Find the Best Personal Loan for Your Needs
If you’re someone who is looking to get a personal loan to cover a cost or purchase, you might not realize how many options you have. Personal loans are becoming increasingly popular – there are now more personal loan providers than ever before. While traditional lenders used to crowd the personal loan space, there are now hundreds of online lenders that also provide great personal loan services. This means as a consumer you’re a bit spoiled for choice. You no longer need to use a brick-and-mortar bank if you want to obtain a personal loan.
While there are many online lenders that provide financing for their customers, there are now some online lenders that also provide a peer-to-peer marketplace for their customers. They allow investors to lend money to people based off their creditworthiness. This means that the majority of the funds come from other individuals. It’s a fairly new online concept that has become increasingly popular.
One of the leaders in this new field is LendingClub. If you’re looking for LendingClub reviews, you’ve come to the right place. This LendingClub review will take a deeper look at LendingClub and how they might be able to help you obtain the personal loan that you’re looking for. If you’re someone who is considering a LendingClub personal loan, reading LendingClub club personal loan reviews will be crucial in ensuring that you choose the right lender. Read ahead!
LendingClub: The Company
LendingClub is a personal loan company that facilitates loans through a p2p lending network. Investors provide money for personal loans with the expectation that they receive interest for compensation. The company first started in 2006, and is now headquartered in San Francisco, California.
LendingClub is a publicly traded company. They report an annual revenue of around half a billion dollars per year! In 2016, the company was overhauled due to a scandal including management and some of the company’s loans.
LendingClub Personal Loan Features
If you’re going to obtain a loan from lending club, it’s important that you understand the key features of their loans. You have plenty of personal loan options, so there is no value in accepting a loan offer from a company that doesn’t provide you with the features you’re looking for.
LendingClub Personal Loan APR: 6.16% to 35.89%
Minimum Loan Amount: $1,000
Maximum Loan Amount: $40,000
All LendingClub personal loans are unsecured personal loans.
As mentioned previously, one of the key features of LendingClub is the fact that it is a peer-to-peer service. This means investors are providing you with the funds you need. In turn, you can also be an investor and provide funds for other people seeking to borrow money. This creates a greater degree of flexibility for people looking to borrow money.
LendingClub is an online lender which helps speed up the process. While it can take up to a week to receive funding in certain instances, it’s still a great option if you’re looking get money quickly. LendingClub can get you money much faster than a traditional loan, such as a bank or credit union.
Lending club has good and bad interest rates, the one you receive will depend on your personal credit score. For example, their lowest interest rate of 6.16% is one of the lowest rates in the industry. While their highest interest rate of 35.89% is higher than some credit card interest rates. There is also a 1-6% origination fee depending on the circumstances of your loan.
Some personal loan companies only offer one term length. This creates issues for people who need a bit more flexibility. Fortunately, at LendingClub, there are two different loan terms for you to choose from. You can choose between three and five years, this can help provide you with a longer term if you need more time to pay back the loan.
Low Credit Score Requirements
Another feature that sets LendingClub out from the rest of the pack is their low credit requirements. They have one of the lowest credit score requirements on the market. You can receive a loan with just a credit score of 600. This is a great option for those who need help but don’t have solid credit history. This being said, you must have three years of credit history to apply for a loan.
What is a Personal Loan?
Personal loans are a very basic form of finance that help consumers use funds for whatever they please. If you’re looking for a loan, but you don’t want to be told how to use the funds, a personal loan is an awesome option. Personal loans are loans provided by a lender with no specific purpose – you don’t have to purchase a specific item as you do with a mortgage or auto loan.
For this reason, they’re a very attractive form of finance for a lot of consumers. If you want to obtain a personal loan, there are two primary types: secured and unsecured. Secured loans are tied to an asset, unsecured loans are not. Secured loans typically have lower interest rates than unsecured loans as they are riskier for lenders and investors.
