Lending Club Review | The TRUTH About Lending Club

all right what’s going on everybody so
in today’s video I am going to be telling you everything you need to know
about Lending Club as well as giving a review and just a little background I’ve
used Lending Club twice on two different occasions I got personal loans from them
so I have a little bit of background as to what I’m talking about here and
before we jump into this video please smash that like button and that being
said let’s get started okay so for starters Lending Club is a peer-to-peer
lending site meaning is people like you and I that might lend money or in my
case I was borrowing money from different people across the United
States and the whole reason these peer-to-peer lending sites have become
so popular is that banks if you’ve ever worked with them before which I’m sure
you probably have tend to be a little inefficient at times so if you were to
ask your bank for let’s say a twenty five thousand dollar loan they would say
yeah we’ll definitely give you a twenty five thousand dollar loan just put
twenty five thousand dollars cash in the bank and then you know maybe two weeks
later we’ll give you a loan for twenty five thousand secured by your cash so
banks tend to be a little bit inefficient so that’s why these
peer-to-peer lending sites have become so popular over the over the last couple
years and Lending Club has actually been around for a while so it was started in
2007 which is kind of a interesting time to start a financial services type of
company and it’s funded tens of billions of dollars of loans and so you know
these companies are here to stay there is a definite gap in the marketplace
between you know getting a loan from a bank and then asking your friends and
family for money there needs to be somewhere in the middle where you can
have like comment of a formal type of agreement where the investor can get
paid and the borrower can someone get a decent interest rate and get their loan
funded relatively quickly and the way the application form works with Lending
Club if you were to request to borrow money from them is you would provide a
verifiable income you know your credit score and then the reason for the money
so it could be like home improvement debt consolidation student loans
renovations you know it could be any number of things I mean it has to be
somewhat legitimate but there’s a wide variety of options as far as the reason
for the loan and the good thing about lending club is that before doing like a
hard pull in your credit you can just actually apply on the website
should I put the link below but you can see if you’d actually be be eligible for
a loan so it won’t even affect your credit score you can just put in the
basic information and it will tell you you know yes you would be eligible or no
you wouldn’t and then if you were eligible it would tell you you know what
rate how much you’d be eligible for and you still have to do the hard credit
check eventually but that can kind of give you a good understanding of if
you’d be able to apply with them or not and then based on your application based
on your credit score your income debt things like that they have underwriters
at Lending Club that will give your loan a score so it might be like an A+ it
might be like an F it might be somewhere in between and based on that they will
have an interest rate so if you have amazing credit like no debt ton of
income you know your interest rate will be pretty low I think the lowest they
have is 6% and then if you’re just if you have horrible credit lots of debt
like no income it’s gonna be as high as 36% is what they advertised which is
actually pretty high so they have a pretty wide array of people that apply
which is actually a good thing because most banks or most lenders are not even
going to consider people with quote-unquote bad credit or maybe lower
income so Lending Club is good in the sense that it will give a variety of
options depending on your income and credit score now as far as being on the
investor side of things that’s what’s pretty interesting about these
peer-to-peer lending sites is that it’s an additional way to make essentially
passive income so letting koma believe advertises that
their investors make somewhere between 4 and 7 percent and you know that’s one of
those things where there’s a giant asterisk mark and you’d have to read the
fine print but this you know that’s not a bad return if you compare to just
having your money sits in a bank account somewhere however if you decide to
invest in Lending Club if you decide to put your money in different loans and
Lending Club you know obviously if you’re putting your loan let’s say
one of the 36% interest rate loads you know that might have a pretty good
likelihood of defaulting as far as the loan goes so you do need to you know
spend some time and energy picking out the best loans the best interest rates
because just because it has like a 20% interest rate doesn’t mean that people
are gonna pay you back now Lending Club is very good at kind of sorting through
and really qualifying different borrowers but you should always do your
own due diligence and I would recommend if you were I haven’t invested in
Lending Club I’ve only been on the bar inside but I’ve just I’ve heard of other
people investing in Lending Club and they’ve had good experiences but they
definitely recommend going with kind of like the lower interest rate ones that
are a little bit less riskier so after your loan application goes through and
let’s say you get approved for let’s say twenty thousand they they offer loans
they have four personal loans up to forty thousand so their range is from
two thousand I think is the least amount up to forty thousand for the personal
loan section and then I know that I also are expanding into like business loans
and things like that which out which would obviously be significantly more
