PROS / This online personal loan lender offers several loan options.
CONS / Lending Club's investors fund your loan, which could involve a waiting period.
VERDICT / Lending Club is a longstanding peer-to-peer lender of personal and business loans. As such, it has greater flexibility, but it may take longer to fund your loan.
Editor's Note: This lender has informed us that they offer financial education and that borrowers can pay by phone. We will evaluate this and it will reflect in our rankings when we next update our Online Personal Loans reviews.
Getting a peer-to-peer loan opens up opportunities, because you are no longer tied to a bank or traditional financial institution. Peer-to-peer lending companies like Lending Club offer online personal loans at competitive rates and flexibility. Lending Club is one of the biggest names in peer-to-peer loans, having financed over $20 billion in business or personal loans.
When using a peer-to-peer lender like Lending Club, you apply as you would with any online loan company. Like most online personal loan lenders, you can check your rates without impacting your credit score. The application process is easy, and you can upload any supporting documents you need via the site, or you can fax them.
If you qualify, the lender gives you several possible loan scenarios, and you select the one that works best for you. From there, Lending Club's investors review the basics of the loan package and decide whether to finance the loan or not. Investors do not see your personal information, and you do not interact with individual investors. However, it may take time for your loan to fully fund. Because it's a peer-to-peer lender, another possibility is that if your loan is approved, it may not be for the amount you requested.
Lending Club offers some flexibility with its loans, including the terms and repayment options. For example, you can pay online or via check. If you encounter hardships that affect your ability to make your minimum payments, you can contact them to see if you can work out a temporary arrangement to avoid defaulting on the loan.
We found the telephone customer service helpful and thorough. Although Lending Club offers support via email, we only received a generic response to the email we sent, and it did not answer our questions. Once you receive a loan with this company, you may receive a dedicated account manager, however, so you should have a personal point of contact.
Lending Club can offer you a variety of online personal loan options. It has flexibility, both in terms of the loan terms and your repayment options. However, it submits your loan request to its investors for consideration, which could result in delays or you not getting all the money you asked for.