Understanding Lending Club Fees and Services

Lending Club is a popular peer-to-peer lending platform that offers a range of fees and services to its investors.

The origination fee, for example, is a fee charged by the borrower, not the lender, and it can range from 1.1% to 5% of the loan amount. This fee is paid directly to the loan originator, not to Lending Club.

Investors can choose from a variety of investment options, including notes with 3- and 5-year terms, which have slightly different fee structures.

Lending Club offers several types of accounts to suit different investor needs.

The most basic account type is the Accredited Investor account, which requires a minimum investment of $1,000 and is available to investors who meet the Securities and Exchange Commission's (SEC) definition of an accredited investor.

For those who want to diversify their portfolio, the Self-Directed Investing account is a great option, allowing investors to choose their own notes and set their own investment criteria.

This account type is particularly useful for investors who want more control over their investments and can handle the risk of investing in individual notes.

LendingClub offers a range of services, including personal loans, auto refinance loans, and business installment loans.

Personal loans are fixed-rate installment loans that can be repaid over 2-5 years, with funds released within days. You can use the loan proceeds for any personal or business use, but you can only borrow up to $40,000.

Business installment loans are also available, but LendingClub no longer originates these loans and instead connects applicants to a partner lender. This means that borrowers may have to navigate a separate lending process.

LendingClub's low borrowing limits and limited loan options may not be the best option for many businesses, especially when compared to other business lenders.

LendingClub Banking offers a range of checking accounts to suit different needs.

Rewards Checking is a top option, earning interest up to 0.15% APY and cashback rewards on debit card and credit purchases.

You can open a Rewards Checking account with a $25 initial deposit, and enjoy fee-free ATM access and early direct deposit.

Essential Checking is designed for those with less-than-perfect banking records, but comes with a $9 monthly service fee and daily account limits.

Here's a comparison of LendingClub Banking's checking accounts:

Essential Checking has a $9 monthly service fee, and daily account limits including a $250 debit card limit for the first 30 days and $500 thereafter.

LendingClub offers two savings account options: the LevelUp Rate and the LevelUp Standard Rate.

The LevelUp Rate offers a competitive 4.50% APY, but requires a monthly deposit of $250 or more to earn this rate.

This rate is on par with the best high-yield savings accounts available, making it a great option for those looking to grow their savings.

The LevelUp Standard Rate is a more straightforward option, with no minimum deposit required and a 3.50% APY.

There's no monthly fee to worry about with either account, and customers can even request a complimentary ATM card to use with their savings account.

Here are the details of LendingClub's savings accounts:

LendingClub's fees and rates are straightforward, but it's essential to understand what you're getting into before borrowing. The origination fee is a significant cost, ranging from 1% to 8% of the loan amount.

Borrowing amounts range from $1,000 to $40,000, and you can choose a term length of 2 to 5 years. The APR, or annual percentage rate, can be as low as 8.98% or as high as 35.99%.

The origination fee is deducted from your loan amount before you receive the funds, which can reduce the amount you actually borrow. For example, if you borrow $10,000 with an 8% origination fee, you'll only receive $9,200.

Here's a breakdown of LendingClub's fees for different types of loans:

LendingClub's fees are more expensive than some of its competitors, especially when it comes to origination fees. For personal loans, you can expect to pay between 1% and 6% of the loan amount, while business loans have origination fees ranging from 3.49% to 7.99%.

LendingClub has over 1,100 complaints closed over the last three years, according to the Better Business Bureau.

The company is currently involved in a pending lawsuit with the Federal Trade Commission (FTC) regarding hidden fees and advertising standards.

Some customers have complained about not being aware of the origination fee before borrowing, but it's actually disclosed in multiple places on the site.

High-interest rates and fees are another common complaint, with some borrowers paying APRs as high as 30%+. If you're not happy with the rate you receive, consider getting quotes from other personal lenders for comparison.

