Does LendingClub hurt your credit? This question is about LendingClub

Does LendingClub hurt your credit?

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This question is about LendingClub

Gino Rodriguez, Writer

@gino_rodriguez • 01/25/23 This answer was first published on 01/25/23. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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A loan from LendingClub will temporarily hurt your credit score because the company will perform a hard pull of your credit history before you receive your loan, which may drop your score by about 5 to 10 points. However, just checking your rate and applying for a loan from LendingClub Bank won’t affect your credit score.

If you do get approved for the loan, it will add to your overall debt load, which may hurt your credit score. The negative effects don't have to last long, though. Over time, a loan from LendingClub will help your credit score if you pay the monthly bills by the due date, as doing so adds positive information to your credit reports. This should offset any initial decrease in your credit score after you take out the loan.

To predict how your credit score will be affected, check out the free credit score simulator on WalletHub.

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The Alaska Airlines Business card annual fee is $50 for the company, $25 per card per year. Alaska Airlines Business card’s $50 for the company, $25 per card annual fee is higher than the average annual fee among new credit card offers right now. It’s not the only fee you need to worry about with the Alaska Airlines Visa® Business card, either.

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What credit score is needed for LendingClub?

LendingClub requires a minimum credit score of 600 for LendingClub’s “standard” loans, according to the company’s annual report. The report also states that borrowers with lower credit scores may be approved for “custom” loans, which generally have the same sizes and lengths. Applicants can be approved for a custom loan if LendingClub is able to verify their income and that income is high enough to offset their credit score (no specific dollar amount given). According to numerous third-party sources, it may be possible to qualify for one of these loans with a credit score as low as 600 - 640.… read full answer

Applicants for a LendingClub personal loan will be judged based on more than just their credit score and income, however. LendingClub also considers an individual’s existing debt load, recent credit inquiries and more.

The best way to find out your chances of approval is to check for pre-qualification. Not only will this give you an idea of whether you’re likely to be approved, but it will also give you an estimate of your potential rates and fees. Pre-qualification will not affect your credit score, but actually submitting an application afterward will. You can use WalletHub’s free pre-qualification tool to check your status with LendingClub and a number of other lenders.

Keep in mind that in order to get LendingClub’s cheapest rates, you’ll likely need an excellent credit score. People who just barely qualify are likely to get rates closer to LendingClub’s maximum.

It’s also good to note that LendingClub offers auto refinancing loans, too. According to third-party sources, LendingClub might accept credit scores as low as 510 for these loans.

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