13Feb2017

Why you don’t want credit card debt with rate increases on the way

According to the Federal Reserve, credit card use rose 6.1% in 2016. Are you part of that increase? With interest rates likely to go up in 2017, variable rate credit card APRs will rise too.

Kiplinger.com’s interest rate forecast says, “The Federal Reserve will also be hiking short-term rates at least twice this year, and possibly more if inflation gets out of hand.” This means your variable rate credit card may cost you as much as one or two percentage points more.

On the surface that might not sound like much. But, because interest on your credit card bill compounds — meaning you not only pay interest on charges you make, but also on the interest charges that accumulate — that increase can make a difference in your monthly budget and how long it takes to pay off the debt. On top of that — when only minimum payments are made, and worse yet, charging continues — it’s easy to get in over your head. Think snowball effect. You don’t want to get caught in that cycle.

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Now more than ever an installment loan makes the most sense (and cents) for consolidating debt. A LendingPoint loan can help you unbury with affordable fixed monthly payments at fair rates. The application process is simple and easy. Funds are deposited in your account as quickly as in one business day after final approval. See what we can do for you.

And if you just so happen to want to unbury from the icy weather that’s hit our coast recently, and you’re looking to finance a sunny vacation somewhere warm, check out our new Destination Anywhere Loan. Apply now and see what you qualify for.

For more on how rising interest rates can impact you, read here.

LendingPoint is an Atlanta-based lender and servicer, redefining who can access money at fair rates.

USA PATRIOT ACT NOTICE: IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.

* Applications submitted on this website may be funded by one of several lenders, including: FinWise Bank, a Utah-chartered bank, member FDIC; LendingPoint, a licensed lender in certain states. Loan approval is not guaranteed. Actual loan offers and loan amounts, terms and annual percentage rates ("APR") may vary based upon LendingPoint's proprietary scoring and underwriting system's review of your credit, financial condition, other factors, and supporting documents or information you provide. Origination or other fees from 0% to 6% may apply depending upon your state of residence. Upon final underwriting approval to fund a loan, said funds are often sent via ACH the next non-holiday business day. Loans are offered from $2,000 to $36,500, at rates ranging from 9.99% to 35.99% APR, with terms from 24 to 60 months. A $10,000 loan for a period of 48 months with an APR of 23.72% and origination fee of 6% will have a payment of $324.48 per month. (Actual terms and rate depend on credit history, income, and other factors.) The $15,575.04 total amount due under the loan terms provided as an example in this disclaimer includes the origination fee financed in addition to the loan amount. Customers may have the option to deduct the origination fee from the disbursed loan amount if desired. The total amount due is the total amount of the loan you will have paid after you have made all payments as scheduled.

1. Alimony, child support, or separate maintenance income need not to be revealed if you do not wish to have it considered as a basis for repaying this obligation.

2. The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliance with this law concerning FinWise Bank is the FDIC Consumer Response Center, 1100 Walnut Street, Box #11, Kansas City, MO 64106. The federal agency that administers compliance with this law for LendingPoint is the Federal Trade Commission, Equal Credit Opportunity, Washington, DC 20580.

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