LendingClub Personal Loan 2022 Review? In this post, you will find the breakdown of some of the benefits and drawbacks of LendingClub personal loans, plus other information you need to know. LendingClub is a peer-to-peer organization that acts as a broker to match investors with potential borrowers.
Members can take out personal and business loans and also take advantage of auto and medical financing. However, instead of a bank or financial institution, investors act as lenders to fund your loan. Keep reading to find out more.
LendingClub Personal Loan 2022 Review – LendingClub
LendingClub’s unsecured personal loans range from $1,000 to $40,000 . This loan comes with decent annual percentage rates (APRs), though not the lowest available. The company charges origination fees and requires fair to excellent credit to qualify for the loan.
LendingClub Personal Loan Pros & Cons
Below are the advantages and disadvantages of the LendingClub personal loan.
- It offers joint loan options.
- Fast funding after approval
- Offers direct payment to creditors with debt consolidation loans.
- Easy credit check with pre-qualification.
- Offers the option to change the payment date.
- Borrowers can select from two repayment term options only.
- It charges an origination fee.
These are the pros and cons surrounding the loan platform.
Who is LendingClub Personal Loan Fit For? – LendingClub Personal Loans
Personal loans are a fit for good- or fair-credit borrowers who want to consolidate debt or finance large purchases. Though not the lowest-cost lender, LendingClub offers flexible payments, and it’s transparent about rates and fees.
The lender says half of its borrowers return for a second loan. So, personal loans are best for borrowers who have good or fair credit (FICO of 630 to 719).
Where LendingClub Personal Loans stand out – its Benefits and Offers
Here are what the Lending platform offers;
LendingClub’s balance transfer loan helps borrowers pay off credit cards and consolidate debt. The company will send your loan proceeds to up to 12 creditors, paying off your balances and simplifying the debt consolidation process. However, the balance transfer loan’s rate can be up to 5% points lower than other LendingClub loans, but they have the same terms and qualifications.
Joint Loan Options:
The company is one of the platforms that allow joint loan applications. The two borrowers’ maximum combined debt-to-income ratio, or DTI, on a joint loan must be beneath 40%.
Easy Credit pulls:
You can view your rate on LendingClub’s website. Accessing your rate generates a soft credit pull, which doesn’t impact your credit score. The company does a hard credit pull once a loan is given.
The Member Center portal helps customers manage their money and credit. Members can access information like their debt-to-income ratio, credit utilization, and credit score.
The ownside of LendingClub Personal Loans
Below are where the company falls short;
Fees without discounts:
LendingClub loans have origination fees from 2 – 6% and late fees. And there is no rate discount for setting up autopay, which some lenders offer to encourage borrowers to make payments early.
Borrowers can select from a 3- or 5-year loan repayment term. Thus, some lenders offer shorter or longer-term options. However, a longer-term lower your monthly payment but costs more in overall interest.
How to qualify for a LendingClub Personal Loan – LendingClub Loans
There are factors the company considers before issuing loans to people.
LendingClub considers information like
- Credit history
- Existing debts
- Cash flow when making a loan decision.
Below are the minimum requirements to get a loan.
- credit score: minimum of 600.
- Maximum DTI: 60%; 40% for joint applicants.
- Credit history: More than 18 months (minimum)
- A minimum number of accounts on credit report: Two revolving accounts.
Monthly income after paying other debts and living expenses should be enough to cover the new personal loan payments.
Personal Loan Fees and Penalties
Lending Club connects investors with potential borrowers and charges an origination fee of 3 Percent to 6 Percent for the service. The fee is taken out of the loan proceeds upfront. Take, for instance, if you borrow $10,000 with a 3.5 percent origination fee, you’ll only receive $9,650.
Keep in mind, though, that you’ll be making payments on the entire $10,000. So, you should factor in the origination fee when calculating the total amount you want to borrow.
LendingClub doesn’t charge a prepayment penalty, but it may charge a late fee.
Lending Club Loan Application Requirements
To qualify for lending club loan, you must:
- Be at least 18 years old.
- Be a U.S. citizen, permanent resident, or long-term visa holder.
- Have a bank account.
If you meet the above requirements, you can now proceed to apply for a loan.
How to apply for a loan with LendingClub
To apply for a personal loan do the following;
- Progress to https://www.lendingclub.com/loans/personal-loans
- Click on the “Check Your Rate” tab
- Choose how you want to apply and click on the Next button.
- You will be entering the following info on the application form;
- The purpose of the loan.
- Loan amount
- Whether you’re applying with someone else.
- Information about your co-borrower, if you have one.
- Your birthdate.
- Total annual income.
- Name, home address, and email address.
Follow the guide on the screen to further the application process.
What Next, After Submitting Your Lending Club Loan Application?
Based on the details you provided, LendingClub will provide a breakdown of the amount you can borrow and the APR, monthly payment, origination fee, and loan term.
The company will then perform a soft credit check (it won’t impact your credit). A good number of investors will review your loan and decide whether they want to fund it.
However, once your loan is approved by investors, LendingClub will deposit the funds into your account, and interest will start counting.
Lending Club Personal Loan Login
To access every information about your loan, you can do that by logging into the lending club website. You can as well manage your account, check your balance, and more, through the login Portal.
To log in to your account, you must have your email address and password.
How to Login to Lending Club Personal Loan Account
To sign in to your personal loan account, do the following;
- Go to https://www.lendingclub.com/loans/personal-loans
- Tap on the Sign in tab
- Select the Loan Account tab
- Enter your email address and password
- Tap on Sign In
You will successfully log into your loan account.
Lending Club Customer Service
Do you need help, or have a question? Choose a product, or find the company department you want to contact from the customer service page. To visit the page;
Tap on the Contact button at the bottom
Choose the topic or click on Contact Us to get their phone number