Avant Credit Approved for 9.1K

[matolen]

High interest rate though.   But up to 60mths to pay back.

Of course there is no way I would take 9.1K as I do not need that...BUT, I am considering a much lower amount (no more than 2.2K) to pay off a debt I am working on that isn't reporting and to pay down some cc debt.  

Has anyone used them?

[Kenny]

Just for giggles I looked at it for me:

You can receive $8,000 at an APR of 39.98%.
The payments can be $384.81 per month for 36 months.

WHAT?! Is your APR any where near this? Crazy.. don't do it if it is.. Seems like loan sharking!

[matolen]

My APR is 24.91%

High indeed.  I got approved for $3000 with a 60mth plan.   I would never have taken the full 9.1K at that rate.

Here is my reason for doing so:

I did this because I wanted to pay off one credit card, and also a debt that I owe to NYS for an overpayment.  I have been paying down this debt to NYS but it is not something that is reported to CRAs.   By swapping it with this loan, at least the monthly payment I write will go toward my credit file.

I also took a bit more than I needed for those two debts.  I did this because I plan to pay down a percentage of the loan in a quick amount of time, thereby reducing my utilization.

[Anonymous]

Dont bother with util on that loan. It is not a revolving line so utl is not scored. Its like a car loan. Utilization only comes into play with credit cards.

I agree with your logic in principle...but paying %25 interest on a loan, is not smart money management. There are better alternatives to building credit.

[cappaccinodagreat]

Did you happen to try Lending Club or Prosper first? 

Avant sent me a letter like that offering about $6000 at 24.99% or so. No thanks. I have done a loan through Prosper and got single digit APR. 

FYI... my credit is currently between 690 - 717.

[Anonymous]

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@matolen wrote:

My APR is 24.91%

High indeed.  I got approved for $3000 with a 60mth plan.   I would never have taken the full 9.1K at that rate.

Here is my reason for doing so:

I did this because I wanted to pay off one credit card, and also a debt that I owe to NYS for an overpayment.  I have been paying down this debt to NYS but it is not something that is reported to CRAs.   By swapping it with this loan, at least the monthly payment I write will go toward my credit file.

I also took a bit more than I needed for those two debts.  I did this because I plan to pay down a percentage of the loan in a quick amount of time, thereby reducing my utilization.

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That interest rate though...

[Revelate]

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@Anonymous wrote:

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@matolen wrote:

My APR is 24.91%

High indeed.  I got approved for $3000 with a 60mth plan.   I would never have taken the full 9.1K at that rate.

Here is my reason for doing so:

I did this because I wanted to pay off one credit card, and also a debt that I owe to NYS for an overpayment.  I have been paying down this debt to NYS but it is not something that is reported to CRAs.   By swapping it with this loan, at least the monthly payment I write will go toward my credit file.

I also took a bit more than I needed for those two debts.  I did this because I plan to pay down a percentage of the loan in a quick amount of time, thereby reducing my utilization.

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That interest rate though...

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The way to manage it is to take the full amount and then immediately pay back the unused portion generally.  Massive acceleration of amortization curves FTW when we're talking high APR loans.

Beyond that there's a time and a place for high-interest loans, I have one on my credit report which was north of 120% APR (that 599 EX score in my starting siggy line) but I pulled the abovementioned stunt and then still paid it off way early.  I don't recommend them as a general rule but if you have a short-term cash shortfall which can be made up through future cashflow, it can be useful.