Lending Club Complaints: 6 Problems Borrowers Face

Lending Club is a peer to peer lending company that offers great loans with low interest rates. The loans are funded by people all over the country. In this way, Lending Club does a great job at connecting people who need a loan to people who have extra money to lend. However, not everybody has a good experience. There are a few problems that borrowers face year after year.

Loans up to $35,000 via Lending Club

Check your rate
Won’t affect your credit score.

Note: I took a loan out with Lending Club myself, and wrote about the experience in my review of Lending Club loan post.

Six Complaints Borrowers Have When Applying for a Loan

Today we will explore six problems that borrowers can have at Lending Club. If we are aware of these risks, our process of getting a loan can be much smoother.

Complaint #1: Some loan applications are denied

One of the main complaints borrowers have with Lending Club is getting approved for a loan. Lending Club’s application process can be quite strict. Not only do they prefer a good salary and job, but your credit score has to be 640 to even be considered for a peer to peer loan.

Prosper MarketplaceSolution: A different company called Prosper is an option. Similar to Lending Club, Prosper allows peer to peer loans for credit scores as low as 640. Many people have been approved for a loan through them although they were already denied at Lending Club.  You can read about the difference between Lending Club and Prosper here, but they basically offer the same loan service.

Check your rate @ Prosper (won’t hurt your credit score)

Complaint #2: Interest rates can be really high

up arrowsSometimes when people get a loan at Lending Club, they realize their interest rates are somewhat high. This is important to discuss. Say you need a loan for $10,000 and you get approved for a great interest rate of 7%. You would pay $1,150 in interest on a three year loan. However, if your interest rate had a higher rate like 14%, you would pay $2,300 in interest over three years. A good interest rate can save you thousands of dollars!

Solution: here are four ways you can lower your interest rate:

  1. Improve your credit score: go to AnnualCreditReport.com and make sure your report is free from errors.
  2. Only apply for as much as you need: people who apply for the maximum loan amount typically pay the very highest in loan payments.
  3. Take out a 36-month (3 year) loan: many people want a 60-month (5 year) loan, but this makes their interest rate higher.
  4. Do not shop around for credit: each time you apply for credit your score goes down.

Complaint #3: Loan payments can be expensive

Some borrowers have a difficult time paying off Lending Club loans because they cannot afford the payments. Many of these loans are for amounts as high as $35,000, which has payments of around $1000 per month. Obviously many of us cannot afford such a high loan payment.

Solution: Only borrow as much as you need. Only borrow the minimum amount. The more you borrow, the higher your loan payments will be. If you need $10,000 to pay off your credit cards, do not get a loan for $20,000. Take out the exact amount you need and you will be more able to make your monthly payments.

Complaint #4: Lending Club calls too much

cellphoneOften a borrower will miss a payment. When this happens, Lending Club notifies them about it, usually over email or with a telephone call. If they do not make a payment, Lending Club will send the loan into collections. At this point, people will be assigned to contact the borrower and remind them of their payments. As a result, borrowers can sometimes get annoyed by the emails and phone calls they receive.

Solution: Make your payments on time. If a payment fails, make sure you fix things. The longer you wait the more likely your account will go into collections, which will involve even more phone calls than before. If you are unable to make payments, set up a payment plan with Lending Club so that you can get back on track.

Complaint #5: Loans are unavailable in my state

The following states do not allow loans through Lending Club: Iowa, Idaho, Maine, North Dakota, and Nebraska. If you live in one of these states, it can be frustrating that you cannot get a loan.

Lending Club Borrower States


Solution: Apply for a loan through Prosper. They allow loans in a few states that Lending Club does not.

Complaint #6: Is Lending Club a scam? Is it safe?

Lending Club in the PressFinally, one of the main questions people have with Lending Club is whether or not they are a legit company. Is Lending Club a scam or not? How can you be sure?

Solution: Read my article 6 Ways Lending Club is Legit and Safe. Basically, Lending Club has hundreds of stories in the press (New York Times, Wall Street Journal, etc) that say how good of a company they are. They have a solid rating from the Better Business Beauru (BBB) as well as many security features to their site.

