07-19-2009 08:26 AM
I was curious if LendingClub.com reports a loan to the CBR? I know they pull a soft TU, but not sure if they report the loan.
I have researched and found that PertuityDirect.com does hard pull EX, but does not report the loan. But I can't find if LendingClub reports.
07-19-2009 08:31 AM
07-19-2009 08:35 AM
07-19-2009 08:37 AM
Yes, they report. Here is a link from their FAQ on the subject:
07-19-2009 08:45 AM
I watched a show on the lending clubs and they check your credit first, of course and from what I remember, they do report when you are late or default. I would also double check but I think there are question/answers on their website. I am thinking of contacting one too. Their rates have to be better than CC companies now!
It depends on your credit and how they rate/grade your loan. If you qualify as an A-Grade loan, then rates can be under 8%. But if you are B-Grade, they will be above 10%. Rates can go over 20% if you are G-Grade.
I have CC's with rates under 8% and 10%. However, LendingClub loans are 'fixed' rate whereas your CC may be variable. You also could find that the CCC raises the minimum payment (from 1% to 2%, 2% to 5%), etc.
So, CCC's are not always a great loan, unless you can get a fixed rate lock, like PenFed BT 2.99. Alliant offered 5.99 BT in March 09, but has expired the offer. NFCU has a 7.9% fixed CC (Plat Visa no-reward). Addison Avenue has 5.24% CC.
LendingClub is an interesting phenomena. Individual lenders must buy notes to fund the loan, as low as $25 per note, so getting a loan of any size can possibly take hundreds of lenders....not sure how long that may take.
Loan requests are published for 14 days. If not funded fully, the borrower has the option of accepting less than original request or cancelling, or relisting the loan for an additional 14 days.
PertuityDirect is a similar company, but they make the full funding decision. Lenders/investors buy fund shares. PertuityDirect approves and funds loans from this fund. Lenders/investors don't have any say in the individual loans, just how they want to invest (from conservative low risk, to aggressive high yield or mix).
07-19-2009 08:53 AM
FYI: LendingClub charges an "origination fee" which can be as low as 0.75% up to 3.5% depending on your loan grade. This amount is deducted from your loan proceeds. So you can look at it similar to a BT fee.
07-19-2009 10:53 AM
I have CC's with rates under 8% and 10%.
I hope you count your blessings everyday tx!!! May they always remain so low.
Time can heal all wounds and a low FICO.