Does LendingClub verify income for personal loan applications? This question is about LendingClub

Does LendingClub verify income for personal loan applications?

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This question is about LendingClub

Grace Enfield, Content Writer

@grace_enfield • 11/25/21 This answer was first published on 11/25/21. 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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LendingClub does verify income for personal loan applicants to confirm that people can repay what they borrow, but it does not disclose a minimum income requirement. You also have to meet other LendingClub requirements to be considered, such as being at least 18 years old and being a U.S. citizen, permanent resident, or long-term visa holder living in the U.S. You have a good chance of getting approved if you meet all of these requirements.

LendingClub Personal Loan Requirements

Be at least 18 years old
Be a U.S. citizen, permanent resident, or long-term visa holder living in the U.S.
Have a Social Security number
Have a credit score of 600-640 or higher
Must have a bank account

If you want a better idea of what personal loans you may qualify for with your income, you can use WalletHub's free pre-qualification tool.

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How to Apply for a LendingClub Personal Loan

Check for pre-qualification.… read full answer Pre-qualification is a way to check your approval odds and potential rates before applying for a LendingClub personal loan. It doesn't hurt your credit. You can check for pre-qualification on the LendingClub website or WalletHub's pre-qualification tool.

Enter your personal information on the application. LendingClub requires the following personal information on the application: your name, email address, phone number, address, date of birth, driver's license or other identifying documents, and Social Security number.

Enter your financial information on the application. LendingClub requires the following financial information on the application: your annual income, additional income and housing situation.

Double check the application for accuracy. To ensure that your LendingClub personal loan application gets processed as quickly as possible, make sure that all the information is correct and complete before you submit it.

Submit your application. LendingClub will typically provide a decision on your application within 1 to 3 business days.

If you are approved for a LendingClub personal loan, you will generally receive the funds within 2 to 4 business days after approval. After that, it's your responsibility to make monthly payments until you have fully paid back your loan, including interest.

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Does LendingClub do a hard inquiry?

Yes, LendingClub does a hard inquiry when you apply for a loan. This credit report inquiry will likely drop your credit score by about 5 to 10 points, but you'll be able to get back on track with a few months of on-time payments.

LendingClub's hard inquiry will stay on your credit report for two years, but it won't affect your credit after one year, and the impact may subside before then. To see how your individual credit score may be affected by a hard inquiry, you can use the … read full answer credit score simulator on WalletHub.

It's worth noting that some people may be uncertain about whether LendingClub does a hard inquiry because there's only a soft inquiry during the pre-qualification process. Soft inquiries do not impact your credit score. But that's just the first step, and a hard inquiry is required when you officially apply.

If not having a hard inquiry is important to you, lenders that don't do a hard pull at all include NetCredit, Integra Credit and NetCredit.

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Does a LendingClub personal loan affect your credit score?

Yes, a LendingClub personal loan does affect your credit score, both when you apply and during the entire time that you are paying the loan off. Initially, a LendingClub personal loan will affect your credit score in a negative way, but the long-term impact can be very positive, assuming you repay the loan on schedule.… read full answer

How a LendingClub Personal Loan Affects Your Credit Score

Hard pull: When you apply for a LendingClub personal loan, LendingClub will do a hard inquiry into your credit history, which will temporarily drop your credit score by about 5-10 points in most cases.

Increased debt level: Taking out a LendingClub personal loan will naturally increase the amount of debt that you have. Since your debt level is one of the components of your credit score, you can expect that to have a negative impact initially.

Account diversity: One positive way that getting a LendingClub personal loan can impact your score right away is by adding more diversity to the types of accounts you have open. Your "credit mix" is one of the components of your credit score, and the more types of accounts you have, the better - as long as you handle them responsibly.

Payments: The biggest factor in how a LendingClub personal loan affects your credit score is whether you pay on time. If you make on-time payments, your score should steadily increase as a result. If you pay late or fail to make payments altogether, you can expect your credit score to drop.

The bottom line is that while a LendingClub personal loan does affect your credit score, most of the way that your score changes depends on how responsible you are with the loan. If you'd like to estimate how certain actions might affect your credit score, you can use WalletHub's free credit score simulator

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