I knew that Lending Club was a good option for a loan, but I wanted to see what they would offer me. So on a Monday I booted up my computer and went to their website to check my rate. The interest rate they offered me was pretty good, so I filled out the application. On Wednesday I got an email from Lending Club saying my loan was approved.
Three days after I applied they deposited almost $3,000 into my checking account:
How can Lending Club offer loans with such low rates? And how did the money arrive so fast? The answer: Lending Club is not a bank. They do not have tellers or vaults like Bank of America or Chase. Instead, Lending Club only accepts loan applications through their website. The money they save by not having bank branches is passed over to their borrowers in the form of lower interest rates. Also, every single Lending Club loan is fixed-rate, meaning the interest rate will never go up, even if you make a late payment.
In this Lending Club review I’ll outline the application process step-by-step, showing you the things I did to get this loan.
5 steps to get a loan from Lending Club
The entire process for getting a loan through Lending Club is pretty simple.
Step 1: See what rate they offer you
Go to the Lending Club website and check your rate (some use MyInstantOffer). This is done with a soft inquiry (also called a soft credit check), so it will not show up on your credit history and it will not hurt your credit score. For my loan, I checked my rate on a $3,000 debt consolidation loan:
Lending Club will then ask you if you want to apply for a joint loan, which means a loan that two people apply for together. Doing this can sometimes help a loan get approved, or get a lower interest rate, but it can also slow down the loan process. I’m just applying on my own, so I selected the Just Me option and clicked Next:
Then they ask for your birth date:
Next they ask about how much money you make:
Then they ask for your name:
And your address:
Finally, type in an email address and password, put a check in the little box, and click the Get Your Rate button to see your offer from Lending Club:
Step 2: Accept (or decline) the loan offer
As seen below, Lending Club offered me a $3,000 loan with an APR of 16.5%. They have given me a rate as low as 10% in the past, but this still is not too bad. The loan was for 36 months (three years) and had a monthly payment of $99.83. I also had the option to change the loan amount to anything between $1,200 and $4,800, but I kept it at $3,000.
When you are thinking about accepting this loan offer it is probably best to ignore the “interest rate” on this screen. Just look at the APR. The letters APR stand for “annual percentage rate”, and they show the actual rate you would pay on this loan when both the interest rate and the loan fee are considered. Interest rate + fee = APR. Also, do not think you will be offered the same APR as me. Everybody’s rate is different, since every APR is calculated off each applicant’s credit history.
Once everything is set up correctly, and if the loan’s terms are to your liking, click the blue Continue button.
Step 3: Verify your identity with Lending Club
For this step you need to give a few pieces of information that help prove your identity and income. This may include questions about your housing situation and/or employment. You will also be asked to type in your social security number, which can be a little scary. Know that Lending Club’s website uses very powerful 256-bit TLS 1.2 encryption, so your social security number and other information is safe as it transmitted across the internet.
Step 4: Accept the loan’s rate and terms
Almost done! The moment you see the “Loan Rate & Terms” appear on your screen, know that you have reached the final step in the application.
Click to see full agreement
You will see everything listed on the Rate & Terms page: your loan amount, the fees you pay, everything. So make sure to take some time to read everything over carefully. This page is basically a legal document, so clicking the “I Agree” button is like adding your signature to the bottom of your loan application.
Agreeing to this page also causes Lending Club to run a hard inquiry (or a hard credit check) on you. This credit check will remain on your report for 2 years, and may result in a higher interest rate on additional loans you take out in the immediate future. It is a good idea to wait at least 6 months between every application for credit (loans, credit cards, mortgages, etc). Note: my hard inquiry was done through Transunion.
Step 5: Connect your bank account, your email, and upload documents
Next you will be asked to connect your bank account to Lending Club. This allows them to deposit the money when your loan is approved, as well as take repayments from you every month until the loan is paid back.
This step is really easy if you have a major bank like Chase or Bank of America – just click your bank’s logo and type in your bank’s username and password. As a different option you can supply your bank’s account and routing numbers, but doing it this way requires a verification deposit that slows down your loan application.
