theeref

2 Contributions 2 People Helped

Member Since: June 2012

Most Helpful Contribution

Credit card utilization and your credit score

Dec 19, 2013
Helpful to 2 out of 2 people

Paying off balances each month in full negatively affects credit, because it doesn't show utilization. The card will report current balance only, not usage, so it is best to leave a few dollars on the account so they can report something. Credit card companies designed it this way, because the cc's purpose is to make money through interest. People who pay off their balances, make them no money, and they certainly will not go out of their way to help those people with their credit scores. It is really not fair, because it is not an accurate portrayal of credit worthiness, but there are ways around it. After poor credit, loan default, maxed out cards, and years of work on my credit, I have figured out how to be the one who benefits from my finances! I have 11 revolving credit accounts (that I worked hard to get), 1 that I paid off and never use due to 31.99% rate, 1 home depot for specific items, and 1 low low low interest card, used daily for gas and restaurants, and nearly paid off each month. The rest are paid off, and each month, I assign one to be used for merchandise, travel, etc for that month only, and I pay it off in 2 or 3 payments after that. This ensures that I pay very little in interest, use all cards at least 2 or 3 months of the year, and maintain very low balances on each. This keeps me living within my budget and paying close attention to my finances. I only carry the low interest card and the card that is assigned for that month, the home depot card only comes out to go to home depot, and the rest stay locked in the safe!

Activity (2 Total Contributions)

Credit card utilization and your credit score

Dec 19, 2013
Helpful to 2 out of 2 people

Paying off balances each month in full negatively affects credit, because it doesn't show utilization. The card will report current balance only, not usage, so it is best to leave a few dollars on the account so they can report something. Credit card companies designed it this way, because the cc's purpose is to make money through interest. People who pay off their balances, make them no money, and they certainly will not go out of their way to help those people with their credit scores. It is really not fair, because it is not an accurate portrayal of credit worthiness, but there are ways around it. After poor credit, loan default, maxed out cards, and years of work on my credit, I have figured out how to be the one who benefits from my finances! I have 11 revolving credit accounts (that I worked hard to get), 1 that I paid off and never use due to 31.99% rate, 1 home depot for specific items, and 1 low low low interest card, used daily for gas and restaurants, and nearly paid off each month. The rest are paid off, and each month, I assign one to be used for merchandise, travel, etc for that month only, and I pay it off in 2 or 3 payments after that. This ensures that I pay very little in interest, use all cards at least 2 or 3 months of the year, and maintain very low balances on each. This keeps me living within my budget and paying close attention to my finances. I only carry the low interest card and the card that is assigned for that month, the home depot card only comes out to go to home depot, and the rest stay locked in the safe!

Lending Club Personal Loans

Dec 06, 2013
Very quick, much easier than the bank

I have many high interest credit cards that were about 75% used. I had received multiple mailers about LC, but did not consider it to be anything until it was recommended by Credit Karma. I applied on a Monday evening and received the funds in my account the following Thursday. $30,000, 3 yrs. My score is around 670, no late pays, high income, but very high debt ratio. I was having difficulty bringing down my balances with 22-32% interest rates. I am a real person and this process for me was literally simple. About 20 minutes to fill out app, 20 min to upload my financial documents, 2 days to verify account and 10 minutes on phone to verify number. I could not believe how quickly it was funded and how smoothly the process was. I am very real, not a "fake" entry and I received the funds. The only thing that happened that was not according to my plan was that I asked for the full $35,000, but only qualified for 30. I rated LC 5/5 stars because they didn't offer 6! Based on other reviews, I would say wait until there are no blemishes on your record and maintain on time status with everything.