Lending Club - When Does Hard Inquiry Happen?

[masupo]

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@shane82388 wrote:

Are the paystubs and W2 required or is that kind of a random thing? Was it part of the process of listing the loan or did the ask you outside of that process?

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The loan listing and credit approval are two different processes. They list the loan to be funded and they also provide you with a list of items they need from you. They did income verification for me but I've heard they don't for some people. I've heard they also do further ID verification with some people, like calling to confirm your phone number.

I've read some reviews that said people passed the pre-approval, had their loans fully funded and provided all docs but didn't pass the credit approval process.

[Creditaddict]

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@masupo wrote:

I recently obtained a loan through Lending Club. I use EQ monitoring and haven't seen a HP come through so far. I asked to borrow 15k for debt consolidation and was offered 13,250 at 13.05% for 36 months, but true APR is 15.93%. There was a loan origination fee of 500 which they took out of the money borrowed, so I received 12,750. 

They let me know my TU score was 692. My loan was funded in two hours, I uploaded two paystubs & W2 and I received the funds 7 days later.  The only thing I don't like is that they take the payments out of your checking account automatically and you can only set up extra payments by emailing every time to request it.

If you guys want to know any more about the process I'll try to answer any questions

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I get that my partner has recent open accounts and high util. on the ones that were opened with 0% but he is still over 700 Fico, only 26% over util. AND approved for $35k but yet 27.99%!!!? how does the computer do that one!

[masupo]

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@Creditaddict wrote:

I get that my partner has recent open accounts and high util. on the ones that were opened with 0% but he is still over 700 Fico, only 26% over util. AND approved for $35k but yet 27.99%!!!? how does the computer do that one!

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Yikes, 27.99 is really high. I read a little about their loan grading and I think the more money you request, the higher the interest rate. The interest rate also goes up if you request to pay the loan in 60 months rather than 36 months. You might be able to play around with it and see if you get different rates for different amounts.

But yeah, 27.99 for someone with FICO in 700's makes it seem like they're closing their eyes and throwing a dart at a list of apr's LOL.

[Creditaddict]

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@masupo wrote:

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@Creditaddict wrote:

I get that my partner has recent open accounts and high util. on the ones that were opened with 0% but he is still over 700 Fico, only 26% over util. AND approved for $35k but yet 27.99%!!!? how does the computer do that one!

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Yikes, 27.99 is really high. I read a little about their loan grading and I think the more money you request, the higher the interest rate. The interest rate also goes up if you request to pay the loan in 60 months rather than 36 months. You might be able to play around with it and see if you get different rates for different amounts.

But yeah, 27.99 for someone with FICO in 700's makes it seem like they're closing their eyes and throwing a dart at a list of apr's LOL.

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AND actually, I ran the pre-qual just over a month ago and it was instantly DENIED for to many INQ...

I'm glad all the cards are 0% but I will also be glad when they some of them are paid and the others further consolidated together becasue I feel he is getting harder then I have seen ANY credit profile again for things I just wouldn't consider so bad.

[slickshoes182]

I got a loan from lending club last year. They said that they would do a hardpull after the loan gets fully funded, but before the money goes to me, as a final review. However, I do not see any hardpulls on any bureau.

They DO NOT report to Equifax. They DO report to Transunion and Experian.

I used the "Check your rate" feature twice. I had to call to have them reset it and re-soft-pull my report after paying down some cards to reduce my utilization and bump up my score. I put 35K as the requested amount, but I like that they present a varity of options and show you the corresponding rates so that you can pick what's most important to you (loan size vs low interest rate).

