MINIMUM TIME IN BUSINESS
Personal loans: $1000 - 40,000 Business loans: $5,000 - 50,000
Personal loans: 1% - 6% Business loans: 3.49% - 7.99%
Min. 3 days
9.77% to 35.98%
Unsecured for loans under $100,000; Blanket lien on business assets for loans over $100,000
All US states except Iowa and West Virginia
Lending Club is one of the leading peer-to-peer lending platforms that connect borrowers with investors. The company was founded in 2005 and assigns its borrowers a grade based on their creditworthiness terms, rates, and loan amounts are based on borrowers’ reputation.
Although it generates money from interests, it also levies certain fees on borrowers and investors which comprise a big part of its revenue. That’s why the company may have a higher origination fee than others.
The company is also FDIC insured and registered with the US Securities and Exchange Commission.
Lending Club APR varies between 9.77% to 35.98%. However, its interest rates and payments are fixed so borrowers do not need to worry about paying changing amounts subject to the fluctuations of the market. According to Lending Club loan reviews, this is a bonus since comparable lending agencies offer variable loans that can change over the long term.
Lending Club also charges an origination fee between 1% to 6% for personal loan amounts and 3.49% to 7.99% for business loan amounts. Keep in mind that the origination fee is deducted from the amount you receive instead of being added to your total amount. Lending Club corporation reviews suggest that you will need to borrow more than you need to make up for that.
Apart from this, Lending Club does not charge an application, prepayment penalty, or brokerage fee. However, you can be charged 5% of the payment amount or $15, whichever is greater, if you are over 15 days late for your payments.
Lending Club loans are offered on a monthly payment basis. Borrowers have a 15-day grace period during which they can make payments without any late payment penalty. After this period, though, you could be hit with a 5% penalty fee or $15, whichever is higher, according to a Lending Club review.
Borrowers also have the option of changing the due date of their next payment by logging into their Lending Club account, visiting the “Payment due date” section, and choosing a new date.
You have the option to repay Lending Club over 12, 24, 36, or 60 monthly payments. If you opt for the repayment period of 36 months, your interest rate will be lower. While customer reviews of Lending Club indicate that it is more manageable to spread your repayments over 5 years, the interest rate will be higher.
Lending Club does not mention a minimum FICO score on its website even though the average is around 600 to 700. According to verified Lending Club reviews, it does take into account your credit history and other information to predict if you would make your payments on time.
It also offers a co-borrower option so that you may qualify for loans even if your credit profile isn’t great. You should also know that Lending Club reports your positive and negative payment information to three of the biggest credit bureaus. This way if you make payments on time and do not miss your deadline, you can improve your credit score.
Lending Club will also conduct a soft pull during the prequalification stage and a hard pull once your application process is completed. The latter will cause your credit score to drop a few points, although the difference isn’t big, according to USA user reviews of Lending Club.
Lending Club offers flexible funding options for a variety of purposes
Paying interests to banks; you are giving your money to investors to build their portfolio
Lending Club offers people with FICO scores as low as 600
If your credit score is too low, you can apply with a co-borrower
Soft credit check that does not lower your score during prequalification
Offers flexible repayment terms
Once approved, your money will be sent to your account in as little as three days
Origination fee may be higher than other lenders
The best interest rates go to people with better scores
History of FTC complaints and scandal with ex-CEO
As you can see from above, Lending Club comes with a lot of features that people like. On TrustPilot, Lending Club has a score of 4.8 out of 5.
However, if you take a look at Lending Club customer reviews, there are also a lot of things that customers are unsatisfied with. On the Better Business Bureau, Lending Club has been accredited but has a customer rating of only 1.9 stars.
Customers claim that Lending Club offers them high APR even when they have been using it for years and making payments on time. Some customers say Lending Club informed them they were prequalified for a loan only to later deny them the loan. Others say that the customer service is very ineffective and hard to get hold of.
On the positive side, if you Google “Lending Club review,” many customers praise Lending Club for its simple and straightforward processes and there are some who say Lending Club extended loans for them even when no one else would have done.
Kabbage is a good choice if you want a line of credit of up to $150,000 which you can repay in 6 to 12 months. However, your initial payments will be higher than the latter payments so you won’t be able to save up a significant amount on interest even if you decide to prepay.
However, it only requires a business to be 1 year old with an annual income threshold of $50,000 to get a loan of up to $100,000. There is no requirement for credit score and if you want a bigger loan, you have to be in business for at least three years, according to Lending Club small business loan reviews we conducted on customers.
If your business is younger, then OnDeck is a good option for you. OnDeck can offer you lines of credit up to $100,000 and business loans up to $500,000. However, it requires businesses to have annual revenue of at least $100,000 and a minimum credit score of 500. It also requires daily or weekly repayment which can be disruptive for your cash flow.
Lending Club can be a good choice for borrowers if they have been unable to get a loan from the bank or want to avoid borrowing from traditional financial agencies.
Lending Club offers you an easy way to apply for your loans but has a higher origination fee than other lenders. However, it also offers you a great opportunity to invest. Unlike other lending agencies, Lending Club can turn your investments into a retirement account with returns of about 5%, according to Lending Club investment reviews.
Lending Club can offer a business loan to any company from any industry, provided it does not have a recent bankruptcy and the borrower owns at least 20% of the company.
Typically, you will be able to get your loan within 3 to 4 business days.
Lending Club offers a comprehensive FAQs page which covers a large range of topic form the loan application process to making loan repayments. Customers can also reach Lending Club customer support through phone or email. Customer service hours are from 7 am to 5 pm Pacific Time from Monday to Friday. According to Lending Club borrower reviews, customer care isn’t very active or efficient and makes customers wait for several minutes.
Lending Club is excellent for new businesses that wish to take out personal loans for business purposes. This practice is legal but the loan limit is lower. It is also best for businesses that have a lot of outstanding debts to consolidate. When you apply for a loan via Lending Club, you can select the debt consolidation option. Lending Club is also a wonderful option to pay off your credit card debt.
During the prequalification, Lending Club will check your FICO score which will generate a soft pull. This will not affect your score. However, once your loan application is approved, the company will do a hard pull to assess your creditworthiness, which will cause your scores to drop by a few points.
There are both positive and negative LendingClub reviews. BBB has accredited it; unfortunately, though, its customer rating stands at 1.9.
Yes, Lending Club will report your credit payment information to Experian, Equifax, and TransUnion. Late payments can negatively affect your FICO score but paying on time can improve your score, according to Lending Club reviews.