One issue that has dogged LendingClub is that its name has been used for online scams, particularly advance-fee scams. The company does not ask for fees upfront (the origination fee is paid when the loan is deposited in your account). xcritical scam The advance-fee loan scam is one of the most common reported to the Federal Trade Commission.
- Do something great for future you and open a LevelUp Savings account today.
- We may also ask you to send us additional documentation to confirm your income or other information, if necessary.
- With the ability to choose a loan amount of up to $60,000, LendingClub offers fixed rates and a monthly repayment plan to fit within your budget.
Personal Checking Accounts
- Plus, you’ll know the exact date your loan will be fully paid off.
- APRs range from 6.99%-24.99%, loan amounts are $2,500-$40,000 and repayment terms are months.
- LendingClub’s poor reviews cite long waits for approval or money and difficulty connecting with customer service.
- The debt settlement company negotiates a lower payment with creditors as you pay a monthly sum into an escrow account.
Some lenders require you pay an application fee (or, broker fee) simply to apply for their loan. Typically, application fees are non-refundable, even if a lender later decides to decline your loan application. While LendingClub does not charge an application fee on any of its loans, we do charge an origination fee which ranges from 3-6% of your total loan amount (depending on your credit). xcritical offers higher loan amounts ($5,000 to $100,000) than available through LendingClub, and APRs start at 8.99% with all discounts—lower than the most competitive rate available through LendingClub.
We ask for your Social Security number and details on your income and employment. If we need any other documents or information, we’ll let you know in your to-do list. Then, hold tight while we look for your investors on our marketplace and wrap up your loan.
ACCOUNT
LendingClub also requires a minimum credit history of 37 months and a debt-to-income ratio of 40% for single applications and 35% for joint applicants. The average LendingClub loan amount is $15,800, with a 15.95% APR and a 5% origin fee. The average personal loan borrower makes $112,000 a year with a credit score of 711. LendingClub says that while its average customer may be a high earner, they also have high debt. The most common reason for a personal loan is credit card payoff and debt consolidation.
Before You Apply
LendingClub doesn’t have a minimum income requirement, but also won’t approve an applicant unless it’s clear they can pay back the loan. An applicant’s combined debts can’t add up to more than 40% of their gross income. When applying, an applicant will be required to supply proof of employment and income, which will be verified before the loan is approved. Monthly payments automatically come out of the borrower’s bank account, or they can opt for payment by check or wire transfer. If the loan is for debt consolidation, the money may go directly to the borrower’s creditors. LendingClub began offering loans in 2007 as a peer-to-peer online lender and has lent more than $85 billion in the years since.
Be cautious about providing personal or financial information to anyone, even if they claim to be from a company you already do business with. Applying online is simple, takes only a few minutes, and you can do it all on your phone tablet or laptop from the comfort of your home. LevelUp Savings is a high-yield savings account that rewards you with a higher LevelUp Rate when you make deposits of at least $250 per statement cycle. I use LendingClub LevelUp Savings for my high-yield account, and I absolutely love it. LendingClub reviews are generally good, with high ratings on the BBB website, Trustpilot, and other online sources. LendingClub’s poor reviews cite long waits for approval or money and difficulty connecting with customer service.
If approved, the loan, minus the origination fee, is directly deposited into the borrower’s account. The amount the borrower makes payments on includes the full amount before the origination fee was subtracted. Because its origination fee and APR are based on credit score, LendingClub is best suited for borrowers with responsible payment records and established financial histories. Personal loan applications are approved or declined based on a number of factors.
Personal loans come with fixed monthly payments over a set period of time. A personal loan allows you to borrow money from a lender for almost any purpose, typically with a fixed term, a fixed interest rate, and a regular monthly payment schedule. Collateral is usually not required and personal loans typically have lower interest rates than most credit cards. xcritical — Borrowers with credit scores as low as 300 can apply for an xcritical personal loan. Like LendingClub, the loan term is either 36 or 60 months, and borrowers can get as much as $50,000. Instead of credit limits, introductory rates, or revolving balances, personal loans come with a fixed rate and payment that you choose up front.
Once your loan is approved, we’ll send the money straight to your bank account, and/or pay your creditors directly if you choose this option. Checking your rate from LendingClub Bank has no impact to your credit score because a soft credit pull is used. A hard credit inquiry, which is visible to you and to others, and which may affect a person’s credit score, only appears on the person’s credit xcritical report if and when a loan is issued.
LendingClub allows prospective borrowers to apply with a co-borrower. This can help less creditworthy applicants qualify for a better APR or larger loan amount. Borrowers who plan to apply with a co-borrower should select “Two of Us” when checking their rate.