LendingClub is a well-established online lender with a focus on innovation. The company considers itself to be a trailblazer in the field of peer-to-peer lending, developing new ways of matching investors with customers to streamline the lending process.
LendingClub offers a diverse portfolio of personal loans to suit a wide variety of customers. They specialize in lending to borrowers who are financially stable and have strong credit histories.
LendingClub offers four specific types of personal loan, each of which targets a particular need. Each loan type has a maximum of $40,000.
Nearly 33% of LendingClub customers use their loans to pay off credit cards, making card consolidation one of the company’s most popular loan purposes.
When you receive approval for your loan amount, the company makes a direct deposit into your bank account. You can use those funds to pay the outstanding balances on your credit cards, leaving yourself with only one fixed monthly payment.
Because their rates are fixed, you’ll know exactly how much you owe every month until the loan is repaid. You can even schedule automatic payments from your bank account.
Like a credit card consolidation loan, a balance transfer loan pays off other debts, leaving you with one fixed-rate loan. You can use the money from your loan to pay off up to 12 creditors.
When you take out a balance transfer loan from LendingClub, the company pays your creditors directly. LendingClub provides a list of creditors who accept direct payments on their website, so you can easily check whether your accounts are eligible.
You can pay most kinds of debt with balance transfer loans, except for:
You can choose the amount you pay to each creditor. This amount will be regulated by a specified minimum and maximum stated on your loan agreement.
Payment timeframes for balance transfer loans:
An extra 1-3 business days should be allowed for payment processing.
You may pay an account down to zero if your loan agreement allows you to do so. However, if you want to close an account, you will have to contact the relevant lender directly. Otherwise, the loan will stay open for future use.
A debt consolidation loan is a lot like a credit card consolidation loan – you apply for the amount you need to pay off outstanding debt.
Pending approval, LendingClub will send you a list of offers with different interest rates and monthly payments. Once you choose an option, the loan capital will be deposited into your bank account to consolidate your higher-interest accounts.
The amount saved varies significantly between borrowers, but recent calculations showed average savings of more than $1,200.
Home improvement loans allow you to increase the value of your home while avoiding the risks of a home equity loan or line of credit (HELOC). Unlike HELOC loans, which usually require you to use your home as collateral, a home improvement loan does not immediately put your property ownership at risk in the event that you default.
Home improvement loans also tend to have faster, more straightforward application processes. You won’t have to wait for a home appraisal because the loan isn’t dependent on the value of your home. All you have to do is submit the required information, including the purpose of the loan, to LendingClub. Pending receipt and approval, they will send you a list of possible loan options.
The average time from application to transfer of funds is seven days. You can use your loan for any relevant project including:
LendingClub also offers personal loans for general purposes. These loans can be used to cover a wide variety of expenses – anything from paying for a wedding to covering veterinary expenses would be allowed. In fact, you can use the money for almost anything except for:
The exception to this is any loan for which a specific use is required for approval. For example, a home improvement loan cannot be used to cover business expenses or buy a car.
LendingClub offers terms of 36 or 60 months.
It is possible to take out a second loan while your first loan is still active. To be considered for a second loan, you must have a record of at least 3-12 months of consistent on-time payments.
LendingClub charges no application fees, so you won’t pay anything if your application isn’t approved. There are also no prepayment penalties, so you can pay off your loan early without penalty.
When you take out a loan with LendingClub, you pay a one-time fee of 1% to 6% of the total amount you borrow. The average origination fee is 5.2%, but the amount you pay will depend on your credit.
If you submit a payment more than 15 days after its due date, LendingClub may charge a fee to compensate the investors involved. The company’s standard late fee is $15 or 5.0% of your outstanding balance, whichever is greater. LendingClub only charges one fee per delayed payment.
In order to keep its rates accessible, LendingClub encourages borrowers to pay directly via ACH payments. This acronym stands for Automated Clearing House, a nationwide batch processing system. All ACH payments to LendingClub are fee-free, but the company does charge a $7 fee for payments by paper check.
LendingClub charges an annual percentage rate (APR), which is a combination of the origination fee and interest on the loan balance.
The APR on personal loans from LendingClub ranges from 7.99% to 35.89%, which is a typical range according to national averages. If you choose to apply, LendingClub will quote you a rate based on factors such as:
You can check your rate for free without affecting your credit score.
LendingClub offers loans of $1,000 to $40,000. Should you choose to carry two personal loans at once, the maximum combined amount you can borrow is $50,000. Your minimum loan amount may vary depending on state regulations.
LendingClub only accepts borrowers who:
Residents of Iowa, Guam, and Puerto Rico are not currently eligible to borrow from LendingClub.
The company’s typical borrowers tend to have good credit without derogatory marks on their credit report.
FICO’s range for “good” credit score starts at 670, and the minimum score among LendingClub borrowers for early 2019 was 680. If your credit score is in the fair to lower good range, you may have some difficulty getting your loan approved. Borrowers with “great” or “excellent” credit ratings typically qualify for LendingClub loans at very competitive rates.
Checking your rate or applying for a loan through LendingClub does not affect your credit score. The company uses only soft credit checks for these purposes. Soft credit checks are typical, but some lenders do conduct hard credit checks for application purposes, so LendingClub is a good option if you’re worried about having too many hard inquiries on your FICO report.
LendingClub will conduct a hard credit inquiry once you sign a loan agreement. Depending on your credit profile, LendingClub’s hard inquiry may affect your credit, but on-time payments will help you to bring your score back up in the event that it is affected. Consolidation loan customers generally report score increases in the long-term.
LendingClub accepts monthly payments via AutoPay, check, or phone.
LendingClub charges a $7 fee for payments by check. Payments by phone do not carry a fee. They do, however, take between one and two business days to process.
With LendingClub, you can make as many early or additional payments as you’d like. They do not charge a fee for either.
LendingClub offers customer support by email or phone. Email inquiries can be submitted via a form on the company’s website.
If you’d prefer to call, you can reach customer support at 888-596-3157.
The company’s customer support department is closed on Sundays.
LendingClub offers several strong options for borrowers who have good to excellent credit. If your FICO score is on the high end of the scale, you’re likely to get a good rate from this lender.
Since its founding in 2007, LendingClub has lent more than $50 billion to over 3 million customers. In addition to personal loans, LendingClub also offers business loans, auto refinancing, and payment options for medical patients
LendingClub has earned widespread recognition for its innovation, growth, and contributions to the online lending industry. Awards include: