Sprout Financial Unsecured Line of Credit

[Account Closed]

Hey BP,

I'm looking for funds to finish my rehab project and someone told me about Sprout Financial unsecured line credit? Are they legit? Has anyone used them? I'm skeptical because of there up front consulting fee of 9.99% and the fact they charge monthly 2% of what you have borrowed instead of 2% divided by 12 to arrive at your monthly payment.

[Marshall Hooper]

Originally posted by @Doug W.:

I've been approached by "consultants" who want to help me open up no interest credit cards with cash withdrawl limits upwards of $100k. The last guy offered to do this for the low fee of only $12,000. <eye roll>

Be careful. My understanding is that if you end up not being able to pay the cash back before the "free" interest rate period ends you will be hit with a huge interest rate on the entire amount you borrowed. 

I've been discussing these kinds of deals with the someone at Sprout. The fees are negotioable, I got mine down to 8.99% with a 5k cap. However, like you said, all they are doing is opening credit cards for you. I learned this after I did some more research. 5k on 100k LOC is really good when you compare it to a hard money loan, however, the damage it will do to your credit score short term is too much of a risk for me.