Uses for Personal Loans
If you’re thinking of obtaining a personal loan, you might be wondering what some of the common uses for personal loans are. Personal loans are obtained for a variety of reasons – as mentioned previously, you don’t need a specific reason to obtain a personal loan if you want to one. In this section of our review, we’ll take a look at some of the most popular reasons people apply for personal loans. Check them out below!
If you’re in an emergency and you don’t have time to get the money you need to cover expenses, personal loans are often a good option. Whether it be a medical bill or a burst water pipe, personal loans can help you get the funding you need to improve your current situation.
Cash Flow Issues
Personal loans can also be good for people have cash flow issues. For example, if you’re a student or seasonal worker, you might use a personal loan to help you bridge a gap in cash flow. It’s a great way to ensure that you have the money you need to keep moving forward in life.
Another extremely common use of personal loans is debt consolidation. If you want to ensure that you don’t end up with debt issues, a personal loan might be able to help you reduce your current interest rates. Plenty of people use debt consolidation to reduce the interest they’re currently paying on their credit cards. You use the funds from your consolidation to pay off your credit card debt and then pay back the loan over the term of the loan. This only works if your interest rate on your personal loan is less than your credit card!
Pros and Cons of LendingClub Personal Loans
While you probably already have a decent idea if LendingClub is right for you, it’s always important to make sure that know the advantages and disadvantages of using the company. In this section, we’ll give you a precise overview of LendingClub to help you gauge if they’re the lender you want to use.
- Low Credit Requirements – With a minimum score of 600, LendingClub is one of the best lenders for low credit scores.
- Online Platform – Their online platform makes it easy to borrow money without having to go to a bank or credit union.
- Low Rates for Good Credit – If you have a good credit score, you can find some of the industry’s best interest rates at LendingClub.
- Flexible Terms – With two options for terms, you can set up your loan for the way you want to borrow.
- Experience – LendingClub has provided customers with billions of dollars’ worth of finance. They have the experience to help you get the money you need.
- Joint Application – LendingClub is one of the only lenders that will allow you to make a joint application. As long as one borrowers is over 600, and the other is over 540, you’ll be able to apply for a joint loan.
- Not Fastest Option – LendingClub is not the quickest option in the industry, because it is a peer-to-peer network, funding can sometimes take up to a week.
- High Interest for Bad Credit Scores – If you have a bad credit score, you might find that the interest on your LendingClub loan is worse than your credit card!
- Origination Fees – LendingClub does have an origination fee that can reach up to 6%, substantially increasing the cost of your loan!
Preparing Your Application for LendingClub
If you want to position yourself to be accepted for a loan from lending club or any other personal loan provider, it’s important that you understand how to prepare your application. You should always be looking to provide the best application possible if you want to avoid rejection. If you do end up being rejected for a loan, it won’t be positive for your credit report. Below are some top tips on how to avoid improve your credit score for a loan.
Check Your Report and Look for Errors
While many people know their credit score, few people bother to look at their credit report. If you want to ensure that you have the best credit score possible, it’s important to make sure that you don’t overlook any errors on your report – they’re much more common than you may think! The credit reporting bodies are required to provide you with a free credit report every year, so you can obtain one without having to pay. After you check your report, you can request that items be removed, or you can contact a credit repair company to do this for you!
Pay Down Revolving Debt
If you have outstanding credit card debt or any other form of revolving debt – such as a personal line of credit – it’s important to pay down the debt as much as possible. While some people may not be able to afford to do this, it’s a good option if you want to
Consumer reputation is one of the best ways to see if a company is worth working with. If you want to work with a lender that you will enjoy, a huge indicator is how past customers have enjoyed their services. Customers review LendingClub online through a variety of different consumer watchdog groups. These groups also give their own personal rating for how reliable the company is. Check out their reputation on a number of consumer watchdog groups below – it’s important to read reviews of LendingClub!