Application delays have also been reported, but most customers get their funds promptly.

It's worth noting that LendingClub sends out mailers claiming preapproval for a loan, but this doesn't guarantee eligibility when they learn more about you.

Here are some common complaints specific to personal loans:

LendingClub is accredited by the Better Business Bureau and has over 1,100 complaints closed over the last three years.

LendingClub is involved in a pending lawsuit with the Federal Trade Commission (FTC) regarding hidden fees and advertising standards. The company has issued a response to the FTC refuting these claims.

Some customers claim they weren't aware of the origination fee before borrowing, but it's disclosed in multiple places on the site.

High-interest rates and fees are a common complaint, with some borrowers facing APRs as high as 30%+. If you don't like the rate you receive, consider getting quotes from other personal lenders for comparison.

Application delays have been reported by some customers, but most get their funds promptly.

LendingClub sends out mailers claiming preapproval, but this doesn't guarantee eligibility for a loan when they learn more about you.

It's worth noting that LendingClub's name has been used in an advanced fee scam. Scammers contact loan applicants, claiming they'll approve the loan if they pay a security or insurance fee first.

LendingClub never charges application fees, and its loans are issued via WebBank.

LendingClub's advertising often claims to have no hidden fees, but the FTC complaint alleges that's not true.

The company's online ads, including banner ads and paid blog posts, make this promise, but in reality, LendingClub deducts an origination fee from the loan amount it promises.

This fee is not clearly disclosed on the loan offer page, making it difficult for borrowers to understand how much they'll actually receive.

On desktop computers, a small green dot appears next to the APR, but only if you click on it will you see a mention of the up-front origination fee.

On mobile devices, there's no green dot, and tapping on the APR won't reveal the fee unless you see a popup.

LendingClub is aware that many consumers don't know about the origination fee, and their training materials list "I didn't receive the full loan amount" as one of the main post-disbursement complaints from borrowers.

The company's quarterly complaint reviews even suggest highlighting the origination fee to lower the number of complaints.

One LendingClub investor noted that the company's ads "prominently state there are 'No Hidden Fees'" yet the documents contain a large origination fee that only appears once.

Personal loans are a type of loan that's not secured by collateral, meaning you don't need to put up any assets to borrow money.

The interest rates for personal loans can vary widely, from around 6% to over 36% APR, depending on your credit score and other factors.

You can borrow anywhere from a few hundred to several thousand dollars with a personal loan, but be aware that higher loan amounts often come with higher interest rates.

Keep in mind that personal loans are typically unsecured, which means you're not putting any assets at risk, but you may still be liable for repayment.

Personal loans are a type of unsecured loan that allows you to borrow a lump sum of money to be repaid over time. They can be used for various purposes such as consolidating debt, financing a wedding, or covering unexpected expenses.

The amount you can borrow with a personal loan varies, but it can range from a few hundred dollars to $100,000 or more. Some lenders may have a minimum loan amount requirement, so it's essential to check with the lender before applying.

Interest rates on personal loans can be fixed or variable, and they depend on your credit score and the lender's terms. A good credit score can help you qualify for lower interest rates and more favorable loan terms.

Repayment periods for personal loans can range from a few months to several years, depending on the loan amount and your financial situation. It's crucial to choose a repayment period that works for you and stick to your payment schedule.

Some lenders offer flexible repayment options, such as bi-weekly payments or lump sum payments, to help you pay off your loan faster. Be sure to review the loan agreement carefully to understand the repayment terms and conditions.

Personal loans can have a significant impact on your credit score, both in the short-term and the long-term. A personal loan may damage your credit score in the short-term due to a hard credit inquiry and increased debt load.

In the long-term, a personal loan can either help or hurt your credit score, depending on whether you pay the bills on time. If you make timely payments, a personal loan can actually help improve your credit score over time.

Ultimately, it's up to you to determine how much of an impact a personal loan will have on your credit score.