Lending Club
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Summary
At a Glance
At first glimpse, LendingClub stands out with affordable interest rates, loan terms, and features. Check out the key features of LendingClub:
- Purpose: LendingClub debt consolidation loan is a legal hack to pay off your existing debts at a fixed rate. LendingClub aims to lower your monthly payments and help you regain control of your high interest debts.
- Loan amount: Borrowers can opt for as small loans as $1,000 to as big as $40,000, catering to a wide audience of loan-takers
- Interest rates: LendingClub offers a low fixed Annual Percentage Rate. Depending on tenures and loan terms, your interest rate will be between 8.98% to 35.99%.
- Joint loan: The key difference between a co-borrower and co-signer is that co-borrowers are equally responsible for funds repayment. The repayment amount is split two-way. Individuals stuck with loan with bad credit can expect approval via joint loan options.
- Process: The lending score interface is easy to navigate. Its accessibility across devices allows you to apply for debt consolidation loans anytime, anywhere.
Fees and Charges
Wrapping your head around fee and charge structures is indispensable to your loan-accessing journey. LendingClub applies the following fees and charges:
- Wire transfer fee: Incoming wire transfers do not incur a fee. However, outgoing wire transfers do. If you initiate a domestic wire transfer, LendingClub will charge $30, whereas international ones charge $40.
- Overdraft fee: Most financial banks charge an overdraft fee when your bank balance is below minimum amount. LendingClub distinguishes itself by imposing no such charges on borrowers.
- Origination fee: LendingClub levies a one-time origination fee of your total funds. It ranges from 3% to 8%, depending on your loan amount and interest rates.
- Late fee: A delay in payments can result in charges. LendingClub offers a 15-day grace period to make your repayment, but failing to do so will require you to pay a fee.
- Prepayment penalty: Borrowers tend to pay off the entire fund amount if their financial situation elevates. If so, LendingClub charges no penalties for prepaying loans before the due date.
- CD early withdrawal: This fee applies to fixed deposits. If you choose to withdraw your funds before the tenure is up, LendingClub charges you with a Certificate of Deposits early withdrawal penalty. The fee amount is derived from the interest rate earned to date.
Eligibility Criteria for the Loan
Every banking institution imposes eligibility criteria to refine its audience. First, see if you qualify for the LendingClub debt consolidation loan in the following points:
- Credit score: To qualify for a LendingClub debt consolidation loan, you must maintain a credit score of at least 600. The average score of LendingClub borrowers is 705. Although customers with low credit scores can apply, LendingClub prioritizes competitive APRs and loan funds for credible buyers.
- U.S citizenship: You must be a U.S citizen. The fact that LendingClub loans are available in most states.
- Minimum income: The debt-to-income ratio or DTI must be within 40% for single borrowers. Other than this, there is no minimum income requirement set by LendingClub.
- Co-borrowers: By selecting the "Two of us" option to check your rate, you can qualify for better loan funds, terms, and APRs. The co-borrower is equally accountable and must adhere to the same loan terms for repayment.
- Legal age: You must be of legal age to apply for a LendingClub debt consolidation loan. The minimum age limit is 18.
Documents Required
Documentation is compulsory in applying for LendingClub debt consolidation loans, regardless of online or offline applications. This lender makes the following documents mandatory:
- Identity proof: A driver's license or a voter's ID helps vouch for your claimed identity. It proves your age and confirms your identity.
- Bank statements: Your statement allows LendingClub to oversee activity status, average income, and expenses.
- Lease agreement: It proves your rent amount on paper. The lender considers it before approving a debt consolidation loan application.
- Address proof: LendingClub approves loans only in the U.S. Therefore, address proof acts as residency confirmation during loan application assessment.
- Insurance: LendingClub makes insurance documents necessary to gauge your creditworthiness beyond credit scores.
- Pay stubs: Lenders require solid proof of employment status.
How to Apply?
Follow the following steps to apply for LendingClub debt consolidation loans:
- Review FICO score: Check your credit score before you get to the bottom of applications. As per your credit score, you can make an informed decision on whether your credit score needs aid, in which case you can opt for LendingClub's joint loan option.
- Pre-qualify APR: See where you fall in the 9.57% to 36% APR range. To do so, you must enter your income, contact details, name, and address. It will run a soft credit pull, leaving your credit score untouched.
- Choose offer: Browse customized loan terms, amounts, APRs, monthly payments, and interest rates. Select the offer that aligns the most with your requirements.
- Confirm personal details: Fill the application form correctly. To stay on the safer side, recheck all details before submitting.
- Funding: LendingClub is reported to approve loans within 2 hours. The funds will be credited to your account within 3 to 7 business working days.
- Repayment term: Pay a fixed amount every month. Ensure that you don't miss or skip payments.
Comparison
Terms and Conditions to look for
Terms and conditions of financial institutions form the wireframe of loans. Ensure you fully understand the following terms:
- Meet eligibility criteria: As you proceed, you can tick the checklist of qualifications. Ensure that you meet them all to maximize your approval chances.
- Understand rates: APR and interest rates help you make a financially sound decision. Compare rates from different lenders to find the best one. LendingClub provides rates that match your creditworthiness.
- Consider fees: LendingClub charges a one-time origination fee and a late fee of $15 or 5% of the loan amount. There are no processing or prepayment fees.
- Co-borrowers terms: Co-borrowers share the responsibility of loan repayment. What's more, signing joint loans can improve a bad credit score.
Other Products
LendingClub caters to your financial needs beyond debt consolidation loans. Study the following range of products to understand LendingClub better.
- Home loans: If renovation and remodeling is your dream, make it a reality with LendingClub. Use its competitive interest rates, tenures, and fund amounts to your leverage. Stop waiting around for equity hikes and take action today.
- Business loans: Avail loans of up to $500,000 for your startup. LendingClub offers reasonable interest rates built around customer-friendly terms and customized services.
- Auto refinancing: Automobile refinancing is a smart option for vehicle loans. It allows you to switch from partially paid car loans to loans on a new car, possibly decreasing your interest rates.
- Medical bills: Healthcare finances are a forte of LendingClub. They offer pocket-friendly APRs so you can meet extensive medical bills. It covers dentistry, hair, bariatric, fertility, and LASIK treatments.
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References
https://www.debt.org/credit/loans/personal/lending-club-review/
https://time.com/personal-finance/article/lendingclub-bank-review/
https://www.nerdwallet.com/reviews/loans/personal-loans/lendingclub-personal-loans
https://www.forbes.com/advisor/personal-loans/lendingclub-personal-loans-review/
https://www.bankrate.com/loans/personal-loans/reviews/lending-club/#compare
FAQ's
LendingClub bases approval off credit scores and debt-to-income or DTI ratio. If you're applying as a single applicant with a low credit score, it is a long shot for them to pass the green-light. However, you can certainly improve your chances with a joint loan.
When confident about your FICO score, expect your approval email within 2 business days. The funds will be credited to your account soon after.
Long answer short, economic loans of $1,000 to $40,000 attract borrowers to the platform. Moreover, the joint loan alternative allows people lacking good credit scores to redeem them. It is a rare feature of lenders, which puts LendingClub on borrowers' radar.
Further Readings
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