A payday loan may not be sufficient enough to cover all your expenses. In times of need, you may want a larger loan. Payday loans are suitable for small short-term repayment, but they don’t provide enough for more significant projects. An alternative to payday loans is a personal loan. One company that can help get you a large personal loan is Lending Club. They’ve been operating since 2007 and can help get you the funds you need.
However, it’s good to consider all the pros and cons of a company before you take out a loan. We’ve taken the time to research Lending Club to see if they are a good fit for you. Here’s what we’ve found.
A personal loan is a loan where you can get funded a certain amount of money. The money will need to be paid back plus interest on a set deadline. With Lending Club, you’ll have affordable and flexible repayment schedules.
On top of personal financing, you can also get business loans from Lending Club. Their loan range differs depending on your business’s finances. Overall, you can get small or large funds available for your business in just a few days.
What’s the Borrowing Process Like for Lending Club?
Using Lending Club is similar to other loan companies. Lending Club will provide approved borrowers with large sums of money. The process is quick so that you can get the funds within a few days. This is useful if you need the money for a special event, to meet a deadline, etc.
The application process is done entirely online. To get approved, you must be able to fill out the application with accurate information. Your income and credit score will be factored into your approval – so keep that in mind.
After you submit your application, you can expect the Lending Club to approve or deny your application within 48 hours. When approved, you can eSign your contract and get funds the same day. This is the quickest process in terms of personal loans.
How Much Can You Borrow From the Lending Club?
Due to Lending Club being for bigger funds, the amount you can borrow varies. Not only does the amount vary by state, but also by your credit score and monthly income. The company will accurately assess your proposed application and either approve or deny it.
If approved, you can get a maximum of $40,000. For the lowest amount, you can take out at least $1,000. However, just because you can get these amounts doesn’t mean you’ll get funded for them. Lending Club does its best job to ensure you get the funds you need. However, you will still be approved based on income, credit, and personal information.
Rates, Fees, and Other Small Charges at Lending Club
Lending Club does have additional fees and high-interest rates. For their APR, the loans float between 10.68% to 35.89%. While this doesn’t seem like a high-interest rate, it is. You have to remember that Lending Club mainly funds larger loans.
On top of the high-interest rate, they also charge extra fees. One of the fees that they do charge is an origination fee. Origination fees cover the cost of setting up your account and approving your application.
The origination fee ranges anywhere from 2% to 6% of the total loan. Luckily, Lending Club cuts out any other fees. This includes skipping a prepayment fee.
Are There Consequences to Not Paying Lending Club?
If you don’t pay Lending Club, they give you a 15-day grace period. This is to help you avoid any extra charges made to your account. However, you should always try and pay your loan on time. If you think you’re not going to make a payment, contact the company right away.
When you miss a payment, you will start the 15-day grace period. This grace period only happens once throughout the entirety of your loan. Once it does, any other late fees will begin to build on your account. This includes a late fee of $15 or a higher fee of 5% of the total amount of your loan.