Lendup?

[Anonymous]

Has anyone used this service? I realize it has parallels to a payday loan, but the one thing I find striking about it is you gain points as you borrow. Once you reach a level threshold they begin reporting to the CRA's. I was considering taking a small(which is actually all you can borrow the first time,) to start a discover secured card. Anyone have any thoughts or experience with these folks?

[Anonymous]

I do not think this is a good idea at all.

Set aside the $200 for your Discover another way, try using something like Qapital and you'll probably have it in a couple of weeks.

[darwin_wins]

If you already know it is similar to payday loans, if I were you I would avoid this service.

Just keep on using your CapOne secured card for 6 months and you should see a difference in your score.

[Anonymous]

Not an expert by any means, but I'm leary of these sort of "lenders".  what interest rate range do they offer?  what are the terms?

To answer your direct question I think i would rather see you earn the$200 that a secure card might run and open it that way.  Sell a few things on Craigslist if you have to.  You could follow that up with a credit builder loan at a Credit Union for something like 3%-4% interest. 

I don't think i would borrow funds to open a secured account.

[Anonymous]

No I wouldn't do it. Sounds insane to me and idiotic. Just my opinion

[Anonymous]

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@Anonymous wrote:

Has anyone used this service? I realize it has parallels to a payday loan, but the one thing I find striking about it is you gain points as you borrow. Once you reach a level threshold they begin reporting to the CRA's. I was considering taking a small(which is actually all you can borrow the first time,) to start a discover secured card. Anyone have any thoughts or experience with these folks?

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NO. Here is a better idea - see if you can open an account with SDFCU, NASAFCU, or DCU. Then you do a secured PERSONAL LOAN for $300. Use the loan proceeds to open a secured card with them. If you do not have $300 available, then use some money that would have been spent on some bills, then use the card to pay those bills. Yes, you will max out the new card, but paying it down quickly will get you into the habit of regular payments.

[Anonymous]

I agree with everyone else.

After a few loans, which sounds like 5 or so.  At a baseline of $200 per loan, so $30 interest per loan.  You have now wasted $150 in interest alone.

If your credit is really that bad, Fingerhut and Gettington are better choices.  No Cash, but Merchandise on payment plans wihich do report to CRA's to get some active account data.