About Joe Montgomery Expertise I can answer most any question in this area, unless they are seeking legal advice.
Experience I have worked in the lending industry for over 15 years, and worked in consumer lending, (Personal loans, and small collateral loans) as well as mortgage lending during the first 6 years of my career
Publications Currently an all experts expert for mortgage loans.
I'm 20 years old, and I'm and a full time Community College Student with a part time job. My credit score is 670 and I live with my parents. I'd like to apply for a personal loan to pay of this semester's tuition cost - 1500 dollars- and my 6 credit cards - ~1300 dollars- and I've never asked for a loan before. Is there anything special that I have to prepare, or can I just walk into a bank in a suit or shirt and tie and say "I'd like to apply for a personal loan?" ......Also, I'd like to keep the credit card accounts open after they are paid off, but I want to shred the physical cards, and just pay whatever annual fees there may be. Is this a good idea?
Answer You can ask for a loan in jeans and a t-shirt if you want, and be taken just as seriously, but I do admire your level of self respect and tact, as I operate the same way.
Yes, you can go in with little to no information and ask for the loan, but the loan officer you talk to should have a list of questions to ask, or they may ask you to fill out an application. Some banks have loan applications available online for you to print out and bring in, or submit online. Based on your question, again, like me, I recommend a face to face meeting.
You will need to have the following information available;
Your monthly income, approximately,
Your credit card accounts, numbers, balances, and payments,
Rent/living expenses
How much of a loan you need, and approximately what you are looking to pay each month.
As for your request about the cards, I would recommend that you close all but 2 of the cards, and make sure that you do not have a large amount of credit available, on them. The reasons for this are that your credit score is based, in part, on how many open credit card accounts you have, and how much is available. If you have several cards, that will lower your score; if you have more than 75% of a large balance available, that can also lower your score, just as having more than 75% of the balance used will lower your score. Two cards with no more than $500-$1,000 each would be a good idea.
Good luck, and congratulations on working to keep your credit in shape.
