Why Use LendingClub?
If you’re shopping for a mortgage, or you’re going to be buying your next car, you’ll want to start thinking about credit cards now. That’s because you’ll need a good credit score to get one.
Now, with LendingClub, you have the ability to compare three different credit cards, and see what the average credit score is for each.
Now, if you haven’t heard of LendingClub before, LendingClub is a marketplace that allows lenders to purchase or sell loans from one another.
If you use an app like WalletHub or CreditKarma, you’ll already be familiar with LendingClub.
Now, if you sign up for the free platform, you’ll be provided with a personal loan. Then, you can decide how much you want to borrow, and where the loan will be made.
How Does Lending Club Work?
The main “crowd-lending” platform for LendingClub (LC) is the way the money is provided to individual consumers. LendingClub provides “microloans” to consumers who have reached a certain amount of debt, and they can either use these loans to pay off their debt, or to start saving up for their next big purchase. What do these microloans cost? Is the interest rate high? Is it low? Is the payment high or low? These are all questions that are answered by the consumer in their Lending Club account.
We’ve previously covered some of the specific details behind LendingClub and it’s microloans. You’ll find that information below.
Simple Application Process
Lending Club has been in the market for more than 8 years and has helped borrowers obtain loans for thousands of dollars at the beginning of the lending cycle. Lending Club has helped individual investors gain hundreds of thousands of dollars by providing loans at competitive rates.
One of the key differentiating factors from other online lenders is their ‘fully funded’ loans, which means they actually get their money back.
Lower Interest Rates for Businesses
The (LendingClub) main reason for partnering with banks is to reduce interest rates for customers and businesses. The partnership with Wells Fargo allows LendingClub to create a special business card, which they will use for everyday purposes. As part of the deal, customers will be able to extend loans with Wells Fargo based on their credit history.
While banking in the U.S. is a straight forward process for customers, customers often get frustrated when dealing with their business banking accounts. This is due to paperwork and the process that goes through. Banks don’t work directly with small businesses, which is why it can be difficult for small businesses to get loans.
What are the Disadvantages of using Lending Club?
Online personal loan provider, Lending Club (NYSE:LC) has been named by multiple banks and credit rating agencies as a go-to source for customers looking for financing for personal and small business ventures. If you’re in the market for a loan to finance your entrepreneurial or personal ambitions, it’s worth checking out Lending Club.
Below is a rundown of the pros and cons of using Lending Club:
Pros Of Using Lending Club
No Paperwork – Once your loan has been approved, you receive an electronic ‘Personal’ or ‘Small Business’ wire transfer and two business checks in the mail from your business.
– Once your loan has been approved, you receive an electronic ‘Personal’ or ‘Small Business’ wire transfer and two business checks in the mail from your business.