Conclusion: Lending Club is a Great Option

While some people who get a loan through Lending Club have problems, most borrowers have no complaints. Most borrowers from Lending Club are satisfied with the lower payments that Lending Club offers, especially compared to their credit cards. If we follow some basic rules, Lending Club can be a great way to get a loan.

Loans up to $35,000 via Lending Club

Check your rate
Won’t affect your credit score.

[image credit: FutUndBeidl “Arrows Showing Up“/ Moyan Brenn “Phone“CC-BY 2.0]


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  1. Larry says

    You do not explain why a payment would fail, is it because that the borrower has insufficient funds to cover the payment?

  2. T.L. says

    Personally I think the Lending Club’s credit criteria may be a bit stringent. We submitted a request and was immediately denied due to the fact that our credit score was 753, we owed too much money on our cards (all of our cards combined is 25% of usage) and so on. Interesting, because my daughter got approved with lower income, lower credit score and owing more. We were trying to consolidate to one payment so that we can eventually get everything paid off and retire.

    • says

      Typically Lending Club’s algorithm approves quality people, but sometimes good creditworthy borrowers slip through the cracks. I always suggest people try another loan company like Prosper.

      • Chris K says

        I keep getting ad mail from LC saying I am pre approved for a loan up to 35k. I am considering applying for a loan to consolidate high interest credit cards. However my credit score is 625 which is a lower than what you indicated. Why do I keep getting ad mail from the lending club if my credit score is a less than what they require? Should I even bother applying with a credit score of 625?

  3. KRJ says

    I have a loan through Lending Club right now. They got me out of a high rate credit card, I am making the same monthly payments, but will have it paid off in three years. My only complaint with them through this whole process is that it takes slightly more than a full business week for my payment to be deducted from my bank and post to my LC account. Other than that, I’m very happy thus far.

  4. shawna says

    I’ve completed almost everything and so far everything has been very easy, which kind of gives me a reason to pause. It concerns me about providing my bank account information. Has anyone had anything negative happen with their checking account and/or savings when going through this process.

  5. Melba Sales says

    Question? If I am denied credit, won’t I need to change banks so they can’t come back on my information and use it. Have people had this problem previously> please reply. I can’t afford to lose my SS check.

  6. Jenni says

    I applied through Lending Club recently to help me pay off high interest credit cards. I was a little nervous because my credit isn’t that great, but not terrible either. I always pay my bills on time, but found myself barely getting by. I applied for just money enough to pay off all my credit cards; I’m literally saving $386.00 a month, not counting the money I’ll be saving in interest! The process for applying was very easy, actually it’s effortless. Needless to say, I’m one happy girl with a lot less worry.
    The Lending Club is totally worth a try!

  7. JW says

    I went through the whole online application process for a 20k debt consolidation loan, provided most of my financial info, and on the last page, under terms and conditions, I see that Lending Club charges a $1000 fee for this loan. I think Lending Club should have disclosed this in the beginning of the process.

    • says

      Hi JW. Yes, Lending Club does charge a closing fee of around 5%, but I believe you would *still* pay less in fees overall as compared to other loan issuers. Of course its always a good idea to look around and consider other options. For instance by having Prosper quote you their rate as well.

    • Jack says

      They claim that a rate quote will not affect your credit score and has not shown up as an inquiry on mine (so far..) But then they don’t ask for your Social Security Number or tax ID. I don’t know what credit database they access based on a person’s name, address, DOB and phone number. To get a FICO score, you need a SSN. So, Lending Club’s ability to discern a person’s creditworthiness is quite mysterious.

    • says

      Checking your rate with Lending Club does not make a hard inquiry on your credit history. However, if you accept the rate and Lending Club issues the loan, they will make a hard inquiry that remains on your account for two years.

  8. Angel Chavez says

    Hi Simon! I applied last January and all was easy. I got the money and paid off my bills. Set up Lending Club to take money every month from my checking account, no problem. But my question is why I still get mail from Lending Club to apply for a loan if I already did one. Thanks for your time.

