LendingClub Personal Loan Review 2024: Is It Worth It? TIME Stamped

After you’ve signed it, LendingClub will either deposit your funds into your personal bank account or repay your original creditors. Requesting prequalified rates on Credible is free and doesn’t affect your credit score. However, applying for or closing a loan will involve a hard credit pull that impacts your credit score and closing a loan will result in costs to you. If you are turned down by LendingClub, or don’t feel the terms offered a good financial solution for you, there are other options to get a loan with bad credit.

Just like LendingClub, Prosper offers joint loan applications, repayment terms between two and five years and a minimum credit score requirement of 600. That said, Prosper offers personal loan amounts up to $50,000 — a higher cap than LendingClub — and interest rates start slightly lower. This may make it a better lender if you’re looking to finance a bigger expense. A borrower applies for a loan on LendingClub’s website, providing credit, employment and income information. Those factors are screened for approval, and LendingClub makes an offer that includes an APR, origin fee, and loan term.

Alternatives to Personal Loans

In fact, most LendingClub borrowers on Bankrate take out loans specifically for debt consolidation. LightStream personal loans are available from $5,000 to $100,000 and APRs start below 8% (for some loan purposes) for borrowers who sign up for autopay; rates cap out at just over 24%. This means that LightStream borrowers with the highest credit scores can access rates much lower than the best offered by LendingClub. However, LightStream’s eligibility requirements make it more difficult to qualify, whereas LendingClub imposes a relatively low minimum score requirement.

If borrowers have trouble making payments consistently, LendingClub has a customer service email and phone number they can call to talk about options, which are specific to the borrower’s situation. If enough payments are missed, the borrower will default on their loan, which will be sent to a collections agency and have a negative impact on their credit. Your initial application uses a soft credit inquiry, which doesn’t hurt your credit score and isn’t viewable by other lenders. If you move forward and take out a loan, LendingClub will conduct a hard credit inquiry, which does have a slight negative impact on your credit score for up to two years.

OUR SERVICES

LendingClub also has not replied to any negative Trustpilot reviews at time of writing. Here is what borrowers who took out loans with LendingClub used their funds for. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.

She previously worked as an editor, a writer and a research analyst in industries ranging from health care to market research. She earned a bachelor’s degree in history from the University of California, Berkeley and a master’s degree in social sciences from the University of Chicago, with a focus on Soviet cultural history. Loan accounts can be managed online or through the company’s mobile app, which is available for both iOS and Android devices. In August 2020, the company discontinued its secondary trading platform, hosted by Folio, reducing liquidity for existing peer-to-peer investors.

1. If approved, the offer will include options for the fixed monthly payment for a 36 and 60-month loan, with the interest rates for each.
2. Mxcritical does not charge origination, prepayment or late fees, and borrowers can save 0.25% on their APR if they enroll in autopay.
3. The bank may allow some types of transactions to force post to your account (recurring subscription services, for example) but in that event, it will not charge a fee.
4. However, Avant’s loans are limited to $35,000, which is a lower limit than LendingClub’s.
5. The advance-fee loan scam is one of the most common reported to the Federal Trade Commission.

Mxcritical offers smaller personal loans than some competitors, with options ranging from $3,500 to $40,000—similar to loans offered by LendingClub. Rates start around 7%, but max out at around 20%, which is still significantly lower than LendingClub’s highest APRs. Mxcritical does not charge origination, prepayment or late fees, and borrowers can save 0.25% on their APR if they enroll in autopay. Debt Settlement — This is a debt-relief option in which you pay less than what you owe, and one consumers with a high amount of debt may want to consider. The debt settlement company negotiates a lower payment with creditors as you pay a monthly sum into an escrow account. It usually takes 2-3 years, then the creditor is paid with the lump sum.

Income

In 2020, LendingClub acquired Radius Bank and announced that it would be shutting down its peer-to-peer lending platform. Existing account holders will continue to collect interest on existing notes until each loan is paid off or goes into default, but no new loans are available for individual investing. It is also no longer possible to sell existing loans through a secondary marketplace, as was once the case.

We score lenders consistently, sometimes awarding partial points, so that you can make apples-to-apples comparisons when shopping around. Maureen Milliken has been writing about finance, banking, investment, entrepreneurship, real estate and other related topics for more than 30 years. She also is is the author of three mystery novels and two nonfiction books. LendingClub loan applicants must be at least 18 years old, have a Social Security number and verifiable bank account.

Mariner Finance offers loans as small as $1,000 and accepts joint applications, but applicants may have to visit a branch in one of 24 states. U.S. Bank Simple personal loan is best for borrowers who are seeking a small loan for an emergency expense. Ease of application and quick approval are the main points of satisfaction among most customers across the customer reviews the Bankrate team evaluated. The lender doesn’t allow loan proceeds to be used to cover post-secondary education-related expenses, investing, buying cryptocurrency or for illegal activities. Because of its funding timeline, LendingClub’s loans may also not be a good option for urgent expenses that may require same- or next-day funding. The 22 data points, culled from the lenders themselves, determine the overall rating.

It doesn’t have an income requirement, but uses debt-to-income ratio (how much money you owe versus how much you make) and credit history to determine if a borrower qualifies for a loan. That said, Avant has an even lower credit score requirement, offering loans to qualified applicants with a score of 550 and above. Avant also offers a wider range of repayment terms, ranging from 12 to 60 months. You may also be able to get your funds in one business day with Avant. Personal loan applications are approved or declined based on a number of factors. Meeting the requirements below won’t guarantee approval, but they can help you decide if a personal loan is the right fit for you.

Prospective borrowers who are willing to apply with a co-borrower may be able to qualify for a higher loan amount and more competitive rates. Keep in mind that any trustworthy lender will require that you submit to a hard credit inquiry at some point in the application process so xcritical scammers it can see your credit profile. If you prequalify for a LendingClub personal loan, you can formally apply and verify your information with official documentation.

The advance-fee loan scam is one of the most common reported to the Federal Trade Commission. LendingClub has a webpage that outlines what to look for to make sure the company you’re dealing with is legitimate and not a scammer. LendingClub doesn’t have a minimum income requirement, but also won’t approve an applicant unless it’s xcritical scammers clear they can pay back the loan.