Posted on: 28-02-11 14:25:15
Is it possible to get a 30k personal LOC with a credit score of around 620 to pay off outstanding debt of 28k? The debt is high rate and whatever I pay goes to interest payments. I don't know how to get out of that. My income is not bad: 95k, have a house with balance 314k - value around 350k (not much there for refinancing or secured LOC). There is no derogatory item on credit report - only balances are maxed out and a couple have gone over the limit - hence such a low credit score.
Also, my mortgage is high rate (6.75%) and therefore pre-payment penalty is fairly high - I'm guessing around 22k.
Thanks.
Quote:
Originally posted by kanada
Is it possible to get a 30k personal LOC with a credit score of around 620 to pay off outstanding debt of 28k? The debt is high rate and whatever I pay goes to interest payments. I don't know how to get out of that. My income is not bad: 95k, have a house with balance 314k - value around 350k (not much there for refinancing or secured LOC). There is no derogatory item on credit report - only balances are maxed out and a couple have gone over the limit - hence such a low credit score.
Also, my mortgage is high rate (6.75%) and therefore pre-payment penalty is fairly high - I'm guessing around 22k.
Thanks.
Since you can not take equity out of your house, the best alternative is that you should go to your bank and ask them to give you a personal loan for consolidating all these debts in one loan for a low rate. This loan can be amortized over 4-5 years and based on your income you should be able to get it. The bank may not give you Line of Credit so do not ask for it, but the bank may definitely look at your income and give you this debt consolidation loan.
By doing this your credit would also slowly go up as your credit is low because of over utilization of limits for your credit cards etc. which would come in line once you get this consolidation loan.
Good Luck.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Thanks, Pramod. I've taken your advice and have talked to the bank. They are looking into it. Hope it work.
Hi Friends,
I will be moving in May to Calgary. I was concerned about credit cards
Is it necessary to get one? Here in gulf one can get credit cards are for free.
How much I will be paying for credit card as fee?
Regards
