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Posted in Auto Loans
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RegRanch

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My scores 700. Was turned down by bank because my income to debt ratio was 46. I own my home n cars.
Would a personal loan to pay off debt help me out? If not what other options do I have?

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Getting a loan to pay off your current debt will not help your debt ratio.  You are merely moving it to another firm.    When you get that personal loan and pay off and close those other acconts, your score will decline as you no longer have that activate account to manage.   When you get the personal loan, you'll have a hard inquiry, lower age of accounts and a new account where the amount owed is 100% against the loan and thus a lower score.  Going for a personal loan in your case is not a positive move.   Having the same negative effects, you could get a home equity loan on your house if you own it outright, that interest could be deductable on your taxes and you could pay off those other debts.   Your debt ratio would still be 46%.   The only way to improve your debt ratio is by paying down the amounts owed on the current debt. 

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RegRanch

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This is very helpful. Thank you. I have property

with my home so I am thinking of selling a few acres to my neighbors to pay down my debt.

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You need to know how credit works so should take the time to read the articles on this site.  The house and car are assets, not current credit history so atre disregarded in credit applications.  You have to have an active credit history to get credit.  I learned a lot from the articles here and now shave an excellent score.

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RegRanch

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Thank you

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