Better Business Bureau (BBB) – LendingClub Reviews BBB
The Better Business Bureau provides a platform for customers to review companies they work with. They provide a rating as well, which is typically a product of reviews an independent research from the company. They’re one of the leading consumer watchdog groups in the nation. They give Lending Club an A-, the third highest rating available. This means LendingClub is a relatively trustworthy company. Though the BBB does note that LendingClub suffered from government action when they were accused of having hidden fees that were not advertised. You can find LendingClub loan reviews on the BBB website.
Consumer Affairs is effectively the same concept as the BBB. The company reviews and provides rating on companies. LendingClub is not accredited through Consumer Affairs, so there is not an official rating. Although the customer feedback rates LendingClub at a 1.3/5, this is from a very small sample size. If you want to find the LendingClub reviews at Consumer Affairs, head to their website.
As you can tell, LendingClub is a solid option if you want to work with a peer-to-peer lender with plenty of experience. They also provide you with the ability to cosign loans and choose from two different term times. Their rates are also great for those who have good credit scores. This company has matched consumers with billions of dollars in funding.
If you don’t think LendingClub is right for you, there are always other options on the market. Our website has plenty of other reviews – make sure to check them out. We also have tons of information on personal loans if you need more help.
Lending Club Basics
Get to know the basics of Lending Club such as applying for a loan, making an investment, and many others so you can use it to improve your financial situation.
Is Lending Club legitimate?
Yes, it is. Lending Club is a legitimate company that started its operations in 2006 and has since grown to be the largest peer-to-peer lending service in the world. It is currently publicly listed in the New York Stock Exchange.
What is Lending Club?
Lending Club is a peer-to-peer lending service, which means that it allows individuals to get a loan from another individual. As for the lender, it allows even inexperienced investors to invest in personal loans through its platform.
Is Lending Club safe?
It depends. Any form of investment carries with it a certain amount of risk, and it is the same with Lending Club. However, being a publicly listed company mitigates some of the fears when it comes to accuracy and legitimacy of transactions in the platform.
How does Lending Club work?
Peer to peer lending allows people to get a loan from each other without going through a bank. For borrowers, you need to submit some requirements to Lending Club to be eligible of loans from $1,000 to $40,000.
Where is Lending Club located?
Currently, the headquarters of Lending Club is located in San Francisco, California. It was founded by Renaud Laplanche and its chief executive officer is Scott Sanborn.
Are Lending Tree and Lending Club the same?
No. Lending Club is a peer-to-peer lending company, while LendingTree is an online lending marketplace that helps you get qualified to other lending companies through a pre-qualification process. For Lendingtree personal loans take a look at our full review.
Can you make money on Lending Club?
Yes, you can. One of the main attractions of Lending Club is that regular individuals or groups can invest their money to become part of the pool that Lending Club offers to buyers. Returns may range from 3% to 8% per year.
How is Lending Club doing?
In the past couple of months, Lending Club stocks have started to gain stability after a few years of decrease in value. Some investors are actually looking forward to a bounce back performance for Lending Club due to high revenue gains.
Does Lending Club call you?
Yes, it may. Lending Club has a verification process for all its borrowers to determine their eligibility for a loan. As part of that process, it may call the borrower or even the employer of the borrower to verify information he or she included in the application form.
Is Lending Club a good idea?
It depends on what you need the additional money for. It is a good way to obtain credit if you are having a hard time getting loans from banks, but it also has higher interest rates that can go as high as 30%.
Care credit vs Lending Club, which is better?
While Lending Club focuses on personal loans, Care Credit is a form of credit facility for health and wellness related expenses. It offers coverage for out of pocket expenses that are not covered by health insurance, and also offers financing for other health-related expenditures.
How many Lending Club loans can I have?
According to its terms, Lending Club allows a maximum of two active loans at the same time. However, there are some restrictions before you can have two active loans such as loan amount limit and required payment history.
Is the Lending Club a good idea for debt consolidation?
It can be, depending on the computation of the interest rates. If you cannot obtain any more loans through banks, Lending Club is a good idea to consolidate your debt provided that the interest rates you get are not too high that it’s bigger than that of your previous loans.
Which credit bureau does Lending Club use?
