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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: mindaugas on September 13, 2012, 04:32:45 PM

Title: Lending Club to consolidate credit cards?
Post by: mindaugas 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.
Title: Re: Lending Club to consolidate credit cards?
Post by: arebelspy 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.
Title: Re: Lending Club to consolidate credit cards?
Post by: mindaugas 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?
Title: Re: Lending Club to consolidate credit cards?
Post by: arebelspy 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).