LendingClub is an online marketplace that offers personal loans between $1,000 and $40,000 and a bank with no branches. The fintech company works with a network of investors, or peer-to-peer lenders, and connects them with customers. The length of a loan can be either 36 or 60 months. The requirements for getting a loan are less strict than those of some other lenders, which makes it a good choice for people with fair to good credit.
Who Is LendingClub Best For?
LendingClub is best for people who need a small loan and have fair credit. But there is a cost to LendingClub loans, especially for people who don’t have the best credit. If a potential borrower is willing to apply with a co-borrower, they may be able to get a bigger loan and a better rate.
Personal loans from LendingClub are available in all 50 states right now. The company is working on making its products available to people who live in U.S. territories.
How to Get a Personal Loan from Lending Club
Applications for personal loans are either approved or turned down based on a number of factors. All lenders have different underwriting requirements, but most of them include information from the applicant’s credit report and other things that show they can pay back the loan, like their income. Even if you meet all of the below requirements, that doesn’t mean you’ll get the loan. However, they can help you decide if a personal loan is right for you.
Credit Score Requirements
To be eligible for a personal loan, applicants must have a FICO credit score of at least 600, while the average FICO score of LendingClub’s prime borrowers is 705. So, borrowers with fair to good credit may be able to get a loan, but only those with the best credit can get better APRs and larger loan amounts.
LendingClub doesn’t have any minimum income requirements for people who want to borrow money from them. Applicants must, however, show proof of income as part of the application process. Also, single applicants must have a DTI ratio of less than 40% and couples must have a DTI ratio of less than 35%. This means that the total amount of a borrower’s monthly debt payments can’t be more than 40% of her monthly gross income.
Signers and Applicants Together
LendingClub lets people who want to borrow money apply with someone else. This can help people with bad credit get a better interest rate or a bigger loan. When checking their rate, borrowers who want to apply with a co-borrower should choose “Two of Us.” The co-borrower will get an email to confirm that they are who they say they are and make it easier for them to fill out the necessary paperwork.
On the other hand, you can’t use co-signers when you borrow from LendingClub.
How to Use LendingClub to Get a Personal Loan
To get a personal loan, you usually have to prequalify for a rate, fill out a formal application, and wait for the loan to be approved. To get a personal loan from LendingClub, do the following:
Look at your price: Like many other online lenders, LendingClub lets people who want to borrow money look at the APRs before they apply. Applicants give their name, income, home address, and contact information to start the process. This can be done online and only requires a soft credit check, so it won’t hurt the applicant’s credit score.
Pick one offer: The online tool then gives the customer multiple loan offers with different loan amounts, interest rates, annual percentage rates (APRs), monthly payments, and loan terms that they can change. The person who wants to borrow money can then choose the type of loan that fits her needs and budget.
Check information about yourself: After choosing a loan offer, borrowers must give their Social Security number (SSN) and information about their income and jobs. Once the applicant has been checked out, they can agree to the loan terms and add their banking information. If the applicant needs to send in more information or documents, LendingClub updates their online dashboard.
Wait for funds and confirmation: Once a borrower’s application is complete and their information has been verified, LendingClub looks for investors on its marketplace to complete a funding match. LendingClub does a hard credit check, and the loan money is sent directly to the borrower’s bank account within about five business days. For debt consolidation, the money could also be sent directly to third-party creditors.
Start making payments: Autopay is the best way to pay back a loan from LendingClub. But you can also pay by check, over the phone, or by wiring money. The first loan payment is due one month after the borrower gets the loan money.
Time to Get Money
Most of the time, it takes LendingClub borrowers up to five business days to get their loan money. LendingClub recommends that applicants check the status of their application often and make sure that all of the required documents have been sent. This will speed up the funding process.
LendingclubFeatures and perks
Payment dates can be changed: Borrowers with a good current account can change when their payments are due, either temporarily or permanently. LendingClub borrowers can make a permanent change by logging into their online account and going to the Payment Due Date section. They can also make the change over the phone. Changes to temporary payment dates must be made by phone or email at least three days before the current due date.
Online account management: At the moment, the LendingClub mobile app is only for banking products. But LendingClub’s website is set up so that it can be used on mobile devices. This makes it easy for customers to check on the status of their loan applications, loan details, and autopay information.
There are more services: LendingClub also offers auto refinancing and financing for people who need medical care. Also, since LendingClub recently bought Radius Bank, it is now thought of as a digital marketplace bank.
Note: The Better Business Bureau (BBB) says that the name and logo of LendingClub have been used in loan scams to get people to pay security, insurance, or other fees. LendingClub does not charge any application fees up front if you want to borrow money.
Because of this, you should report as a scam any company that claims to be LendingClub and charges these kinds of fees. Fraudulent advanced fees are not the same as LendingClub’s standard origination fees, which are taken out of the loan funds when they are given out.