I am 27, newly married, with a 3 month old baby girl. Long story short, I am having a hard time finding approval from banks for a $ 3,500 loan to payoff some credit cards.
Now the long story:
Credit Score: 659
Debt/Income Ratio: 39%
Spouse: Horrible credit and stays home with the baby
GOAL: Remove credit card debt to build/improve credit score
My monthly payments for all credit cards is roughly $ 3500. I pay $ 250 a month in payments (some minimum payments others are larger than minimum). I have 2 cards that are true credit cards that consist of 50% of my CC debt. The others are department stores (sears, lowes, bergners, etc.) ** I am being told that department store cards kill credit scores because they are looked upon as impulse buys and result in buyer’s remorse.
Anyways, I am needing this loan to knock down my monthly payments from 250 a month to 70(ish) a month (3500 @ 8% for 5years).
I have been declined due to bad credit history (charge off in 2007), multiple late payments (from the chargeoff iin 2007).
Today I own my home, a car, and have not been delinquent on any bill, including Credit Cards, Never been late on my car note. Never been late on my mortgage. Never been late on any utility, cell phone, or the like.
Any suggestions, opinions, or “gtfo” you broke @ss full would be greatful. At this time any extra $ $ we can save would be great!!