I saved the rates I saw. Here they are:

I think I had approx 740 or 750 Credit Karma FAKO when I got these offers:

60 month repayment:

Amount	Rate	APR	Payment
$21,000	11.14%	13.40%	$458.06
$28,000	11.14%	13.40%	$610.75
$35,000	12.12%	14.41%	$780.68

36 month repayment:

Amount	Rate	APR	Payment
$7,000	6.03%	6.78%	$213.05
$14,000	6.03%	6.78%	$426.10
$21,000	7.62%	8.99%	$654.39
$28,000	7.62%	8.99%	$872.52
$35,000	7.90%	9.98%	$1,095.16

 I think my CreditKarma FAKO was ~690 when I got these:

60 month repayment:

Amount	Rate	APR	Payment
$21,000	13.99%	16.32%	$488.53
$28,000	18.55%	20.99%	$719.43
$35,000	19.99%	22.46%	$927.10

36 month repayment:

Amount	Rate	APR	Payment
$7,000	7.90%	9.98%	$219.04
$14,000	8.90%	10.99%	$444.55
$21,000	10.74%	13.58%	$684.94
$28,000	13.67%	16.56%	$952.50
$35,000	14.65%	18.31%	$1,207.30

However, as pointed out, its just a softpull to see your current rates so there's no downside to checking your rates now if you're thinking about it.

[GatorGuy]

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@Creditaddict wrote:

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@masupo wrote:

I recently obtained a loan through Lending Club. I use EQ monitoring and haven't seen a HP come through so far. I asked to borrow 15k for debt consolidation and was offered 13,250 at 13.05% for 36 months, but true APR is 15.93%. There was a loan origination fee of 500 which they took out of the money borrowed, so I received 12,750. 

They let me know my TU score was 692. My loan was funded in two hours, I uploaded two paystubs & W2 and I received the funds 7 days later.  The only thing I don't like is that they take the payments out of your checking account automatically and you can only set up extra payments by emailing every time to request it.

If you guys want to know any more about the process I'll try to answer any questions

---

I get that my partner has recent open accounts and high util. on the ones that were opened with 0% but he is still over 700 Fico, only 26% over util. AND approved for $35k but yet 27.99%!!!? how does the computer do that one!

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Wow, that is a terrible interest rate. Pretty sad when you are getting a loan that has a worse interest rate than most credit cards.

[shane82388]

For all those interested in if a hard inquiry is ever performed when you apply for a loan at Lending Club...this answer is straight from the horses mouth:

LENDING CLUB RESPONSE #1

Thank you for your email. It this instance we do a pre approved credit check indicating a soft credit inquiry. Credit inquiries are records created when someone looks at your credit information. Credit inquiries are either "hard inquiries," as when a business views your credit report in connection with an application for credit, or "soft inquiries" when your credit is checked for most other reasons. When you submit a credit card application, a hard credit inquiry appears on your credit report and may have an effect on your credit. When you monitor your own credit report, or when someone checks it to make you a pre-approved credit offer, that creates a soft inquiry that is not seen by others, and will not have any impact on your credit score.

Lending Club never has to do a hard inquiry on your credit. 

If you have any other questions feel free to contact us. 

Regards,

Lending Club Member Support

MY FOLLOW UP QUESTION #1

So even if my loan is approved and funded, there will never be a hard inquiry placed on my credit report?

Thanks for the clarification!

LENDING CLUB RESPONSE #2

Thank you for your email. Lending Club never performs a hard inquiry on your credit report, we only perform a soft inquiry.

Please feel free to contact us at xxx-xxx-xxxx or at xxxxx@lendingclub.com for any other questions or concerns.

Regards

So there you have it guys...apparently they NEVER do hard inquries...just soft inquiries...anyone care to report to the contrary? If not i think its probably true?

[ParadoxD]

Thanks for posting the email responses.

It's funny because I thought I had read that they do an initial soft pull, but then a hard pull when your loan gets funded and they go through their own credit approval process.  However, I obtained a loan through LC a couple months ago and a hard pull never showed up.  Also, they haven't reported to any of the CRAs as of yet (Which honestly, is kinda nice because it looks like I worked a miracle on paying down my credit cards!)