  9. Sam Stone says

    I’ve taken out a Loan with Lending Club. My credit score is around 770. They employ a bait and switch tactic. They initially told me the origination fee was 1% with an interest rate of 5.9. They later came back and said they could give me a loan but it would be 7.9. Looking at the terms again, I noticed the origination fee had doubled to 2%.

    I’ve seen others with fees as high as 5%. This is actually a lot since they subtract it from the loan they gave you, so you already start out with less than what you needed.

    The peer to peer model gives us an crowd sourced way of funding which in theory sounds good but sometimes a credit union may be a better bet for those with good credit.

    • Sandy says

      Wow! Wonder what happened. As a borrower and lender through LC haven’t seen this before. I’d call Customer Support. They were really helpful when they goofed on my account, one time. Usually, they are ahead of the curve. I, too, have a fab credit score and credit union and shop between the two for loan needs.

    • says

      Hi Sam. I’ve taken out a Lending Club loan myself, and disagree with your experience. Furthermore, an origination fee of 5% and an unsecured personal loan of even 7.9% is lower than any bank can offer. Sorry, but it seems your complaints are unfounded.

  10. Nancy H says

    I applied for a loan with Prosper to consolidate debt. It was quickly funded 100%. I sent all documents requested, but five days later they cancelled it saying they couldn’t verify the stated income and to quickly reapply with the new income they adjusted in my account. My W-2 and paystubs back up my income — all I can think of is that they adjusted it due to the fact that I regularly work overtime. I have reapplied, am funded 100%, and am waiting for verification. Do they adjust for overtime, and since they readjusted my income after having all my documents, am I likely to get approved?

    • says

      Hi Nancy. The verification process is complex and proprietary, so I’m not sure anyone can really give you straight answers here. In my opinion, just submit what they ask for, be patient, and hope for the best.

      • Chase says

        What is the longest LC takes to process a loan. And if you request a amount but only get lesser amount will they email you first or just process the loan at the lesser amount.

        • says

          I think you’re asking what happens if you don’t get 100% funding. This hasn’t happened in years, so I wouldn’t be worried. However, if the 1/100000th chance occurs and you get less than 100% funding (but more than the minimum), the loan would be for that lesser amount.

  11. Nilki says

    If you are approved, is the interest rate set in stone? Can you negotiate it any? And, will it increase or decrease over the period of your loan? Thanks :)

    • zbot says

      I currently have a loan through Lending Club. It has been a GREAT experience. Automatic deductions from a secondary checking account take care of my payment. Pay extra each month and pay off the loan in less than the loan agreement. My 3 year loan will be paid off in 2.4 years……..saved on the interest with no penalty.

  12. Rob Ryf says

    Just wanted to share with others that first I would call my credit card companies and ask if they will reduce your interest rate. In my case one dropped my rate to 9.99% for 6 months. Then we are going to review my account at that time to see if the rate can remain or change. The company that did not drop may rate I paid off and cut up the card. If they are keeping me at a higher rate why use them in the future when I can use a card with a lower rate?

  13. Angelica says

    I have received a Pre-Approval, and my question is about the interest. I know that some other companies charge the interest up front . For example they lend you 10,000 and they automatically add up the interest let’s say 2,000 up front. So the total you own them will be 12,000 even if you pay off the loan in less time, you will still pay them if full.
    Does Lending Club works the same way?

      • says

        Hi Vicky (and Angelica), if you pay the loan off early, you *only pay interest for as long as you had the loan. You do not pay your entire interest amount up front. Hope this helps, Simon

    • Jessica says

      You do not pay the interest up front but you do pay the fee up front. So for example we needed about $12,000 and our fee was about $600, so the loan amount was $12,000 but we only received $11,400.

