Pros: Easy online application, no pre-payment penalties, fast funding process.
Cons: Origination fee of 5%.
Bottomline: Low APR rates compared to credit cards.
San Francisco, CA
Number of Employees
71 Stevenson St #1000, San Francisco, CA 94105
1 (888) 596-3157
For peer-peer lending I use lendingclub.com. So far it has been a good experience giving me 10+% returns.
I use Lending Club and I'm happy with it. I'm at about $3,500. My goal is to get it up to about $4,500, which should bring in about $50/month -> 2 new loans. I like that you invest in $25 increments since then if a loan goes bad, it's only $25 that you lose. I'm curious about if they have any recourse if the borrower doesn't pay, since I know they're unsecured loans, but it just seems odd to me that a person can borrow $15,000 and then walk away without paying with no repercussions...? It's on my list to research more (or ask here :D ).
I used #lendingclub - applying was quick & easy, approval was a snap. No complaints.
I've used Lending Club on both sides of the marketplace (Lender and Borrower) and I really love the platform. So much easier than dealing with banks and the rates have always been fair.
I just recently opened a loan with LC. The nice thing was they didn't do a hard inquiry until I finalized the loan, I could check my rates without affecting my credit. The interest rates are probably higher than what you'd get from a traditional credit union, but I'd say you've got better odds at a Lending Club approval. Regardless, the rates are probably still going to be way lower than your credit card rates. Anyway, the process was fairly simple and quick. I think it took almost a week to get the money in my bank account. The only thing I'd suggest is to keep an eye on your dashboard on their website during the application process. They never sent me email updates/requests when they needed information or something from me like you'd expect. The only way I knew they needed something was because I checked my account every morning and saw a new item on my "to do" list. But once that's out of the way, it's only a few days between approval and deposit.
How long does LendingClub take to approve?
LendingClub's whole application, approval, and funding process typically takes around seven days, and sometimes it could take slightly longer.
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Is LendingClub a good investment?
Check out customer reviews to find out what other people are saying.
Is LendingClub free?
LendingClub is not a free service. They are a peer-to-peer lending service that connects business borrowers with loan providers, and they facilitate small business loans across the United States. Annualized interest rates for LendingClub loans range from 9.77% to 35.71%.
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What kind of credit score do you need for LendingClub?
You need a minimum credit score of 640 to qualify, and the typical LendingClub borrower has a score of nearly 700.
Is LendingClub a review?
No. They are a peer-to-peer lending service that connects business borrowers with loan providers, and they facilitate small business loans across the United States.
Does LendingClub affect your credit score?
No. Applying for a loan through LendingClub generates a soft credit inquiry, that doesn't affect your credit score. Learn more here.
Does LendingClub require proof of income?
Yes. You can learn more here.
Does LendingClub do a hard inquiry?
No. Applying for a loan through LendingClub generates a soft credit inquiry.
What happens if you default on LendingClub?
If you miss several payments, your loan enters “default” status. When there is no longer a reasonable expectation of further payments from your side, the loan is charged off. Contact LendingClub to find out what happens once your loan is charged off.
Will LendingClub lower my payment?
Contact LendingClub to check with them.
How much interest can I expect to pay for LendingClub small business financing?
Annualized interest rates for LendingClub loans range from 9.77% to 35.71%.
How do I contact LendingClub?
You can contact LendingClub for answers to your business financing questions by calling 1 (855) 846-0153.
Can I pay my LendingClub loan off early?
Yes. With LendingClub, there is no penalty for breaking from the repayment schedule and paying off the remaining balance of your loan before the term is over.
What are the requirements for a LendingClub loan?
- Minimum of $50,000.00 in annual sales.
- No recent bankruptcies or tax liens.
- At least 12 months in business.
- Ownership of at least 20% of the business with a reasonable credit history.