Minimalist Wealth

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What is a Credit Score?

If you will ever need a credit card, loan, or mortgage, then credit score is very important to your wealth. It is an essential component of minimalist wealth because getting good credit takes little effort but reaps huge rewards.

A credit score is what lenders use to determine how likely you are to pay them back.

Why is Credit Score Important?

If you have a low credit score, lenders will lend you less money at higher interest rates or even not at all. It part of why being poor is so expensive. Failure to be prudent about credit will result in lots of pain when you inevitably need a loan and are only eligible for loans with terrible terms from loan sharks like Frankie “The Scalpel” Vito and Wells “We Don't Give a Fuck About You” Fargo.

How Can I Get From Good to Excellent Credit?

My Lending Club Experience

On Danny Schmidgall

I first found out about Lending Club last summer (in 2012) after Tynan posted an article on his blog about it. There seems to be a healthy skepticism about using it, so I thought I'd offer my two cents after 9 months of activity. 

If you haven't checked it out, I encourage you to visit the website a bit. The company is a middleman for lenders and borrowers. A typical customer may want to consolidate their debt, or pay some unexpected bills, and ask for a loan from Lending Club. The company itself will do some due diligence to make sure what the borrower is claiming as income, employment history, etc. is true. The loan itself is then listed on the website, and lenders (us) combine their money to fulfill the loan. This is a very simplistic explanation, but it's enough to get you started.

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