Finally, Lending Club needed me to verify my email address by clicking the link in the email they sent me. They also needed me to upload copies of my Michigan driver license and last year’s federal tax return. Once I completed these tasks, Lending Club told me my application was being reviewed and that I would hear back from them soon:
Every application has different document requirements. Some loan applications do not need any documents at all. Others may need things like past tax returns, bank statements, or pay stubs. You can either upload the digital file (like a PDF) or you can send the documents to Lending Club by fax.
Lending Club timeline
Two days after applying Lending Club sent me this email saying my loan was approved:
Here was the timeline at Lending Club:
- Monday June 4 (11 am): Checked my rate and applied for the loan
- Wednesday June 6 (1 pm): Lending Club emailed to say loan was approved
- Thursday June 7 (9 am): Woke up and saw that Lending Club had deposited $2,820 into my bank account
Notice something funny? Lending Club did not deposit the full $3,000 that I asked for. I only got $2,820, so where did $180 go?
Lending Club fees
Lending Club kept 6% of my loan as a fee (included in the APR rate from earlier). Every loan at Lending Club is given a grade based on things like the borrower’s salary and credit history. Loans with the highest grade can have a fee of just 1%. Loans with a lower grade have fees closer to 6%.
Background image (c) LendingClub
It can be smart to consider this fee before you apply if you need a specific amount. For example, if you want a loan of exactly $2,500 you might want to request $2,660. A fee of 6% would leave you with exactly $2,500 (2660 x 0.94 = 2500).
Repaying the loan is simple
About 30 days after you receive your money, Lending Club will begin automatically withdrawing payments from the bank account you gave them. These payments will continue every month until the loan is paid back. That said, here are a few things you can do to speed up this process:
- Make an extra payment
- Pay off the entire loan early
Doing either option is completely free (no fee or penalty), and both will result in you paying less interest overall on your loan.
I paid off my entire loan early, and doing it was really simple. I just (1) logged in to Lending Club’s website, (2) went to the Manage Payments page, and (3) clicked the Pay Off Loan button seen below:
Is Lending Club safe? Is it legit?
It’s normal to wonder if Lending Club is a scam. After all, this is the internet. For those who need proof that they are a legitimate company, here are some articles about them from trustworthy websites:
- Yahoo Finance: LendingClub Earnings Expected to Grow
- Financial Times: Lending Club Shares Surge on Brighter Earnings
- The Motley Fool: 3 Ways to Invest in the Sharing Economy
Lending Club Review: A quality low-interest loan
There are a lot of junky loan companies out there on the internet, companies that take weeks to get you the money, or that charge you bad interest rates. Lending Club seems like the opposite of these companies:Pros
- Some of the lowest interest rates in the United States
- Fast cash, got the money in 3 days
- Fixed-rate will never go up, even if you miss a payment
- Checking your rate can’t hurt your credit score (soft credit check)
- No penalty to make extra payments or to pay off loan early
Cons
- Maximum loan is just $40,000
- APR versus interest rate can be confusing. Lending Club should only list the APR and not mention the interest rate at all.
Need a quality loan? Click the button below to check your rate.
Won’t hurt your credit score.
How do I know if they are legit and not scammers?
Hi Melva. As long as you’re on the official Lending Club website (click the blue button above) you should be fine. But don’t apply for a loan over the phone or email, because it could literally be anybody you’re talking to. Lending Club never asks for money to get approved for your loan, so that’s another sign that you could be getting scammed.
I applied for a loan with lending club over the phone. I was told I was approved for. 4. thousand. They sent me an approval letter. They asked me for checking account info. so they could send money. I signed a approval document to recieve money. Then they said I would need to pay 4 hundred dollars for loan insurance. I told them id never heared of this. I asked if they could take it out of the loan. They said id have to send it to them from a walmart or Walgreens. I said i couldn’t and would like to close the approval. They then saud that they would put 980 in the bank and everything would be alright. I asked them again to just close the loan and tell me where to send the 980. I was told that if i don’t return it they may freeze bank account. Would you know how I could solve this problem. dhdazzle
I can’t speak to your particular situation, but Lending Club NEVER asks for money up front for a loan. It sounds like you are being scammed.
Right. I got a loan from Lending Club and I’ve never had a problem with them…and they never asked me for money. So I’m sure you’re getting scammed.
