LendingClub Review

LendingClub is currently one of the most reputable destinations for online personal loans. It is the largest online lender for personal loans in the USA. It turns out to be an ideal method to borrow for a credit card debt consolidation or a special need. LendingClub currently has more than $35.9 Billion in loans since its creation in 2007.

What is LendingClub?

LendingClub is a Peer-to-Peer lending platform which matches borrowers with investors or lenders who are ready and willing to fund the loans. It is efficient in serving borrowers with responsible payment records. Every emblematic LendingClub client has a lengthy credit history of about 17 years and a good credit score. The average annual income for a LendingClub borrower is $79,14. The average debt-to-income ratio is 18.29%.

How does LendingClub work?

LendingClub operates by screening potential borrowers and servicing the loans once they are approved. However, LendingClub allows the investors to make the final decisions on whether or not to lend the money depending on the risk at hand. This final decision is made based on the LendingClub grade while taking into consideration the credit and income data which is attributed to every approved borrower.

LendingClub has a typical annual percentage rate which ranges between 5.99% and 35.89%. Note that there is also an origination fee of 1% to 6% which is taken off the top of the loan. All approved borrowers can expect to receive the requested loan amount in their bank account within a period of one week. LendingClub offers a monthly repayment schedule which can be stretched over a period of 3 to 5 years.

Most loans offered by LendingClub are pursued by borrowers with good-to-excellent credit. That is, an average credit score of 700 and a low debt-to-income ratio of about 12%. Borrowers can come together and file a joint application in order to obtain a larger loan line due to their multiple sources of income.

Truth be told, LendingClub isn’t the best option for those with bad credit scores. A bad credit will lead to a high interest rate and a steep origination fee. If you have a bad credit, then we’ll advice that you go for a different loan which offers better rates.

Pros of LendingClub

  • It offers long loan terms which allow you to stretch payment for 3 to 5 years.
  • The LendingClub credit score has a minimum acceptance of 600.
  • Its soft pull eliminates the need for a hard credit inquiry to check rates.

Cons of LendingClub

  • You might have to wait the loan for longer periods of up to one week.
  • There is an assortment of other fees when operating with LendingClub.

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