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Friday, September 17th
LendingClub has experienced some big changes over the last few years. Originally created as a peer-to-peer platform, where individual and business investors could choose to fund consumer loans (hence the name LendingClub), this source of personal loans now operates like a traditional financial institution. All funding is provided by LendingClub's own bank by the same name, making the loan application extremely streamlined when compared with platforms that refer you to multiple lenders at once.
No surprises in the application process
To get a personal loan through LendingClub, start by entering your desired loan amount (between $1,000 and $40,000) and selecting the loan's purpose in the dropdown box, then click on "Check Your Rate" . Indicate whether you're applying alone or with a co-applicant, your date of birth, and your total annual income. Finally, enter your first and last name, plus your address, and LendingClub will try to verify your credit report. If it can't do so based on the information provided, you'll be asked for your Social Security Number.
Expect origination fees and just-average interest rates
What can you anticipate if you are matched with a loan? That largely depends on your details: how much you're trying to borrow, your credit history, your income, and so forth. All personal loans funded through LendingClub have a minimum repayment term of at least three years, giving you ample time to repay it. Interest rates here are fairly average, and you should expect origination fees that range from 3% to 6%. These are typically rolled into the total cost of the loan or deducted from the payout deposited to your bank account. LendingClub's fine print at the bottom of the personal loans page says that their average loan has an origination fee of 5% and an APR of 15.95%.
Still being re-evaluated by the BBB
How about LendingClub's reputation? Since their business model has changed so drastically, it's difficult to put their past history into perspective. However, a few items stand out and are worth keeping in mind. The company used to have an "A" rating from the Better Business Bureau, but their listing during our most recent check with the BBB was simply "Not Rated" . That indicates that LendingClub's new structure is still under consideration. More reassuringly, their sole lender WebBank received both accreditation and an "A+" from the BBB: you shouldn't encounter any issues with fraud or other problems if you pursue a personal loan through the LendingClub website.
Plenty of recent, positive customer comments
We also followed the link on the LendingClub site to see some of the more than 57,000 independently-verified reviews posted there, so that we could see what their most recent comments indicated about the new service. Most of the clients gave LendingClub a rating of 4 or 5 stars, and we were pleased to see that a decent number of those came from repeat customers.
Wait and see
LendingClub appears to be on the right track, having made quite a few changes to their service that have received positive feedback from their borrowers. But until the company puts in more time with their new lending model, and has an actual rating from the BBB, we hesitate to give LendingClub a rating higher than average. Reputation matters, and while LendingClub seems to have fixed some of the issues that they had in the past, we'd like to see confirmation of that. You should be fine if you choose to take a personal loan here, but we encourage you to consider other options too.
With inflation on the rise and an endless list of possibilities for unexpected expenses - car repairs, visits to the ER, and broken appliances, to name a few - it's no wonder that an increasing number of people are applying for personal loans.
Sound familiar? If you find yourself in need of some cash, you've probably considered borrowing from a friend or relative - but there's no guarantee that your loved ones are in a position to help, and who really wants to ask? Fortunately, you've got options that don't involve an awkward conversation with people you know. There are many lenders that specialize in personal loans ranging from $500 to as much as $100,000, with simple application processes that can be completed 100% online.
What's the catch? There isn't one, as long as you choose your lender carefully. Some providers of personal loans charge excessively high interest rates and offer shorter-than-average terms, making it harder for you to pay it back on time. On the other hand, most reputable sources of personal loans are completely transparent with their interest rates, give repayment terms of up to five years, and won't charge you any fees if you're able to pay off your loan earlier than anticipated.
How can you determine which lender is the best choice for your personal loan? That largely depends on your individual circumstances, but there are several factors to keep in mind as you consider your options. They include the following:
TopConsumerReviews.com has reviewed and ranked the best providers of personal loans available today. We're confident that this information will help you get the money you need, deposited quickly and at the lowest possible rates!
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