If you’re someone who is looking to get a personal loan to cover a cost or purchase, you might not realize how many options you have. Personal loans are becoming increasingly popular – there are now more personal loan providers than ever before. While traditional lenders used to crowd the personal loan space, there are now hundreds of online lenders that also provide great personal loan services. This means as a consumer you’re a bit spoiled for choice. You no longer need to use a brick-and-mortar bank if you want to obtain a personal loan.
While there are many online lenders that provide financing for their customers, there are now some online lenders that also provide a peer-to-peer marketplace for their customers. They allow investors to lend money to people based off their creditworthiness. This means that the majority of the funds come from other individuals. It’s a fairly new online concept that has become increasingly popular.
One of the leaders in this new field is LendingClub. If you’re looking for LendingClub reviews, you’ve come to the right place. This LendingClub review will take a deeper look at LendingClub and how they might be able to help you obtain the personal loan that you’re looking for. If you’re someone who is considering a LendingClub personal loan, reading LendingClub club personal loan reviews will be crucial in ensuring that you choose the right lender. Read ahead!
LendingClub: The Company
LendingClub is a personal loan company that facilitates loans through a peer-to-peer lending network. Investors provide money for personal loans with the expectation that they receive interest for compensation. The company first started in 2006, and is now headquartered in San Francisco, California.
LendingClub is a publicly traded company. They report an annual revenue of around half a billion dollars per year! In 2016, the company was overhauled due to a scandal including management and some of the company’s loans.
LendingClub Personal Loan Features
If you’re going to obtain a loan from lending club, it’s important that you understand the key features of their loans. You have plenty of personal loan options, so there is no value in accepting a loan offer from a company that doesn’t provide you with the features you’re looking for.
LendingClub Personal Loan APR: 6.16% to 35.89%
Minimum Loan Amount: $1,000
Maximum Loan Amount: $40,000
All LendingClub personal loans are unsecured personal loans.
As mentioned previously, one of the key features of LendingClub is the fact that it is a peer-to-peer service. This means investors are providing you with the funds you need. In turn, you can also be an investor and provide funds for other people seeking to borrow money. This creates a greater degree of flexibility for people looking to borrow money.
LendingClub is an online lender which helps speed up the process. While it can take up to a week to receive funding in certain instances, it’s still a great option if you’re looking get money quickly. LendingClub can get you money much faster than a traditional loan, such as a bank or credit union.
Lending club has good and bad interest rates, the one you receive will depend on your personal credit score. For example, their lowest interest rate of 6.16% is one of the lowest rates in the industry. While their highest interest rate of 35.89% is higher than some credit card interest rates. There is also a 1-6% origination fee depending on the circumstances of your loan.
Some personal loan companies only offer one term length. This creates issues for people who need a bit more flexibility. Fortunately, at LendingClub, there are two different loan terms for you to choose from. You can choose between three and five years, this can help provide you with a longer term if you need more time to pay back the loan.
Low Credit Score Requirements
Another feature that sets LendingClub out from the rest of the pack is their low credit requirements. They have one of the lowest credit score requirements on the market. You can receive a loan with just a credit score of 600. This is a great option for those who need help but don’t have solid credit history. This being said, you must have three years of credit history to apply for a loan.
What is a Personal Loan?
Personal loans are a very basic form of finance that help consumers use funds for whatever they please. If you’re looking for a loan, but you don’t want to be told how to use the funds, a personal loan is an awesome option. Personal loans are loans provided by a lender with no specific purpose – you don’t have to purchase a specific item as you do with a mortgage or auto loan.
For this reason, they’re a very attractive form of finance for a lot of consumers. If you want to obtain a personal loan, there are two primary types: secured and unsecured. Secured loans are tied to an asset, unsecured loans are not. Secured loans typically have lower interest rates than unsecured loans as they are riskier for lenders and investors.
Uses for Personal Loans
If you’re thinking of obtaining a personal loan, you might be wondering what some of the common uses for personal loans are. Personal loans are obtained for a variety of reasons – as mentioned previously, you don’t need a specific reason to obtain a personal loan if you want to one. In this section of our review, we’ll take a look at some of the most popular reasons people apply for personal loans. Check them out below!
If you’re in an emergency and you don’t have time to get the money you need to cover expenses, personal loans are often a good option. Whether it be a medical bill or a burst water pipe, personal loans can help you get the funding you need to improve your current situation.
Cash Flow Issues
Personal loans can also be good for people have cash flow issues. For example, if you’re a student or seasonal worker, you might use a personal loan to help you bridge a gap in cash flow. It’s a great way to ensure that you have the money you need to keep moving forward in life.