  14. Jeff says

    I took a loan from the lending club to consolidate some debt and finish up a garage I built at home. The interest rate was 15.89% for the initial loan. After 8 months of on time payments, they emailed me offering me a new loan at half the interest rate of the original loan. Compared to other places for personal loans, I think the lending club is great. The application process is fast and simple, the account is easy to access online and has all of the information I need. There were no surprises (higher APRs, hidden fee’s, penalties, etc)

  15. Donna says

    I applied for loan 5 days ago through LC with a preapproval code I received in mail. I only have fair credit (649) and owe quite a bit on student loans. I was fuuly funded the next day and loan approved and issued today. I wasn’t expecting to get it. I am pleased how easy it was. Email and bank verification was all I needed.

  16. Sarah says

    I had a good experience with Lending Club. Applied last week on Monday, got approved and funded, loan was issued and in my bank account by Monday of this week. Got interest rate of 11.99 for 3 years, my credit score was 712.

  17. Charlie says

    Applied for a loan three days ago. Says it is fully funded but still under review. Does this take extra time or should I be concerned.

  18. Randy says

    Hi Simon,
    I just applied the loan yesterday, today I see the loan status 11% has funded, but I still have done the second req, and I don’t understand it, can you tell me what I need to do ;
    Verify Your Bank Account
    We have scheduled a small debit and credit amount (less than $1.00 each) that will appear in your Chase account within 4 business days of Aug 09, 2014. You can obtain the credit and debit amount by either logging in to your online banking account or by calling your telephone banking system.

    Once you have obtained the exact amount, come back and verify your account by entering the debit amount below.

    • Nolan says

      If you look at the recent activity on your Chase bank account (preferably by logging in on their website), you’ll see two debits or credits, each one between 1 cent and 99 cents. The Lending Club website wants you to enter those two amounts to prove you have access to the Chase bank account you used when you applied for a loan.

  19. Terry says

    I just applied for a loan to get rid of credit cards. In 2012 my wife got sick had to quit her job, and I had to stay home (my work involves travel) for 7 months to take care of her and keep the family running, so I ran up credit card debts. I had no credit cards debt 28 months ago, I ‘ll get back there and I’m hoping that this loan pulls all the credit card debt back into one payment where I can get rid of this credit card debt. Reading these other peoples thoughts and Simon’s comments has been reassuring and comforting. Borrowing money or even admitting you need it, is never easy. I’ll keep you posted on what happens.

  20. Paula says

    I took out a loan through Lending club. I sent in all the paperwork they required. My loan was funded in about 3 days. After I was over 50% paying off this loan, I applied for another loan. It was funded in a few hours at a much cheaper rate. I’ve never had trouble with lending club. They e-mail me to let me know when the payment will be drafted from my account. The thing I like best is that as you pay on your loan you can see the progress toward completion. I have recommended lending club to a friend and they also got approved.

    • says

      Every time you apply for a new line of credit, you temporarily suffer a credit hit with other companies. It makes sense. If you’re looking for credit in multiple places, it might be a sign you’re not a responsible borrower.

  21. Ann says

    I received a pre-approved code. My credit score is about 720. If I applied for a $14,000 loan what type of interest and payment could I look for?

  22. Michelle says

    Piggy backing off of Teresa- So Simon if you’re a married copuple wanting to pay-off/consolidate debt you have to apply for a loan as an individual? You can only list your individual income not joint household income?

  23. Ramon says

    Does Lending Club take collateral on anything? For instance if you apply for a loan, do they take documents on your vehicle or house?

  24. Venus says

    After being approved for a loan, how do you receive your check/funds? Is it deposited into your bank account? Do you pay off your creditors through your bank/checking account?

  25. Z says

    Will a loan from Lending Lending club decrease your credit score like having a loan with a sub standard lender? Will this loan show negatively toward your overall credit rating?

  26. DeVona says

    Today I got approved for a loan of 1500.00 from Lending Club Corporation. I spoke with someone by the name of Justin Green. He told me in order for my funds to be deposited into my account I will have to go to a nearby cvs and wire $135.00. I’ve never heard of that before. Is this a scam?

  27. Al says

    So i received a code from LC and I really never heard of them and i did a little searching and Thank you for the article.

