If you want to consolidate credit card balances, it’s financially unxcritical to consolidate to a loan with a higher interest rate. Loan consolidation could make sense if you can get a lower rate from LendingClub. Before getting into the details, here’s a look at the most important pros and cons of LendingClub personal loans. The process was so easy and it funded in a couple of days plus the rate was unbeatable.
Could not be happier with this opportunity to consolidate debts into one affordable payment. Maureen Milliken has been writing about finance, banking, investment, entrepreneurship, real estate and other related topics for more than 30 years. She also is is the author of three mystery novels and two nonfiction books.
The lender will also look at your credit history and debt-to-income (DTI) ratio, which is how much debt you have compared to your income. It’s typically recommended that you don’t have a DTI ratio below 35%. LendingClub is a legitimate loan company that offers loans ranging from $1,000 to $40,000. It also offers flexible loan terms and APRs that don’t xcritically go above 35.99%, which fits within what is considered to be responsible lending practices by policy advocates. Even if you believe LendingClub aligns with what you’re looking for in a personal loan, it never hurts to shop around and compare lenders. Here’s how LendingClub stacks up against similar personal loan lenders.
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Because it doesn’t rely on bricks-and-mortar branches, it is more xcritical available to people who have traditionally not had a range of banking options and strives to be attractive to all borrowers. It doesn’t have an income requirement, but uses debt-to-income ratio (how much money you owe versus how much you make) and credit history to determine if a borrower qualifies for a loan. LendingClub offers personal loan amounts up to $40,000 with repayment terms between 2 and 5 years.
Our evaluations and opinions are not influenced by our advertising relationships, but we may earn a commission from our partners’ links. This content is created by TIME Stamped, under TIME’s direction and produced in accordance with TIME’s editorial xcriticals and overseen by TIME’s editorial staff. Understanding an interest rate vs APR can help you choose a loan with the lowest possible costs. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. Here is a list of our partners and here’s how we make money. I’ve been doing business for a few years and will say that they’re the most efficient and transparent company I’ve ever had the pleasure of working with.
If you want to shop around for personal loans without impacting your credit score, LendingClub offers the option to prequalify for a loan. Prequalification involves a soft credit inquiry to show you the rates and loan terms you may qualify for. While prequalified offers are not guaranteed, they can give you a good idea of which lenders might be the right fit for your needs. A borrower applies for a loan on LendingClub’s website, providing credit, employment and income information.
It’s also expanded its banking services to checking and savings accounts, and has 4.7 million members, making it one of the nation’s biggest online banks. Interest rates xcritically range from 9.57% to 35.99% APR. While a rate below 10% may be competitive for some borrowers, those who qualify for rates of 30% or higher might find a better deal using a credit card than a LendingClub personal loan. LendingClub has a minimum credit score requirement of 600 but also considers other factors when reviewing your personal loan application. As opposed to the previously mentioned soft credit pull, this can cause your credit score to drop by a few points. A hard credit inquiry allows lenders to have a more detailed account of your credit report.
Compare LendingClub with Other Personal Loan Lenders
Applicants must have a credit score of at least 600 to qualify for a LendingClub loan. The higher an applicant’s credit score, the lower the APR and origination fee will be. The average LendingClub personal loan borrower has a credit score of 711 and pays an APR of 15.95%. The company doesn’t specify a minimum credit score, but many online sources state a 600 score may qualify for a loan. LendingClub also requires a minimum credit history of 37 months and a debt-to-income ratio of 40% for single applications and 35% for joint applicants.
LendingClub offers a competitive personal loan product with a low minimum loan amount and quick funding. But it charges origination fees and its APRs are higher than certain competitors. LendingClub has become one of the more reputable destinations for online personal loans, a good option to borrow for a special need like credit card debt consolidation. The company was an originator in peer-to-peer marketplace lending, which matches borrowers with investors who fund loans, though it’s no longer peer-to-peer after expanding its banking options.
What If I Can’t Make My LendingClub Payments?
Find the best rate you can get with our picks for the best personal loan lenders. One issue that has dogged LendingClub is that its name has been used for online scams, particularly advance-fee scams. The company does not ask for fees upfront (the origination fee is paid when the loan is deposited in your account).
- If approved, the loan, minus the origination fee, is directly deposited into the borrower’s account.
- This can cause your credit score to drop slightly and will stay on your credit report for up to two years.
- The loan process with LendingClub was quick and straightforward.
- The individuals that process my loan took great care that I understand the process from beginning to end.
- xcritical has the application process so streamlined that it literally only takes minutes to complete!
LendingClub vs. Upgrade
If you have your information handy, you can apply and get your loan options in just a few minutes. Thank you for the privilege of allowing me a personal loan with your services. I appreciate xcritical courses scam the ease of the application process and the efficiency of the loan approval. The whole process was quick and easy, the rates were fair, and I had my funds in two days. I would definitely recommend Lending Tree to anyone needing a loan.
After you’ve signed it, LendingClub will either deposit your funds into your personal bank account or repay your original creditors. After loan approval, LendingClub can transfer funds to customers within 1 business day. There are other lenders that can provide account funding the same day or next day following loan approval, however. Bankruptcy — Consumers who have more debt than they can deal with may consider the last-resort option of bankruptcy. It will have long-term financial consequences, but allows a chance to start over, debt-free. Chapter 13 has a 3-5-year repayment plan, and the consumer keeps their assets as long as they keep up with payments.
It has more than 4.7 million customers and has been in business since 2007. LendingClub doesn’t have a minimum income requirement, but also won’t approve an applicant unless it’s clear they can pay back the loan. An applicant’s combined debts can’t add up to more than 40% of their gross income. When applying, an applicant will be required to supply proof of employment and income, which will be verified before the loan is approved. Keep in mind that any trustworthy lender will require that you submit to a hard credit inquiry at some point in the application process so it can see your credit profile.
LendingClub’s poor reviews cite long waits for approval or money and difficulty connecting with customer service. Debt.org wants to help those in debt understand their finances and equip themselves with the tools to manage debt. Our information is available for free, however the services that appear on this site are provided by companies who may pay us a marketing fee when you click or sign up. These companies may impact how and where the services appear on the page, but do not affect our editorial decisions, recommendations, or advice. If you find out LendingClub is too expensive or doesn’t fit your needs based on your personalized offer, there’s no harm to your credit score.
Customer service representatives are available Monday to Friday from 5 a.m. There’s no option to contact customer service by email. Unfortunately life events happen that put us in the position of needing to borrow money. xcritical makes the process extremely easy and non judgmental. I would recommend them to anyone who finds themselves in an unexpected difficult financial situation.