Lending Club Personal Loan

[Anonymous]

I started the process of getting a small loan of 2K with them. I got as far as the part where they need me to verify my email. It said after that they will search for investors for my loan. I didnt go any further. Seems like i've heard stories of when a company searches for investors that could give you multiple inquiries. Just wondering if i dont give any further will it cancel the process. thx

[MileHigh96]

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@Anonymous wrote:

I started the process of getting a small loan of 2K with them. I got as far as the part where they need me to verify my email. It said after that they will search for investors for my loan. I didnt go any further. Seems like i've heard stories of when a company searches for investors that could give you multiple inquiries. Just wondering if i dont give any further will it cancel the process. thx

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I have a small loan through Lending Club ($3K starting balance).  I don't remember exactly the process now, but I'm pretty sure when they are looking for investors to fund the loan, that's nothing except soft pulls.  There is no hard pull untill you accept one of the loans they offer you.  Lending Club is the creditor on my loan through them, so I'm not sure about the 'looking for investors' thing.  I believe I got to them starting with Lending Tree.

So far I've been pretty happy with them.  The only thing I dislike is that I can't pay the loan payments through my CU Bill Pay electronically, the only way you can do that is directly with them.  I prefer to pay all my bills through my CU, so for Lending Club, when I pay it through Bill Pay, my CU has to send them a check, so I just have to make sure that I schedule that one in plenty of time to make sure they get it in time before the due date.  Other than that hassle, I've had no issues with them so far.

[Anonymous]

Thx so much..

[brk1971]

If they are at the point of finding investors for your loan, it typically means you've already been credit qualified and have a rate and terms.I assume you've already had a hard pull and been presented loan terms?

The way LC works is that, unlike a bank or CU, they don't have a pool of cash set aside for loaning money out. Instead, they take your transaction (along with thousands of others) and offer it to their investor pool. The transaction information doesn't have your information specifically, it has the transaction details. e.g. loan purpose, amount, term, credit risk tier (A through G), interest rate XYZ, etc. 

On the investment side, you can set parameters for automatic investment or can choose (or not choose) specific loans for funding. After investment, that particular (or group of) investor's funds are used to fund your loan proceeds. Your payments each month are then paid to the investor's account after your payment. At no time do investor(s) have access to your credit or financial information, thus after you're credit qualified (hard pull) there is no further credit pull (soft or hard) for that particular loan.

Once the loan funds (sufficient investment to cover your loan) are available, you're notified and will log back in to sign a promissory note with the typical credit terms and language and your funds are disbursed. While rare, it IS possible to have a loan approved and not have sufficient investment to fund it (in whole or in part). 

Good luck!

[tussking]

I have a 30K loan with them I used for my kid's school. Great experience! Great customer service! A+++++

[moto4man]

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@tussking wrote:

I have a 30K loan with them I used for my kid's school. Great experience! Great customer service! A+++++

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Good info, thx!