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Lending Club or just pay remainder CC

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Regular Contributor

Lending Club or just pay remainder CC

Well I figured as long I was on day pass from the garden, I thought I would see what LC had to offer to pay the remainder of the CCs off. I was happy to see I am approved, but not really happy to see it at 22 percent for 36 months.

 

Con: much higher rate than what I am paying. My three remaining cards are 10, 12 and 13 percent respectively.


Pro: no more CC debt; money goes to LC loan.


So what would MyFico gurus choose...plug away at CCs or take higher rate? Makes more fiscal sense to plug away, but it would be nice to have the CCs freed up.

Starting FICO, June 2010: EX-581, EQ-581, TU-581
Now: EX-742 EQ-710 TU-709

Currently: NFCU Platinum Visa 18K, BECU Visa 15K, Navchek 15K, Vystar+ CU Platinum Visa 10000, AMEX Delta SkyMiles 9K, Military Star 8200, Nordstrom VS 7800, Macys 7600, Lowes 6K, Pier 1 6K, Mohawk Floor 4500, TJX Mastercard 4K, Pottery Barn 4K, Amazon 3600, Talbots 3000, Barclaycard 2400, Ann Taylor 2280, Ballard Design, 1500, Victorias Secret 750, NY&CO 500, J.Crew 300



Message 1 of 22
21 REPLIES
Senior Contributor

Re: Lending Club or just pay remainder CC

Depends what your goals are, if its a high score than lending club if its paying less money keep it the way it is

Message 2 of 22
Epic Contributor

Re: Lending Club or just pay remainder CC

How much debt?

What cards is it currently on?

how long have you had the navy card?

Message 3 of 22
Super Contributor

Re: Lending Club or just pay remainder CC

Here I come First off your

DAY PASS HAS EXPIRED

Smiley Tongue

 

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 4 of 22
Valued Contributor

Re: Lending Club or just pay remainder CC

I'm failing to see how there could be any reason for voluntarily taking an almost double the increase on your debt. At the end of the day, debt is debt and I understand that you'd find it "nice" to have your CC freed up, but for what purpose? Have you tried getting a cli from your cards instead? That would be better for util improvements if that's what you're going for. But voluntarily agreeing to a higher interest rate to have CCs "freed up" makes no sense.

Gardening since 7/16/14
Current: EQ 711 7/13/14; EX 724 TU 721 6/19/14
Goal: 760+
Message 5 of 22
Senior Contributor

Re: Lending Club or just pay remainder CC

I am confused is it actually that much more money as double? if so I would say no too

Message 6 of 22
Regular Contributor

Re: Lending Club or just pay remainder CC

@john, as far as interest, yes.
Message 7 of 22
Regular Contributor

Re: Lending Club or just pay remainder CC

CLIs were a no-go. Denied one, 3-5 day message on one (which will be a denial since both use EQ and it has issues that legal intervention will be needed to fix.) The third pulled TU many moons ago when I applied for an auto loan. TU is a decent score, but not holding my breath.

 

I won't be apping for anything any time soon; I refi'ed the one car payment a while back and the mortgage is a very low rate. I am just tired of having a crap score and looking to free up the lines a bit. I could snowball them, I suppose...throw huge chunks at one while MPing the others.

 

ETA...the TU one was a bust. Denied in record time for two, prob denial by NFCU. Look forward to my free scores and free credit reports...grr.

Starting FICO, June 2010: EX-581, EQ-581, TU-581
Now: EX-742 EQ-710 TU-709

Currently: NFCU Platinum Visa 18K, BECU Visa 15K, Navchek 15K, Vystar+ CU Platinum Visa 10000, AMEX Delta SkyMiles 9K, Military Star 8200, Nordstrom VS 7800, Macys 7600, Lowes 6K, Pier 1 6K, Mohawk Floor 4500, TJX Mastercard 4K, Pottery Barn 4K, Amazon 3600, Talbots 3000, Barclaycard 2400, Ann Taylor 2280, Ballard Design, 1500, Victorias Secret 750, NY&CO 500, J.Crew 300



Message 8 of 22
Regular Contributor

Re: Lending Club or just pay remainder CC

I did take out a Lending Club loan a few months ago, but honestly I didn't need to.   The interest rate was pretty much the same as my card with the high balance.  Not really understanding that scores are a snapshot, I mistakenly thought not showing balances on credit cards for the year prior to my intended mortgage app would help my score.    As I've come to learn it would have made no difference to my score in 9/2014 if I had just paid off the month prior.  

It does "feel good" to see my unitlization down from 50% to 5% and I'm sure it helped with my most recent card acquisitions, though.   They are also great about taking additional payments and I found the whole process ot be very user friendly.    I'm on pace to pay the loan off in under a year so the marginal interest rate increase was worth it to me for those "feel good" benefits.    If they had offered me any higher rate than they did, it would not have been.

 

E: Based on what you described, I would pay the cards off and pass on the loan.



Starting Score: 676 CK 5/13. Current: 717 EX 6/15 -- Last App: 6/2014
Message 9 of 22
Moderator Emerita

Re: Lending Club or just pay remainder CC

I will repeat what I said in the GC. Paying off cc's with a higher APR loan boggles the mind. ESP a loan that is almost double your int rate. Make a budget, stick to it and pay off one card, then another, then another. Do not add anymore CL's while you are paying off your cc's.
Message 10 of 22