Lending Club is a peer to peer lending service that connects borrowers to investors. This unique platform reduces the hassle and complexity that comes with traditional bank loans. More importantly, Lending Club offers lower interest rates to borrowers while delivering higher returns to investors.
The Lending Club Review They Didn’t Want Me to Publish
Lending club has originated over $1 billion in personal loans since its inception. Borrowers choose peer to peer lending because they can find loans with better terms than offered by banks or credit cards. Each loan is funded by individual investors, not Lending Club, which reduces the complexity of traditional bank loans.
Lending Club Reviews on Investing
Lending Club has a simple sign up process for investors. Each Lending Club account can by funded by a number of ways including electronic transfer, by check or via PayPal. Peer to peer lending with Lending Club requires that investors contribute at least $25 to each note they choose to fund.
Healthy returns created by Lending Club notes have been sending many new investors to the Peer to Peer Lending market. Investors can expect to find Net Annualized Returns between 5.93 percent and 12.25 percent depending on the Note grade.
Lending Club has an extremely selective approval process, accepting only 10 percent of borrowers. This gives investors only the highest quality loans to fund and a greater tendency for positive Lending Club Review by investors. All loans are Prime Consumer Notes which are fixed-income investments. These notes generate monthly cash flow that can be reinvested.
There are many options for investors looking to minimize risk. Lending Club notes vary in risk and are graded accordingly. From the lowest risk and lowest return being A1 and the highest risk and highest return graded G5. Based on Lending Club statistics, investors that diversify by investing in hundreds or thousands of notes will receive more predictable performance.
Currently Lending Club is not available to everyone. There are specific criteria for investors and is not currently open to all states. Many Lending Club reviews fail to include this information. If you do not qualify as a Lending Club investor, you may want to consider the other leading peer lending platform, Prosper. We have included the investing requirements in our Lending Club Review:
Lending Club Minimum Income Level:
- Gross annual income of $70,000 or more
- Net worth of $70,000 or more
Lending Club Minimum Income Level for California Residents:
- Gross annual income of $85,000 or more
- Net worth of $85,000 or more
Lending Club is only available in the following states:
- California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Kentucky, Louisiana, Maine, Minnesota, Missouri, Mississippi, Montana, New Hampshire, Nevada, New York, Rhode Island, South Carolina, South Dakota, Utah, Virginia, Washington, Wisconsin, West Virginia, and Wyoming.
Alternative Investor Net Worth Requirements:
- Investor with a $250,000 Net worth does not need to meet the annual income requirement.
Investor Asset Allocation:
- No more than 10 percent of an investors net worth can be deposited in Lending Club notes.
- An account can be started with only $25.
Lending Club Reviews on Personal Loans
Lending Club offers unsecured lines of credit to borrowers that are looking for alternative loan options. Unlike a traditional bank loan, Lending Club loans are no different than a credit card advance but at lower interest rates. The interest rates can vary and are determined by the applicants credit rating as well as a number of other factors.
Lending Club reviews all loans and rejects almost 90 percent of applicants to reduce loan defaults. If a Lending Club loan goes into default it is reported to the major credit reporting agencies including Experian, Equifax and TransUnion.
Lending Club has become a popular loan option to consolidate credit card debt, cover wedding expenses and fund small home improvement projects. Every Lending Club Review should include these facts about available loans:
- Minimum loan of $1,000
- Maximum loan of $35,000
Loan Interest Rates:
- Rates are determined by Lending Club
- Rates change based on applicant’s credit rating
- Rates start as low as 6.78 percent APR
- 3 year fixed loan
- 5 year fixed loan
Alleged Lending Club Scam
A common concern about peer to peer lending is whether or not it is a legitimate way to borrow money. It’s no surprise that many people are hesitant to lend money to strangers on the Internet.
The good news is that rumors of a Lending Club scam are unfounded. In fact, as one of the leading social lending platforms Lending Club has funded over $800 million in personal loans. In only a few short years peer lending has become an attractive way for investors to earn higher returns on their investments. In addition, Lending Club has become a major contender in the personal loan market.
Our Lending Club review covered the basics of Lending Club investing and borrowing. The unique structure of Peer to Peer Lending has created an opportunity for investors to receive higher rates of return while reducing risk. Another great benefit of Peer to Peer Lending is that it eliminates the hassle of traditional bank loans for borrowers looking for a small personal loan.
This Lending Club review provides only general information about investing and borrowing with Lending Club. Before signing up please read the most current “Prospectus” and understand all risks involved before investing.