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Lending Club with a Bankruptcy?

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dragonfly66
Frequent Contributor

Lending Club with a Bankruptcy?

Hi, Everyone.  I'm considering trying Lending Club for a loan to consolidate my credit card debt ($15,000).  I have two baddies left on my credit reports, both of which are due to fall off in March.  The most serious is a BK13.  My question is:  Has anyone ever gotten a debt consolidation loan from them with a bankruptcy showing?  I went to their website and did the "prequalification" that doesn't impact your credit, and they said I was approved for that amount.  I'm just nervous that it will tell me I qualify now, but once I provide them with the necessary paperwork, they will either deny it or approve me for a lot less than I'm asking for.  This actually happened to a friend of mine that used Avant. Any experiences or insight would be appreciated.

Current - FICO 3/2019: EX(753); EQ(763); TU(749)
Beginning - FICO 7/2014: EX(630); EQ(608); TU(581)
Credit: Wells Fargo Home Projects Charge Card ($7,800); Wells Fargo Home Rebate Visa ($4,000); Capital One Quicksilver ($10,000); Capital One Venture ($6,000); Discover it ($7,900); Macy's ($20,000); BrandsMart ($4,000); Banana Republic ($1,200); Lowes ($12,000); Amex Everyday ($30,000); Macy's Amex ($15,000); Amex Platinum (NPSL); Citi Diamond Preferred ($9,000); Chase Freedom ($9,000); Wells Fargo Outdoor Solutions ($10,000); SunTrust HELOC ($25,000)
Message 1 of 11
10 REPLIES 10
DeeBee78
Valued Contributor

Re: Lending Club with a Bankruptcy?


@dragonfly66 wrote:

Hi, Everyone.  I'm considering trying Lending Club for a loan to consolidate my credit card debt ($15,000).  I have two baddies left on my credit reports, both of which are due to fall off in March.  The most serious is a BK13.  My question is:  Has anyone ever gotten a debt consolidation loan from them with a bankruptcy showing?  I went to their website and did the "prequalification" that doesn't impact your credit, and they said I was approved for that amount.  I'm just nervous that it will tell me I qualify now, but once I provide them with the necessary paperwork, they will either deny it or approve me for a lot less than I'm asking for.  This actually happened to a friend of mine that used Avant. Any experiences or insight would be appreciated.


If they deny you, I believe it's still only a soft inquiry. Maybe someone else can chime in and confirm? 

Message 2 of 11
dragonfly66
Frequent Contributor

Re: Lending Club with a Bankruptcy?

That's what they told me in response to an e-mail I sent them, so I'm feeling a little more comfortable about that.  I'm going to compare them to SoFi and see which would work better for me.

Current - FICO 3/2019: EX(753); EQ(763); TU(749)
Beginning - FICO 7/2014: EX(630); EQ(608); TU(581)
Credit: Wells Fargo Home Projects Charge Card ($7,800); Wells Fargo Home Rebate Visa ($4,000); Capital One Quicksilver ($10,000); Capital One Venture ($6,000); Discover it ($7,900); Macy's ($20,000); BrandsMart ($4,000); Banana Republic ($1,200); Lowes ($12,000); Amex Everyday ($30,000); Macy's Amex ($15,000); Amex Platinum (NPSL); Citi Diamond Preferred ($9,000); Chase Freedom ($9,000); Wells Fargo Outdoor Solutions ($10,000); SunTrust HELOC ($25,000)
Message 3 of 11
Anonymous
Not applicable

Re: Lending Club with a Bankruptcy?


@dragonfly66 wrote:

That's what they told me in response to an e-mail I sent them, so I'm feeling a little more comfortable about that.  I'm going to compare them to SoFi and see which would work better for me.


SOFI likes clean files. I would wait until your baddies fall off before going for SoFi.

Message 4 of 11
dragonfly66
Frequent Contributor

Re: Lending Club with a Bankruptcy?


@Anonymous wrote:

@dragonfly66 wrote:

That's what they told me in response to an e-mail I sent them, so I'm feeling a little more comfortable about that.  I'm going to compare them to SoFi and see which would work better for me.


