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Elastic LLC Line of Credit, worthwhile?

Valued Contributor

Elastic LLC Line of Credit, worthwhile?

I am rebuilding my credit after a huge hit in 2008 with medical issues with my wife while I wasn't working..

We have pretty much weathered the storm and the baddies are dropping off and will be almost all gone by Feb 2016.

I have 5 small CCs now and my scores are in the mid 600 range. 

I have received two letters from Elastic Llc saying I am pre-selected for a line of credit of 2500.  I cant find out what the interest rate is without applying and the only thing on the letter that looks ominous is the last sentence that says 'this is an expensive form of credit and should not be used as a long term solution'.

 

I do not have a LOC and I am wondering if it is a good idea to have one to improve my scores.  I do not intend to use the LOC for anything except improving scores.

 

I did have a small loan for a used car for three years that I successfully paid off with zero lates or problems, however, it was from a small mom and pop car lot that did not report to the CRAs.

 

Thanks for any advice.

 

Accept the Challenges so you can feel the Exhilaration of Victory.
George S. Patton
15 REPLIES
Moderator

Re: Elastic LLC Line of Credit, worthwhile?


asbinjax wrote:

I am rebuilding my credit after a huge hit in 2008 with medical issues with my wife while I wasn't working..

We have pretty much weathered the storm and the baddies are dropping off and will be almost all gone by Feb 2016.

I have 5 small CCs now and my scores are in the mid 600 range. 

I have received two letters from Elastic Llc saying I am pre-selected for a line of credit of 2500.  I cant find out what the interest rate is without applying and the only thing on the letter that looks ominous is the last sentence that says 'this is an expensive form of credit and should not be used as a long term solution'.

 

I do not have a LOC and I am wondering if it is a good idea to have one to improve my scores.  I do not intend to use the LOC for anything except improving scores.

 

I did have a small loan for a used car for three years that I successfully paid off with zero lates or problems, however, it was from a small mom and pop car lot that did not report to the CRAs.

 

Thanks for any advice.

 


I would pass based on that alone, it would report as a revolving account and you already have revolvers. If you want an LOC see about getting one from a local CU, much better rates.

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne
Community Leader
Super Contributor

Re: Elastic LLC Line of Credit, worthwhile?


asbinjax wrote:

I am rebuilding my credit after a huge hit in 2008 with medical issues with my wife while I wasn't working..

We have pretty much weathered the storm and the baddies are dropping off and will be almost all gone by Feb 2016.

I have 5 small CCs now and my scores are in the mid 600 range. 

I have received two letters from Elastic Llc saying I am pre-selected for a line of credit of 2500.  I cant find out what the interest rate is without applying and the only thing on the letter that looks ominous is the last sentence that says 'this is an expensive form of credit and should not be used as a long term solution'.

 

I do not have a LOC and I am wondering if it is a good idea to have one to improve my scores.  I do not intend to use the LOC for anything except improving scores.

 

I did have a small loan for a used car for three years that I successfully paid off with zero lates or problems, however, it was from a small mom and pop car lot that did not report to the CRAs.

 

Thanks for any advice.

 


I agree with gdale - stay away. For scoring purposes, if you need an installment account, just put $500 in SDFCU and get a secured personal loan. You'll get just as much FICO mileage from it for 14 bucks a month.

Most Recent FICO 8 Scores EX592/TU539/EQ574 11/01/2017 Starting scores 553/485/543 08/25//2017
~~~Credit lines~~~~
SDFCU VISA Secured $250
Discover Secured $200
Established Contributor

Re: Elastic LLC Line of Credit, worthwhile?

Yea, I'd steer clear of that offer. Straight to the shredder. It reminds me of that TV commercial for Western Sky Financial $10,000.00 loan. If you read the fine print, you're monthly payments were almost $800.00 a month with a total payback of just under $65,000.00 !!!!!! If you need to 10K THAT BAD, I'd doubt you'd be able to make the almost $800.00 monthly payments. This ad made that same statement concerning "this is an expensive form of credit blah, blah, blah". These are basically legal loan sharks who prey on the poor and vulnerable.

Look at the facts:
1. They are a 100% Native American-owned business operating on a Native American Reservation (sovereign ground) so they are not bound by normal laws of whatever state they are in.

2. Their current commercial has been edited to remove the “Sure it’s expensive” from it.

3. The APR for a typical loan of $10,000 is 89.68% with 84 monthly payments of $743.99.
Lets look at the figures: Almost 90% for a loan! Really, in any other place besides sovereign ground (ie: Native American Reservation) that would be illegal.

So lets say you are desperate enough to use them here are the real figures:

$10,000.00 Loan

APR – 89.68% (.32% less than 90%)

84 monthly payments = 7 years

monthly payments of $743.99

if you take the $743,99 x 84 months = $62,495.16 pay back for a $10,000 loan.
$62,495.16 to pay a $10,000 loan.
Valued Contributor

Re: Elastic LLC Line of Credit, worthwhile?

Thanks for the information and advice about the Elastic offer.

 

I agree and will not be using them at all.  They must be relatively new because I cant find much even through google.

 

 I went to their website to look around but didnt click on anything or register.  Even that much makes me want to give my browser a shower now, lol.

 

I will check out the sdfcu site and consider it for the future.

 

 

Accept the Challenges so you can feel the Exhilaration of Victory.
George S. Patton
New Visitor

Re: Elastic LLC Line of Credit, worthwhile?

They approve everyone. There is no APR. I have used "Plain Green Loans" in the past for medical bills as well and they're APR had me paying three times as much as I was lent and it took a year contract. With Elastic, for whatever amount you want to borrow or is left in your "account", which means your remaining balance, they charge you a set fee. For example: borrow 20$ no fee. borrow 21-50$ and it's a $1 fee. borrow 200-300$ and it's a 25$ fee etc. you can borrow up to 2,500$. If you no loger need the remainder of the money you simply pay it back. I hope this helps in case you have an emergency financial situation.

Valued Contributor

Re: Elastic LLC Line of Credit, worthwhile?

indigohazey - thanks for the info, very helpful.

 

I dont have an exact need or demand for money now, just trying to maximize my credit scores right now.

 

I dont have an auto loan now and it will be several months until I can buy a car. 

 

I was looking for an installment loan to satisfy the elusive and mystical fico algorithms.

 

your information is good to know though.

Accept the Challenges so you can feel the Exhilaration of Victory.
George S. Patton
New Visitor

Re: Elastic LLC Line of Credit, worthwhile?

I'm hoping that ELASTIC is worthwhile because I was approved for 3500 and only requested 500 of the 3500. i did see the statement (this is an expensive line of credit) but I really over looked it because I have never seen a statement on any term&condition on any letter for a line of credit or loan that I've gotten before. So as of now I'm waiting to receive the $500 its been like 3 days of waiting as of now. i will keep you posted regarding me getting the money an how expensive it is...

Community Leader
Super Contributor

Re: Elastic LLC Line of Credit, worthwhile?

Run. Run far, run fast.

 

If you want to improve credit mix with an installment loan, open an account with SDFCU and get a $500 secured loan with 3 year terms as 3.99%.

Most Recent FICO 8 Scores EX592/TU539/EQ574 11/01/2017 Starting scores 553/485/543 08/25//2017
~~~Credit lines~~~~
SDFCU VISA Secured $250
Discover Secured $200
New Visitor

Re: Elastic LLC Line of Credit, worthwhile?

Do you mind me asking what was the enrollment code for elastic?