I got a letter in the mail saying we are preapproved I wanted to know what the prepayment was on a 10,000 loan. I have read other peoples comments and reviews about Lending Club and I see they are not given the amount they choose because they take a fee out before they give you the money. Say I need $10,000 then what amount do I ask for to get the $10,000 in the loan after they take out that initial fee??
Also is it taken out of your loan that you ask for or do you have to pay it out of pocket before you get the loan? I seen a comment/review that said that they had to pay $1,000 to get a loan of $20,000. I don’t have even $500 to give away to get a loan, thats why I need the loan to get all my debt taken care of. I am living paycheck to paycheck so I am not seeing how that works either?
Anyone have the answer to these questions please let me know my thing from the mail says it expires in a month.
Hi Shay. You do not have to pay this fee out of pocket; it is simply removed from the loan amount when you receive it. So, let’s say you apply for a $10,000 loan and they charge you a fee of 5%. That means $500 would be removed from the amount they send you. Your checking account would receive $9,500 if you were approved for the loan.
If you want exactly $10,000, just try and consider this fee. Prosper has a max fee of 5.31%. So if you want to receive exactly $10,000 then that amount would have a fee of $561, so you would ask for $10,561.
5% of $10’000 is $500 my friend. Not $50
$orry
Whoops, brain fart! Edited!
Hi, I Applied July, 25th
It still says “Thanks! We’re reviewing your application
Now: You’ll get your money soon, if approved”
From the beginning it says all documents submitted which was employment (check)
Email address (check)
They had “veri tax” call my employer to verify I work there
That was done. I called veri tax and asked and they told me it was for lending club to verify so they marked it as “good”.
Can you tell me if this long wait is normal?
Hi Ashley. I can’t speak to your specific situation, but sometimes loan approvals can take longer than normal. Everybody’s experience is different.
My husband has been dealing with a man that claims to be from Lending Club and gave us your website and told us to research it to make sure it was a legit company and that we were not being scammed. I’m a little concerned as he had us go and get $200 voucher in form of Walmart gift cards to “prove” we can make the monthly payment. Now he is telling us that there is a $250 wire fee that before he will release the over $5000 funds to us that we must send over the wire fee 1st. This is causing all sorts of red flags. I feel that I’m out the $200 and I don’t feel comfortable sending over an additional $250 that I supposedly will be “receiving back in the wire”. I just need to know if this is a scan or not. He even provided me with a Loan Origination license number. I’m just very leery with all these scams out here. Your help is greatly appreciated.
Hi Angela. This is a scam. Lending Club never asks for money up front.
My girlfriend applied for a loan at lending club Thursday. Got email about tasks to do and did those. She checked back on Friday night and it said loan approved funds are on the way but she has yet to receive email stating this. Does this seem odd? So far has received 2 emails. One when she filled out rates said she was preapproved and one with tasks to complete. Just watching out for her. Thanks for any help.
I would trust their website first and foremost, so it sounds like her loan was approved. Congrats to her! And as long as the website is “LendingClub.com” you should be fine from scams, etc.
Yes sir. Thanks. Received the email this morning!
I found Lending Club to be easy, honest and fast. I got my 2500 dollar loan to pay off Christmas credit card debts and am amazed how simple applying and finishing all requirements online on lending club.com was. My funds were deposited in two or three days. I’ve paid off all my debts and the payments of only 93 dollars will be automatically taken out of my bank account beginning in January 2019. Awesome company, hope if I ever need a loan I can go to Lending Club and get the same awesome experience as I did this time.
I have personal experience with Lending Club. I have been paying on a $20,000 loan for 4 years and I’m about to pay it off early. Lending Club was a lifesaver when I needed them. The payments are the same every month and you can even change the monthly date the payment is withdrawn. if you’re looking for a loan in almost any amount, you can’t go wrong with this company
I was told that i approved for a loan and then was asked about my online banking information ( username,password, and security question answer) they said they had to have this to make the loan deposit and set up future payments ..is this normal? I held off on giving any information I don’t,feel this was real
Hi Sherry. If you’re applying for a Lending Club through their website, then yes, it is normal. You can more easily receive the loan if you supply Lending Club with your banking account and password. However, if someone is asking you through the telephone for this then you are being scammed. Make sure you’re on Lending Club’s website and you’ll be fine.
