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Lending Club

Frequent Contributor

Lending Club

About a year and a half ago I applied for an unsecured loan from Lending Club. I had just moved out post-divorce and was stretched a bit thin. This was more or less to "keep the lights on" until I had finished my transition. 

 

My credit at the time was pseudo-garbage. FICOs were low-mid 5s, inquries out my ears (thanks, XW--a sad story, really) and UTL in the 90s. They approved me for a $5000 loan minus origination fees and the like at 30% interest. Pretty steep, but I had landed a good job so the $215/month payment over 3 years was stomachable. 

 

Around this time I had also financed a new apartment's worth of furniture (cheaper, including interest) than moving all my existing stuff from California to Washington). $3500 in goods at 30% as well, 42 months. Plus I got new stuff and more on-time payments on my credit reports. What's not to like? 

 

Fast forward to this last week and I applied for another loan. Since my credit has improved significantly (though still has a ways to go) I was approved for half the rate (14%). I asked for $7300 because after the origination fees and the like, I'd be left with $6800 and change. This would be enough to pay off my existing Lending Club loan, the remainder of my furniture purchase, and have some money left over for tax payments or higher-interest credit card payments (just about enough to bring my UTL under 9%). Either way, I go from paying $215+$120+$250 (LC, Furniture, Taxes) a month to a single $249/month payment, a savings of $336/month for the next 6 months and $86/month thereafter (not counting potential zeroed cards and their eventual absent payments).

 

All I'm waiting on now is for them to review my income documents (W2 from 2017 and last 2 stubs), something they did last time, and I should be set. 

 

Thinking farther into the future, if I pay more than the minimum, say $350, I cut a year off the loan time, save about $700 in interest, and I'm paying the amount off quicker than I would if I was paying both higher interest loans separately while only paying $12 more a month in total.

 

Just thought I'd share this story. When I hear back from LC about my loan status, I'll update this thread.

 

Update: I logged in to LC's site just after posting this and they approved my loan. I'll have the funds in 4 business days!

FICO 8 (6/16/18) - Equifax: 691, TransUnion: 715, Experian: 680br

AmEx BCE: $2,000 | AmEx HH: $1,000 | Barclays Rewards MC: $5,300 | BECU Cash Back Sig. Visa: $10,000 | BECU CLOC: $3,000 | Citi Costco Sig. Visa: $4,000 | Citi Prestige: $4,000 | Citi HD: $3,000 | Capital One Kohls: $1,500 | CapitalOne Quicksilver: $3,300 | Chase Freedom Unlimited: $4,000 | Discover IT: $1,700 | Synchrony Care Credit: $8,000 | Synchrony Walmart: $5,000
Message 1 of 10
9 REPLIES
Moderator

Re: Lending Club

@jl4 read you PM(personal message).  Anyways long story short you edited your post a ton of times and was caught up by the spam filter as a result.  It has been restored.

 

--CreditCuriosity

myFICO Moderator

Chase | Citibank | Amex | BofA | PenFed | NFCU | Discover | Barclay's | US Bank | Fifth Third Bank | FNBO
Message 2 of 10
Frequent Contributor

Re: Lending Club

D’oh!

Thats good to know. I’ll try to write gooder Smiley Wink
FICO 8 (6/16/18) - Equifax: 691, TransUnion: 715, Experian: 680br

AmEx BCE: $2,000 | AmEx HH: $1,000 | Barclays Rewards MC: $5,300 | BECU Cash Back Sig. Visa: $10,000 | BECU CLOC: $3,000 | Citi Costco Sig. Visa: $4,000 | Citi Prestige: $4,000 | Citi HD: $3,000 | Capital One Kohls: $1,500 | CapitalOne Quicksilver: $3,300 | Chase Freedom Unlimited: $4,000 | Discover IT: $1,700 | Synchrony Care Credit: $8,000 | Synchrony Walmart: $5,000
Message 3 of 10
Highlighted
Established Contributor

Re: Lending Club

Until just reading your post I've never heard of lending Club anyways looks as if everything is in order Congrats!. Smiley LOL

Gardening 2020-2021
Total CL 113k+ UTIL 0.01% Uber Visa, DoubleCash, Quicksilver, Discover IT, Freedom Ulimited, Blue Cash, Premier Rewards GOLD
Message 4 of 10
Frequent Contributor