than that for the personal loan section let’s say
you put up a loan for twenty thousand you get approved the next thing that
happens is you’ll have investors from really all across the United States that
will you know invest like fifty dollars here maybe a thousand dollars there five
thousand dollars here and you’ll see like a scale like a little graph on your
application where it’ll say it’s like twenty percent funded 30 percent 32 33
34 and then if you have good credit typically your loan is approved pretty
quickly or typically it’s funded pretty quickly so I might only take a day or
two I think mine took maybe about a week but it wasn’t too long of a process it I
mean it got funded pretty quickly people these days are pretty I don’t wanna say
desperate but they don’t want to they don’t want their money sitting in a bank
account at 0.01% so even if you invest in the least risky loan and Lending Club
you’re still getting you know like 5% 6% somewhere somewhere in that ballpark
so my loan got funded pretty quickly and then once it gets funded the money
actually hits your account within a few days I think mine took maybe three or
four days but you’ll see that it gets funded and then the money will just go
into your account and you’ll you’ll start the process now one
thing to know with Lending Club is that while you do get the funds and it’s at a
relatively good interest rate I think mine was one of my loans was that like
15% which which sounds pretty high and you know it’s definitely higher but
there’s nowhere else where you’re going to get that type of loan without putting
up some type of collateral so I think I applied one time for ten thousand one
time for twenty thousand somewhere in that ballpark and I know what a my
interest rate was 15 percent I think the other one was actually closer to 20%
which is definite towards the higher end but at that time in my career my
honestly my credit wasn’t as good as it is now my income wasn’t as strong so I
was I was actually just really happy that I got a loan but one thing to know
is they do charge a funding fee so let’s say you get a loan for ten thousand I
believe they take out somewhere between like one and five percent of that just
for the funding fee so you get the money you know – is a pretty small funding fee
so it’s not the biggest deal in the world I mean I wish they didn’t have it
but you know there are business they have to make money so you know I respect
that and it’s not like they’re taking some significant amount either and a
couple of additional things to know about the loan so one of my loans I
believe was for five years and in one was for three years so I think five
years is the maximum that they do but then you can do pretty much anywhere in
between and you can also pay off the loan early which I definitely did with
one of them with with no prepayment penalty which is nice so overall I would
say my experience with Lending Club was very good and I would highly recommend
it and I forgot to add one thing the site is very easy to use and very easy
to understand it’s like we need this information and it’s like how much do
you want what’s your credit score and then here’s what you can get and then
you know a few days later you know your load could get funded and then you get
your money a few days after that and it’s kind of like a payment schedule
it’s it’s very intuitive it’s very easy to understand sometimes with banks I’m
with the credit union right now like their website is so confusing and you
would get all these phone calls from them and stuff like that Lending Club I
just found very easy and very straightforward to use so it’s a very
smooth process you know the interest rates are going to be a little bit
higher than you might get from a bank but again a bank is never going to lend
money in the first place banks can be very difficult to work with sometimes so
this definitely provides a much-needed service and from what I’ve heard I
haven’t used prosper but I’ve heard it’s very similar if not identical to prosper
in terms of interest rates the amount you can get and the customer service and
things like that so definitely check out Lending Club and if you want to see what
you can apply for what you’d be qualified for check out the link below
in this video and if you have any questions definitely drop them in the
comments below and I’ll try my best to answer them in regards to Lending Club
and financing and lending and different things like that and thank you very much
for watching please like please share please subscribe and I will see you on
the next one alright bye you

7 comments on “Lending Club Review | The TRUTH About Lending Club”

  1. The Hassler says:

    Great info sir

  2. Chris McClane says:

    With the monthly payments how much of the monthly payment is Interest/principal

  3. Dan Zarlengo says:

    Very helpful, Thanks!!!!

  4. Mildred Smith says:

    Do they ask for access to your account like user name and password?

  5. akilla214u2c says:

    I've started being an investor in Lending club in the past 6 months. I started a low risk amount of 3k, and i initially added some dollars to the E and F groups. But i think recently lending club has done away with F groups.

    I do like the idea that losses an investor is small. If one account defaults, it my one be 25 or 50 dollars for me. So, its not too, bad unless account holders to decide to band together and default on all the loans.

    I do like it, and I'll be starting 3 more 5k accounts.

    I did not know about the borrower side so, this was helpful to, as i do need a chunk of cash for some home work. Thanks

  6. Jai Bennett says:

    Thank you!

  7. Jai Bennett says:

    Question: how do they base your monthly payments ?
    Can you choose how much you can afford that works over the say 5 years or so they choose a figure

Leave a Reply

Your email address will not be published. Required fields are marked *