Expert: Joe Montgomery - 6/2/2007

Question
I am wondering if you think I would get approved for a 15,000 personal loan.  I am getting married in a few months and with all the costs we need to consolidate our debts and we need some extra money for the wedding.  We have a car loan for $8,400 and another open line of credit with a tool company for about$2,000 we want to pay those two off with the loan.  Together those payments we would be taking away add up to $500 a month.  We make good money monthly and could definitely make the payments, we also both have great employment history.  The only bad thing is neither of us have good credit, I have a pretty bad credit rating at 580 and my fiance does not have a better score.  Do you think it is possible for us to get approved for this type of loan?

Answer
The straight answer is most likely no.  With scores below 600, I have never known any lender to make any type of personal loan.  There are a lot of shady companies that may offer to lend you a few thousand at slightly higher rates, but when all is said and done the fees and interest are 3 to 4 times higher than what you borrowed.
You may want to try and use a cosigner at a local bank, if that's an option, and see if that helps- but the amount you are talking about is still probably out of the range you can qualify for until your credit scores come back up a bit.

The one positive I can give you is that marriages are a big adjustment, and having a large debt to deal with just adds a little more stress--- use what you have and try to make the best of it!!!   Good luck and congratulations.