LendingClub personal loans for debt consolidation are popular for individuals with limited or poor credit. They’re also a good option for people who don’t need the minimum loan balance that many traditional lenders require. In addition to those benefits, Lending Club is available in all 50 states. That’s not the case with many of their competitors.
Who is LendingClub?
LendingClub was founded in 2006. They’ve quickly become one of the most popular debt consolidation loan options in the country. The company has funded over $75 billion in loans since their inception and they do business in all 50 states plus Washington, D.C. Overall customer feedback has been excellent, which is an anomaly in the retail lending space.
Pros of LendingClub Personal Loans
- LendingClub can pay your creditors directly.
- Borrowers can have more than one loan at a time with LendingClub.
- LendingClub customer service ratings are excellent.
Cons of LendingClub Personal Loans
- LendingClub does not disclose credit score requirements on their website.
- Available loan terms may be shorter than their competitors.
- LendingClub has high origination fees.
Services Offered by LendingClub
LendingClub offers personal loans, business loans, auto refinancing, and patient payment plans. They also offer personal banking solutions like high yield savings accounts, rewards checking, and CDs. On top of all that, LendingClub provides investment opportunities for institutional investors, a service they’ve been offering since 2006.
Customer Qualifications or Eligibility to Work with LendingClub
LendingClub doesn’t post a “required” minimum credit score on their website. Lenders prefer a FICO® score of 620 or above. If you’re unsure about this, applying for a LendingClub personal loan will not affect your credit score. Give it a try and they’ll let you know in a few minutes if you qualify.
Only the Debt-to-Income Ratio Matters
LendingClub does not have a minimum debt requirement for borrowers to do business with them. Their screening algorithm checks your debt-to-income ratio (DTI). That’s a number that should be under 50% if you want to have the best chance of being approved. That said, applicants with a DTI of up to 70% may be approved if they have a good or excellent credit score.
What LendingClub Personal Loans Won’t Cover
How LendingClub Personal Loans Work
Begin the process of applying for a LendingClub personal loan by clicking on any of the “Check Your Rate” buttons you’ll find throughout their website. They’ll perform a soft inquiry on your credit to determine whether you’re eligible. If so, you’ll need to enter your bank account number and routing number for funds to be deposited. Monthly payments will be withdrawn from that same account in fixed monthly installments.
No Minimum Debt Requirements
LendingClub does not require borrowers to have a minimum amount of debt. They’re not a debt consolidation or debt settlement service. LendingClub offers personal loans of $1,000 to $40,000 with payment terms of two to five years. Those loans can be used for debt consolidation if the borrower chooses that option.
Customer Timeline when Working with LendingClub
Online loan approval with LendingClub can happen in a few minutes. If you’re denied, they’ll recommend a “partner” that might approve your request. Once the loan is approved, funds can be in your bank account in one to three days, depending on who your bank is. Repayment terms are typically two to five years and payments are for a fixed amount each month.