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Will using Lending Club reflect negative on credita card status
I have paid off over 100k in credit card debt over the last 10 years. I am down to 35k not including 20k remaining school loan and 140k on home line of equity. I am interested in paying off remaining credit card debt in the next 6-8 months. I came across "personal loans" by Lending Club and such companies and would like to know the following: 1. Does borrowing from Lending Club effect credit score if i'm using the money to pay off credit cards that are at a higher rate? 2.Does my credit standing with the credit card companies (i.e. American Express) get effected if i pay of the card with lending tree money? I ask because I have been with them for years, have a great standing with them and would like to keep them in case of emergency. My current credit score is 716 (according to credit karma). Thank you in advance :)

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Yes and No

First off, congrats on paying down your debt.  And also doing your diligence on how best to cut down your payments.

As for your question, it's a mix.  Yes, your credit score will get affected because you're applying for a new loan.  So that will be both a new credit inquiry and it'll lower your average account age.  And no, while personal loans as a whole may have a different categorization/scoring than other types of loans (i personally thing they're riskier and may be accounted for as such), the fact that you're lowering your balances is the key factor here.  Your utilization ratio/balances account for 35% whereas credit mix is only 10%.

As for the Amex portion, I don't believe so.  Amex shouldn't know where you got the money from, they just care that you've paid off their balances.  And as long as you've been in good standing with them, they will not revoke your accounts with them; the last thing they'd want to do is alienate a loyal, paying customer.

The only caveat is if you apply for new credit (after Lending Club) and a lender is able to see your full credit report beyond your credit score.  But that could also go either way; it could be seen as a negative or it could be seen as a positive - you actively working to lower your debt in a positive fashion.

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