In order to consolidate LendingClub loans, you can take out another loan from a different lender and use it to pay off the LendingClub loans. Or, you can do a balance transfer to move the balance of the loans onto a credit card. In either case, you'll want to make sure that the new loan or credit card will give you a lower APR than you're currently paying on your LendingClub loans. Otherwise, the process won't be worth it. Watch out for any loan origination fees or credit card balance transfer fees as well.
Unfortunately, you won't be able to take out a new LendingClub loan to consolidate your old loans, because you can only have a maximum of two LendingClub loans open at one time. And if you need to consolidate, that means you already have two open. You could consider giving LendingClub customer service a call at 1 (888) 596-3157 to see if they would combine your existing loans into one, though.
If you default on a LendingClub loan, you will owe late fees for each missed payment and will experience credit score damage from those late payments being reported to the credit bureaus. In addition, you will have to deal with calls from debt collectors, and it’s possible you could be sued. Naturally, it’s best to try to avoid defaulting on a LendingClub loan, through methods like working out a new payment plan, settling the debt or refinancing with a cheaper lender.… read full answer
What Happens If You Default on a LendingClub Loan:
You owe late fees: For each payment you miss, LendingClub will charge 5% of the payment amount or $15, whichever is greater.
Your credit score decreases: Payment history is one of the biggest factors in your credit score. A late payment will remain visible on your credit report for 7 years and can hurt your score that entire time, though the damage will diminish over time. LendingClub reports late payments to the credit bureaus once they are 30 days past-due. And if you don’t pay at all, your debt may get sold to collections or charged off. Those negatives stay on your credit report for 7 years, too.
You will likely be contacted by debt collectors: LendingClub says they make “significant” efforts to contact delinquent borrowers and collect outstanding payments. They do so both through internal departments and by working with debt collection agencies. Make sure you know your rights concerning how debt collectors can and cannot behave toward you.
You may be sued: Anecdotal evidence suggests that it is rare, but not unheard of, for LendingClub to sue a borrower who defaults. Since LendingClub loans are unsecured, a court judgement provides an alternative way to get the funds back. If you were to be sued and lose, the judge could garnish your bank account or wages to pay back what you owe.
If you’ve defaulted on a LendingClub loan, you may want to try to settle, since lenders are more likely to settle when they are afraid of you not paying altogether. Negotiating a settlement could let you pay as little as 30% of what you owe, but you’ll need to have enough cash to pay the settlement amount in a lump sum. Keep in mind that while there are reports of customers settling with LendingClub, the company has no obligation to agree.
You could also refinance your debt with another lender. But if your credit score has been damaged by missed payments, you’re not likely to get better terms on a new loan. Another option is to call LendingClub and try to work out a new payment plan that’s more manageable for you.
The best LendingClub alternatives are the peer-to-peer lenders Prosper, Upstart, Payoff and Peerform, as well as LightStream, Marcus, American Express and Achieve Personal Loans when it comes to online lenders, banks and credit unions. While LendingClub is a decent lender, rated 4 stars out of 5 by WalletHub, its loans are a bit more expensive than loans from the best competitors.… read full answer
For example, LendingClub personal loan APRs range from 7.04% - 35.89% and the origination fees range from 1% to 6% of the loan amount. On the other hand, LightStream – one of the best LendingClub alternatives – offers APRs that range from 5.99% - 22.49%, as well as a $0 origination fee.
Some of LendingClub’s competitors offer larger loans and lower credit score requirements, too. LendingClub offers loans of $1,000 to $40,000, and most of its loans require a credit score of 660+. In contrast, competitors like LightStream and Upstart can provide $50,000+ in funding, and some lenders like Peerform have credit score requirements as low as 600.
Best LendingClub Alternatives:
LightStream: APRs of 5.99% - 22.49%. $0 origination fee. Loans of $5,000 to $100,000. Credit score of 660 needed.
Marcus by Goldman Sachs: APRs of 6.99% - 24.99%. $0 origination fee. Loans of $3,500 to $40,000. Credit score of 660 needed.
American Express: APRs of 6.98% - 19.98%. $0 origination fee. Loans of $3,500 to $25,000. Credit score of 660 needed.
Achieve Personal Loans: APRs of 7.99% - 29.99%. 1.99% to 4.99% origination fee. Loans of $7,500 to $40,000. Credit score of 620 needed.
Prosper: APRs of 6.99% - 35.99%. 2.41% to 5% origination fee. Loans of $2,000 to $40,000. Credit score of 640 needed.
Upstart: APRs of 5.35% - 35.99%. 0% to 8% origination fee. Loans of $1,000 to $50,000. Credit score of 620 needed.
Payoff: APRS of 7.99% - 29.99%. 0% to 5% origination fee. Loans of $5,000 to $40,000. Credit score of 640 needed.
Peerform: APRS of 5.99% - 29.99%. 1% to 5% origination fee. Loans of $4,000 to $25,000. Credit score of 600 needed.
Navy Federal Credit Union: APRs of 7.49% - 18%. $0 origination fee. Loans of $250 to $50,000. Credit score requirements not disclosed.
There’s an easy way to find the best LendingClub alternatives for you. You can use WalletHub’s free personal loan pre-qualification tool to show you which lenders will give you the highest approval odds, as well as estimate what rates you can look forward to if approved.
LendingClub says it can take up to “a few days” to deposit money after they approve an application, depending on the bank the borrower uses. The funds are sent as a direct deposit to the borrower’s bank account, and some banks may not process the transaction as quickly as others. But the whole process, from application to receiving the funds, generally takes 7 business days or fewer (sometimes as few as 4 calendar days).… read full answer
Keep in mind that there’s a difference between a LendingClub loan being “funded” and the money being deposited. LendingClub is a peer-to-peer lending site, so each loan request needs investors to commit to paying out the loan. In some cases, investors may commit to funding the loan before LendingClub gives final approval for the loan to proceed. In that case, you’ll have to wait for the loan to be approved, and then may need to wait an additional few days for the money to move to your bank.
You should also keep in mind that the interest on your LendingClub loan starts accruing as soon as you receive final approval. That means you may start owing interest a few days before the money gets deposited in your bank account. Your first payment is also due one month from the approval date.
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