Your LendingClub final review may be taking a long time because LendingClub is having trouble deciding whether or not you are qualified for a loan. One reason this might happen is that LendingClub is unable to quickly verify the information on your application. Another reason could be that you are right on the borderline based on creditworthiness. A closer, manual look could be needed to determine if your income is high enough to outweigh your credit score or vice versa.
LendingClub says the entire application, approval and funding process takes 7 business days or fewer, on average. So if it hasn’t yet been 7 business days, there’s no reason to worry. Anecdotal evidence from credit forums shows that some people have had to wait more than a week and a half for the final review to conclude. But if you’re concerned about your LendingClub final review taking a long time, you can always call customer service for help. The number is 1 (888) 596-3157.
It’s also helpful to be fully aware of how LendingClub’s application process works. When a potential borrower applies, LendingClub goes through a pre-qualification process. This tests whether the applicant meets some basic requirements. If the applicant makes it through this process, they are able to post their loan request on LendingClub’s marketplace for funding by investors. During this process, LendingClub will do an in-depth review of the borrower’s profile. That includes a hard pull of their credit. Usually this final review takes place during the funding process. But depending on how quickly LendingClub is able to verify the applicant’s information, it may take longer.
When a LendingClub loan gets funded but denied, it means that investors were willing to back the loan but LendingClub decided the applicant was not creditworthy enough. LendingClub is a peer-to-peer lender. They allow loans to get funded by groups of individual investors looking to make money through interest. But before the investors shell out their money, LendingClub is responsible for making sure that the applicant has a reasonable chance of paying it back.… read full answer
The first part of the LendingClub loan process is pre-qualification. If LendingClub determines the borrower meets its basic requirements, LendingClub then shows the person their loan options and lets them select the one that works best for them. But at this point, the prospective borrower has not actually submitted an application.
Once the prospective borrower fills out a full application, their loan gets listed on the site and investors can pledge funding if they are interested. During this time, LendingClub performs an additional review of the application. This includes a hard inquiry into the applicant’s credit report to confirm that the applicant is creditworthy. LendingClub may also ask the applicant to verify their income or other information included on their application. If the applicant does not give this information, or the application review determines they do not qualify for a loan, they will be denied.
LendingClub’s review of an application usually takes place entirely within the funding stage, according to the company’s online FAQ. But it could still be going on “after the loan is entirely committed.” That’s how a LendingClub loan could be funded but denied anyway.
It takes 7 business days or less to get a personal loan in most cases. The fastest you can get a personal loan is the same day you apply. The longest the process can take is over 30 business days. There are many factors that go into a personal loan decision and how long it takes to come. Two important ones are your creditworthiness and the accuracy of the information on your application.… read full answer
The better your credit history is, the more confident issuers will be in approving your personal loan application. Higher income may also speed up the approval process. The accuracy of the information you submit is important, too, because if you make a mistake on your application – entering the wrong address or SSN, for example – the issuer may not be able to verify your identity or creditworthiness right away. They will have to contact you to request additional info.
How long it takes to get approved for a personal loan and how long it takes to get the money are likely to be different timeframes. In most cases, it’s going to take at least one business day after approval for you to receive your funds. Some online lenders may be able to get you the money the same day.
Probably the most important factor in the personal loan timeline is where you’re getting the loan from. WalletHub reached out to some of the biggest lenders to see how long it takes to get approved for their personal loans and when funds are paid out.
How long it takes to get a personal loan by issuer:
If you want to get approved for a personal loan as quickly as possible, there are a few steps you can take in order to speed the process along.
Tips to Get a Personal Loan Faster:
Check your credit report for any errors and dispute them. Incorrect or fraudulent information can hold your score back and prevent you from being approved.
Only apply for loans with credit requirements that you meet or exceed. This will give you the fastest decision timeline, as it will be easier for the lender to determine you qualify.
Check for pre-qualification before applying. If you receive pre-qualification, you’re not guaranteed approval but your odds are very high.
Apply online for the fastest processing. Applying online immediately plugs your application in to the lender’s automated system – you might even get a decision instantly.
Make sure all the information on the application is accurate. If you accidentally put the wrong address, SSN, etc., the lender will have to hold up your application and contact you to clear it up.
In addition to issuers’ timelines for approval and funding, you should also include the preparation process in your time estimate. Before getting a personal loan, you should check your credit and compare offers from various lenders to find the best one available for your situation. You can check your credit for free in minutes. But you shouldn’t rush through your research. Take as much time as you need to come to a decision, keeping in mind the length of the loan, estimated monthly payments, APRs and more.
You’ll also want to take the time to check for pre-qualification if the lenders you’re interested in allow it. Pre-qualification will give you a better idea of your approval odds. While you won’t always be approved if you pre-qualify, your chances are extremely high. It only takes a few minutes to check for pre-qualification and it doesn’t hurt your credit, so be sure to take advantage of it.
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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