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.
Here I come First off your
DAY PASS HAS EXPIRED
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.
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.