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Compare Lending Club Rates

Compare Lending Club Rates: No Hidden Charges

The main selling point of The Lending Club is that they do not charge any hidden fee at all. In fact, you can see your rate which does not affect your credit score and then submit your application for the loan without having to pay a penny.

However, the actual loans themselves characterize a fixed rate one that the borrower can afford which essentially means that your monthly installments will amp up a little. You can make the repayment of your loan anytime you choose to as this will finish off the interest amount in the future in fact there is no extra fee you have to pay on the repayment.

When you submit your application for the personal loan at Lending Club the loan offer you will get will be given a grade between A to G with a respective interest rate, APR value, and the fee of origination.

The value of the APR reflects the amount you have to pay for taking the loan on an annual basis. This can assist you in comparing various loans or credit cards. However, for Lending Club the value of APR on the personal loan comprises of both the origination fee and the interest rate but the origination fee is charged automatically from the loan and you will not be charged this fee if you haven’t received the applied loan.

The Lending Club will never require you to pay any upfront payment.

loan

3 Steps to pay back MyInstantOffer Lending Club Loan

Once you receive your loan amount right after almost a month of submitting your application the Lending Club will on its own start deducting your monthly installments for pay back charging the APR rate on it.

This will continue until the entire amount of the loan has been returned to the Lending Club and if you are worried that the time is too long till you will be free from worry of this loan these two tips can help you in this regard:

  • You can choose to make extra payment if your bank limit does not get affected
  • If you have the means you can pay the whole amount of loan earlier

If you choose to opt for any of the options above you will not be charged an extra fee in fact this will decrease the interest rate on the entire amount of the loan you have borrowed from The Lending Club.

You can pay back the entire loan amount in 3 easy steps which are:

  1. Sign in to the official site of the Lending Club using your access details
  2. Navigate to the Manage Payments section or page
  3. Tap on the button for Pay Off Loan
  4. Hurrah! You are done.

Lending Club

Who are the people that Lending Club caters to?

It is important that we now list down the group of people that can use the services and reap off the perks of The Lending Club:

  • For those Borrowers who are looking to get access to quick loans

Those borrowers who own an excellent credit score, a consistent source of income and a least debt are the ideal candidates for the loan at affordable interest rate than the amount which they would otherwise pay using their credit cards.

Once they qualify and submit the credentials the borrower will receive the loan within a time of one week.

Hence if people are in need of instant finances such as for home renovations, medical billing or for business investments then this is a good option to opt for.

  • For those Investors in search for other means of investments

It is always a prudent idea to invest in various areas which are diverse in nature rather than only depending on the stock market.

For such investors who wish to invest in various sources can reap off the benefits of Lending Club which promises to give returns at competitive rates while allowing families to get a hold of their dreams.

  • For those Investors who own a particular net worth

Lending Club service can be accessed by those investors who on a yearly basis earn a minimum of is $70,000 while for residents of California this minimum amount $85,000 in form of their net worth.

However, this amount is exclusive of home commodities, basic homeownership and vehicle.

Investors

What is the procedure for Investors to use the Lending Club?

Once the investor has decided to make an investment at the Lending Club these are the simple steps that they need to follow to complete the loan access procedure:

  • In order to open then the account the investor must possess a minimum of $1000 to start with the procedure and then the investor needs to select one of these options for the account type:
    – Trust Account
    – Joint Account
    – Custodial Account
    – Corporate Account
    – IRA
  • When the account has been opened the investor will be asked to invest at least $25 for each of the notes.
  • Let us explain this better using an instance, if an investor Mr. A has an account of exact $1000 then Mr. A will be able to invest around 40 notes each of which will be at $25 each. This will allow the investors to decrease the risk of being defaulted. 
  • Then the investor will be asked to select their strategy from the two options of investment made available to them
  • Investment which is automated: This is the option in which The Lending Club itself chooses the investment for the investor according to the risk that is bearable and the amount which can feasibly be returned.
  • The investor can either take the “Platform Mix” option of The Lending Club which is essentially an option that combines loans from every grade or the investor can even come up with their personalized “Custom Mix”.
  • Investment which is manual: This is the investment option which is done after conducting research on the grade of the borrower, the reason for borrowing the loan, the rate of interest acceptable and the credentials of the borrower then the investor will be allowed to decide on complete knowledge based details for smart investments.

