A few months back this member called to request a $10,000.00 personal loan for home improvements. She had recently inherited some property with a mobile home that she wanted to fix up and sell. After starting the application, it was clear she wasn’t going to be approved because she had an extremely high debt ratio so the request was cancelled. She has been a Qualstar member for a very long time and is now a small business owner with lots of credit card debt.
I came across her account again recently and took the time to review the previous application before contacting her to try and find another way to help. I asked if she had considered using the equity in her home to get the funds she needed. She told me she had too much credit card debt and “they” wouldn’t give her a loan the first time she applied. I explained the reason behind her previous loan cancellation and explained there are other options. She has been in her home since 1976 and accrued lots of equity so I suggested she borrow from her home to pay off her credit cards, and get the money she needed for improvements on her rental property. She agreed to start a new application but was still skeptical due to her previous denial.
I could hear her happy tears when she found out her application was approved! We were able to pay off her $50,000+ credit card balances on which she had only been making the minimum payments (still over $1,100.00 a month.) Not to mention, the card limits remained maxed because the payments were almost all going to interest charges and fees. A new fixed rate Advantage Equity loan also gave her the opportunity to pay off her auto loan, eliminating another monthly expense. Her new minimum monthly payment is now $594.00, saving her over $800.00 a month – that’s what we’re here for!