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Established Contributor
corymcd88
Posts: 806
Registered: ‎12-12-2011

LendingClub!

A friend got a loan on LendingClub at an APR of 13.99% for 3 years. Is that good rate for a 669 TU FICO? Does LendingClub report to the CB's? If yes, witch ones?

Walmart / SYNCB - 3,300/6,000, JCP MasterCard / SYNCB - 1,000, Dillard's / SYNCB - 3,000, Amazon / SYNCB - 1,500, Chevron / SYNCB - 1,000, Belk / SYNCB - 3,000, Aeromexico Visa / US Bank - 300, Capital One - 500/1,700, Bank Of America 123 Cash Back - 2,500, Wells Fargo - 300, AMEX ZYNC - NPSL, AMEX Gold Card - NPSL, AMEX Hilton HHonours - 2,000, USAA AMEX - 250, PenFed Platinum Rewards Visa Signature - 23,400.
Valued Contributor
-Wade-
Posts: 11,751
Registered: ‎08-13-2013

Re: LendingClub!


corymcd88 wrote:

A friend got a loan on LendingClub at an APR of 13.99% for 3 years. Is that good rate for a 669 TU FICO? Does LendingClub report to the CB's? If yes, witch ones?


I believe a local bank could have beaten the 13.99% ......... I don't know anything about LendingClub

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Senior Contributor
youngandcreditwrthy
Posts: 6,154
Registered: ‎08-16-2012

Re: LendingClub!

That's kind of high. I think it's a better idea to just get 0% balance transfer offers.

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longtime_lurker
Posts: 495
Registered: ‎10-21-2013

Re: LendingClub!


youngandcreditwrthy wrote:

That's kind of high. I think it's a better idea to just get 0% balance transfer offers.


For LendingClub that's a decent APR. I agree there are probably better ways but if you don't have the credit, banks aren't likely to approve you (or at least for the limit you need). We don't know his friend's situation. 

 

OP, it's really not that bad. But why did your friend choose LendingClub? 

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Creditaddict
Posts: 18,877
Registered: ‎10-23-2007

Re: LendingClub!


corymcd88 wrote:

A friend got a loan on LendingClub at an APR of 13.99% for 3 years. Is that good rate for a 669 TU FICO? Does LendingClub report to the CB's? If yes, witch ones?


How much did they borrow?

the nice thing about doing it this way is you have a fixed payment with a fixed payoff month and if you don't run up credit cards on the side you will be debt free by 3 years vs if you go the 0% credit card route it's very easy to start paying the minimum which could be only like $50 but you would need to pay $350 to have it paid off in 3 years (my numbers are pulled from the air but hopefully you get the idea)

 

 

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Established Contributor
corymcd88
Posts: 806
Registered: ‎12-12-2011

Re: LendingClub!


longtime_lurker wrote:

youngandcreditwrthy wrote:

That's kind of high. I think it's a better idea to just get 0% balance transfer offers.


For LendingClub that's a decent APR. I agree there are probably better ways but if you don't have the credit, banks aren't likely to approve you (or at least for the limit you need). We don't know his friend's situation. 

 

OP, it's really not that bad. But why did your friend choose LendingClub? 


Why he choose LendingClub is because his bank said no, and he tried two other banks and they said no too. Well he asked me what do I think, I said it is better then paying 26.99% APR and $8.50 each mouth. He was paying about $28.00 each mouth for $1,000. The other banks said that short credit history and only a 669 credit score about two years with no installment history.

Walmart / SYNCB - 3,300/6,000, JCP MasterCard / SYNCB - 1,000, Dillard's / SYNCB - 3,000, Amazon / SYNCB - 1,500, Chevron / SYNCB - 1,000, Belk / SYNCB - 3,000, Aeromexico Visa / US Bank - 300, Capital One - 500/1,700, Bank Of America 123 Cash Back - 2,500, Wells Fargo - 300, AMEX ZYNC - NPSL, AMEX Gold Card - NPSL, AMEX Hilton HHonours - 2,000, USAA AMEX - 250, PenFed Platinum Rewards Visa Signature - 23,400.
Established Contributor
corymcd88
Posts: 806
Registered: ‎12-12-2011

Re: LendingClub!


