LendingClub is a US-based financial company that provides different types of loans as well as opportunities for investors. This FinTech marketplace offers its services for individuals and business consumers alike. Founded in 2006, LendingClub operated as a peer-to-peer lending platform until October 2020. Since then, its focus has shifted to providing different financial products and services to simplify how people borrow and save money.
LendingClub Loan types
You may borrow up to $40,000 through a LendingClub personal loan. You may use proceeds from the loan for just about any legitimate purpose, such as to consolidate existing debt, finance a high-value purchase, go on a vacation or fund a home improvement project. These loans come with fixed interest rates and terms, ensuring that your monthly payment remains the same through the course of your loan. There are no prepayment fees or penalties. LendingClub provides different types of personal loans including, but not limited to:
- Balance Transfer Loans
- Emergency Loans
- Wedding Loans
- Credit Card Consolidation Loans
- Home Improvement Loans
- Debt Consolidation Loans
- Moving Loans.
LendingClub loans cannot be used for financing education after high school or investing, including cryptocurrencies.
You can apply for the following types of loans: balance transfer, emergency, wedding, credit card consolidation loans, home improvement, debt consolidation, moving loans.
|APR||6.34 - 35.89% |
|Amount||$1,000 - $40,000 |
|Term||3 - 5 years |
|Origination fee||3 - 6% |
As you can see from the table the maximum loan amount is $40,000, and the APR starts at 6.34% for the best graded borrowers. The loan period varies from 3 to 5 years.
LendingClub: Pros and Cons
|Pros: ||Cons: |
|Soft pull: LendingClub does a soft pull for pre-qualification, and it does not affect your credit score. However, if you decide to proceed with the loan, LendingClub will carry out a hard inquiry. ||Origination fee: Personal loans come with a 3 - 6% origination fee, depending on your creditworthiness. |
|High approval odds: You may qualify for a personal loan from LendingClub even with fair credit. ||Loan term options: You get to choose from just two loan terms for personal loans – 3 - 5 years. |
|No prepayment penalties: You may choose to pay off your loan ahead of time without worrying about incurring any penalty. ||Relatively high APR: LendingClub offers loans with APR ranging from 6.34% up to 35.89%. Additionally, it doesn’t offer any discounts for AutoPay, which many lenders do. |
|Joint applications: If you have a lower than required credit score for qualifying, you may increase the chances of approval by getting a co-borrower who has good to excellent credit. |
|Multiple loans: You may have two active personal loans at the same time, although their total amount cannot exceed $40,000. |
Applying for a LendingClub loan
You may visit the LendingClub website to prequalify for a loan. You can check the loan terms LendingClub is willing to offer without submitting a formal application, thus not affecting your credit score. If you are okay with the terms on offer, you may proceed with the application.
You can apply for a LendingClub loan if:
- You are over 18 years old
- You are a U.S. citizen, permanent resident, or live in the U.S. on a valid long term visa
- You have a verifiable bank account
LendingClub provides personal loans even to people with fair credit. Your approval odds with LendingClub are higher if your credit utilization ratio is below 40% and you have not filed for bankruptcy recently.
To prequalify, you need to provide the reason for the loan and the amount you seek. Other details you need to provide are your full name, date of birth, mobile phone number, email address, social security number, and total income.
If you decide to move forward after you are prequalified, you will need to provide a valid form of identity proof, such as a passport or a driver’s license. You may also expect LendingClub to carry out a hard inquiry at this stage. Then, LendingClub begins the process of looking for investors to fund your loan. The money gets to your bank account soon after your loan is funded. Approval time for LendingClub loans depends on multiple factors that include investor demand.
You may consider applying for a loan through LendingClub even if you don’t have good or excellent credit. Being able to use the money for practically any legitimate reason is a plus as well.
While just two loan terms of 3 - 5 years for personal loans appear to be a drawback, you may repay your loan in advance at any time without worrying about prepayment penalties. However, if you’re looking for a loan term that exceeds 60 months, you’ll need to consider other alternatives.
Not all lenders charge origination fees, which is why you need to think twice about paying one for a loan through LendingClub. So, is getting a personal loan from LendingClub a good idea? If stringent credit requirements stand in your way of getting a loan from a bank or a credit union, it might well be.
What is the LendingClub customer service phone number?
Is LendingClub legit?
Yes, LendingClub is a legitimate business and not a scam.
Is getting a loan from LendingClub worth it if I have fair credit?
Ratings on Trustpilot show that getting a loan from this business might be worth it if your creditworthiness is getting in the way of qualifying for a loan through a bank.
Is LendingClub safe?
LendingClub Bank, N.A. is a member of the Federal Deposit Insurance Corporation (FDIC) and is viewed as a safe business. This business takes time to reply to and address complaints filed with the Better Business Bureau (BBB).
Does LendingClub affect your credit score?
Lending Club performs a soft credit pull during the application stage and this does not affect your credit score. However, once you accept the loan's terms and decide to move forward, Lending Club carries out a hard pull. This may have a slight effect on your credit score.
Does LendingClub have an app?
LendingClub does not have apps for mobile devices yet.
Can you have more than one loan with LendingClub?
Yes, you may have two personal loans from LendingClub at the same time, provided the total outstanding amount of both does not exceed $40,000.