    I went online and enter the code that they sent me and and requested 25,000 and i was only qualified for $20,175 at 15.61 interest and 19.29 APR. Does that mean that’s the loan LC will give me?

  28. Jenny says

    Thank you for your article and constant replies to people. I have just applied for this loan and having all your feedback really makes me feel good about my choice. I hope it all works out for me. I cant wait!!!!

  29. Candice says

    I received a letter saying that I was pre-approved and have been contemplating. I have 2 really high credit cards (but both under 2k) and another that is less than 1k but I’ve been having a hard time finding ways to pay them down. I’m interested in taking a loan to pay them all off, and then make one payment but I’m worried that the one consolidated payment will be too much for me to pay. What do you suggest? Is there a way to see what my payment would be, before I commit?

    • says

      I can’t speak to your situation in particular, but both Lending Club and Prosper are great options for many people who are looking to consolidate debt, and both allow you to see the payment before you commit.

  30. N says

    I think you already answered this but I applied a few days ago and submitted all of the W-2’s and paystubs needed. Within the first 24hours, I was fully funded for 100% of what I asked for but it still says “under review” and that my paystubs have been received but still in process. Should I be worried that the loan won’t go thru?

  31. N says

    It’s been 3 days already. After I posted this comment though, I was contacted by Lending Club to ask a question on my YTD. She said that I was able to clarify what they were asking and that my verified income actually came in higher than stated. She said that everything looked fine. Still haven’t received a decision but let’s hope everything goes ok.

    • Mare says

      Don’t worry. It takes a little bit for them to process. It is not as fast as you are led to believe. I started the process on 9/20/14 and finally fully approved on 9/27. Funds in my bank account this morning.

      • N says

        Ok, thanks for the feedback. Today is day 5 and still not “approval” Fully funded 1st day but still says under review.

          • K.smith says

            I applied for a loan 2 weeks ago, when I called to check on it I had a young man tell me my loan had to be cancelled and I needed to reapply because I had 4 mil down in my yr earnings. I had to open a new email account and reapply only to have the same figures but just a couple thousand different. I had to submitt every thing over again. It showed my loan is funded by 1 investor fully within a day, everything was verified, then asked to submit my w2 again and 1 more pay stub. Still have heard nothing back I reapplied this past fri. If it is already fully funded does that mean I should get the loan? Needing a new furnace and some winterizing before winter. So far experience has been good so fingers crossed.

  32. Sheila says

    I’m interested in applying for a Lending Club loan, but am freelance and don’t have regular paystubs to submit. Does that disqualify me?

  33. Toks says

    I received a pre-approved letter through the mail from Lending Club last week. Two days later, I went to their website and applied. Within three business days my bank account was credited with the loan amount minus the fee.

  34. N says

    Toks, you’re lucky. I’m still waiting for the approval. I received the fully funded from one investor in the first 24 hours. All of my paperwork is in and yet it still says under review. It’s been 7 full working days. Actually 8 because Saturday is a working day for them.

  35. William says

    If I’m approved for a loan with lending club, and opt to pay it off early do I have to pay off the entire amount that would be due at the end of the 60 months?…Or what the interest would be at the time of complete payoff prior to the entire 60 months.

  36. N says

    Still waiting for approval it’s been 16 days. Says fully funded, not asking for any more info and yet I’m still waiting for funding approval. I’ve called them and they don’t say much, just that it doesn’t look like they need anything else. In the meantime, I’ve received another pre-approval letter from them so I obviously still meet their criteria. So frustrating!

  37. Nick says

    The site markets it won’t affect your credit score for applying but you listed it would. Whats the story here?

    Also we’re talking about interest rates. I’m currently paying back my student loans at 6.8% and have a great credit score. The way I found the site was saying this would be a better alternative and save me money but I haven’t seen any reason why paying back students loans specifically would be better.

    • says

      Hi Nick. Checking your rate does not affect your score since it uses a soft credit check. Taking out a loan does show up on your credit report, and can indeed negatively impact your score.

      If you have a student loan rate of 6.8%, you won’t get a better rate with Lending Club. Their best loans are 6.8% as well.

