Lending Club Review

Lending Club Reviews

LendingClub.com Features

APR: – Rates from 5.99% to 35.89%
Loan Amount: – Up to $40,000
Lender Fees: – A one-time fee of 1-6%
Credit Check: – Yes

 

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Being one of the peer-to-peer lending platforms since 2006, Lending Club has turned into one of the most reliable and biggest marketplaces.The main advantage of the lending Club is that it excludes the middleman from the process of lending, giving investors the chance to provide loans directly to borrowers for a higher return.

Lending Club customer service states that, as a rule, loans have to be paid off within a period of three years without penalty. The amount of fee the investors charge varies from 6% to 26%, with Lending Club charging its origination fee and small service charge. On average, interest rates are lower by 30 % if borrowers refinance their debt through Lending Club. So far, Lending Club has funded over $22 billion in loans and about two million borrowers managed to achieve their goals with the help of Lending Club.

A Utah-chartered industrial Bank, WebBank, usually provides loans, and the Lending Club purchases the loans by using individual investors’ capital. Investors are interested in lending because, in spite of taking some risks, they receive borrowers’ payments with a certain amount of interest rate.

How does Lending Club make money?

By charging both investors and borrowers fees for its services. The Club’s 25-grade system determines what interest rate borrowers can qualify for, with rates ranging from 5.99% to 35.89%.

Let us have a look at the Club’s fees in more detail. As the lending process is carried out online, Lending Club provides its services at lower costs than traditional banks. Applying for a loan will not result in negative consequences for your credit history, although, like any other loan it has to be paid back in due time, otherwise you have to pay penalty.
As soon as you qualify, you have to find the most suitable loan offer and wait for the funds be transferred to your account within a few days.

If, however, you can’t boast of good credit, you might have to pay a higher interest rate or will get no chance to get a loan at all. If you reside in Idaho, Maine, North Dakota, Nebraska and Rhode Island, you will not be able to apply for a loan from Lending Club.

Since Lending Club shares are traded on the NYSE under the ticker “LC”, you may get a profit buying shares of their common stock. One more variant is to become an investor funding loans in increments as little as $25. It is noteworthy that you can become both, an investor and a borrower. Visit LendingClub.com or call customer service at (888) 596-3157 for getting further information on the issue.

How much does Lending Club charge?

There is no charge for application fee, but the so-called origination fee is taken from the proceeds of a loan before they are deposited into a borrower’s bank account. The fee percentage varies from 1% to 6% of the total loan amount and depends on your loan, which, in its turn, results from your credit rating. This is an important factor to pay attention to, since you have to be sure that you request the right amount.

Debt repayment
The procedure of payments on your loan looks as follows. Payments start to be automatically withdrawn from your account the next month. If you decide to pay by check, be ready to pay additional $7 processing fee. It is up to you either to repay the full loan amount at any time or carry out larger payments without any penalties or fees. All you have to do is to inform customer support in this case.

Late payments
What is the policy like if there is an issue with your payment, be it a bounced check or an error with your bank account? – In this case a borrower is charged a $15 unsuccessful payment fee, but is granted a 15-day grace period before being charged. The amount of late fee makes either 5.00% or $15, whichever is greater. Furthermore, in the event of significant lateness, it might be reported to the credit bureaus or even collection agencies.

How much can a borrower apply for?

The amount of money a borrower can apply for ranges from $1,000 to $40,000. Loan terms make either 36 months or 60 months, and there is no prepayment penalty in case of early payment.

How to apply
The application process is as follows. You fill out a short questionnaire and check the rate you qualify for. If you are entitled to receive a loan, you will get offers from individual investors. Choose the most suitable loan, fill out an online application form and data verification process. Your loan application is processed online, and, if you get qualified, the money is deposited to your account within five days.


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