For assessment of borrowers, Lending Club using the FICO credit scoring model to assess eligibility. But for reporting defaults or late payments, Lending Club reports it to all three major credit bureaus: Experian, Equifax, and Transunion.
How to use Lending Club?
Both borrowers and lenders need to create an account with Lending Club to start the process. If you’re a borrower, you’ll have to submit certain requirements which Lending Club will assess to determine your loan eligibility.
Does Lending Club work on weekends?
Since it is an online platform, you can apply for loans with Lending Club on weekends. However, the processing of the loans are on business days only, so the processing will start on a Monday if you applied on a weekend.
Does Lending Club do mortgages?
Since Lending Club deals with personal loans, the cash that you will get from it can be used as mortgage payments as well as for other purchases or expenses. You can use it to pay off other loans as well when consolidating debt.
Is Lending Club going out of business?
No. While its growth has slowed down in recent years, Lending Club is still a very big company with considerable assets. It is also still listed in the New York Stock Exchange, and is still considered by many to be the largest peer-to-peer loan platform in the world.
Should I use Lending Club?
As with any loan facility, it will depend on your needs and current financial situation. The main benefit of Lending Club is easier application compared to banks, so if you are in a rush for extra cash, it might be a good option.
When does Lending Club post new loans?
Lending Club posts new loans four times each day at specific time intervals. Currently, their posting schedules are 2AM, 6AM, 10AM and 2PM Pacific Time.
Why is Lending Club stock down?
In the past months, Lending Club’s stock has seen a decline due to issues of profitability. Although the company has been turning in great revenue growth, it has been less successful in converting that into profit due to large expenditures and losses.
Lending Club Application
Applying for a loan in Lending Club is easy, but you also need to know the specifics so you can get the most out of it. Read on to find out more about getting a loan from Lending Club
How does Lending Club verify my income?
When you first apply for a loan in Lending Club, the company will ask a few documents from you such as recent pay slips, bank documents, and company documents, which will be used to verify your income.
How does Lending Club determine loan grade?
Lending Club makes use of your FICO credit score and credit attributes as among its basis to determine your loan grade. But it also uses a proprietary scoring models and other factors to set your loan grade.
What is the minimum credit score for Lending Club?
To qualify for a loan from Lending Club, you must have a minimum FICO credit score of at least 600. However, Lending Club also takes into consideration other factors in their approval process, so it’s best to have a credit score that’s as high as possible for better chances of getting approved.
How long does it take for Lending Club to fund?
According to Lending Club, the entire application process – from submitting the initial application to getting your loan – usually takes around 7 days. However, depending on your own documents and particular situation, it might take longer in some cases.
How long does Lending Club take to deposit money?
While the application process of Lending Club usually takes around 7 days, the actual time it takes for the money to appear in your bank account depends on the bank that you use, and can take a few days after the electronic transfer from Lending Club.
Does Lending Club verify employment?
Yes, it does. Aside from verifying the income of a client, Lending Club also takes steps to verify your employment and other sources of income to make sure that you have the capability to pay your loan.
Does Lending Club do a hard inquiry?
Yes, it does, but only after your loan is already approved and your money has already been deposited. For the initial application process or inquiry, Lending Club only does soft inquiry on your credit history.
How long does Lending Club take to review documents?
There’s no specific timetable regarding the checking of documents by Lending Club. Rather, the company sets a minimum of 7 days for the entire application process, which already includes the initial submission of application to approval or denial.
Where does Lending Club pull credit information from?
Lending Club does a soft inquiry or soft pull of your credit history prior to loan approval. It does not state specifically from which credit bureau, but since it reports to Experian, Transunion, and Equifax, it is safe to assume that it gets information from them too.
Why is Lending Club taking so long?
The amount of time Lending Club takes on reviewing your documents and approving or denying your application can depend on various factors such as your credit rating, the documents you submitted, employment history, among others.
Does Lending Club call your employer?
