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RickyDojo

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Help! Need a Personal Loan for Credit Card Debt/Used Car
I'm trying to shop around and find a personal loan. My goals are to pay off/bring down my credit card balances, and with the remaining amount find a decent used car. Currently I have approx 4400 in CC debt, and would want to get a car for about 3000. My credit score is shown as 640, and have sent out to applications to two banks, have been turned down by both. Does anyone have recommendations or good experiences with high debt/fair credit score?

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If you have been turned down twice.

I suggest that you need to find another route to pay for these things.  Because you were turned down twice in less than a year, your chances are slim that any major bank would give you a loan. And those that would will probably charge you an arm and a leg in interest. Maybe even more that the credit card co. that you are trying to pay off. 

I would suggest that you cut out any frivolus spending, pay as much as you can each month toward the credit card.  Then start putting aside every cent you can to buy the car.  Borrowing money isn't always the best idea. 

Good luck 

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There are alternatives

You can apply for loans through LendingClub.com and Prosper.com (I suggest one at a time).  These are Peer 2 Peer lending services that allow individuals to invest in a loan for you.  The approval rates are much higher than banks and the loan rates are commonly better than credit card rates.  It's free to apply and both services only do soft pulls on your credit initially, so if it's a no-go or you don't like the rate, there's no hit on your credit score.  If you do proceed with the loan, there will be a hard pull that counts on your score like any bank application.

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Give P2P Lending a try

You may have luck with P2P lending with sites like LendingClub.com and Prosper.com.  These sites provide loans by allowing individuals to invest in your loan.  What happens is 100s of people (sometimes 1000s) will invest in your loan at $25 or $50 or $100 each.  This provides returns on their investment over a lot of loans to defray the risk that an individual will default.

 No personally identifiable information is shared with the investors, just the amount and other pertinent credit info (score, debt-to-income, inquiries, income, length of credit history, delinquencies, etc).  The application is pretty simple and the rates are based on your credit, but the approval rates are liberal.

One key difference is that during the application process, they only do a soft pull on your credit to make an offer of a rate.  If you proceed with the loan, the will ultimately do a hard pull, but if you don’t like the terms or rate, there is no hit to your credit report.

Top Contributor
82 Contributions
338 People Helped

Give P2P Lending a try

You may have luck with P2P lending with sites like LendingClub and Prosper.  These sites provide loans by allowing individuals to invest in your loan.  What happens is 100s of people (sometimes 1000s) will invest in your loan at $25 or $50 or $100 each.  This provides returns on their investment over a lot of loans to defray the risk that an individual will default.

 No personally identifiable information is shared with the investors, just the amount and other pertinent credit info (score, debt-to-income, inquiries, income, length of credit history, delinquencies, etc).  The application is pretty simple and the rates are based on your credit, but the approval rates are liberal.

One key difference is that during the application process, they only do a soft pull on your credit to make an offer of a rate.  If you proceed with the loan, the will ultimately do a hard pull, but if you don’t like the terms or rate, there is no hit to your credit report.

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