LendingClub was originally a peer to-peer lending platform. It shut down its individual investor market in 2020. LendingClub now calls themselves “America’s leading online marketplace bank.” LendingClub funds part of its loans through its FDIC-insured LendingClub Bank and the rest through institutional investors through its loan marketplace. LendingClub offers personal loans as well as auto refinancing and business loans.
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LendingClub is rated highly on the Better Business Bureau (BBB), with many customers describing the loan process as easy and quick. LendingClub claims that most loans can be approved in 24 hours, and funds are available within a few days. LendingClub charges late fees and origination fees. Its APRs are also higher than those of its competitors. LendingClub is worth looking into for people with less-than-stellar credits. It has a minimum credit score of “fair”, the ability to view your rate online and add a coborrower.
How to Get a Personal Loan?
Although personal loans are a fast way to get cash when you need it most, it is important to make wise decisions about how to use them. You should think about whether a personal loan is necessary before you agree to a repayment plan. To find the lowest personal loan rate, do your research.
Rates are dependent on your credit score, income, loan value, terms, and other factors. You may be able to pre-qualify for loans or get a rate check with a soft credit inquiry. This won’t impact your credit score. Some lenders might require you to complete a hard credit inquiry. This could cause your credit score to drop a few points. All lenders require that you complete a hard credit inquiry before you apply for a loan. Check to see if there are any fees (prepayment penalties, origination fees or late fees) that could increase the cost of your loan.
Alternatives to Personal Loans
Home equity loans, home equity lines of credit (HELOC), and cash-out refinances are all options. These options allow homeowners to access their home equity immediately for cash. These financing options are secured by your home, so you might be able get lower rates than an unsecured personal loans. Each one comes with its own pros and cons.
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Personal savings. Consider saving money for emergencies. An emergency fund can be a great help in case of unexpected expenses. Experts recommend that you have at least three to six months of expenses in an emergency fund. These steps will help you start to build your emergency fund.
How do I Qualify for a LendingClub Personal loan?
LendingClub has requirements that all borrowers must be at least 18 years of age, have a verified bank account, and either be a U.S. citizen or a permanent resident. LendingClub loans cannot be obtained by residents of Iowa and the U.S. territories.
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LendingClub does not list credit requirements on its website. However, a representative from PR confirmed that 600 is the minimum credit score needed to be approved for a personal loan. Remember that you may not be eligible for a loan if your credit score is lower. This could result in higher interest rates and a lower loan amount.
Who should get a LendingClub loan?
LendingClub provides unsecured loans with a minimum credit score of 600. This makes it an attractive option for people who have poor credit, but want to avoid secured loans. Be realistic about your expectations. A lower credit score will likely mean you are eligible for a smaller loan amount and a higher rate of interest. LendingClub makes it easy to compare rates without having to do a credit check.
How to apply for a personal loan from LendingClub
Before you apply for a personal loan, make sure that you are clear about your financial goals and the best method of financing. You may also consider other options such as a balance transfer credit, home equity loan or building a savings account.
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- LendingClub can help you get a personal loan if you have already decided that a personal mortgage is the best choice for your financial needs.
- Rates are available. To find out what rates you could get for your loan balance, fill out the LendingClub application form. It doesn’t trigger a credit inquiry and won’t impact your credit score. This rate check will show you if you are eligible.
- Select the right loan for you. LendingClub will provide you with several loan offers based upon the information you provided. Choose the one that meets your needs.
