How can Lending Club offer better rates to borrowers?
We cut the cost and complexity of bank lending and pass the savings on to borrowers. For example, banks have high administrative, marketing, and infrastructure costs—adding to what they need to charge in order to make a profit. Credit card companies send tens of millions of pieces of mail each year. Why should you pay for all that? Our costs are lower, so we can reward your good credit with great rates—and make the process faster and more efficient.
What are sample terms of the loan?
For example, with a Lending Club credit grade of A4 you could receive a loan of $10,000 with an interest rate of 7.90%. If you select a 36-month loan term, the loan would have a 3.00% origination fee, meaning you will receive loan proceeds of $9,700 and will make 36 monthly payments of $313 at an APR of 9.98%. If you select a 60-month loan term, the loan would have a 3.00% origination fee, meaning you will receive loan proceeds of $9,700 and will make 60 monthly payments of $202 at an APR of 9.20%. Your APR will be between 6.78% and 27.46%, based upon your credit at the time of your application.
There is no down payment, rates will never increase, and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement to all of the required agreements and disclosures on the www.lendingclub.com website.
How does Lending Club Work?
Unlike a traditional bank loan, your loan is backed by dozens or even hundreds of investors from across the United States! Applying for a loan with Lending Club is fast, easy and free.
Here is a brief summary of how the Lending Club peer to peer platform works for you:
Step 1: Complete the brief, online application and after approval your loan is automatically listed on the Lending Club platform
Step 2: Investors commit to investing in your loan
Step 3: Once your loan is fully committed to by investors, the proceeds from your loan will be automatically placed in your verified bank account.
It’s fast, easy, secure, and totally confidential. If you are not already a member, the Lending Club website will guide you through the quick process of completing the borrower registration.
How does Lending Club set interest rates?
Lending Club's interest rates take into account credit risk and market conditions.
Can I apply for multiple loans?
You may be able to apply for a second loan after 6 months of current payments in an existing Lending Club loan. You can only have a maximum of 2 loans in active repayment status on Lending Club. To apply for an additional loan, you will need to use a separate email address. The application process is the same.
What is a FICO score?
A FICO score is a numeric rating which can range between 300 and 850. It is calculated by the three credit agencies using predefined criteria to evaluate and rate a person's past credit history. Consumers with higher scores typically represent a lower risk of defaulting on their loans. They may be considered by lenders to be more desirable customers than those with lower credit scores. For more information regarding FICO scores, or to get access to your own FICO score, please visit www.myfico.com.
How much can I apply for?
You can apply for as little as $1,000 and as much as $35,000. You may be able to apply for a second loan after 6 months of current payments in an existing Lending Club loan.
Can investors see my personal information?
No. This information is kept strictly confidential to protect everyone's privacy on the site. Borrowers and lenders are only known to each other by their chosen screen names. Further, borrowers and lenders never have any need to contact each other directly, since Lending Club automatically manages loan repayments and, if necessary, collections activities.
Are there any restrictions on how I use the money? Lending Club and its investors assume that you will use the money for the purpose that was stated on your loan request. There are no restrictions on usage of loan proceeds but Lending Club reserves the right to investigate on suspicion of illegal or misuse of loan proceeds. In addition, you may not use loan proceeds to pay for post-secondary education expenses.