topic Re: LendingClub! in General Credit Topics

LendingClub!

corymcd88 — Thu, 23 Jan 2014 00:30:21 GMT

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?

Re: LendingClub!

-Wade- — Thu, 23 Jan 2014 00:46:10 GMT

@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

Re: LendingClub!

youngandcreditwrthy — Thu, 23 Jan 2014 01:07:27 GMT

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

Re: LendingClub!

longtime_lurker — Thu, 23 Jan 2014 01:11:56 GMT

@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?

Re: LendingClub!

Creditaddict — Thu, 23 Jan 2014 01:13:14 GMT

@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)

Re: LendingClub!

corymcd88 — Thu, 23 Jan 2014 01:40:09 GMT

@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.

Re: LendingClub!

corymcd88 — Thu, 23 Jan 2014 01:41:56 GMT

@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.

Re: LendingClub!

Revelate — Thu, 23 Jan 2014 01:54:50 GMT

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.

Re: LendingClub!

Anonymous — Thu, 23 Jan 2014 01:56:07 GMT

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.

Re: LendingClub!

Repo-ed — Thu, 23 Jan 2014 12:01:45 GMT

Will start LENDING to prosper and Lending club next month.

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

Re: LendingClub!

Revelate — Thu, 23 Jan 2014 18:24:43 GMT

@Repo-ed wrote:
Will start LENDING to prosper and Lending club next month.

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

Yeah I looked at that briefly and it might be a faster investment vehicle, but a lot of the valuations were goofy too. While I think the secondary market is a good thing, not sure I want to spend that much time with this particular play investment .

Re: LendingClub!

Anonymous — Mon, 27 Jan 2014 16:47:20 GMT

I have an app in process right now. 15k for 36 months. 684 FIco. Somehow registered as an A5 so 8.9% will be interested to see if it's approved. Seems like the funding on mine is slow going though. Only at 20% after 3 days. Some people get funded fasted. I have sent w2 pay stubs and verified bank and phone. We'll see what happens.

Re: LendingClub!

Anonymous — Tue, 18 Feb 2014 14:59:52 GMT

sok454,

I invest over at LendingClub and have been pretty happy with the results. Here's some insight on why it may take up to the full 14 days to fund your loan.

- People want to make better money on their investments, so the lower grade loans promise better returns in exchance for higher risk.

- Loans graded in the A category often take more than a week to fully fund, but in my experience I never see any loans that go beyond 10 days of funding unless there is something really odd about the loan. I am currently invested in 149 loans and have no As in my portfolio simply because the returns are not high enough.

- Many people shoot themselves in the foot from day one. People applying should keep in mind that humans are reading and making a decision whether or not to invest in your loan. So if you put in a smart-assed title (I've seen "My W33D BiZZZ") or obviously lie about the puprpose, people won't risk their hard earned money on you.

- Be honest and don't try to make yourself look better by playing with the numbers. If self-report that you make $30,000/month, have a 90% revolving utilization, but only 3% Debt-to-income, you simply don't add up in my book and you'll never get a penny. Also, when they verify your info, your loan will get cancelled if you can't produce the documentation to back i tup.

- Everyone has a credit history, so be human. I MAY invest in your loan if you have aged delinquencies or public records, but not without explanation. Save everyone the hastle of asking you and just be up front and human. Don't make excuses, just state what the issues were and what you've done to prevent it from happening again. Some of those loans fund in minutes.

Let us know how it works out for you!

Re: LendingClub!

CreditGuy03 — Sat, 27 Dec 2014 00:29:38 GMT

@Anonymous wrote:
sok454,
I invest over at LendingClub and have been pretty happy with the results. Here's some insight on why it may take up to the full 14 days to fund your loan.

- People want to make better money on their investments, so the lower grade loans promise better returns in exchance for higher risk.

- Loans graded in the A category often take more than a week to fully fund, but in my experience I never see any loans that go beyond 10 days of funding unless there is something really odd about the loan. I am currently invested in 149 loans and have no As in my portfolio simply because the returns are not high enough.

- Many people shoot themselves in the foot from day one. People applying should keep in mind that humans are reading and making a decision whether or not to invest in your loan. So if you put in a smart-assed title (I've seen "My W33D BiZZZ") or obviously lie about the puprpose, people won't risk their hard earned money on you.

- Be honest and don't try to make yourself look better by playing with the numbers. If self-report that you make $30,000/month, have a 90% revolving utilization, but only 3% Debt-to-income, you simply don't add up in my book and you'll never get a penny. Also, when they verify your info, your loan will get cancelled if you can't produce the documentation to back i tup.

- Everyone has a credit history, so be human. I MAY invest in your loan if you have aged delinquencies or public records, but not without explanation. Save everyone the hastle of asking you and just be up front and human. Don't make excuses, just state what the issues were and what you've done to prevent it from happening again. Some of those loans fund in minutes.

Let us know how it works out for you!

So when you say A's get funded more slowly what grades get funded the fastest? Does time of month matter?

Re: LendingClub!

Anonymous — Sat, 27 Dec 2014 13:52:47 GMT

Any Low C (C4 or C5) grade or lower with a score > 680, absolutely no lates or collections on record, income of at least $5,000/month, less thatn 15% Debt-to-Income and monthly payment less than 10% of monthly gross income go instantly. Institutional investors snap them out before 1/2 of us get the chance to review and invest.

Other factors that help:

Employment greater than 1 year
Loans for Debt Consolidation vs "Other" or "Business"
Time of first credit > 8 years

Time of month makes no difference. There are always people willing to invest!

Re: LendingClub!

Anonymous — Sat, 03 Jan 2015 18:39:08 GMT

That is a pretty good rate for an unsecured term loan. The 3 banks I have worked at wouldn't look twice at someone with a FICO under 680 for unsecured. If your score is better you can definitely receive a better rate, but for those that want a fixed payment peer to peer lending is a good resource. Banks don't tend to look too much into your CR for small unsecured loans, especially larger banks. Typically it is automated underwriting like a CC, it does help if you are a deposit customer though. A large bank I worked at for 5 years would offer unsecure term loans and lines of credit (floating rate) up to $25k with rates starting around 8% if you were in the lowest risk level. Not bad for unsecured. There would be promotions where the margin over prime would be reduced so starting rate at the time was 7.25% - about 2 years ago.

On a side note I have been an investor with Lending Club for a little over a year now and I love it. I only go for the high risk debt consolidation loans ($25 max per) and have not been burned yet. The community bank I currently work at is looking to offer Lending Club loans in branch and possibly be an investor themselves. Helps our customers and takes the liability away from us.

Re: LendingClub!

Anonymous — Mon, 05 Oct 2015 08:43:26 GMT

Just a note that LC hates short credit history. Since it is a SP I was curious to see what rate I would get, no actual intention of getting a loan as I don't need it. But I am an investor on LC and I was curious to see how I myself would rank.

Answer -- I don't. Denied. They SP'd TU and then declined my application on the grounds that my credit history is too short.

My credit history is short -- my oldest account is 14 months and my average account age is 10 months.

So LC doesn't like that. TU score pulled was 732. No derogatories whatsoever, just a short history.