Should I get a loan from Lending Club to pay my Fed back taxes?

[Girac]

Currently owe 18K to the feds and on a payment plan. Lending Clud says they lend me 18K at 8.99 APR for 36 months with a monthly payment of 555.

If I take the offer then this will show on my credit report, where the payment plan is not. Loan or no loan it is going to take me 2-3 years to get all paid up on this. I dont know the APR on my backtaxes. I'm sure it is quite high.

Suggestions?

[dobirdsmommy]

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@Girac wrote:

Currently owe 18K to the feds and on a payment plan. Lending Clud says they lend me 18K at 8.99 APR for 36 months with a monthly payment of 555.

If I take the offer then this will show on my credit report, where the payment plan is not. Loan or no loan it is going to take me 2-3 years to get all paid up on this. I dont know the APR on my backtaxes. I'm sure it is quite high.

Suggestions?

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I just did this for NYS back taxes.  Feds is next for me!  I am actually paying fed 500 a month currently on a payment plan.  Nys was 487 for 2015, 600 for 2016 and 800 for 2017. I did 9600  for 300 a month and I actually am having them withdrawal 400 to pay it off quicker 

[Anonymous]

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@Girac wrote:

Currently owe 18K to the feds and on a payment plan. Lending Clud says they lend me 18K at 8.99 APR for 36 months with a monthly payment of 555.

If I take the offer then this will show on my credit report, where the payment plan is not. Loan or no loan it is going to take me 2-3 years to get all paid up on this. I dont know the APR on my backtaxes. I'm sure it is quite high.

Suggestions?

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Yes you can.  If you go with Lending Club, it will show on your report as an installment loan.  But the ultimate decision is up to you.

[Anonymous]

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@Girac wrote:

Currently owe 18K to the feds and on a payment plan. Lending Clud says they lend me 18K at 8.99 APR for 36 months with a monthly payment of 555.

If I take the offer then this will show on my credit report, where the payment plan is not. Loan or no loan it is going to take me 2-3 years to get all paid up on this. I dont know the APR on my backtaxes. I'm sure it is quite high.

Suggestions?

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I would find out the APR on your payment plan and then make your decision. If you are concerned that the installment loan will negatively impact your score, then do what's best for you personally. Good luck!!

[DaveInAZ]

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@beautifulblaquepearl wrote:

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@Girac wrote:

Currently owe 18K to the feds and on a payment plan. Lending Clud says they lend me 18K at 8.99 APR for 36 months with a monthly payment of 555.

If I take the offer then this will show on my credit report, where the payment plan is not. Loan or no loan it is going to take me 2-3 years to get all paid up on this. I dont know the APR on my backtaxes. I'm sure it is quite high.

Suggestions?

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I would find out the APR on your payment plan and then make your decision. If you are concerned that the installment loan will negatively impact your score, then do what's best for you personally. Good luck!!

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I was curious so I Googled. Interest rate for back taxes is federal short term rate +3%, adjusted quarterly. For the quarter begining April 1 rate is 3%, as the short term fed rate is 0%. Rate will almost certainly rise in the next 2-3 years, but I think less than 1%. So right now Girac would be paying almost 3x the interest to Lending Club, plus having that loan on his CR, increasing DTI.

[dobirdsmommy]

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@DaveInAZ wrote:

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@beautifulblaquepearl wrote:

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@Girac wrote:

Currently owe 18K to the feds and on a payment plan. Lending Clud says they lend me 18K at 8.99 APR for 36 months with a monthly payment of 555.

If I take the offer then this will show on my credit report, where the payment plan is not. Loan or no loan it is going to take me 2-3 years to get all paid up on this. I dont know the APR on my backtaxes. I'm sure it is quite high.

Suggestions?

---

I would find out the APR on your payment plan and then make your decision. If you are concerned that the installment loan will negatively impact your score, then do what's best for you personally. Good luck!!

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I was curious so I Googled. Interest rate for back taxes is federal short term rate +3%, adjusted quarterly. For the quarter begining April 1 rate is 3%, as the short term fed rate is 0%. Rate will almost certainly rise in the next 2-3 years, but I think less than 1%. So right now Girac would be paying almost 3x the interest to Lending Club, plus having that loan on his CR, increasing DTI.

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for me it worked because for my NYS my balance was 11.5k

if I took the balance of the 3 years to pay it, my end total would have been 25k

I took a loan for 9k and took some out of savings.

I am paying back 400 per month which is 75.00 more than my minimum per month. It will be paid off quicker than the 3 years and cheaper!