Creditaddict wrote:

corymcd88 wrote:

A friend got a loan on LendingClub at an APR of 13.99% for 3 years. Is that good rate for a 669 TU FICO? Does LendingClub report to the CB's? If yes, witch ones?


How much did they borrow?

the nice thing about doing it this way is you have a fixed payment with a fixed payoff month and if you don't run up credit cards on the side you will be debt free by 3 years vs if you go the 0% credit card route it's very easy to start paying the minimum which could be only like $50 but you would need to pay $350 to have it paid off in 3 years (my numbers are pulled from the air but hopefully you get the idea)

 

 


He got $2,500, Pay off one card and close it, and pay down the others.

Walmart / SYNCB - 3,300/6,000, JCP MasterCard / SYNCB - 1,000, Dillard's / SYNCB - 3,000, Amazon / SYNCB - 1,500, Chevron / SYNCB - 1,000, Belk / SYNCB - 3,000, Aeromexico Visa / US Bank - 300, Capital One - 500/1,700, Bank Of America 123 Cash Back - 2,500, Wells Fargo - 300, AMEX ZYNC - NPSL, AMEX Gold Card - NPSL, AMEX Hilton HHonours - 2,000, USAA AMEX - 250, PenFed Platinum Rewards Visa Signature - 23,400.
Moderator
Revelate
Posts: 8,361
Registered: ‎12-30-2011

Re: LendingClub!

I started investing in LendingClub a few months ago with some of my play funds: I'm surprised at some of the APR's I find for people (zero derogs but crushing credit card debt, looking for a debt consolidation loan at a 680 FICO and 10ish years of history on a bunch of tradelines) at 16% or higher.  I'm just guessing this is going to get refinanced down as soon as those CC's report good numbers. 

 

For that I think LC is great as a consumer; likewise it's non-trivial to get a personal secured loan these days especially when we're talking 15-20K.  You have to have pretty spectacular credit to qualify for unsecured loans of that much as an individual (unless you have very good income, which most of the LC people I see don't, my 14th percentile income is a lot higher than that statistically out of the LC loans requests I actually look at).  

 

Beyond that if you need money for something esoteric that a bank likely won't lend for, it's a pretty good place.  I see some headscratching ones get approved where I look at the request vs. the report and quickly skip.  

 

All in all I think peer to peer lending is going to stick around, and some banks are now using the service as well as investors: the more money that's involved and the more competition (there's Prosper and LC and I assume others will come up if there's money to be made on the transactions) the lower the price to the consumers will be over time... but saving call it 5% vs. 30k of CC debt at 20-22%, that adds up quickly especially when it can make massive improvements in your FICO score if you are at 31k revolving utilization.  

 

As a whole, I think there's uses for LC and Prosper when it comes to individual financial situations.

 

 

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Valued Contributor
user5387
Posts: 1,794
Registered: ‎07-01-2010

Re: LendingClub!

I believe that Lending Club reports to EX and TU.  This has been my experience, and this thread says the same thing:

 

http://ficoforums.myfico.com/t5/General-Credit-Topics/Lendingclub-com-questions/td-p/1478036

 

Moving revolving debt to installment can boost your scores, because of the utilization angle.

 

As far as whether it's a good deal, you might be able to do better at CUs.

 

If you can get a 0% BT offer, that's great, but you may end up out in the cold with a CL that's too low to do any good.  When you most urgently need a BT card is often the wrong time to apply for one.

 

Valued Contributor
Repo-ed
Posts: 2,953
Registered: ‎02-09-2012

Re: LendingClub!

Will start LENDING to prosper  and Lending club next month.

 

Though I'm currently looking at investing via Folio on the secondary market.


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