Are you someone who has fair credit scores and needs a loan? Maybe that has been a problem lately, since some of the options with lower fees and interest rates don’t accept people with less than excellent scores. The LendingClub Personal Loan comes to break that pattern and offer some advantages even for those with fair credit.
There are even options specifically for those who wish to consolidate debt. That is a great choice when you have a lot of high interest dues to pay, such as credit card balances, and would like to exchange them for those with better payment conditions.
Once you consolidate debt, you’ll even be able to save some money that would be wasted through interest rates otherwise. Is that something that you might be interested in? Then it’s time to start reading everything about the LendingClub Personal Loans! Keep reading to understand how it works, advantages, cons and even how to get an approval for this type of loan.
LendingClub Personal Loan
Up to $40.000 loan Fast fundingHow does LendingClub Personal Loan work?
Actually, the LendingClub Personal Loan isn’t a single lending service for people with varied credit scores. It’s a marketplace of sorts that reunites many providers and helps you choose the ideal one for your score, objective and situation.
This means that instead of a single loan that you can use as you wish, you’ll find many options from different financial services. Which makes the probability of you getting the ideal choice according to your credit score much higher.
It works more as a broker than as an actual lending service. This way, the service manages to connect people who need some advantageous loans to investors that can fund it. Everything in an easy and simple manner that won’t keep you waiting for days on end for an approval.
The best part of all this is the availability of unsecured loans that go from $1.000 to $40.000. Most choices have a reasonable interest rate, but you might be able to find better ones with other companies if you have an excellent credit score. Otherwise, this is probably the best you could get.
Who should use LendingClub Personal Loan?
LendingClub Personal Loan is a great choice for those who aren’t yet with good or excellent credit scores. Unlike other similar services, it doesn’t require perfect numbers for you to be eligible and offers cash to those who have at least a 600 score.
While the interest rates might not be the best in the market, it’s enough to give most people access to credit at lower rates than credit cards and other types of financial services. You can use LendingClub to cover most major expenses, including:
- Credit card debt consolidation;
- Medical bills of all sorts;
- Supporting events;
- Complete home repairs;
- Paying off wedding costs;
- Moving or relocation costs;
- Emergencies and funeral payments.
As you can see, you can use the money to pay off most types of spending. Just remember that each of these objectives might get you a different loan with slightly better or worse interest rates. It’s important to do your research as you move through the application process for LendingClub Personal Loan.
Advantages of using LendingClub Personal Loan
LendingClub Personal Loan has many pros that might convince you to look for their services. For starters, you can apply for more than one personal loan. Let’s say you already took one out, but need more funding for your projects, don’t worry, LendingClub is there for you with your next option.
You can also apply for a loan using a co-borrower. This means that even those with poor scores might get an approval, as long as they have someone with a good score to get the loan with them. Most services with more advantageous interest rates don’t accept a co-borrower, as is the case with Discover Personal Loan.
Other pros include:
- Minimum $1.000 loan, maximum $40.000;
- Qualify with fair to excellent credit scores;
- Fast funding once you’re approved;
- No application fees;
- Check interest rates without harming your score.
This is a user-friendly system that allows almost anyone to get a loan. Which could be a great way to get rid of high interest on other debts or give your personal projects a much needed push.
How do joint applications work?
A poor credit score usually keeps most people from getting a loan, at least if they’re on their own. A joint application is the best way to get around this problem, if you manage to find someone with a good enough score.
However, it’s important to consider every detail before you actually take this step. Your co-borrower’s credit score becomes dependent on your ability to pay everything on time. It can be risky to make a loan without the certainty that you’ll be able to repay it, which would ruin both your and your co-borrower’s score, as well as create a rocky relationship.
Cons of using the LendingClub Personal Loan
The LendingClub Personal Loan is a good choice for those with fair scores, but there are some problems as well. Check out some problematic parts of this loan services that you might want to understand before you begin:
- 1% to 6% origination fees;
- There are late payment fees;
- Not available in Iowa;
- Higher interest rates than similar services;
- Doesn’t have next day funding.
Payments terms and fees for this loan
Now that you understand what LendingClub Personal Loan is about and who should use it, we’ll talk a bit more about payments terms and fees. There are more fees than you might have seen elsewhere, which makes this a more expensive loan as well, as you can see below:
- Up to 60 months payment term;
- Minimum 600 credit score to apply;
- 1% to 6% origination fee;
- 6,34% to 35,89% APR depending on your credit score;
- Fees for late payment after the 15 days grace period.
All you need to qualify for the LendingClub Personal Loan is to visit the website and give some personal information. You’ll have to inform about:
- Loan amount;
- Purpose of the loan;
- Co-borrower information (if it applies);
- Birthdate;
- Name, home address, e-mail address;
- Total annual income.
Afterwards, you’ll be able to know how much you’re allowed to get and the APR that should apply. In case you accept, it’s time to give some more personal information to go forward with the application.
How to Apply
To qualify for a LendingClub Personal Loan, follow these steps:
- Visit the Website: Start your application process online.
- Provide Personal Information: Details required include the loan amount, purpose, co-borrower information (if applicable), birthdate, name, home address, email address, and total annual income.
- Check Loan Options: After submitting the initial information, review the loan amounts and APRs available.
- Complete the Application: If you accept the loan terms, provide additional personal and financial information to finalize the application process.
LendingClub offers a viable option for those with fair credit scores looking to consolidate debt or cover significant expenses. However, it’s essential to weigh the benefits against the potential costs and fees before proceeding.
Conclusion
LendingClub Personal Loans offer a practical solution for individuals with fair credit scores, providing access to funds for debt consolidation, medical bills, home repairs, and other significant expenses. Its marketplace model connects borrowers with a variety of lenders, increasing the likelihood of finding a loan that fits your specific needs.
Key Takeaways:
- Accessibility: LendingClub is suitable for those with at least a 600 credit score, offering options even to those who might struggle to get loans elsewhere.
- Flexibility: With loan amounts ranging from $1,000 to $40,000, borrowers can cover a wide range of expenses.
- Joint Applications: The ability to apply with a co-borrower increases the chances of approval for those with lower credit scores.
- Fees and Terms: While there are no application fees, origination fees range from 1% to 6%, and APR varies from 6.34% to 35.89%. Understanding these costs is crucial before applying.
Considerations:
- Origination and Late Fees: These can add to the overall cost of the loan.
- Interest Rates: Higher rates compared to some other options, particularly for those with better credit.
- Geographical Limitation: Not available in Iowa.
LendingClub’s streamlined process, multiple loan options, and accessibility for fair credit scores make it a compelling option for many borrowers. However, it’s important to carefully evaluate the associated fees and interest rates to ensure it’s the best fit for your financial situation.
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