How to Get Approved For a Loan on Lending Club.com
Many people that want to consolidate their credit card debt have been taking advantage of low-interest fixed rate loans that have been offered by Lending Club, a California-based lender whose loans are funded by members on its website. Borrowers have made loan requests for more than $1.8 billion in loans, but only 10% of those loan requests are actually approved because of Lending Club’s credit requirements. If you want to borrow money on Lending Club, there’s a lot you need to know before diving in. You need to know both Lending Club’s requirements as well as questions that lenders will ask you during the funding process.
First, you must know that Lending Club has some requirements for borrowers, but they are not necessarily as strict as what you might see when applying from a loan from a bank. Currently Lending Club requires that borrowers have a credit score of at least 660 to get a loan and a debt-to-income ratio of less than 25%.
Lending Club also lists the following requirements on their website: “at least 3 years of credit history, showing no current delinquencies, recent bankruptcies (7 years), open tax liens, charge-offs or non-medical collections account in the past 12 months, no more than 10 inquiries on your credit report in the last 6 months, a revolving credit utilization of less than 100%, and more than 3 accounts in your credit report, of which more than 2 are currently open.”
Borrowers from the following states cannot currently get a loan on Lending Club: Iowa, Idaho, Indiana, Maine, Mississippi, North Dakota, Nebraska, and Tennessee. Borrowers from the other 40 states can get a loan from Lending Club. Lending Club does not accept loans from borrowers outside the United States.
After you meet Lending Club’s requirements, know that lenders will want some information from you as well. Lenders want to know that the information that you’ve provided Lending Club is accurate and that you will indeed repay the loan. Often, lenders will ask you questions about your financial status, including what type of loans you have and what the balances are. Lenders will also often suggest that you verify your income or expedite the credit approval process by sending in appropriate forms to Lending Club. These two things will help make your loan get funded faster and help you get your money sooner.
To apply for a Lending Club loan, visit Lending Club’s website.