Citerra Financing- whoa!

[shizwiz 197]

I am set up for surgery in Jan 2015 and have been approved for financing with Citerra. My credit score isn't great, but its not bad either. I make decent money and was approved within 2 hours.

This morning, I got the paperwork today to sign and am SUPER bummed because the financed amount has basically doubled!

My procedure is going to cost $4600...but after the $800 fee from Citerra (to use them I guess) and another $2000 fee for 'Provider Adjustment Amount'- I am now looking at a $7300 loan!!! Yikes.

I just called a local credit union and applied for a personal loan through them and should hear back today. However, I am super nervous. I hate applying for credit because it lowers your score (and mine is so fragile!).

If I don't get the loan from the credit union, I am still going to go forward with Citerra, though. Am I stupid? I hope not.

Anyhow, I figure this post may help someone who is considering applying with them. Its always nice to know things upfront!

[Chrystee 838]

What is your interest rate? What's the extra 2k for??

[shizwiz 197]

The APR is 21% (YOWZA!). I just got off the phone with them and the extra $2000 is because of my 'risk factor' to the bank. Apparently they take your credit score and do some calculation. I had a 23% chance I would not repay the loan and the extra $2000 is for the bank to be nice enough to give me the loan?

I really hope the credit union calls with good news.

Edited November 4, 2014 by shizwiz

[SherB 220]

That does not sound right. I would look elsewhere.

[Recycled 2,182]

Can you say the words "Loan Shark".... I think the Mob would give you a better deal......

Edited November 4, 2014 by Recycled

[Inner Surfer Girl 12,015]

You could figure out what the payment on that loan would be and put that amount in savings every month for surgery. I bet you could save enough over a shorter amount of time and still get your surgery in a reasonable amount of time.

[shizwiz 197]

Yikes! Thanks for all of the input! I am really going to have to weigh this one out.

[shizwiz 197]

Well, I got a rejection from the credit union. I was kind of surprised because I have worked pretty hard to get my credit on track over the last few years. However, I took my credit for a ride when I was 18 (10 years ago) and just recently paid off all debts. That was the reason for the loan denial.

I am currently working with Gen from Citerra to see if I can negotiate the terms of my loan. She is going to check with me to see if I can (a) put down some cash and get a lower APR or 'Provider Processing Fee' or ( select a shorter loan term and get some of the fees cut down.

Cross your fingers for me, eh? Thank you ALL for the support. It is nice to have people to talk with who are not judge-y. Seriously.

[woo woo 872]

You would be better off with using a credit card. If your limits are not high enough you could call and ask them to raise it up. Just a thought. Good luck

[shizwiz 197]

Yeah, my credit limits are about $1000 for each of my credit cards. I requested higher limits and got shot down (very nicely, which was sweet). I know it is my fault, I had debt that was paid off in the last 1.5 years, so even though my score and income has greatly gone up- I still look like a huge risk.

Beware, young people! Do not misuse your Nordstrom credit card when you are 18!!!!

[adcole01 1]

Try lendingclub.com. It's a private group and when most places won't loan they will and there's minimal cost if your credit is ok. Credit doesn't have to be excellent.

[shizwiz 197]

Thank you both!!!!

[shizwiz 197]

So awesome! Do you think there will be an issue with this being the third time I request credit this month? I have Citerra, credit union today and then if I do LC....yikes. what do you think?

[shizwiz 197]

You and your husband are awesome, THANK YOU!!

[Kindle 8,667]

I agree with Inner Surfer Girl. Buying something you can't afford is never a good idea. I understand wanting to get this surgery ASAP, but it's no different than buying a car you can't afford, or clothes or a big screen TV or taking an extravagant vacation.

Seriously, to pay 21% interest and a $2000 loan fee is insane. And what's your financial plan if you have complications? You could end up in a hole you'll never get out of. If you really want to try and improve your credit score, I suggest you not "impulse buy" this surgery until you can afford it.

I've got an excellent credit score with credit card limits far exceeding what my surgery cost. But I didn't get here without working at it. Since this wasn't an emergency surgery or crucial necessity, I chose to wait until I could save enough to pay cash. I had already saved a bunch over the last 2 years with the intention of buying a new truck. I postponed surgery an extra 6 months until I had enough to cover it. I put my plane ticket on a cc, but I paid it off within 3 months when I got my income tax return....and I was only paying 6.9% interest. Oh yeah, and I'm still driving that 15 year old truck, but have started saving again.

Don't mean to be mean or preachy, but the loan terms you are being offered are outrageous and you may be setting yourself up for even more problems.

Edited November 5, 2014 by Kindle