  38. Christina Banion says

    What type of personal info does Lending Club ask beside pay stub and bank info? Does a person need to list all of their assets and debts even though they might just want to pay off 3 credit cards?


    • says

      Hi Christina. I’m not completely sure, as the process may have changed since I applied for a loan last November. What I do know is that they only ask for what’s necessary, and the process is usually very quick and easy.

  39. Kari says

    I submitted my loan request yesterday and it has been fully funded and excepted as of this morning. Now I am just waiting to verify my checking account, how long does it usually take for that credit/debit to show up in your account so I can do this last step.


  40. Ash says

    Hi Simon,
    Does the monthly repayment listed account for the interest charged in each statement? Meaning when it says a monthly payment over 36 months, does that reflect paying the loan off completely including the accrued interest? Also, are they flexible in accepting broken-up payments? i.e. pay half in the beginning of the month and the other half towards the end?
    Thank you.

    • says

      Hi Ash. I don’t really understand your question. I think you mean does the monthly payment reflect the normal payment calendar until things are paid off. If this is it, then yes, say Lending Club says your monthly payment is $150/month. This is the flat amount you would pay (it includes principal AND interest) for 36-months. At the end of 36 months, the loan would be completely paid off. Simple.

      As for partial payments, I’m not really sure. This would be something to call them and ask them yourself, though I always recommend people simply do what is SIMPLE – and this might mean you just pay one payment so that you’re not worrying about it all month long.

  41. Corrina says

    HI. I had received a pre-approval letter for the lending club and have been hanging on to it for some time due to I have been seriously considering a debt consolidation plan. I had read so many horror story reviews on this company I was totally against even trying it. Then I happened upon Simon Cunningham’s review and after reading Simon’s review I began to wonder positively this time. I even looked Simon Cunningham up to see if he was real (LOL), he is and I felt better about it. I then contacted the BBB to see if this was a legitimate company and it is, with an A+ rating. I then proceeded to call the Lending Club to speak to a live person just to make sure I would be okay in applying for a loan and not taking any chances in losing everything I own. After speaking to Sam I decided to go for it. Soft hit what harm could it do just to see. I filled out the easy application on line and unfortunately I am not eligible for a loan at this time, but there is good news with this. I figure that this is what any other lending place is going to tell me as well and I found out with a soft hit. This was an easy process and has given me an insight of how to deal with my debt even though I will not be doing so with a consolidation loan, which granted would make life easier, but hey who said life was easy, right? I just wanted to comment that I will remember this experience and if I ever need too I will have no hesitations coming back to the Lending Club to try again. Thank you Simon for starting it all.

  42. Cindy says

    Ok here are my questions. I want to pay off a few of my credit cards. My score is 710. If I pay those off and get a loan 1.How low will they knock my score down. 2. If I choose to pay off the other cards I have or most of them, will that also knock my score down, by closing the credit card accounts?

    Thanks.. !

  43. Darlene Davis says

    They called me and said approved..but they want $101.00 for insurance up front before the loan..whats that about..is it a scam..??

  44. Kim says

    How do you know if you are approved? My note says approved and in funding but the main page just says final review with a red clock. I applied on Sunday. Loan says it funded 26%. Am I going to get the loan? Or can they still reject me?

  45. Anthony Richards says

    Had a great experience with them. Their algorithm/process favors those with great credit and ability to pay that have accumulated a decent amount of high interest debt (credit cards). In sum, those that were paying a rate that they should not have had to given good credit rating. Makes sense to me. Some people simply should be paying higher rates; dems the market facts. My experience with them was great; paid them off early in fact.

  46. Becky says

    My husband is on social security disability also a foster parent. These two incomes are not taxable, but he has proof that he does receive these incomes. But no W-2 or Income Tax is filed. Excellent credit score. Would he be denied a loan because of not having a taxable income?

  47. Vickie says

    I wanted to ask about their terms and interest rate, but I assume these will be different for each customer. I would like to find out if there is a penalty for prepayment of the loan. Thank you.

