☑️ LendingClub helps borrowers connect with investors who are real people hoping to help others get the financial boost they need to progress
☑️ The entire process of applying, being approved, and receiving funding can be completed in as little as 7 days
☑️ It’s fast to get started, and LendingClub’s rate check uses a soft credit inquiry, meaning it has no effect on your credit score
- Loan type: Peer-to-peer lending
- Loan amounts: $1,000 - $40,000
- Repayment periods: Monthly over 3 to 5 years
- Borrowers with good credit may have a better chance at being matched with investors
LendingClub: What is it and how does it work?
LendingClub is a marketplace lender that helps borrowers get matched with investors willing the help fund their loans. One of the first to establish a “peer-to-peer” lending platform, the company has facilitated more than $38 billion in loans for 2.5 million customers since its founding in 2007.
The way it works is, investors purchase Notes corresponding to fractions of loans, thus becoming the lenders themselves. Then the LendingClub team steps in to facilitate loan transactions between you and your investor. As the borrower, you can request loans up to $40,000 and receive money in as little as 7 days.
Requirements: Do You Qualify?
To qualify for a loan from LendingClub, applicants should aim to meet the following criteria:
- Be at least 18 years old, or the state minimum for loans (whichever is higher).
- Have a good credit score of at least 600.
- Have an established credit history. Borrowers typically have a minimum credit history of 3 years, with 15 to 17 years being the average.
If you’re unemployed: You may still qualify for a loan from LendingClub
If you’re active duty: Service members and eligible dependents may still qualify for a loan from LendingClub, with rates falling within the limits of The Military Lending Act. Under these guidelines, only U.S. citizens and permanent residents can apply for a loan.
How to Get Started
The application process can be completed in a total of five easy steps. In as little as 7 days, you can complete the whole application, get approved, and receive your money.
Step 1 – Check your rate. The first thing you’re probably wondering about this type of loan is, “What type of interest am I looking at?” Find out quickly by entering the amount you’d like to borrow and specify your intentions for the loan, then specify if you’ll be applying for the loan on your own or with a cosigner. Once you’ve confirmed a few additional details, LendingClub will check the rate available to you. Checking your rate has no effect on your credit score.
Step 2 – Review your options. You’ll receive multiple loan offers after completing Step 1 and can choose the one you like best.
Step 3 – Complete the application and verify your information. To wrap up the application, you’ll be asked the verify your name, email, address, employment, and Social Security Number.
Step 4 – Hold tight while your application is reviewed. You can visit your account any time to check the status on your loan.
Step 5 – Receive your loan. After your loan gets approved and is backed by investors, your money will be automatically deposited into your verified bank account within 4 business days.
Is LendingClub safe?
Information shared with LendingClub is safely stores on the company’s secure interface. They’re further committed to customer financial security by providing a service line customers can call to ask about the validity of other calls they may receive pertaining to loans, and they provide helpful information about things they will never ask you to do, such as provide bank account details via email.
LendingClub has a good track record of customer satisfaction and has helped over 2.5 Million customers receiving over $38 Billion in funding since its founding in 2007.
How much can I borrow from LendingClub at one time?
Available loan amounts start at $1,000 and go up to $40,000.
Is there an origination fee I should know about?
Yes, there is an origination fee between 1% to 6% of the loan amount. This fee will be automatically deducted from your loan amount before your money gets deposited, so it’s good to consider how much you need to borrow and what fees will be incurred.
What about late fees?
LendingClub may charge a late fee of up to $15 or 5% of payment (whichever is greater) if your payment is 15 days past due.
If I can pay my loan back early, are there fees for doing so?
No, LendingClub doesn’t charge any prepayment fees, so if you’re able to pay off your loan early, there are no extra fees to worry about.
How are repayments made after I receive money in my account?
Once your loan has been funded and is in your account, repayments will be made on a monthly basis over a span of 3 to 5 years, depending on your loan terms.
How can I contact LendingClub?
You can call their customer service number at (888) 596-3157, or email customer support at firstname.lastname@example.org.
Where is LendingClub available?
LendingClub is available in 49 states and Washington, D.C.
Investment activity is limited in the following states: Alaska, New Mexico, North Carolina, Pennsylvania.
It is not available in the following states: Ohio
Disclaimer: This content and the opinions expressed here are the author’s alone and have not been provided, commissioned, or endorsed by any financial institution. All information was accurate at the time of publication but terms and conditions may change at any time.