The LendingClub Personal Loan
When it comes to LendingClub, there are two very strong opinions: it’s either a scam or it’s legitimate. So which is it? In this LendingClub review, we’ll take an in-depth look at the company and try to answer that question. We’ll also explore what kind of loans LendingClub offers, how the process works, and what you need to know before you apply.
This company has been in business since 2007. They offer unsecured personal loans between $2000 and $40,000, and the process of applying for a loan is relatively simple. You can get pre-approved in minutes, and if you’re approved, you can have the money in your bank account within days.
This lender is being accused of duping its customers by increasing the interest rates after they’ve agreed to take out a loan. The Federal Trade Commission (FTC) filed this complaint against them on April 25th, 2018 for violations related to bait-and-switch tactics and false advertisement at least according to what was announced during an awards ceremony where one recipient got $1 million dollars as compensation!
If you are considering taking out a personal loan from LendingClub, be sure to read the FTC’s complaint carefully so that you are aware of all of the potential risks involved. You may also want to consult with an attorney before signing any paperwork. Remember, if it sounds too good to be true, it probably is!
If you have already taken out a unsecured personal loans from them and are experiencing problems, you may want to contact an attorney to discuss your options.
2.0 out of 5.0 stars
LendingClub Pros and Cons
Lending Club is a financial institution that is currently luring customers in with low-interest rates and direct mailings. Although it may seem like a great deal, there are several pros and cons to consider before signing up.
First of all, the interest rates are not always as low as they seem. In fact, many borrowers have reported being scammed by the company’s misleading advertising. Secondly, the approval process can be quite lengthy and frustrating, especially if your credit score is not high enough.
Finally, the customer service is notoriously bad. In fact, the company has received negative reviews from both borrowers and investors alike. So, before you decide to take out a loan with them, be sure to weigh the pros and cons and read Lending Club reviews online.
On April 25, 2018, the Federal Trade Commission (FTC) filed a complaint against LendingClub Corporation, dba LendingClub. The FTC’s complaint alleges that LendingClub engaged in unfair and deceptive practices by charging consumers illegal upfront fees and misrepresenting the benefits of unsecured personal loans.
The FTC’s complaint also includes allegations that LendingClub failed to disclose important information about its products, such as the annual percentage rate (APR) and the total cost of credit. As a result, many consumers were misled into believing that they were getting a good deal on their personal loans.
If you have taken out a personal loan from LendingClub in the past, it is important to review the FTC’s complaint to see if you are affected. You may be eligible for a refund if the FTC’s allegations are proven to be true.
What is LendingClub?
LendingClub is a personal loan company that has been accused of offering bait and switch loans. Bait and switch loans are when a company advertises one rate but then charges a higher rate. This is what LendingClub does. They advertise rates as low as 5.99%, but then charge rates as high as 35.99%.
This is a huge difference and can really hurt people struggling to make ends meet. Personal loans from LendingClub can be a costly way to borrow money.
How does LendingClub work?
LendingClub is a personal loan company that promises low-interest rates to lure customers in. However, many people have reported being scammed by this company, so be careful before you sign up for a loan through them. Make sure to do your research and compare interest rates from different lenders before making a decision.
If you’re thinking of taking out a personal loan, be sure to check out our list of the best personal loans. We’ve done the research for you and compiled a list of the best lenders with the lowest interest rates.
Remember, it’s important to read the fine print before signing any agreement, and to always shop around for the best deal. Don’t let yourself be scammed – do your research and choose a reputable lender instead.
How to qualify for Lendingclub loans?
What does it take to qualify for a loan from LendingClub?
Generally, you’ll need good credit to qualify for Lendingclub personal loans. That means a FICO score of 640 or higher. You’ll also need to have a verifiable source of income and demonstrate your ability to repay the loan.
So if you’re thinking about applying for a loan from LendingClub, make sure you have all your ducks in a row first. A little prep work can go a long way in increasing your chances of being approved for the loan you need.
The basic qualifications are:
- 18 years old or older
- A U.S. citizen or permanent resident
- Employed full-time or have a regular source of income
- Have a verifiable bank account
- No bankruptcies in the last 12 months
To get started, you’ll need to complete an online application and be clear on the loan amounts. The lender will then review your application and decide based on your creditworthiness. If you’re approved, you’ll be able to choose your loan amount, interest rate, and repayment term. After that, your loan funds will be available within minutes.
So if you’re in the market for a personal loan, keep these qualifications in mind.
How much does LendingClub cost?
Based on consumer reviews, LendingClub has been accused of being a high-interest Ponzi scheme. They lure in borrowers with low-interest rates and then jack up the rates to astronomical levels as soon as the loans are funded. Borrowers can end up paying an annual percentage rate (APR) of more than 30%.
The best way to avoid being taken advantage of is to stay away from their loans altogether. There are plenty of other personal loan companies that offer competitive interest rates without all the hidden fees and traps.