  48. Chris k says

    One more comment from me. I am considering applying but as I mentioned before I only have a 625 credit score. Also I show a very low taxable yearly income on my returns. Will the low reported annual income affect my approval?

  49. Cheryll says

    I applied and got approved for $7,000, but when I rechecked, it stated that there were lending club fees of $350 which oh gave me $6,650. I really needed that extra 350 to pay off my debt.. What’s with the fees and why do they do that?

  50. Kelly T says

    Hello, I received a pre approval letter and of course was very skeptical at first. Ive been reading plenty of reviews online (both good and bad). After reading this review though, I have officially applied. The website says it has been successfully funded. I’ve verified my email address and am now just waiting to verify my bank account once they do the small debits. I’m very excited to give this a shot and if all goes well will definitely refer to others!
    My question is, is this a go? Or is there still a possibility of it not going through?

  51. Dorthy says

    Hi, I am in the process of waiting for some type of feedback. On my lending club home page everything has green check marks across on Funding, Final Review & Done: Before the “Final Review” had a red clock. However, I haven’t received any email confirmation or communications. I did get the account verification confirmation. Does mean I am fully approved or still under review? How will I know if everything is a go or not?

  52. John says

    I have 2 loans with lending club right now, the process was very easy had the money both times in a few days, what I don’t like is the way they report the payments to the credit agencies, all of my payments have been made on time never late yet they do not report the payments in a timely manner for example all my payments have been made for November and December already yet they are only reporting thru October still showing a higher balance on the loan than there really is!!! Is there a way to report LC for this?

  53. Paul says

    Why are some loans witch can be as high as 10,000 or more be funded by only 1 investor and others which are very low 5,000 or less have many investors? Which is better for the borrower?

  54. Jennifer says

    I received a call from LC brodat approving me for a loan but they asked for money for insurance. Is this a scam?

  55. Tan says

    I received 2 prior approval letters. Is it an automatic denial if I’ve filed chapter 7 bankruptcy, but now I have a credit score of 655.


  56. Paul says

    I applied for a $12,000.00 loan and it took 14 business days until the money was in my account. I scanned and sent all the documents they needed. My FICO score is 702 and I got a 11.9% interest rate with the $480.00 fee they deducted from my loan. My APR is 14.9% for 36 months. I have only 1 investor who funded my loan in the first 2 days. Lending Club is one of the greatest places to apply for a loan. It was so easy they beat going to a bank to get a loan hands down. Anyone who reads this wondering if Lending Club is legit, cast all fears aside and apply.

  57. lpn510 says

    I had bankruptcy 7 years ago with fico score at time i applied was 710. I’m self employee and my irs shows low income, but LC approved me 18k loan with just 8.66% rate. Anual percentage rate is 10.66%, which i dont understand why there are two rate, can anyone please explain?

    My loan took 14 days of processing, which could be because i requested right during holidays, could be because of my financial situation, but i got the loan i requested for with no hassle. Thank to LC, investors, and Simon for putting up all these helpful links.

  58. says

    Hello, I am Mrs.Caroline, a private loan lender who gives life time opportunity loans. Do you need a loan urgently to pay off your debts or you need a loan to enhance your business? You have been rejected by banks and other financial institutions? We lend funds to individuals in need of financial assistance, that have a bad credit or in need of money to pay bills, to invest on business at a rate of 2%. So contact us today by email at: [email protected]

  59. Cheryl says

    I provided all the necessary info for lending club to make a decision regarding applying for a loan. I noticed the Lending club credit score and found mine was 654 (fair). Good credit score started at 660. There was a huge difference in approval, apr, etc from fair to good. I called Lending Club, mentioning the mere 6 points from fair to good. I asked if a representative reviews the whole picture, not just the fair or good. The rep told me they just run the numbers through a computer and the computer based on raw numbers makes the decision. A human is not involved in the decision making regarding the loan application. This is hard to believe, could this be true? Or do you think the rep provided incorrect info? Thanks.

