal, nor is it a slam on your integrity, it is just a fact. As there is nothing backing the consolidation loan (like home equity or a car), this makes it riskier for them.

Why I asked about the title to your car. If they turn you down, you can offer to put the title up as collateral so that the loan is secured - which would also ensure a lower rate than unsecured credit.

Good luck.

[ProudToBeBlueInRhody]

8. I do have the title....

...they themselves just sent it to me last month via registered letter, lol.

I was thinking about that, if that would interest them, being that it's a nine year old car they held the title to for four years....

Thanks for your insight.

[cbdo2007]

7. finance experts?!?!? hahaha on DU?!?!?!?!? BWAHAHAHA hahaha

HAHAHAHAHAH HAHAHAHAHAHAHAHAHAAAAAAAAAAAAAAA

*literally dies laughing*