LendingClub Debt Consolidation Loans Review

LendingClub is a peer-to-peer lender that has been around since 2006. They set themselves apart from the competition with a unique offer for borrowers wanting to consolidate their commitments into one monthly payment.

Debt Consolidation Best for
4 /5
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$ /mo
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    Here we will take a look at what they could offer you and why they might be the right choice.

    Terms, Rates and Fees 2020

    LOAN AMOUNT

    Up to $40,000

    LOAN TERMS

    3-7 years

    RATES APR

    10.68% to 35.89%

    MIN. CREDIT SCORE

    600

    PREPAYMENT PENALTY

    None

    Pros and Cons

    Pros 

    • Cosign option
    • Hardship plan
    • Directly pays off some creditors
    • Low credit score minimum

    Cons 

    • Origination and late fees

    Why Should You Consolidate Your Loans With Lendingclub?

    LendingClub is a “peer-to-peer” or “marketplace” lending company. Borrowers are matched with investors who are willing to fund their loans. As one of the largest online lenders for personal loans, LendingClub has funded more than $50 billion of loans since 2007. Here is a breakdown of their offer:

    • “Peer-to-peer” lending marketplace
    • Balance transfer loans for credit card debt consolidation
    • Cosigners allowed
    • Hardship programs for any borrower who is struggling to make on-time payments

    As of June 2019, LendingClub is offering a balance transfer loan for any borrowers who are looking to pay off expensive credit cards and consolidate their debts. Your loan proceeds are transferred to up to 12 creditors, to pay off balances and simplify your financial life. 

    Many online lenders do not allow cosigners, but LendingClub does. As long as they have a score of at least 600, and you have at least 540, you can qualify for a joint loan.

    LendingClub is also one of the few lenders which offers a hardship program for borrowers who are having trouble making payments. This can help anyone who is struggling to get back on their feet with three months of interest-only payments. 

    What Are the Eligibility Requirements?

    There are some requirements you have to meet in order to be considered for a consolidation loan from LendingClub. Let’s see what those are here:

    • Applicants must be U.S. citizens and permanent residencies of at least 18 years of age
    • Cosigners allowed
    • A minimum credit score is 600
    • DTI of less than 40%

    LendingClub personal loans range from $1000 to $40,000. Applicants must have a credit score of at least 600.

    You must also have a minimum credit history of three years. If you’re filing for a joint loan with a cosigner, you must have a score of at least 540 and the cosigner must have a score of at least 600.

    Before applying for a LendingClub personal loan, you should be aware of the eligibility requirements.

    How to Apply for a Lendingclub Consolidation Loan

    LendingClub allows you to check your rate online without affecting your credit score. To check your current rating, you’ll need to submit some personal information. Here are the steps you need to follow to get accepted:

    Step 1 - Provide your name, address, year of birth, email address, and yearly income
    Step 2 - Select the loan offer that suits your requirements (see below) 
    Step 3 - Submit your Social Security Number, phone number, employment information, and bank account
    Step 4 - Accept the offer and the request for a hard credit pull
    Step 5 - Await approval and payment into your bank account

    LendingClub will present you with various loan offers stating the amount borrowed, monthly payments, maturity, interest rate, and APR. When you select a loan offer, you are required to provide some more detailed information.

    The application process takes at least one week. Once your application is approved and the loan terms agreed, your loan will be funded. The money will then appear directly into your bank account. 

    LendingClub Debt Consolidation How it works

    Customer Service

    Previous borrowers from LendingClub rave about the quality of customer service they provided. If you need any help with your loan, your questions will be answered quickly.

    On the customer service section of the website, you can find quick answers to FAQs.

    If you cannot find the answer to your query, you can call toll-free at 888-596-3157 or send an email.

    What Types of Debt Can Be Consolidated With a Lendingclub Personal Loan? 

    LendingClub specializes in personal loans for consolidating credit card and other high-interest debts. Debt consolidation with LendingClub is a reputable option for anyone who is having an expensive time with credit card lenders, and too many active accounts.

    A personal loan can both reduce your interest rates and simplify your finances.

    You can consolidate credit card debt with this type of personal loan. People seek this sort of funding because they can save a considerable amount of money by getting rid of high-interest debt and replacing it with a fresh, low-interest loan.

    The majority of LendingClub borrowers use their personal loans to pay off existing debts that have crippling interest rates. The most popular type of accounts that can be paid off includes credit cards, store cards, and term loans.

    If you are looking to consolidate student loans or home payments, LendingClub offers a variety of offers for any debt consolidation need.

    The Bottom Line

    LendingClub is one of the premier loan companies on the market today. They have a range of options available to suit almost any borrower, and there is a good chance you can get accepted. Consolidating your loans is a fantastic option for those with many monthly payments, all coming out on different dates.

    Why not take another look at LendingClub and make a decision on whether they are the right choice for you.

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