What is the interest rate on LendingClub?
The average interest for personal loan rates from this lender is 11.68%. However, rates can range from 7.65% to 35.89%, depending on your credit score, income, loan term and other factors. This makes personal loan rates much more expensive than other types of loans, such as home equity loans or average loan from a bank.
In addition don’t forget that LendingClub also charges an origination fee of 1% to 6%, which is added to your loan balance. So if you take out a $10,000 personal loan with a 10% interest rate and a 5% origination fee, you’ll actually owe $11,500.
For these reasons, personal loans from this company are best used for short-term needs or as a last resort. Be sure to compare offers from other lenders first to make sure you’re getting the best deal possible.
What kind of loans does LendingClub offer?
It offers personal loans, business loans, and auto refinancing. However, personal loans have high-interest rates, and business loans are only available to businesses with good credit. Auto refinancing is only available if you have a car loan with LendingClub.
How do you pay back LendingClub?
The LendingClub loan is typically paid back through monthly payments. Depending on the loan amount, interest rate, and repayment term, your monthly payment may be different.
You can pay off your loan early without penalty. To make a payment, log into your account and select “Make a Payment” follow the instructions. If you have any questions about how to make a payment or if you need help with your account, please contact their customer service phone numbers.
What are peer-to-peer lenders?
Peer-to-peer (P2P) lenders are online platforms that match investors with borrowers. P2P lending is a form of crowdfunding and an alternative to traditional banking.
With P2P lending, individuals and businesses can borrow money from investors willing to lend it at a higher interest rate than what they would get from a bank. The borrower pays back the loan over time with interest.
A Peer to peer lender has many platforms to make money by charging borrowers and investors fees. For example, a platform might charge a borrower an origination fee of 2% of the loan amount. And, it might charge investors a 1% annual fee on their invested amount.
There are risks associated with peer-to-peer lending. For example, a borrower might default on their loan, and the investor might not get their money back.
Before you invest in peer-to-peer lending, it’s essential to understand the risks and how the platform works.
What happens if you don’t pay LendingClub?
If you’re late on a payment or can’t pay your loan, the lender will charge you a late fee. If you’re more than 30 days late, they may also report the delinquency to the credit bureaus, which could damage your credit score.
In addition, LendingClub may send your account to collections, which could result in additional fees and damage to your credit. If you’re having trouble making payments, you should contact them as soon as possible to discuss your options.
How does LendingClub affect your credit?
This lender may affect your credit in several ways. If you’re late on payments, this company will report this to the credit bureaus and it will appear on your credit report as a negative mark.
LendingClub does a hard pull, soft credit inquiry or hard credit inquiry on of your credit when you apply for a loan, which can temporarily lower your score. However, if you make all of your payments on time, it will not hurt your credit.
Who Is LendingClub Affiliated With?
This lender is affiliated with a number of different companies, some of which are scams. Be sure to do your research before working with any company that this lender is affiliated with. Some of these companies include:
- Upstart Network
Be especially careful if you’re considering using one of these companies for a loan – they may be a scam, and you could end up losing your money. Always do your research before agreeing to work with any company.
LendingClub BBB Reviews
BBB has an ALERT FOR THIS BUSINESS! BBB reports on known government actions involving business.
Karina J. 03/25/20221.0 out of 5.0 stars
Horrible customer service I was denied the right to speak to a Manager by supervisor *** after she messed up my account and couldn’t explain why my account had accrued interest rate after she promised me something that she said she couldn’t deliver and was sorry my account is jacked up and nobody can explain why
Thomas H 03/14/20222.0 out of 5.0 stars
The staff is very rude and inconsiderate toward senior citizens and someone with limited computer skills.
Aileen S 03/02/20221.0 out of 5.0 stars
Phone customer support is incredibly rude and uninformed. The agent put me on hold without warning. Asked for my social and couldn’t find my information but was able to find it near immediately after I suggested using my email instead. Unprofessional, poorly trained, and business practice is not secure. Please get better agents to discuss account information with. Also, for security’s sake, stop asking for a client’s entire SSN on a recorded call.
Is LendingClub Legit or a Scam?
We’ve all seen the commercials for lendingclub.com – a loan company that promises to help you get out of debt or pay for something special. So, is Lending Club legit?
Well, unfortunately, there are quite a few Lending Club complaints and Lending Club negative reviews. People have claimed that the company charges hidden fees, doesn’t follow through on its promises, and is overall a scam.
So, is it legit? Or is it a scam?
We don’t think it’s a scam, but they have many complaints that concern us. Unfortunately, at this point, it seems like LendingClub has so many bad reviews that it may pay to avoid them altogether. If you’re looking for personal loans, I would recommend checking out other options first. And if you’ve already been scammed by LendingClub, be sure to report them!