Re: Lending Club

Money arrived and payment for the old loan is kicked off. That’s over a thousand in interest saved before I’ve had coffee! 😆
FICO 8 (6/16/18) - Equifax: 691, TransUnion: 715, Experian: 680br

AmEx BCE: $2,000 | AmEx HH: $1,000 | Barclays Rewards MC: $5,300 | BECU Cash Back Sig. Visa: $10,000 | BECU CLOC: $3,000 | Citi Costco Sig. Visa: $4,000 | Citi Prestige: $4,000 | Citi HD: $3,000 | Capital One Kohls: $1,500 | CapitalOne Quicksilver: $3,300 | Chase Freedom Unlimited: $4,000 | Discover IT: $1,700 | Synchrony Care Credit: $8,000 | Synchrony Walmart: $5,000
Message 5 of 10
Established Contributor

Re: Lending Club

 Definitely pay as much as you can each month.  The more you accelerate the payments, the less in interest per month you will pay, as you figured out.

Venture: $18K | Amex ED: $18K | Amex BCE: $15K | NFCU CR: $15K | IT #1: $14.5K | Wells Fargo: $11K | Savor: 10K | Cap1 QS: $8.5K | Barclays Rewards: $7.75K | IT #2: $6.8K | MLife: $6.5K | Sportsman's Guide: $5.9K | NRA: $5.5K | Elan Plat: $2.3K | Cap1 PS: 2K | TRV: $2.5K | Cabela's: $1K


 


Current FICO 8 Scores: EQ: 728 | TU: 736 | EX: 726


Message 6 of 10
Frequent Contributor

Re: Lending Club

Oh for sure! I'd pay more but I'm also upping my 401k contribution and creating a small cash pile in a high-interest savings account for a home down payment. 

 

If only I could print money... 😄

FICO 8 (6/16/18) - Equifax: 691, TransUnion: 715, Experian: 680br

AmEx BCE: $2,000 | AmEx HH: $1,000 | Barclays Rewards MC: $5,300 | BECU Cash Back Sig. Visa: $10,000 | BECU CLOC: $3,000 | Citi Costco Sig. Visa: $4,000 | Citi Prestige: $4,000 | Citi HD: $3,000 | Capital One Kohls: $1,500 | CapitalOne Quicksilver: $3,300 | Chase Freedom Unlimited: $4,000 | Discover IT: $1,700 | Synchrony Care Credit: $8,000 | Synchrony Walmart: $5,000
Message 7 of 10
New Visitor

Re: Lending Club

I applied for a loan on 4/11 and have submitted the requested verification documents (W2, Pay stubs, verify bank and email) and am still sitting in ‘final review’. Does this mean i have been approved? If so, how long did it take for you to receive funding?
Message 8 of 10
New Visitor

Re: Lending Club

I was preapproved and decided to go ahead and apply last night. On my to-do list, they asked for my email verification and bank account info.
I did those right away and I don’t see any changes since then. I don’t see the green check mark or anything at the top of the screen. There wasn’t any request for documents and I don’t see a hard pull on my reports today.
BUT I’m curious - if it’s approved, can I ask them to wait a minute to fund it? I’m planning to use it for a large business purchase but I won’t have the details hammered out for a few weeks. I don’t want it to start accruing interest until the last possible second.
Message 9 of 10
Frequent Contributor

Re: Lending Club

My verification took a couple business days. Once they gave me the green light, they offered my loan up on the market and it was funded in a day or so.

From app to deposit took about 7 business days if I recall correctly.
FICO 8 (6/16/18) - Equifax: 691, TransUnion: 715, Experian: 680br

AmEx BCE: $2,000 | AmEx HH: $1,000 | Barclays Rewards MC: $5,300 | BECU Cash Back Sig. Visa: $10,000 | BECU CLOC: $3,000 | Citi Costco Sig. Visa: $4,000 | Citi Prestige: $4,000 | Citi HD: $3,000 | Capital One Kohls: $1,500 | CapitalOne Quicksilver: $3,300 | Chase Freedom Unlimited: $4,000 | Discover IT: $1,700 | Synchrony Care Credit: $8,000 | Synchrony Walmart: $5,000
Message 10 of 10