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- LendingClub offers loans for everything from vacations to medical expenses.
- You can get a LendingClub loan between $ 1,000 and $ 40,000 depending on your needs.
- You may qualify for a LendingClub loan with a lower credit score, but you may be paying a higher APR.
- See Insider’s Choices For The Best Personal Loans Â»
Loan amounts and interest rates
LendingClub loan amounts range from $ 1,000 to $ 40,000. The minimum amount you need to borrow varies by state. LendingClub accepts loan applications from residents of all 50 states.
Depending on your credit score and other financial factors, your APR will range from 7.04% to 35.89%, which is higher than some other big competitors. For example, the APR range of Best Egg is 5.99% to 29.99%, and that of Marcus of Goldman Sachs is 6.99% to 19.99%.
Advantages and disadvantages
How LendingClub works
LendingClub provides unsecured personal loans through WebBank (FDIC member) or LendingClub Bank, NA (FDIC member), depending on the origin of the loan request. An unsecured personal loan does not require any collateral, like a house or a car. These personal loans can be used for various purposes.
You can use LendingClub personal loans for a variety of purposes including debt consolidation, home improvement, and vacations. The loan term is either 36 months or 60 months. Certain amounts and term lengths may not be available in your state. You won’t pay a prepayment charge if you prepay your loan.
Once the verification process is complete, your funds will be sent to your bank account usually within two to four business days.
If LendingClub gives you a loan with a high interest rate, you can consider credit cards for people with bad credit and compare the rates between a card and a loan – you can get a lower APR and better. conditions with a credit card. Weighing the pros and cons of your decision will help you get the best deal possible.
Most LendingClub loans are approved within one day and you will likely receive your funds within two to four business days.
You can reach LendingClub through an email customer support form, or by calling Monday through Friday 5:00 a.m. to 5:00 p.m. PT, or Saturday 8:00 a.m. to 5:00 p.m. PT. LendingClub has a Help Center with detailed answers to frequently asked questions, sorted by topic.
What credit score do you need?
LendingClub does not have a formal minimum credit score requirement, unlike some comparable personal loan companies. However, the higher your credit score, the more likely you are to get a low rate.
If you need to access your credit report, you can get it for free from any of the three major credit bureaus at annualcreditreport.com weekly until April 20, 2022. This report will give you information about your payment and credit history, although it will not provide you with your credit score. Examining your credit report can help you spot errors and find areas for improvement.
If you check your loan rates with LendingClub, your credit score will not be affected because the company only generates a soft credit application. LendingClub will do a serious credit investigation once you receive a loan from the company, which will likely affect your credit score. A thorough investigation gives the lender a full view of your credit history, but can negatively impact your score.
LendingClub may be a good option for you if your credit is not at its best as there is no minimum credit requirement. However, it’s important to note that the lower your credit score, the higher your APR can be – and LendingClub rates go up to 35.89%.
Is LendingClub trustworthy?
LendingClub is a Better Business Bureau accredited business, but LendingClub is currently not rated by the BBB, a nonprofit focused on consumer protection and trust, due to ongoing government action. The BBB assesses businesses by judging business responses to consumer complaints, honesty of advertising, and clarity of business practices.
LendingClub has a recent alleged scandal. In 2018, the Federal Trade Commission filed a complaint against the company for deceptive lending practices, including imposing hidden fees, falsely letting customers believe they would be approved for a loan, and continuing to charge consumers who canceled their automatic payments or paid off their loans in full . LendingClub is also accused of withdrawing double payments from accounts and failing to provide consumers with privacy notices. The case is currently pending.
Due to the recent history of LendingClub, you may prefer to use another personal loan company.
Additionally, LendingClub has informed the BBB that the company name is used in an online loan scam. Some consumers apply for loans on sites other than LendingClub and are contacted by representatives who claim to be from the company. These representatives charge a fee before claiming to deposit loan funds, and often these funds are never received. To avoid any potential issues, be sure to verify that you are on the correct website and understand that LendingClub does not charge an upfront application fee.
How LendingClub Stacks Up
Although the rates depend on the unique circumstances of each borrower, LendingClub’s interest rates are higher than those offered by other comparable lenders. Here’s how LendingClub stacks up against the competition.
Marcus is offering an “on-time payment reward”. If you pay off your loan on time and in full every month for one year, you are allowed to skip one month of payments and interest will not accrue during that time. Marcus will then extend your loan for one month.
Marcus and LendingClub have no official minimum credit score requirement, but Marcus recommends a minimum credit score of 660 in a information post on its website. Best Egg’s credit score floor is 640. It’s important to note that the lower your credit score, the more likely you will have to pay a higher APR.
Marcus will not charge you any fees, including late fees. Instead, you’ll pay extra interest if you don’t pay on time, and your final payment will be more expensive. LendingClub and Best Egg will both charge you late fees of at least $ 15. Companies have almost identical set-up fees – LendingClub’s fee range is 1% to 6% of your loan amount, while Best Egg’s range is 0.99% to 5.99%.
You will receive your funds a little faster with Best Egg than with LendingClub. LendingClub says most customers will receive their funds within two to four business days, and Best Egg says the majority of customers will receive their money within one to three business days.