Approved For A Loan I No Longer Need

Submitted by OneEyedFox t3_11dwj8z in personalfinance

So I recently needed $6500 to float cash while a check cleared. I put in for a signature loan with my bank which was immediately approved (720-740 credit score). As luck would have it ,I no longer need the cash. They've already done the hard pull but I haven't accepted the funds yet. Should I:

  1. Just eat the hard pull and decline the loan
  2. Use the money to pay down some revolving debt and then just pay off the loan in full in a few months(with the hope it positively effects my credit score?
  3. Same as 2 but put the money into Wall Street Roulette for a couple of months and see if we can catch a market swing
  4. Reno trip next week; real roulette table,( just kidding)

No major purchases planned for the foreseeable future, last hard pull was for mortgage pre-approval back in October; didn't end up buying.

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Comments

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ues1bredev t1_jab817c wrote

Number #3 speaks wonders of why people are where they are.. So does #4

Imagine taking out a loan (probably at insane interest) to "gamble" and not caring what happens to it.

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SpiritualQuokka t1_jab8tld wrote

3 & 4 are the same thing, so your unwillingness to do 4 rules out 3.

2 only makes sense if you will save interest.

1 is just fine, hard inquiries don't have much effect on your credit and they have no effect after 12 months.

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OneEyedFox OP t1_jabal50 wrote

Very true, the real debate was between 1&2, but then IF 2...Why not 3? Lol

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SpiritualQuokka t1_jabb0ue wrote

I'm not sure why or how equating saving money on interest expense to risking money on short-term investments is funny, but... OK?

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OneEyedFox OP t1_jabb6ze wrote

Sometimes you just have to have a little fun, and that's okay too.

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rshook27 t1_jad3eo1 wrote

Have fun with your own cash, not debt.

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nkyguy1988 t1_jab812q wrote

In 2, are you paying interest on that? How do the rates compare?

Only do 1, or possibly 2 depending on above.

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OneEyedFox OP t1_jabavig wrote

17ish percent, so if I threw it at some 22% cards (rates have been getting wild lately) there could be some savings to offset the interest for a couple months.

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nkyguy1988 t1_jabb9b3 wrote

It would save you some interest. I would still it off early as if it were a credit card though.

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OneEyedFox OP t1_jabbf8c wrote

100% I have the cash to pay them off either way. Check I needed clears tomorrow ($30k)

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nkyguy1988 t1_jabbrpl wrote

If you have the cash just pay them off and forget the loan.

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ahj3939 t1_jabjyr5 wrote

If you have other debts with higher rates it makes sense to refinance and reduce your rate.

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Livnthedream430 t1_jaby5z1 wrote

Why would you take out another loan for $30,000 if you have the cash to pay? That seems nuts to me

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OneEyedFox OP t1_jacmuqd wrote

No loan for $30k, that's pure income. The loan was for $6500 to maintain liquidity so I wouldn't have to pull cash from less liquid sources.

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