Lending Club says it offers great low rates on loans, but how can you trust them? Are they a scam? There are so many fake offers out there, so how can we tell whether Lending Club is fake or real?
There are a lot of different ways to show Lending Club is legit, from news stories, to site security, to reviewing the company’s history. After looking at each reason, I hope you are convinced that Lending Club is not fraudulent in any way, but instead is a great place to get a loan.
Let’s get started.
Four Stories of Lending Club in the News
Here are four major news stories to prove that Lending Club is not a scam, from The New York Times, CBS News, CNN, & USA Today.
# 1: The New York Times likes them
You know that if the New York Times speaks positively about Lending Club, it is impossible that they are a hoax. The article above shows that Google recently invested $125 million into Lending Club. This makes Lending Club worth over $1.5 billion as a company. Certainly Google would not invest this amount of money without making sure Lending Club is a great company. Their investment proves that, not only is Lending Club a great place for a loan, but that Google is excited about where it is going in the coming years.
# 2: CBS News likes them
Video: Share and Share Alike
In March of 2013 CBS did a special on the new shareable economy. They showed off a few major companies who focused on connecting people directly to people for different reasons, like renting houses on AirBnB. In this piece, they showed off Lending Club as a great way people are connecting to people for loans, connecting outside traditional financial institutions (like banks or Wall St).
#3 CNN likes them
CNNMoney: Mack is Back: Wall Steet’s New Agitator
In April of 2012 a big thing happened. John Mack, a man who previous ran the financial company Morgan Stanley, joined the board of Lending Club. CNN’s article proved that Lending Club is not only worth the attention of people who need a loan, but also the attention of Wall Street experts like John Mack.
#4 USA Today like them
In March of 2013 USA Today ran a great piece on disintermediation, which is when technology makes a current thing obsolete, similar to how Lending Club is making banks obsolete. Where before people drove into physical banks, companies like Lending Club are moving money online.
Check your Lending Club rate (won’t impact your credit score).
#5 – Lending Club has a Solid Track Record
We have looked at major news outlets and their coverage of Lending Club, but how can we further establish that this company is trustworthy? Let’s look quickly at the journey the company has taken thus far.
In 2007, CEO Renaud Laplanche founded Lending Club as a Facebook application. The idea was to use the social network of Facebook as a way to connect people’s finances, offering loans between Facebook’s users. Many years went by, and Lending Club eventually dropped the Facebook idea. However, their attempt to connect people who need a loan to people with money to lend really took off.
Six years later they have completed over $2 billion in loans to people. While many other companies have come and gone or experienced great hardship, Lending Club has remained strong throughout the years. CEO Renaud Laplanche continues to lead the company with excellence, bringing it to break its monthly record every single month.
The future holds great excitement for Lending Club. Three banks have already signed up as their’s customers, evidence of the amazing wave of success that is headed Lending Club’s way.
#6 Lending Club Offers Great Rates
One of the big concerns borrowers have is how low rates are at Lending Club. After all, how can a website offer a loan at such a dramatically lower interest rate than anything else nationwide?
The answer has to do with technology and the internet. Before, people had to apply for a loan through a bank, a brick and mortar establishment that had to pay staff, security, and maintenance on its building. Now everything is done online. Because Lending Club is not a bank, it has the ability to be very streamlined. It can employ a much smaller staff than a traditional bank. It does not even need a vault – it only connects people together.
Since Lending Club requires such little money to operate, it can pass the savings over to us, its customers! Borrowers deeply benefit by receiving lower rates on the loans they apply for. Where many people would pay 15% on a loan at a bank, they often pay 9% at Lending Club.
#7 The Better Business Bureau (BBB) says Lending Club is Legit
One of the most trusted companies in the United States is the BBB, or Better Business Bureau. The BBB has done a complete examination of Lending Club, looking at the way it runs its business, treats its customers, and responds to complaints. Having completely reviewed this company, the BBB has given Lending Club an A rating, the highest rating it can offer.
You can see why they did this if you read their report. Out of the 100,000 loans Lending Club has issued, only 23 complaints have been filed with the BBB. Twenty three! Amazing. This means that 99.99% of Lending Club’s customers have been satisfied with their experience.
#8 TRUSTe & Verisign say Lending Club is Safe
Many people worry that Lending Club may be a fraudulent site out to steal from them, but the reality is that Lending Club has gone to great lengths to make sure its website is safe from hackers or other people who might be trying to steal your information. Two ways they have done is is through getting TRUSTe and Verisign security on their website. These two security standards are really excellent, making sure that Lending Club’s site remains free from viruses and hackers.
Conclusion: Lending Club is Legit and Safe
There are lots of scammers out there offering loans to people that trick them into bad payment plans and horrible interest rates. It is really important that we question any offer we get in the mail, especially if the offer seems too good to be true.
But Lending Club is not one of these scamming companies. While the question is a good one, the examples given in this post strongly indicate that this company is not out to trick people.
Instead, Lending Club offers:
- Lower interest rates
- Quick process to apply
- Payments stay the same (and amortize each month)
- Easy-to-use website
- Payments come directly from your bank account
The evidence is clear: While many fraudulent cheating sites exist on the internet, Lending Club is a trusted way to take out a loan (up to $35,000).
Check your rate @ LendingClub.com (won’t hurt your credit score)