SOFI likes clean files. I would wait until your baddies fall off before going for SoFi.


Yeah, I did a prequalification with them today and got a resounding NO.  They referred me to Avant!  LOL!

Current - FICO 3/2019: EX(753); EQ(763); TU(749)
Beginning - FICO 7/2014: EX(630); EQ(608); TU(581)
Credit: Wells Fargo Home Projects Charge Card ($7,800); Wells Fargo Home Rebate Visa ($4,000); Capital One Quicksilver ($10,000); Capital One Venture ($6,000); Discover it ($7,900); Macy's ($20,000); BrandsMart ($4,000); Banana Republic ($1,200); Lowes ($12,000); Amex Everyday ($30,000); Macy's Amex ($15,000); Amex Platinum (NPSL); Citi Diamond Preferred ($9,000); Chase Freedom ($9,000); Wells Fargo Outdoor Solutions ($10,000); SunTrust HELOC ($25,000)
Message 5 of 11
jpope1294
Valued Member

Re: Lending Club with a Bankruptcy?

I just got a loan with Lending Club in September and they did pull my Transunion report.  Hope this helps.

Message 6 of 11
Anonymous
Not applicable

Re: Lending Club with a Bankruptcy?


@jpope1294 wrote:

I just got a loan with Lending Club in September and they did pull my Transunion report.  Hope this helps.


anu chance you know when did the hard inquiry happen? 

i know it is soft to get the rate and eventualy turns into hard pull.

but when exactly?

when you are finally approved

or 

when they send you the funds?

 

 

i ask because i am trying to figure out.....

if you get the rate and a final approval but later something goes wrong and you never actually get the loan.....will you get hard inquiry???

Message 7 of 11
dragonfly66
Frequent Contributor

Re: Lending Club with a Bankruptcy? *Update With Data Points*

I'm happy to say I got the $15,000 loan I was asking for!  First of all I can't believe how quick and easy it was.  I was prepared to provide all of this paperwork and they didn't ask for anything.  I pulled up the information from the prequalification that I did and selected the 5-year option.  That was this past Wednesday night.  By the next day, I had an e-mail saying my loan was 100% funded and that they would send the funds on Friday (1/20) but that it may take my bank up to 4 days to show the funds.  As of today the funds are pending in my checking account.  I am completely amazed that they didn't ask for income verification or any additional paperwork to support what I told them my salary was (No, I didn't lie, I gave them my accurate salary).

 

Here are the data points:

Negative  Credit Items - 1) BK13 from 2010 that's due to fall off in March; and 2) Second mortgage that was settled for less than the full amount, also falls off in March.

CRA Pulled - Transunion

Score - 663

Loan Amount Requested - $15,000

Loan Origination Fee - 6% (or $900), so I received $14,100

Interest rate - 13.99%/16.81% APR

Loan Term - 5 years

Monthly payment - $348.95

Hard inquiry just hit today on Transunion.  I just got an alert from CK and Creditworks (through Cap One)

CC Utilization - 70%-80% on my 2 Cap Ones, Discover and Wells Fargo.  The others were low utilization

 

I realize I could have gotten a better interest rate if I had waited until the two baddies fell off, but I've been reading that it was taking LC about 3 months to report the actual loan repayment to the CRA's.  I am applying for a mortgage in June and didn't want it popping up when my loan was about to go to underwriting (if they see it from the beginning, there are no last minute questions).  Also, I was currently paying about $840/month in credit card payments (minimum + extra) at the interest rates they were charging me (22%+).  Overall I feel like I came out ahead in that I'm paying almost $500/month less, my credit cards will be paid off and my DTI will look much better when I apply for the mortgage.  Hopefully this will help someone out who might be considering using them.