Another extremely common use of personal loans is debt consolidation. If you want to ensure that you don’t end up with debt issues, a personal loan might be able to help you reduce your current interest rates. Plenty of people use debt consolidation to reduce the interest they’re currently paying on their credit cards. You use the funds from your consolidation to pay off your credit card debt and then pay back the loan over the term of the loan. This only works if your interest rate on your personal loan is less than your credit card!
Pros and Cons of LendingClub Personal Loans
While you probably already have a decent idea if LendingClub is right for you, it’s always important to make sure that know the advantages and disadvantages of using the company. In this section, we’ll give you a precise overview of LendingClub to help you gauge if they’re the lender you want to use.
- Low Credit Requirements – With a minimum score of 600, LendingClub is one of the best lenders for low credit scores.
- Online Platform – Their online platform makes it easy to borrow money without having to go to a bank or credit union.
- Low Rates for Good Credit – If you have a good credit score, you can find some of the industry’s best interest rates at LendingClub.
- Flexible Terms – With two options for terms, you can set up your loan for the way you want to borrow.
- Experience – LendingClub has provided customers with billions of dollars’ worth of finance. They have the experience to help you get the money you need.
- Joint Application – LendingClub is one of the only lenders that will allow you to make a joint application. As long as one borrowers is over 600, and the other is over 540, you’ll be able to apply for a joint loan.
- Not Fastest Option – LendingClub is not the quickest option in the industry, because it is a peer-to-peer network, funding can sometimes take up to a week.
- High Interest for Bad Credit Scores – If you have a bad credit score, you might find that the interest on your LendingClub loan is worse than your credit card!
- Origination Fees – LendingClub does have an origination fee that can reach up to 6%, substantially increasing the cost of your loan!
Preparing Your Application for LendingClub
If you want to position yourself to be accepted for a loan from lending club or any other personal loan provider, it’s important that you understand how to prepare your application. You should always be looking to provide the best application possible if you want to avoid rejection. If you do end up being rejected for a loan, it won’t be positive for your credit report. Below are some top tips on how to avoid improve your credit score for a loan.
Check Your Report and Look for Errors
While many people know their credit score, few people bother to look at their credit report. If you want to ensure that you have the best credit score possible, it’s important to make sure that you don’t overlook any errors on your report – they’re much more common than you may think! The credit reporting bodies are required to provide you with a free credit report every year, so you can obtain one without having to pay. After you check your report, you can request that items be removed, or you can contact a credit repair company to do this for you!
Pay Down Revolving Debt
If you have outstanding credit card debt or any other form of revolving debt – such as a personal line of credit – it’s important to pay down the debt as much as possible. While some people may not be able to afford to do this, it’s a good option if you want to
Consumer reputation is one of the best ways to see if a company is worth working with. If you want to work with a lender that you will enjoy, a huge indicator is how past customers have enjoyed their services. Customers review LendingClub online through a variety of different consumer watchdog groups. These groups also give their own personal rating for how reliable the company is. Check out their reputation on a number of consumer watchdog groups below – it’s important to read reviews of LendingClub!
Better Business Bureau (BBB) – LendingClub Reviews BBB
The Better Business Bureau provides a platform for customers to review companies they work with. They provide a rating as well, which is typically a product of reviews an independent research from the company. They’re one of the leading consumer watchdog groups in the nation. They give Lending Club an A-, the third highest rating available. This means LendingClub is a relatively trustworthy company. Though the BBB does note that LendingClub suffered from government action when they were accused of having hidden fees that were not advertised. You can find LendingClub loan reviews on the BBB website.
Consumer Affairs is effectively the same concept as the BBB. The company reviews and provides rating on companies. LendingClub is not accredited through Consumer Affairs, so there is not an official rating. Although the customer feedback rates LendingClub at a 1.3/5, this is from a very small sample size. If you want to find the LendingClub reviews at Consumer Affairs, head to their website.
As you can tell, LendingClub is a solid option if you want to work with a peer-to-peer lender with plenty of experience. They also provide you with the ability to cosign loans and choose from two different term times. Their rates are also great for those who have good credit scores. This company has matched consumers with billions of dollars in funding.
If you don’t think LendingClub is right for you, there are always other options on the market. Our website has plenty of other reviews – make sure to check them out. We also have tons of information on personal loans if you need more help.
Robert is our in-house expert on personal loans and finance. He got an MBA, specializing in Finance, before joining the workforce. After working for multiple Fortune 500 companies in the past decade, he brings a wealth of knowledge and experience to the table.