Introduction
| APR | 6.95% – 35.89% |
| Loan Amount | $1,000 – $40,000 |
| Loan Duration |
3 to 5 Years |
About
Lending Club is a U.S.-based peer-to-peer lending club which matches borrowers with investors willing to fund their loans. Currently, they have over 2.5 million customers and they have facilitated over $4.4 billion in loans since 2007. Lending Club is the largest online lender in the United States. When borrowers apply, their credit and income data are assigned a grade which only investors can see. That grade determines what interest rates the borrower will qualify for. As a borrower, you can apply online in minutes, select a loan offer suitable for you, and receive the money within 7 days deposited directly into your bank account.
Ideal Borrower
Lending Club best suits borrowers who have good credit and a long credit history. Lending Club requires a minimum credit score of 600 and its borrowers average 17 years of credit history. According to NerdWallet, the average annual income of a LendingClub borrower is $79,145, so the ideal borrower has a high income. You should also make sure that your debt-to-income ratio is low.
Best For
Lending Club allows for a multitude of loan purposes. You can refinance your credit cards or simplify your debt with fixed monthly payments. You can start upgrading your home now without having to wait for a home equity loan or line of credit. Or, you can use an installment loan to finance your wedding, a dream vacation, or to cover any unexpected expense.
How to Qualify
In order to qualify for a personal loan at Lending Club, you need a minimum credit score of 600 and a minimum credit history of 3 years. Lending Club requires a debt-to-income ratio of less than 40% for single applications and less than 35% for joint applicants. You can apply for a loan on Lending Club’s website.
Additional Fees
Lending Club has an origination fee of 1-6%. There is a late fee for greater of $15 or 5% of payment after a 15-day grace period. There is also a check processing fee of $7, but no prepayment fees.