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Posted in Auto Loans
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Question By
Bishop225

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Auto Title loan bad idea? CK calc says it'll boost my score ~100 points
I have a 630 Credit Score and about 15k CC debt.

My car is paid off and has a 31k retail value and 25k avg trade in value.

Im thinking about getting an Auto loan to pay down CCs. Credit Karma calculator says that a 10k payment on CC and 10k auto loan would boost my score ~100 points.

Seems like a good idea? Thoughts?

Where can I find a low apr title loan? Seems like most title loan are borderline predatory.

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Sell the auto for the 25K or 30K,   pay 15K of the CC debt and buy a nice used auto for 10K =   no debt.   Now Start Saving, 

Just don't put yourself back into the same boat.

Reply by
Bishop225

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While that seems like the logical answer (trust me i thought about it), the car was a gift which complicates things. 

The debt I encured was while I was in graduate school. To sell the car would really put me in a bad place with the person who gave it to me. I rather encumber it to get out of the 18%-23% interest rate i'm paying on the CC debt as long as I can get into a lo 4%-8% interest rate. 

Reply by
Bishop225

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I have 12k total with 18.5k limit. A 10k paydown would get me down to about 10% credit utilization a month. 

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