Current - FICO 3/2019: EX(753); EQ(763); TU(749)
Beginning - FICO 7/2014: EX(630); EQ(608); TU(581)
Credit: Wells Fargo Home Projects Charge Card ($7,800); Wells Fargo Home Rebate Visa ($4,000); Capital One Quicksilver ($10,000); Capital One Venture ($6,000); Discover it ($7,900); Macy's ($20,000); BrandsMart ($4,000); Banana Republic ($1,200); Lowes ($12,000); Amex Everyday ($30,000); Macy's Amex ($15,000); Amex Platinum (NPSL); Citi Diamond Preferred ($9,000); Chase Freedom ($9,000); Wells Fargo Outdoor Solutions ($10,000); SunTrust HELOC ($25,000)
Message 8 of 11
dragonfly66
Frequent Contributor

Re: Lending Club with a Bankruptcy? *Update With Data Points*

One more update that I'm happy to report.  Lending Club just reported to EX and my score bumped up 16 points.  I didn't expect that EX would like the new installment loan that much, but I guess they do. Lending Club also started reporting faster than I expected.  Everything I've read on these forums suggested that it takes them about 3 months before they start reporting.  Oh well, I'll take it!

Current - FICO 3/2019: EX(753); EQ(763); TU(749)
Beginning - FICO 7/2014: EX(630); EQ(608); TU(581)
Credit: Wells Fargo Home Projects Charge Card ($7,800); Wells Fargo Home Rebate Visa ($4,000); Capital One Quicksilver ($10,000); Capital One Venture ($6,000); Discover it ($7,900); Macy's ($20,000); BrandsMart ($4,000); Banana Republic ($1,200); Lowes ($12,000); Amex Everyday ($30,000); Macy's Amex ($15,000); Amex Platinum (NPSL); Citi Diamond Preferred ($9,000); Chase Freedom ($9,000); Wells Fargo Outdoor Solutions ($10,000); SunTrust HELOC ($25,000)
Message 9 of 11
DeeBee78
Valued Contributor

Re: Lending Club with a Bankruptcy? *Update With Data Points*


@dragonfly66 wrote:

I'm happy to say I got the $15,000 loan I was asking for!  First of all I can't believe how quick and easy it was.  I was prepared to provide all of this paperwork and they didn't ask for anything.  I pulled up the information from the prequalification that I did and selected the 5-year option.  That was this past Wednesday night.  By the next day, I had an e-mail saying my loan was 100% funded and that they would send the funds on Friday (1/20) but that it may take my bank up to 4 days to show the funds.  As of today the funds are pending in my checking account.  I am completely amazed that they didn't ask for income verification or any additional paperwork to support what I told them my salary was (No, I didn't lie, I gave them my accurate salary).

 

Here are the data points:

Negative  Credit Items - 1) BK13 from 2010 that's due to fall off in March; and 2) Second mortgage that was settled for less than the full amount, also falls off in March.

CRA Pulled - Transunion

Score - 663

Loan Amount Requested - $15,000

Loan Origination Fee - 6% (or $900), so I received $14,100

Interest rate - 13.99%/16.81% APR

Loan Term - 5 years

Monthly payment - $348.95

Hard inquiry just hit today on Transunion.  I just got an alert from CK and Creditworks (through Cap One)

CC Utilization - 70%-80% on my 2 Cap Ones, Discover and Wells Fargo.  The others were low utilization

 

I realize I could have gotten a better interest rate if I had waited until the two baddies fell off, but I've been reading that it was taking LC about 3 months to report the actual loan repayment to the CRA's.  I am applying for a mortgage in June and didn't want it popping up when my loan was about to go to underwriting (if they see it from the beginning, there are no last minute questions).  Also, I was currently paying about $840/month in credit card payments (minimum + extra) at the interest rates they were charging me (22%+).  Overall I feel like I came out ahead in that I'm paying almost $500/month less, my credit cards will be paid off and my DTI will look much better when I apply for the mortgage.  Hopefully this will help someone out who might be considering using them.


Try to pay more than the minimum amount on the LC loan. Part of your scoring is how much you have left on installment loans versus the original balance. If you have a $15,000 loan and have only paid off $500 of the principal, they're not going to ignore that. 

Message 10 of 11
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