LendingClub is an online moneylender where investors offer joint loan applications. If you’re looking for a loan advance then you need to have a credit score of at least 600, but you may be able to qualify with a credit score as low as 540. You must also have a combined debt-to-income ratio of less than 35%.
LendingClub screens potential borrowers and their loan requirements automatically, but the decision to approve or deny a loan is made by one or more investors. LendingClub allocates scores to different borrowers based on their credit card and income data. The score you get determines whether you are eligible for a particular interest rate and it also helps investors to decide if they will provide you with the loan or note. Borrowers are unable to see their scores. They are only made available to investors.
Applying for a LendingClub Loan
You can apply for a loan through the online application form on their website. There is a pre-qualification form that should be filled out to compare offerings from LendngClub and other lenders. Pre-qualifying will also have no effect on your credit score.
LendingClub loans are suitable if you:
- Have a great credit score; LendingClub say that the man score of the average borrower through LendingClub is 699 while base credit is 600.
- Have a long record as a consumer. LendingClub is great for people that have been consumers for over 16 years, and the base is 3 years.
- Have income over the national household median value of $55,775. However, the average LendingClub borrower has a mean yearly income of $76,135.
- Have a low debt-to-income ratio. Average borrowers have a debt-to-income ratio of 18.32% outside of contract. LendingClub comes with a maximum permitted ratio of 40%.
- Aren’t in desperate need for cash. It can take up to 7 days for LendingClub to approve a loan and match a borrower with an investor.
If you’re looking to choose a debt-consolidation and meet the prerequisites, then LendingClub offers the chance to pay off creditors instantly. This option means borrowers must utilize around 80% of the loan amount to pay off outstanding debt. This option is also offered through Discover and FreedomPlus.
LendingClub also allows some customers having problems with payments to enter a hardship plan. Borrowers are able to make interest-only payments for up to three months as they get back on their feet.