Important Cues for the Investors to Remember

  • The grade hat The Lending Club assigns ranges from A to E, that includes further sub grades as well within every grade which ranges from 1 to 5.
  • In these grades A1 is the type of loan that has the least amount of risk involved while E5 has the most amount of risk involved and then the subsequent loans range in between.
  • These grades are set to allow investors to construct their personal investment profile which stands par with the amount of risk that they can handle.
  • The account for the funds and the returns to be given has to be done through a bank account that is linked and has the limit to transfer a minimum of $1000.
  • After this the investors will instantly be given deposits on a monthly basis on both the principal amount and the decided interest rate on to the linked account as soon as the borrower’s submit their loan repayments.

How can Investors decrease the risk of their investment?

The investor must know that there is always a risk involved with every investment made and borrowers a lot of times become the defaulters.

However some tips and tricks if adopted by the investor can indeed help minimize the disastrous aftermath of wrong investments

  • Make a variety of notes
  • Never put all your eggs in one basket meaning never make all your investments on 1 or 2 loans it’s always prudent to invest some money into a number of notes.
  • Remember that Lending Club says that almost 99% of profiles with above 100 notes have enjoyed positive paybacks
  • Remember to select borrowers who have a well-maintained profile with better grades
  • Always keep in view the reason for which the borrower is applying for the loan
  • It is wise to go for borrowers with refinancing rather than new debts
  • Filter out all your borrowers by setting criteria for their credentials hence you will be shown borrowers with improved credit scores, stable earnings and those borrowers who have a lesser debt ratio than the others.
Borrowers Loan Hedging

What is the procedure for Borrowers to use the Lending Club?

For the borrowers, the following is the simple procedure that needs to be followed if they wish to get access to their loans:

  1. The potential borrower first needs to fill the online form that will ask for the borrower’s personal credentials:
    – The Name of the Applicant
    – The Residential Address of the Applicant
    – Social Security number
    – The Date of Birth of the Applicant
    – The Monthly Earnings
  2. The applicant will then be asked to define an amount for the loan which must lie in the range of $1,000 to $40,000 and then select the purpose for the loan for example for home renovations or to pay medical bills or for any other major reason. 
  3. The borrower will then be provided with rate offers and the Lending Club itself do a soft check on the applicant’s credit. The borrower will then be presented with the final offer which would include the principal loan amount, rate of interest, the exact repayment amount each month and all the terms and conditions of the loan.
  4. Lending Club also then assigns a grade for the risk for every borrower according to the rating on the credit, the exact amount of the loan to be assigned and other compulsions with it. The grades are already defined above.
  5. This specific “grade” that Lending Club assigns to every applicant will then gauge the offer which will be presented to the borrower by The Lending Club. The better this grade is the more weight-age will be given to the desired interest amount that the borrower will be given. Even the higher amounts of loans will be given to those who have a better grade.
  6. After the procedure above is done the borrower has the option to either accept or reject the presented offer of the bank. Then at this level, Lending Club will operate an in depth inquiry of the borrower’s credit score if the borrower accepts the given terms.
  7. The borrower should then link his respective bank account and other documents. The borrower will also be required to submit all the credentials that are asked for instance any governmental ID cards or taxation details. Lending Club will make use of these credentials to consider your application request.
  8. Then all there is left to do is get your required funds Get funds. Once your loan is approved and backed by investors, the money will be deposited into your bank account. The whole process usually takes 7 days (sometimes less and sometimes more)

What if the borrower wishes to cancel the loan?

What if you wish to reject your loan after it has been applied for and funds have been made available then the borrower will have 5 days for its cancellation.

The borrower needs to make a call to Lending Club as soon as possible and let the money stay in the registered and linked bank account and then the Lending Club will cash it back during 5 to 7 business days.

Important Cues that the borrower needs to remember

The borrower needs to make scheduled timely payments every month and the first payment would begin once a 30 day period has elapsed from when the loan is disbursed.

However, every borrower needs to know that Lending Club will be drawing payments every month on an automated basis from the bank account that the borrower has linked with Lending Club. Moreover, if the borrower wishes to pay any additional installments before time or pay off the entire loan once and for all then they can do so at any time.