Yes, it does. Lending Club may call your employer as part of its initiatives to verify your income and work history. This is to help them decide whether you have the capacity to pay, which is critical in the approval of your loan.
Why does Lending Club need my bank account?
Lending Club needs to have some of your bank account details for at least two things: to enable them to deposit your loan once it is approved, and to gauge whether your financial history meets their requirements for loan approval.
Does Lending Club charge an origination fee?
Lending Club does charge its clients an origination fee, which is an upfront payment made for processing of the loan. The origination fee of Lending Club ranges from 1% to 6%, depending on the client’s application documents
How does Lending Club calculate debt to income ratio?
Lending Club uses the same formula as other lenders use to calculate debt to income ratio. You just need to add all your monthly debt payments (excluding non-debt payments such as utilities and phone bills) and divide it by your gross monthly income.
Getting an Approved Loan
You’ve got your loan application approved, great! But, what now? Get to know how to pay your loans, get a new one, or even close your account in our guide below.
Can you pay off Lending Club loans early?
Yes, you can. If you got extra cash and want to pay off your Lending Club loan, you can do so at any time. The monthly payments will stop and you will not be charged additional interest.
How to withdraw money from Lending Club?
One of the reasons Lending Club asks for your bank account details is so it could deposit the approved loan amount directly. There’s no need to go to Lending Club to withdraw your loan.
How to apply for a second loan with Lending Club?
Applying for a second loan with Lending Club will be the same as how you applied for the first. You just need to meet certain thresholds (combined loan not more than $50,000, on time payments on first loan, etc.) to qualify.
Will Lending Club sue me?
As with other lending institutions, Lending Club always has the right to pursue legal actions against clients should they deem it necessary. But Lending Club would treat that as a last resort, often going through more democratic means first.
Do Lending Club loans go on your credit report?
Yes, it does. Once a loan is approved, Lending Club reports the loan to the three major credit bureaus Experian, Equifax, and Transunion, but only after the loan has been deposited to the account of the client.
What happens if you default on a Lending Club loan?
Should you be delayed in your payments enough to make Lending Club treat it as a default, then your loan account will be charged-off, most often to third party companies so they can take over the account.
How to liquidate Lending Club account?
There are three ways to liquidate a Lending Club account, If you’re a borrower, you can pay any outstanding loan and request to close the account. If you’re a lender, you can have any remaining cash to be transferred to your bank account. If you don’t have any remaining loans or cash with Lending Club, you can call them to request closure.
Will Lending Club settle?
Depends. Like other lending companies, Lending Club would prefer if all clients pay their loans. But depending on your particular case, Lending Club, also like other lending companies, might consider negotiation and settlement.
Can you refinance your Lending Club loan?
Yes, you can search for other lending companies if you want to make your Lending Club loan a part of your debt consolidation plan. Also, if you were able to take out a second Lending Club loan, you can use that to pay off the first loan.
Can you skip a payment with Lending Club?
Late payments are almost always a part of any lending business, and Lending Club is no exception. You will be charged with a late payment fee though. Totally skipping a payment will most likely get your account treated as default.
Does a Lending Club loan hurt your credit?
Depends on your payment history. Any loan application that is reported to credit bureaus has the capacity to increase or decrease your credit score. It’s up to you to be diligent about payments to make sure your credit score improves.
Does Lending Club accept credit card payments?
No, it does not. You can only pay Lending Club loans via online payment, by check, by phone, or via direct cash payment when paying off your entire loan.
Does Lending Club defer payments?
Yes, it does. You can advise Lending Club should you be expecting a delay in your payment. You can even change your due date permanently. By default, Lending Club also has a 15 days grace period for payments.
How much money can you make with Lending Club?
It really depends on your investment attitude. Lending Club quotes a return rate of 3% to 8%, but it will also depend on how spread out your portfolio is, and how much you invested.
Robert is our in-house expert on personal loans and finance. He got an MBA, specializing in Finance, before joining the workforce. After working for multiple Fortune 500 companies in the past decade, he brings a wealth of knowledge and experience to the table.