I got offered a personal loan from a bank of up to $25,000 at %7.99. That rate beats all of my current loans, credit cards and car loan included. I got shafted on my car loan because of a first time buyer. I was naive. Is I could consolidate my debt I could cut around $200 out of my monthly budget. Any idea what income I would have to shoe to be approved for $20,000?

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Posted by 40 Rouge

Red Stick

Member since Feb 2009

2696 posts

Posted on 2/4/13 at 11:15 pm to Sanchito

It depends on the institution's debt-to-income level that they approve up to, assuming your credit worthiness is good. If you're talking about an unsecured personal loan, you usually have to have low DTI to qualify, but since you're talking about a full consolidation your DTI would essentially drop by doing the loan.

The last time i looked into it, the DTI for unsecured debts at the institution I dealt with was 30% max. To get a 20k loan, you'd need to gross 67k annually.

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Posted by MikeBRLA

Baton Rouge

Member since Jun 2005

16446 posts

Posted on 2/5/13 at 6:29 am to 40 Rouge

quote:
The last time i looked into it, the DTI for unsecured debts at the institution I dealt with was 30% max. To get a 20k loan, you'd need to gross 67k annually.

Unless i misunderstood you, DTI isn't calculated like that. It's the ratio of the minimum payment of the loan vs your income, not the original loan amount vs your income.

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Posted by TheTigerZone

Moss Bluff ,La

Member since Dec 2009

2343 posts

Posted on 2/5/13 at 7:58 am to MikeBRLA

quote:
Unless i misunderstood you, DTI isn't calculated like that. It's the ratio of the minimum payment of the loan vs your income, not the original loan amount vs your income.

This sounds right.

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