Lending Club Loans: Are They Counted As Income?

LendingClub is a legitimate online financial services company that offers personal loans ranging from $1,000 to $40,000 for terms of 36 or 60 months. The company uses a robust loan approval process that considers hundreds of data points, including income verification and income source verification. While LendingClub does not have a minimum income requirement, it requires applicants to provide proof of employment and income, which is verified before loan approval. The company also considers an applicant's debt-to-income ratio to determine their ability to repay the loan.

LendingClub's income verification process

LendingClub uses a robust loan approval process that considers hundreds of data points when evaluating a borrower's loan application. The platform may occasionally identify applications that need additional confirmation, which can be done through income verification and income source verification.

LendingClub conducts either income verification or income source verification on most of its issued loans. For income verification, loan applicants may be required to submit documents such as pay stubs, W-2 forms, or other tax records that verify the income stated in their loan request. The platform may also attempt to verify the income or income source electronically through a third-party provider. If an applicant fails to provide satisfactory information in response to an income verification request, or if electronic verification is not possible, LendingClub may request additional paperwork or conduct a random income verification for testing and analysis.

LendingClub primarily targets loans for income verification or income source verification in the following situations:

• Based on information from the applicant's credit profile or application;
• Conflicting or unusual information in the loan request (e.g., stated income is high relative to the borrower's job title);
• Random selection for testing policies and statistical analysis.

It is important to note that LendingClub's income verification process is not the same as confirming income. Income confirmation is a separate process that occurs after a loan application has been submitted and may require additional paperwork to verify the information provided.

Income requirements for LendingClub loans

LendingClub has a robust loan approval process that considers hundreds of data points when evaluating a borrower's loan application. The eligibility requirements for personal loan approvals are set by each lender, and LendingClub is no different.

LendingClub requires that applicants have a steady income, enough to make the monthly payments, and a Social Security number. The company may also seek income verification and income source verification, which can be done by submitting documents such as pay stubs, W-2 forms, or other tax records. Random income verification is also conducted at times for testing and analysis.

Lenders generally consider your credit score, payment history, current income, and current debt when determining your eligibility for a personal loan. Your debt-to-income ratio is a factor in determining your loan eligibility. If your income isn't high enough to easily repay the monthly payments, it may be difficult to find a lender willing to approve your loan.

LendingClub's approval odds are highest when applicants have a credit score of at least 660, at least 36 months of credit history, and a steady income. Applicants need a credit score of 600-640 to get a personal loan from LendingClub, according to third-party sources.

Loan approval time

LendingClub uses a robust loan approval process that considers hundreds of data points when evaluating a borrower's loan application. The exact turnaround time for your application will depend on your unique details and how quickly you submit the required documents.

LendingClub offers prequalification, which typically takes a few minutes. After checking your rate and accepting the offer, your personal and financial details are verified quickly—usually with automatic underwriting. This can help speed up how fast your loan is approved and funded.

LendingClub's process is fast—most members are approved within a few hours. Between October 1, 2024, and December 31, 2024, personal loans were approved within 2 hours, on average. However, loan approval times are not guaranteed and may vary based on creditworthiness and other factors.

In some cases, LendingClub may request additional paperwork to verify your information. They perform income verification and income source verification. They may also need to confirm your employment before finalizing your application.

It's important to ensure the accuracy of the information provided in your application. Inaccuracies or changes in key information, such as employment or credit score, could slow down the approval process.

Online lenders like LendingClub tend to have quicker loan approval timelines than traditional banks and credit unions due to their use of automated underwriting software. However, manual underwriting, often used by banks, takes much longer.

LendingClub's loan grades

LendingClub's loan approval process involves a robust statistical model that considers hundreds of data points when evaluating a borrower's loan application. The loan grade is determined by a formula that takes into account the credit score and a combination of several indicators of credit risk from the credit report and loan application. LendingClub's interest rates are based on credit risk and market conditions, with the final interest rate for each loan grade being the result of a specific equation.

The company offers a range of loan grades to cater to different borrower profiles. To qualify for a loan, LendingClub considers various factors, including the borrower's income, credit score, credit history length, the number of other open accounts, recent credit activity, and more. The company also requires borrowers to be US citizens or permanent residents or have a valid long-term visa, and they must be at least 18 years old with a verifiable bank account.

LendingClub conducts income verification for a significant portion of its borrowers, with a focus on those who might have an elevated risk profile. They may request documents such as pay stubs, W-2 forms, or other tax records to verify the income stated in the loan request. Additionally, they may electronically check the borrower's income data through a third-party provider.

LendingClub's loan amounts

LendingClub offers loans of up to $40,000 with fixed rates and a monthly repayment plan. The exact loan amount offered to a customer depends on their application and credit report, with LendingClub aiming to determine an amount that is affordable for the customer. The APR for personal loans ranges from 7.90% to 35.99%, with the lowest APR available to borrowers with excellent credit. LendingClub also charges an origination fee of 1% to 8% of the total loan amount, which is only paid when the loan is approved and the funds are received.

LendingClub uses a robust loan approval process that considers hundreds of data points when evaluating a borrower's loan application. This includes income verification, where applicants may be required to submit documents such as pay stubs, W-2 forms, or other tax records. Income source verification may also be conducted, and random income verification for testing and analysis. As of September 2020, LendingClub has conducted either income verification or income source verification on 69.6% of issued loans.

LendingClub offers debt paydown loans to pay down or consolidate multiple debts, as well as cash loans for single large expenses. The company provides a full suite of award-winning checking and saving products, including a cash-back Rewards Checking account and High-Yield Savings and CD accounts with competitive rates.

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