Does this make sense? Avant v. Prosper

[scmami]

I need to pay a lawyer, consolidate some credit cards, and pay some medical bills. Credit in signature is correct, but utilization is at 100% right now. The personal loan, already approved w/Avant, would pay all the CCs off and should increase my scores significantly. 

My question is, with a higher score, am I more likely to be approved for a lower interest loan, like with Prosper (or another Peer2Peer lender)? I am new to these types of loans. The Avant interest rate is super high, and I'd want to pay it off or refinance ASAP. Thoughts?

[Anonymous]

Yes, it's highly likely that a higher score would result in a lower interest rate. I've apped with pretty much all of the web based lenders, (it's a soft pull so no harm to do so), and I saw an enormous variation in APR's depending on which bureau they pulled. Ranged from as low as 6.2% from one of the ones that pulls TU to 27% for those who pull one of the other two. My TU is clean and high, the other two have a tax lien and are low.

[scmami]

Thank you! I think I will do this. I'm looking forward to the credit score increase for paying this utilization down!

[ddemari]

Before you accept the loan, make sure to read the truth and lending statement. For example, u take out 10,000 at 36 percent. U will pay over 12,000 in interest and it will take you 5 years by making monthly payments. Granted u could pay the loan off more agresively. They allow more additional monthly payments and allow you to pay off the loan as quick as u can. When I was in school I took out an avant loan as a last resort. I paid it off within 4 months once I got my tax return. They are pretty easy to deal with and the process is pretty simple. I used this type of loan like i said as a last resort but luckily I was able to do it and register for my class I need to take to finish my degree.

[Anonymous]

Check out this site. It lists most online personal loan options: http://www.magnifymoney.com/compare/personal-loans/

Among those, I think Lending Club does soft pulls on TU only, Prosper is EX pull (soft to check rates then hard when you apply) and I think Upstart and Karrot doesn't report (but may have changed their policies).

Since your TU score is highest, check out Lending Club. If you are able to bring down utilization, it could help a lot. In my experience, LC seems to factor in your total available credit so getting added as an AU to large credit lines with no balance can help, but it can take a while to show on your credit report.

Once your utilization falls, if that's your only negative, you should be able to "refinance" into lower rates. But your approval chances would drop if the new personal loan shows up your credit report. i.e. you want the lower util reported before the new personal loan hits. Also, many of these online lenders charge high origination fee. It probably wouldn't make sense to pay that twice, so maybe do Avant (I think they don't charge origination fee) then move to LC or someone else. But I don't know how soon Avant reports on your CR.

[Anonymous]

Promise Financial is also a TU puller, and my APR with them is 10 points lower than what I got with Lending Club.

It probably wouldn't make sense to pay that twice, so maybe do Avant

Avant also pulls TU and they wanted 36% interest with my score at 819.

[Anonymous]

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@Anonymous wrote:

Avant also pulls TU and they wanted 36% interest with my score at 819.

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Yes, these P2P places have their own wacky way of deciding rates and FICO score seems to be but a small factor. It seems that inquiries and new accounts hurt far more than high utilization. If you browse loans at lending club, there are people with 820 FICOs getting near 20% rates and people with under 700 FICO getting 6-8% rates. So it's wise to check them out.

[CreditGuy03]

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@Anonymous wrote:

Check out this site. It lists most online personal loan options: http://www.magnifymoney.com/compare/personal-loans/

Among those, I think Lending Club does soft pulls on TU only, Prosper is EX pull (soft to check rates then hard when you apply) and I think Upstart and Karrot doesn't report (but may have changed their policies).

Since your TU score is highest, check out Lending Club. If you are able to bring down utilization, it could help a lot. In my experience, LC seems to factor in your total available credit so getting added as an AU to large credit lines with no balance can help, but it can take a while to show on your credit report.

Once your utilization falls, if that's your only negative, you should be able to "refinance" into lower rates. But your approval chances would drop if the new personal loan shows up your credit report. i.e. you want the lower util reported before the new personal loan hits. Also, many of these online lenders charge high origination fee. It probably wouldn't make sense to pay that twice, so maybe do Avant (I think they don't charge origination fee) then move to LC or someone else. But I don't know how soon Avant reports on your CR.

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This is a good site.

Are there any other places thst this site doesnt have listed 

[RonM21]

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@Anonymous wrote:

Check out this site. It lists most online personal loan options: http://www.magnifymoney.com/compare/personal-loans/

Among those, I think Lending Club does soft pulls on TU only, Prosper is EX pull (soft to check rates then hard when you apply) and I think Upstart and Karrot doesn't report (but may have changed their policies).

Since your TU score is highest, check out Lending Club. If you are able to bring down utilization, it could help a lot. In my experience, LC seems to factor in your total available credit so getting added as an AU to large credit lines with no balance can help, but it can take a while to show on your credit report.

Once your utilization falls, if that's your only negative, you should be able to "refinance" into lower rates. But your approval chances would drop if the new personal loan shows up your credit report. i.e. you want the lower util reported before the new personal loan hits. Also, many of these online lenders charge high origination fee. It probably wouldn't make sense to pay that twice, so maybe do Avant (I think they don't charge origination fee) then move to LC or someone else. But I don't know how soon Avant reports on your CR.

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Nice sight for data thanks