I have a loan with Lending Club..they Never asked for any money or gift cards up front! No legitimate company would ask for you to send a gift card to them! Getting the loan was easy, and I didn’t have good credit at the time, I had debt!! As long as all required info was submitted, approval only took a couple of days and funds were deposited quickly! I would definitely highly recommend Lending Club!
Sherry, I just made the rounds with our bank and LendingClub.com. They cannot see your banking credential – they can only “link” to your bank account. Our bank locked our account down until I verified it was really LendingClub.com and got all the answers to my questions, including the username and password issue. We are in the 4-6 day waiting stage now. I feel much more secure after speaking with the rep and having her verify information on us WITHOUT me giving her anything upfront!
Can we trust the online link MyInstantOffer.com?
Yes, that website is owned by LendingClub.
I applied for a loan of 50,000.00 from Lending Club, not knowing the max was 40,000.00. As expected without knowing the max amount I was rejected for the loan.I also received an email stating that I needed a beacon score higher than 621……My beacon score is 640 or higher with Equifax…….Why doesn’t Lending Club consider other FICO score companies? Furthermore, The loan I requested would drop my monthly payments over 750.00 per month. I have guaranteed income from retirement. How can they make a determination without knowing all the facts in my situation. Now I have a hard credit pulled on my beacon score.In conclusion they just sent me a preapproval for a loan up to 20,000.00 two weeks after they turned me down for a loan I randomly saw on line and applied for without a pre-approval number.What is going on? I saw high recommendations for your company on business shows but feel just the opposite from my experience.
Hi Sal. That sounds like a frustrating experience! I can’t speak to your particular circumstance, but people who get denied for a loan always have a few options they can explore. First, they can check their rate at Prosper, Lending Club’s competitor, by clicking here (soft credit check so it won’t hurt their credit score). Second, they can try to increase their credit score and apply again at Lending Club if they find a few things to fix. People can check their credit report for free once per year at AnnualCreditReport.com: check it for errors and correct any that exist, try and bring any late or defaulted accounts into good standing, etc. If any accounts are fixed or healed, then the chances of getting reapproved go up.
I have someone claiming to be from Lending Club talking over phone about a loan. he wants bank info and claims it can only be done via phone…I want email verification from them…Am I paranoid?
This is a scam. Lending Club never asks for banking information over the phone. Make sure you are using the official Lending Club website by clicking the button above.
FYI: The process of linking your bank account actually involves supplying your online banking credentials. If you click on the terms and conditions link, it explicitly states that accessing your account transaction history is required for income verification and underwriting purposes. But don’t take my word for it, read the TOC yourself.
Good to know. Thanks Paul.
I was approved for a loan through lending club, They deposited the money but than I get an email 3 weeks later that my loan wasn’t approved. I checked the loan site and noticed they have 3 different loans submitted under my name. They show the loan approved for one of them and my payments are set up to be taken out each month. The other 2 loans weren’t approved. I only applied 1x. Is that normal?
Hi Jamailia. I can’t speak for your particular situation, but if a borrower sees loans on Lending Club they did not sign up for, they would be advised to call Lending Club immediately! The number is 888-596-3157 and they are open from 5am to 5pm PST.
I received a message from lending club website that my loan application was declined, after several days i received again an email from lending club to call the number 888 596 4480 or they will call us using 415 632 5624, is this a scam? Thanks..
Sounds pretty scammy to me. Lending Club’s real phone number is 888-596-3157. Call them and ask them about this.
I received a call from Lending Club saying that I
was approved for loan. They told me all the information I have given them. They wanted my bank info. Which I gave them and the # of my debit
card. Do I have to give them the pin number?
Hi Richard. Lending Club only asks for this information through their secure website. Did you give your banking information over the phone? If so, you might have been scammed.
I got a call from someone who claims to work at Lending Club and tells me that they accept my loan application. I told them that I want $2500. They say that they will send a loan application to my email. They want my banking information like my bank account and routing numbers, which I gave it to them. They also want my online banking information like username and password for the process of my loan. I told them that I got to get back to work and we will continue after work. Are they scammers or legit?
Hi Wallace. Lending Club only asks for banking login information through their secure website. If they asked this information over the phone, you might have been scammed.