LendingClub Personal Loans Review

What is LendingClub?

LendingClub is a peer-to-peer lending company that offers personal loans to borrowers with fair credit or better. The company has a strong reputation for customer service and financial education, and it offers a variety of features that make it a good option for borrowers who are looking for a straightforward loan.

Some of the benefits of using LendingClub include:

• Debt consolidation services: LendingClub offers a balance transfer loan that can be used to pay off credit card debt. This can help borrowers save money on interest and simplify their finances.
• Financial education: LendingClub offers a variety of financial education tools and resources, such as a credit score simulator and a debt repayment calculator. This can help borrowers improve their financial health and make informed decisions about their finances.
• Flexible repayment terms: LendingClub offers personal loans with repayment terms of 3 or 5 years. This gives borrowers the flexibility to choose a repayment term that fits their budget.
• No prepayment penalties: LendingClub does not charge prepayment penalties, so borrowers can save money by paying off their loans early.

However, there are also some downsides to using LendingClub:

• Origination fees: LendingClub charges an origination fee of 1-6% of the loan amount. This fee can add to the overall cost of the loan.
• Limited term lengths: LendingClub only offers personal loans with repayment terms of 3 or 5 years. This may not be enough flexibility for some borrowers.
• No mobile app: LendingClub does not have a mobile app, which can make it inconvenient to manage your loan on the go.

LendingClub Rates and Fees

 

 

What type of personal loans does LendingClub offer?

LendingClub offers personal loans that can be used for a variety of purposes, including:

• Debt consolidation: LendingClub can help you consolidate your high-interest credit card debt into a single, lower-interest loan. This can save you money on interest and simplify your monthly payments.
• Credit card refinancing: If you have a good credit score, you may be able to refinance your credit card debt with a LendingClub personal loan at a lower interest rate. This can save you money on interest in the long run.
• Home improvement: If you need to make home improvements, a LendingClub personal loan can help you finance the project. You can use the loan to pay for things like renovations, repairs, or new appliances.
• Home purchase: If you're looking to buy a home, a LendingClub personal loan can help you cover the down payment or closing costs. You can also use the loan to pay for home repairs or renovations.
• Major purchase: If you need to make a major purchase, such as a car or a new piece of furniture, a LendingClub personal loan can help you finance it. You can use the loan to cover the cost of the purchase and pay it off over time.
• Car financing: If you need to finance a car, a LendingClub personal loan can be a good option. You can use the loan to cover the cost of the car and pay it off over time.
• Business loan: If you're self-employed or own a small business, a LendingClub personal loan can help you finance your business needs. You can use the loan to cover things like inventory, marketing, or equipment purchases.
• Vacation: If you're planning a vacation, a LendingClub personal loan can help you finance the trip. You can use the loan to cover the cost of airfare, hotels, and other expenses.
• Medical expenses: If you have unexpected medical expenses, a LendingClub personal loan can help you cover them. You can use the loan to pay for doctor's visits, hospital bills, or prescription drugs.
• Moving and relocation costs: If you're moving to a new city or state, a LendingClub personal loan can help you cover the cost of moving expenses. You can use the loan to pay for things like moving trucks, storage, and temporary housing.

How to qualify with LendingClub

LendingClub provides loans to residents of all 50 states. To be eligible, you must:

• Be at least 18 years old.
• Be a U.S. citizen, permanent resident, or individual in the U.S. on a long-term visa.
• Have a verifiable bank account.
• Have a minimum credit score of 660.

LendingClub Loan Approval Factors

In addition to your credit score, LendingClub considers the following factors when evaluating your loan application:

• Debt-to-income ratio
• Credit history
• Number of open accounts
• Usage and payment history on open accounts
• Recent credit activity

How to Improve Your Chances of Approval

A strong performance in one area can compensate for weaknesses in other areas, as long as your overall credit rating is at least a D5. Additionally, if you apply with a co-applicant who has good credit, it may increase your chances of approval.

Here are some tips to improve your chances of approval:

• Pay down your debt.
• Increase the length of your credit history.
• Open new accounts responsibly.
• Make your payments on time.
• Avoid making any new inquiries.

If you're not sure if you're eligible for a loan from LendingClub, you can use their online pre-qualification tool to get an estimate of your chances of approval.

How does LendingClub compare to other lenders?

Here is how LendingClub compares to other lenders:

SoFi

• Pros:
  • Lower interest rates than LendingClub
  • Shorter repayment terms
  • Good customer service
• Cons:
  • Higher origination fees than LendingClub
  • Not as flexible with repayment terms

Earnest

• Pros:
  • Flexible repayment terms
  • No origination fees
  • Good customer service
• Cons:
  • Interest rates are not as low as SoFi
  • Not available in all states

Upstart

• Pros:
  • Lower interest rates than LendingClub for borrowers with good credit
  • Uses artificial intelligence to assess borrowers' creditworthiness
• Cons:
  • Higher origination fees than LendingClub
  • Not available in all states

Here is a table that summarizes the key differences between LendingClub and other lenders: