LendingClub Review and Alternatives for Borrowers

LendingClub is a popular peer-to-peer lending platform that allows borrowers to access funds from a network of investors. Founded in 2007, LendingClub has facilitated over $50 billion in loans.

Borrowers on LendingClub can borrow between $1,000 and $40,000 with interest rates ranging from 6.95% to 35.89%. The platform offers a range of loan terms, including 3 and 5-year options.

LendingClub's credit scoring model considers factors such as income, employment history, and credit history to determine loan eligibility. Borrowers with credit scores as low as 600 may still be eligible for a loan.

LendingClub's fees for borrowers are relatively low, with origination fees ranging from 1.00% to 5.00% of the loan amount.

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LendingClub personal loans range from $1,000 to $40,000, providing a flexible borrowing option for various needs.

You can use these loans to pay off credit cards, consolidate debt, or cover emergency expenses, making them a practical solution for unexpected financial situations.

These loans have terms from two to five years, allowing you to choose a repayment period that fits your budget and financial goals.

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LendingClub charges an origination fee ranging from 3.00% to 8.00% of the loan amount.

The origination fee is determined when you initially apply for the loan, and is based on your creditworthiness.

LendingClub does not charge application fees or broker fees.

However, if you make a payment more than 15 days late, LendingClub may charge a late fee of 5% of the outstanding payment or $15, whichever is greater.

The FTC has accused LendingClub of misrepresenting its fees, including charging undisclosed upfront fees.

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LendingClub offers personal loans with amounts ranging from $1,000 to $40,000. You can use these loans for paying off credit cards, debt consolidation, or tackling emergency expenses.

Loan terms from two to five years are available. This means you can choose a repayment period that fits your needs and budget.

You cannot use a LendingClub Personal Loan for education costs or investments.

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To apply for a LendingClub Personal Loan, you'll need to provide some essential documents. LendingClub may ask for copies of your recent tax returns to verify all the details.

Additional reading: Lendingclub Credit Score

Business tax returns are a key part of the application process. This can include tax forms like 1099s or Schedule K1s. I've seen people get stuck on this step, so it's worth double-checking what you need.

You'll also need to provide proof of personal income. This might include bank statements or pay stubs. If you receive income from other sources, like alimony or child support, be prepared to provide proof of that too.

LendingClub may request a copy of your government-issued ID to verify your personal identity. This is a standard requirement for most loan applications.

Here are the specific documents you'll need to provide:

Lending Club's Debt Management is a crucial aspect to understand when dealing with unpaid loans. Lending Club doesn't generally sue for unpaid loans, likely to maintain a consumer-friendly image.

If you're struggling to pay back a loan, it's essential to know that settlement options become available after several missed payments, even if the account has been sent to collections or sold. This can be a relief for consumers.

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One of the benefits of dealing with Lending Club is that debt buyers often settle for less than the full amount owed, since they buy the debt at a significantly reduced cost. This can be a more favorable outcome for consumers.

However, it's worth noting that online lenders like Lending Club usually won't reduce the loan's interest rate, limiting some debt resolution options. This can make it more challenging to pay off the loan.

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LendingClub has a strong reputation among borrowers, with a 4.7/5 star rating on TrustPilot.

Its long-standing reputation has made it a preference for many borrowers, who praise its quick processing times and attentive customer service.

This suggests that LendingClub is a reliable option for those in need of financial assistance.

LendingClub has a strong reputation among borrowers, with many preferring it due to its long-standing history.

Its customers praise its quick processing times, which is a significant advantage for those in need of fast access to funds.

With a rating of 4.7/5 stars on TrustPilot, it's clear that LendingClub has a high level of customer satisfaction.

Customers appreciate its attentive customer service, which is a key factor in its success.

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LendingClub's disadvantages are worth considering before making a decision. One of the main drawbacks is the variety of fees you'll have to pay, including an origination fee that can range from 1% to 6% of your total loan amount.

This fee will be baked into your loan APR, which may increase the overall cost of your loan. In addition to the origination fee, you may also be charged a late fee and other penalties if your payment is more than 15 days late.

The maximum APR on a LendingClub loan is 36.00%, which is higher than some of its competitors. For example, Best Egg's maximum APR is 35.99%, while Lightstream's is 23.99% APR.

LendingClub's funding process can also be slower than some other personal loan companies. You'll typically get access to your funds within two to four business days, which is relatively fast, but not the quickest option available.

Some lenders have a less-than-perfect reputation, and this one is no exception. There are complaints about a faulty online application interface.

Reviews on TrustPilot have highlighted miscommunications regarding loan terms. This can be frustrating and confusing, especially when you're trying to make an informed decision.

A few hidden fees have also been reported. This can blow up your costs and make the loan less affordable than you thought.

Overall, these negative reviews are worth considering before you make a decision.

LendingClub has a strong reputation for its customer experience. It has garnered 4.7/5 stars on TrustPilot, which is a testament to its excellent service.

Many customers praise its quick processing times, which is a significant advantage for borrowers.

Its long-standing reputation has made it a preference for many borrowers, who appreciate its attentive customer service.

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To apply for a loan on LendingClub, you'll need to create an account and provide personal and financial information.

The application process typically takes around 5-10 minutes to complete, and you can apply for a loan in as little as 24 hours after approval.

You'll need to provide your name, address, social security number, employment information, and income details.

LendingClub uses a peer-to-peer lending model, which means that your loan is funded by multiple investors rather than a single bank.

You can apply for a loan amount between $1,000 and $40,000, with loan terms ranging from 3 to 5 years.

LendingClub offers a range of loan options, including personal loans, business loans, and medical loans.

The interest rate on your loan will depend on your credit score, income, and other factors, and can range from 6.95% to 35.89% APR.

LendingClub offers a range of benefits, including no origination fees, no prepayment penalties, and flexible repayment terms.

You can check your loan options and apply online, or by phone or mail if you prefer.

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If you're not a good fit for LendingClub, don't worry - there are other options out there.

LendingPoint is one alternative to consider, with a minimum credit score requirement of 580, lower than LendingClub's 600.

LendingPoint's fee range is also comparable to LendingClub's, with a maximum of 8% of your loan amount.

Read our LendingPoint personal loan review to learn more about this option.

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LendingPoint has a minimum credit score of 580 to qualify for its loans, which is lower than some other lenders.

The fee range for LendingPoint loans is up to 8% of your loan amount, which is similar to some other lenders.

LendingPoint offers loans with flexible terms, giving you more control over your payments and debt.

Its loans can be used for a variety of purposes, such as consolidating debt, financing a home improvement project, or covering unexpected expenses.

LendingPoint's fees can add up quickly, so it's essential to factor them into your loan calculations.

You should carefully review the terms and conditions of any LendingPoint loan before signing.

Best Egg offers a credit score floor of 640, which is higher than LendingClub's floor of 600. This means that if you have a lower credit score, you may be eligible for a Best Egg loan, but you'll likely pay a higher APR.

Best Egg's origination fee ranges from 0.99% to 9.99%, which is lower than LendingClub's range of 3% to 8%. This could save you money on fees.

Best Egg also charges a late fee of at least $15, just like LendingClub. Be sure to make your payments on time to avoid these fees.

You may be able to get your funds slightly faster with Best Egg, as they say most customers receive their money within one to three business days. LendingClub takes two to four business days, on average.

LendingClub has faced regulatory issues in the past. The Federal Trade Commission (FTC) filed a lawsuit against LendingClub, alleging deceptive marketing practices.

The FTC claimed LendingClub promised "no hidden fees" to consumers but charged an undisclosed upfront fee. This misleading promise led to unauthorized bank withdrawals and failure to provide required privacy notices.

It's essential to shop around and clarify all associated fees before taking out a personal loan with LendingClub or any other lender.

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WebBank essentially acts as the originating bank in the lending process with LendingClub functioning as the platform that facilitates the transaction and manages the loan after it's made.

This structure is quite common in the fintech world, allowing online platforms like LendingClub to offer financial products nationwide without themselves having to be licensed in every state.

WebBank leverages its ability to lend across the United States as a chartered bank, which is a key factor in this relationship.

The way it typically works is that a borrower applies for a loan via LendingClub's platform, and if approved, the loan is initially issued by WebBank.

This arrangement has sometimes been legally contested, particularly when it comes to questions of which entity—the fintech platform or the bank—is the "true lender."

Lending Club, an online personal loan provider, was accused by the Federal Trade Commission (FTC) of misleading marketing practices.

The FTC filed a lawsuit against Lending Club in 2018, claiming that the company promised "no hidden fees" to consumers but ended up charging an undisclosed upfront fee.

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Lending Club allegedly misled customers about their loan approval status, making unauthorized bank withdrawals, and failing to provide requisite privacy notices.

It's advisable to shop around, clarify all associated fees, and monitor your credit report if considering a personal loan.

The FTC also alleged that Lending Club told consumers they were approved for loans when they were not, and took money from consumers' bank accounts without authorization.

Lending Club deducted hundreds or even thousands of dollars in hidden up-front fees from the loans, contrary to their promise of "no hidden fees".

This highlights the importance of carefully reading and understanding the terms and conditions of any loan agreement.

In 2018, the court found that Lending Club falsely told loan applicants that their loans were "on the way" and "100% Backed" while knowing that many of them would never get a loan.

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LendingClub has reported impressive earnings and growth since its inception. The company went public in December 2014 and raised $870 million in its initial public offering.

In 2015, LendingClub generated $1.3 billion in revenue, a significant increase from the $400 million reported in 2013. This rapid growth was fueled by the company's ability to connect borrowers with investors.

LendingClub's net income for 2015 was $134 million, up from a net loss of $50 million in 2013. The company's profitability was a major milestone, demonstrating its ability to execute on its business model.

The company's growth has been driven by its platform's ability to facilitate over $20 billion in loans, with more than 3 million borrowers and 2 million investors. This scale has allowed LendingClub to achieve economies of scale and reduce its costs.

LendingClub's revenue has continued to grow, reaching $1.4 billion in 2016, a 7% increase from the previous year. The company's ability to attract and retain investors has been a key driver of this growth.

LendingClub's growth has also been fueled by its expansion into new markets, including the launch of its personal loans product in 2014. This product has been a major contributor to the company's revenue growth.

The company's commitment to innovation has allowed it to stay ahead of the competition and maintain its market share.

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