Paying off the Cards: Trying Lending Club, Avant, Upstart, and Prosper

[DanielPlainview]

Just writing to provide some recent info on getting one of these loans in case it can help someone. I know I always come here for info like this!

I have a 660-670 FICO score (Equifax and Experian). I have $17,800 in credit card debt (93% utilization). Income is $80,000.  No recent lates but I'm barely keeping my head above water due to losing money on a house. 

Pre-applied with Avant and Prosper - got ridiculous interest rates like 29%. Upstart gave me a 10% rate but I could only finance for 3 years. Great rate but the payment would be higher than the cards and I just can't swing that. Lending Club pre-approved me at 14% for 5 years, much better than the 15-23% I'm paying on the cards. 

Pulled the trigger on Lending Club for $18,500 ($925 in fees) and received final approval within 3 hours of my application. They hard pulled Transunion, 667 FICO. Surprisingly no need for income verification. Given my super-high utilization I thought for sure they'd want it. I do have a good payment history though and lots of older accounts. 

By Tuesday I'll have no credit card debt. If there is anything interesting about how this is reported I will follow up. I'll be so relieved to have one payment! 

[Anonymous]

I did a Lending Club loan in March to pay off the last of my tax lien. Smooth, easy process but the rate was high at 16.55%. In August I got a loan through Promise Financial at 6.2% and paid off the Lending Club loan and most of another little loan. Promise was also smooth and easy, but they did need more info.

I had never heard of Upstart. Off to check them out.

[Anonymous]

Congrats! You are on the right track!

Once the cards are paid off be sure and make a budget that has you paying in full EVERY TIME. Let this be the last debt you ever have

[DanielPlainview]

Thanks for the reply CAPTOOL. Good to hear especially because my plan is to utilize a similar strategy. When I am back in the 700 club I'm going to get a better rate, hopefully one good enough I can afford a three year term. 

Thank you Canadian in Seattle! I will take that advice: I don't want to get in hot water like this again. I'm going to keep my low rate BOA Rewards Visa (frozen in a block of ice) and cut up the rest!  

[Anonymous]

Thanks for the heads up on Upstart. Checked them out, and qualified for up to $35K. They have an interesting slider thing that adjusts the interest rate based on the size of the loan. Low of 7.23% at $3000 to a high of 23.17% at $35,000.