Yes, you can pay off LendingClub loans early, which is a smart idea because it will save you money on interest. LendingClub does not charge a prepayment penalty, meaning that you will not be charged extra if you pay off the loan sooner than you’re required to.
Example of How Much You Can Save By Paying Off a LendingClub Personal Loan Early
Situation: A $10,000 loan with a repayment period of 4 years, an APR of 18% and an origination fee of 3%.
Normal Payments: You will spend approximately $4,100 on interest.
Early Pay Off: If you pay off the loan in 3 years, you will save about $1,086 on interest.
To check for LendingClub pre-approval, go to LendingClub’s website, enter your desired loan amount and the purpose of the loan, and fill in some personal information like your name, address and income. It’s quick and easy to check for pre-approval with LendingClub, and doing so has no effect on your credit score.… read full answer
LendingClub also sends out pre-approved offers by mail. Receiving a pre-approved offer means LendingClub thinks you would be a good candidate for a loan, and you have a high chance of approval. If you’d like to submit an application and have it flagged as pre-approved, you can click the “Respond to a mail offer” button on LendingClub’s website. Then, simply enter the “personal funding code” from your mail offer, and you’ll be able to proceed to an application.
Keep in mind that while pre-approval for a LendingClub loan does not affect your credit standing, actually applying for a loan will trigger a hard inquiry into your credit history, which will drop your score by 5 to 10 points temporarily. Since there’s no harm in pre-approval, it’s a good way to help you make a decision on whether or not applying is worth it. Just follow the few simple steps to get pre-approved online and you’ll be able to see your status in minutes.
Enter a loan amount and loan purpose (or state of residence in the case of auto loans).
Click the button that says, “Check my rate” or “Get a quote.”
Enter some basic personal information like your date of birth, income, name, address and email.
Create a password for a LendingClub account.
Click the button to submit your request and see your potential rates.
It’s also good to note that you can check your LendingClub pre-approval status through WalletHub’s free personal loan pre-qualification tool. You’ll be able to see your approval odds and potential rates with multiple other lenders, too.
By the way, “pre-approval” and “pre-qualification” are usually used interchangeably when it comes to personal loans. Most lenders that let you estimate your odds and rates call that process pre-qualification, but many people are more familiar with the term pre-approval from their experience with credit cards.
An applicant’s LendingClub approval odds are highest when they have a credit score of at least 660, at least 36 months of credit history, and a steady income. They should also have a debt-to-income ratio of less than 40%, not including mortgages or the loan amount they’re requesting. In addition, it’s best to have at least two open revolving credit accounts and no more than 5 credit inquiries in the past 6 months (not counting mortgages or auto loans).… read full answer
Your LendingClub approval odds will decline with each requirement you do not meet. But it’s still possible to get approved if another area makes up for it (e.g. a high income and a low credit score).
LendingClub assigns letter grades to potential borrowers based on their creditworthiness before posting their loan request on the site. An “A” grade is the least risky, while “G” indicates the most risk. These grades take into account the borrower’s entire profile, including credit score, income and existing debt levels. The better your letter grade is, the better your approval odds should be.
Around 78% of all approved LendingClub loans have been graded “A” through “C.” LendingClub does not disclose what percentage of applications that receive each grade get approved. But it’s clear that LendingClub issues far fewer loans to people with more risky profiles.
Estimated LendingClub Approval Odds, Based on Loans Issued
Loans Issued Since 2007
Share of Loans Issued Since 2007
There is a quick and free way to get an idea of your LendingClub approval odds. Just plug in a few details into WalletHub’s personal loan pre-approval tool, and you’ll be able to check your odds of getting a loan with LendingClub and multiple other lenders. You’ll also get an idea of what rates you might receive if approved. This check does not affect your credit score in any way, and it can help you avoid applying for the wrong loans.
Applicants need a credit score of 600 - 640 to get a personal loan from LendingClub, according to multiple third-party sources. That means the LendingClub personal loan credit score requirement is in the bad to fair credit range. To put this in perspective, most other lenders' credit score requirements for personal loans range between 585 and 700.… read full answer
Keep in mind that just having a 600 - 640 credit score is not enough to qualify you for a LendingClub personal loan. LendingClub will consider your entire financial profile, including things like your income, existing debts and recent credit inquiries, when deciding whether to approve you. It's also worth noting that some applicants might be able to get a personal loan from LendingClub with a slightly lower score if it's offset by other factors like an especially high income. But it's best to wait to apply until your score meets the threshold.
If you're unsure of what your current credit score is, you can check it for free on WalletHub. You can also pre-qualify for a LendingClub personal loan online to gauge your chances of getting approved with your current credit score.
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