Briefly About LendingClub
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LendingClub Installment Loans Review
Lending Club is a peer-to-peer lending company based in California and established in 2006. The company boasts that it was the first peer-to-peer lending company that registered its offerings as securities with the SEC (Securities and Exchange Commission), as well as offering loan trading on the secondary market.
Lending Club boasts that it aims to help Americans achieve their goals by changing how credit can be accessed and allowing borrowers to connect with potential investors. The company is focused on ethical lending and attempts to lead the way with their responsible business practices, which purport to bring more opportunities for customers and greater value for investors. Lending Club aims to streamline the lending process and allow more people to easily access credit. Through its technology background, the company aims to use innovative solutions in order to help more people achieve their goals.
The company also has an additional arm that offers direct to consumer loans through WebBank, an FDIC-insured industrial bank based in Utah. The loans are assigned to other financial institutions, not funded by investors.
As Lending Club reviews will aim to do, the following review will analyze the offerings from the company, from Lending Club installment loans, evaluating everything from fees to Lending Club approval time and how easy it is to create an application.
Why get an Installment Loan from LendingClub?
Lending Club installment loans can be for anything from credit card consolidation loans, to balance transfer loans, to debt consolidation and even personal loans, such as for home improvement. Offering from $1,000 and up to $40,000 per loan, the company claim that you can begin receiving your money within four days of being accepted for the loan. With over 3 million customers and $50 billion already borrowed, Lending Club’s track record shows it is popular with customers.
The Lending Club personal loans from Lending Club are unsecured, meaning they won’t go against your house or car. This is a bonus for some people, who would be concerned that a lack of repayment may affect their property. The shorter terms offered from such loans are often beneficial for those who might want to take out a loan under these conditions.
Once you have opted for a Lending Club loan, Lending Club reviews your application in order to determine whether it would be the right company to offer you a loan. This involves a soft credit check and then a hard credit check; the former won’t affect your credit score, but the latter will. The process is no more complex than applying for any other type of loan, such as an online application for a mortgage.
What does LendingClub offer?
Lending Club is especially useful for those who want to apply for a joint loan – which some providers don’t offer. The option means that the conditions are less stringent and are spread out among the two cosigners. Typically, your combined debt-to-income ratio would be 35%.
Lending Club installment loans can be suitable for a wide range of needs. The no-collateral personal loans could suit home improvement works. Many people would rather leverage their creditworthiness rather than their home’s equity, which allows the money from the loan to be spent in a freer way. The loans also come with no prepayment fees, meaning should your lifestyle be the reason for this type of loan, you won’t be penalized for paying it back earlier than the terms state.
Your Lending Club payment of the loan is deposited directly into your account, usually within four working days. This means you don’t have to wait for approval, home appraisals, or bank paperwork to begin using the money.
To be able to take out a Lending Club loan, your credit score needs to read as good to excellent. All loan providers differ on credit score and there is usually some room to maneuver, depending on each case. For Lending Club, a credit score of 600 or more is ideal. Income is a huge factor when it comes to taking out a loan, too. While the median average household income is around $60,000, Lending Club prefers a median average income of around $85,000. Those considered to be eligible for a Lending Club loan will also have a low debt-to-income ratio - with the maximum usually around 40%.
Cons & Pros
- Can get a joint loan with a 35% DTI
- No prepayment fees
- Money within four working days
- Lending Club app for ease of use
- Credit score needs to be 600 or higher to be eligible
- Need to have a higher-than-median annual income
- Iowan residents aren’t eligible
How to apply for a LendingClub Installment Loan?
To apply for a Lending Club installment loan, you will first undergo a soft credit check while you check your rate and determine if you fit the Lending Club requirements. These early checks will determine the purpose of your loan, the amount you want to borrow, who is applying, your basic personal details, and your total annual income.
Once Lending Club reviews this, you will be issued with a breakdown, including the amount you are eligible to borrow, the APR and Lending Club rates, the monthly repayment balance, the origination fee, and the terms of the loan. You will undergo a soft credit check and a pool of investors from Lending Club will review you and decide if they want to fund your loan. Once someone has approved the loan, you will then undergo a hard credit check – which can affect your credit score.
Rates, Terms and Fees
Lending Club offers loans ranging from $1,000 all the way up to $40,000, with the terms of these loans dependent on a multitude of factors. Usually, these terms are between 6.95% and 35.89%. The terms of the loans involve analysis of a variety of factors from credit history to debt-to-income ratio and repayment terms.
For most people, a rundown of the fees is the most important aspect in Lending Club reviews. Lending Club charges an origination fee of 1% to 6%, depending on credit score. You would also be charged $15 should a monthly repayment bounce. A late payment fee of $15 or 5% of the total (the greater figure) is also required should you miss a payment.
The origination fee is taken out of the loan proceeds beforehand. So, when looking at borrowing, you should calculate the origination fee into any amount, as you will only receive the figure minus the origination fee, yet will need to pay the entirety of the loan amount back.
As most Lending Club reviews state, Lending Club boasts some of the best installment loans, with a simple process to receive up to $40,000 within four days. Many factors are taken into account, but the benefits of Lending Club are the streamlined nature of the process and the way in which joint applications can be processed with a 35% DTI.