    • says

      Hi Cheryl. Yes, Lending Club uses a computer equation to determine your loan rate. But I would not think the small 6 points you’re talking about would make much difference. A better suggestion for anybody with a 654 credit score is to improve their credit.

      • Cheryl says

        Hi Simon,

        Thank you for responding so quickly. Your reply provides me relief as to the method Lending Club uses in considering loan applicants. To me a good credit rating would be considered a plus in applying for a loan. I agree that improving my credit score would be a major consideration and this could be accomplished by consolidating my debt or credit cards with Lending Club. In fact considering that Lending Club is a peer to peer Lending company it gives me gratitude that human beings/sponsors care enough to help one establish a better score by reviewing the big picture instead of just flinging scores through a computer like an assembly line. My income may be on the low end but my bills are low and my income is backed by the us government and my company pension so it will always be available for Lending club on a monthly basis already posted in my bank account. My loan application of $10,000, equating to a monthly payment around $300 is plenty to cover the Lending Club loan payment. Again, you have provided much hope in the human aspect of Lending Club to support their peers and not blacklist them due to lack of true review consideration. Support like this when one is in need and determined to clean up and consolidate debt means everything, especially when peer/human oriented.

        Thanks again for the good news. I worked my entire life, raised a family and contributed to the community regularly. It certainly feels wonderful to know a Lending Company like Lending Club puts the human aspect back into a human’s life.

  60. Joanne says

    Hi, I also got a letter saying I was preapproved. My question is I had a bankruptcy over 4yrs ago I am trying to establish credit it is saying mine is 635 I have been paying my bills on-time. I have not officially applied yet I am still contenplating on applying. What kind of income do you have to have? What is the minium they will accept? I really need 3,000 to pay off my credit card and some other debt once that is cleared up I will possibly be able to pay double payments.

    • says

      Hi Joanne. There is no official minimum income, though Lending Club and Prosper typically approves credit scores down to 640. Of course, there is no penalty or way to damage your credit score by just checking one’s rate, so many people in your situation seem to do that.

  61. David Ricketts says

    I have theoretically been approved, waiting for completion of loan funding. I plan to pay off CC’s. by doing this will this also raise my credit score in the coming months? Everything else is paid on time or even a bit early? Thanks

  62. Patricia says

    My application with Lending Club is still under final review. My credit score is 718. My only concern is that Lending Club may think that my income to debt ratio is too high to approve my loan. The whole point in applying with Lending Club was to pay off my high interest credit cards and bring my debt down in a timely fashion. I had already tried my credit union and they will only loan up to a certain percentage of your gross income. Thoughts? Thank you.

  63. Lori says

    Simon, Will transferring my credit debit to a consolidation reduce my credit score? Is a LC loan a negative on my credit report in comparison to credit cards? I want to apply for a mortgage this year and this is a concern for me. Thank you

    • Loraine w/one "r" says

      I’m NOT Simon & don’t understand your question re a loan affecting your cr cards.
      I’m not familiar w/ a “non soft credit ck”, as Simon calls them but was told by my bank that once they ck my credit and a loan is apptoved, that my cr score will probably drop 15 to 20 points but ease back up in 2 to 4 months so I wouldn’t worry about it affecting your request for a new mortgage.
      The thing that drops your cr score is applying for and receiving a new credit card and even that isn’t permanent.
      Or wasn’t for me. I am proud of my 850 score and make sure I’m never late w ANY payment. If I can’t pay for it when the bill comes in, I don’t buy it unless it was necessary. I don’t pay cr card interest. Been there; done that. Not any more, thank God!.
      Ck out Obamas Affordable Home Care Act Loans at your bank when u get ready to purchase a home. This Act expires in about a yr according to latest “reads”. GOOD LUCK
      Interest rates are super low,”they”say….

  64. Toni says

    My question is will they allow you to make 2 payments each month(amount due cut in half twice a month) rather than paying once a month? As long as I pay full amount before it’s due? Does this make sense?
    I was going to originally apply for a loan at my credit union as they can automatically take out half of the payment from each paycheck. But then I just discovered this other option of getting a loan so was just curious.
    Thank you!

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