Author Topic: Lending Club to consolidate credit cards?  (Read 2102 times)

mindaugas

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Lending Club to consolidate credit cards?
« on: September 13, 2012, 04:32:45 PM »
Does anyone have experience with them? I was thinking about getting a lower interest loan to pay off my credit card debt ($7k @ 17.99%). My credit is fair, 670's so I'm guessing I'd be in a rate close to 10%. Curious to see if anyone else used them, what loan you got, rate, credit score, etc.

arebelspy

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Re: Lending Club to consolidate credit cards?
« Reply #1 on: September 13, 2012, 04:43:46 PM »
I have, as a short term bridge loan for a real estate project.

9%.  I have 800+ credit score.

Worth it, as I made about 80% annualized ROI on my investment (~17k profit) and the interest was a few hundred bucks (plus some fees).  In almost all non-business cases I wouldn't consider it, but then again it all depends on your circumstance.

17.99% credit card rate is pretty terrible.

There are also better scenarios than LendingClub though (i.e. credit card balance transfers, which I have also utilized).  Look into those first.
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mindaugas

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Re: Lending Club to consolidate credit cards?
« Reply #2 on: September 14, 2012, 06:45:01 AM »
Thanks, I'm looking at bankrate.com right now and comparing. Anyone have any recommendations on a specific card?

arebelspy

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Re: Lending Club to consolidate credit cards?
« Reply #3 on: September 14, 2012, 08:07:37 AM »
Thanks, I'm looking at bankrate.com right now and comparing. Anyone have any recommendations on a specific card?

Check the offers you get in the mail, see if you can find one with a 0% balance transfer fee.  They're more rare (3 or 4% is common).  If not, try to find one with a capped fee (i.e. 3% fee, max of $75). 
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.