Tracy S asked:
I have a low credit score. Most my bad credit is old credit. I have a bunch of little loans from finance companies, but they charge really high interest rates. I would like to get a loan for about $5000 to $6000 to pay these off and have one payment that would be lower.
Credit Mechanics
I have a low credit score. Most my bad credit is old credit. I have a bunch of little loans from finance companies, but they charge really high interest rates. I would like to get a loan for about $5000 to $6000 to pay these off and have one payment that would be lower.
Credit Mechanics
April 2nd, 2009 at 10:28 pm
CreditMechanics.com
Well, you have a poor history, so you are a greater risk. If your credit score is low anyway, consider negotiating to get the loans paid off at a lower rate. One way to do this is to stop paying the loans, but save as much money as you can. Then, have cash ready to negotiate a deal, say for 60% of what you owe, with the most aggressive creditor. There are companies that will do this for you, but they charge large fees.
Another thing I’d suggest is take a look at this non-profit site:
Although they are an approved bankruptcy education organization, you do not have to be bankrupt to use their FREE services. Start by using their first survey, with an anonymous name. Then, a report will give you ALL of your alternatives, with the pros and cons of each alternative.
Borrowing money to pay off these loans will only prolong the problem. I would think it would be better to solve the problem now. You can get a forced consolidation loan from consumer credit counseling service, but the creditors will not waive interest and this non-profit organization is sponsered BY credit card companies and credit reporting agencies.
April 4th, 2009 at 9:45 pm
Credit Mechanics
Perhaps you can get one of those credit cards that charge no interest for the first 12 months?