Lending Club's 72-Month Loan Options: What You Need To Know

LendingClub is a digital marketplace bank that connects borrowers with investors. It offers personal loans of up to $40,000, with fixed rates and a monthly repayment plan. The loan application process can be completed in about 10 minutes online, and loan approval can take anywhere from 24 hours to two weeks. LendingClub offers loan terms ranging from 24 to 72 months, with interest rates ranging from 7.90% to 35.99%. The company requires borrowers to have a minimum credit score of 600 and a credit history of at least 36 months.

LendingClub's 72-month loans

LendingClub offers personal loans of up to $40,000 with loan terms ranging from 24 to 72 months. The loan application can be completed in about 10 minutes online or over the phone, and applicants must be at least 18 years old, have a Social Security number, and have a verifiable bank account. LendingClub does not specify a minimum credit score, but most online sources state that a score of 600 may qualify for a loan. The higher the applicant's credit score, the lower the APR and origination fee will be.

LendingClub offers a soft credit check, which does not affect the applicant's credit rating, to provide an initial offer that includes an APR, origination fee, and loan term. If approved, the loan is deposited directly into the borrower's account, minus the origination fee. The amount the borrower repays includes the full amount before the origination fee was subtracted. Monthly payments can be made automatically from the borrower's bank account or by check or wire transfer.

LendingClub's personal loans feature a range of repayment terms, making them ideal for debt consolidation, financing a midsize home improvement project, or making a large purchase. The flexibility of the repayment terms, including the ability to change the due date, is a significant advantage for borrowers. Additionally, LendingClub's Member Center provides valuable insights such as debt-to-income ratio and credit usage to help customers manage their money and credit effectively.

Loan requirements

LendingClub offers 72-month loans with loan amounts ranging from $1,000 to $40,000. The APR for these loans ranges from 7.90% to 35.99%, while the origination fee ranges from 0.00% to 8.00% of the loan amount. The lowest APR is available to borrowers with excellent credit.

To qualify for a LendingClub loan, applicants must meet the following requirements:

Age and Citizenship/Residency

The borrower must be at least 18 years old and a US citizen or permanent resident. LendingClub loans are only available to residents of the 50 states or Washington, D.C.

Credit Score and History

Although LendingClub does not specify a minimum credit score, most sources suggest that a score of 600 is required to qualify for a loan. LendingClub also requires a minimum credit history of 37 months.

Debt-to-Income Ratio

The debt-to-income ratio requirement depends on whether the application is single or joint. For single applications, the debt-to-income ratio should not exceed 40%, while for joint applicants, it should not exceed 35%.

Bank Account and Social Security Number

Applicants must have a verifiable bank account and a Social Security number.

Income

LendingClub does not have a specific income requirement. However, they consider the borrower's income when determining eligibility.

The application process for a LendingClub loan is straightforward and can be completed online or over the phone. The approval process can take up to two weeks, and if approved, borrowers can receive their funds as soon as the next business day.

Application process

LendingClub offers personal loans with terms ranging from 24 to 72 months. The application process for a LendingClub loan is straightforward and can be completed entirely online or over the phone with the help of a representative. Here is a step-by-step guide to the application process:

Check Your Rate

Visit LendingClub's website to check your rate and see what loan offers you may qualify for. This process is quick and easy, taking about 10 minutes, and it won't affect your credit score as LendingClub performs a "soft" credit check. You will need to provide information about your credit, employment, and income.

Choose Your Offer

If you qualify, LendingClub will present you with multiple loan offers. Review the offers carefully and choose the one that best suits your needs and financial situation. Consider factors such as the loan amount, interest rate, APR, monthly payment, and loan term.

Complete the Online Application

Finish the online application by providing the required information and documents. LendingClub will ask for your Social Security number, income, and employment details. They may also request additional documents or information, which they will let you know.

Review and Submit

Review your application carefully to ensure all the information is accurate and complete. Once you are satisfied, submit your application for review.

Wait for Approval

LendingClub will review your application, and the approval process can take anywhere from 24 hours to two weeks, depending on the completeness of your application and the verification of your information. If approved, LendingClub will make you an offer that includes the APR, origination fee, and loan term.

Receive Your Funds

If your application is approved and your information is verified, LendingClub will deposit the loan amount, minus any origination fees, directly into your bank account. The time it takes for the funds to reach your account may vary, but interest will start accruing as soon as the loan is issued.

It's important to note that LendingClub has certain eligibility requirements, including age, residency, and financial criteria. Applicants must be at least 18 years old, have a Social Security number, a verifiable bank account, and reside in one of the 50 states or Washington, D.C. Additionally, LendingClub requires a minimum credit history of 37 months and specific debt-to-income ratios, which vary for single and joint applicants.

Pros and cons

LendingClub offers personal loans of up to $40,000 with loan terms ranging from 24 to 72 months. The company does not specify a minimum credit score, but online sources state that a score of 600 may qualify for a loan. LendingClub also requires a minimum credit history of 36 to 37 months and a debt-to-income ratio of 40% for single applications and 35% for joint applicants.

Pros

LendingClub's personal loans offer several benefits, including:

• Quick access to funds: LendingClub offers fast funding, with loans often approved and disbursed within 24 hours of approval.
• Flexible repayment terms: Borrowers can choose their repayment date and make a one-time change to their due date to suit their payment schedule.
• No prepayment penalties: There are no additional fees or charges if you pay off your loan early.
• Soft credit pull for pre-qualification: Checking your rate or pre-qualifying for a loan will not impact your credit score, as LendingClub uses a soft credit pull.
• Co-borrowers allowed: LendingClub allows co-borrowers, which can be helpful for borrowers with bad credit.
• Direct payment to creditors: LendingClub can send the loan amount directly to your creditors, simplifying the debt repayment process.
• Award-winning products: LendingClub's checking, savings, and loan products have won awards for helping members achieve their financial goals.

Cons

However, there are also some potential drawbacks to consider:

• Limited availability: LendingClub loans are only available in the US states and Washington, D.C.
• Higher credit score requirements: Compared to competitors like Avant, which offers loans to applicants with a credit score of 550, LendingClub requires a higher minimum credit score of 600.
• Customer support issues: Negative reviews on Trustpilot mention problems with customer support and funding timelines.
• Hard credit pull for final approval: While pre-qualifying for a loan only requires a soft credit pull, LendingClub will perform a hard credit pull when the loan is issued, which can impact your credit score.

Alternative lenders

LendingClub offers personal loans with terms ranging from 36 to 60 months. The loan amounts range from $1,000 to $40,000, with interest rates from 9.57% to 36%. LendingClub also offers auto, medical financing, and bank transfer loans. However, there is no specific mention of 72-month loans on their website.

If you are specifically looking for a 72-month loan, there are alternative lenders and options to consider:

• Space Coast Credit Union (SCCU): SCCU offers both 60-month and 72-month auto loans, providing a comparison of the pros and cons of each loan term. A 72-month loan typically has higher interest rates due to the increased risk for lenders with long-term loans. However, it can help lower your monthly payments, allowing you to get a more expensive car while staying within your budget.
• Rocket Loans: Rocket Loans provides information and guidance on 72-month auto loans, highlighting the potential drawbacks and suggesting alternative options. They emphasize the higher interest rates associated with longer-term loans and recommend considering the full sales price rather than just the monthly payments.
• The Money Coach: This source offers four smart alternatives to 72-month car loans. Firstly, they suggest downsizing to a cheaper car that doesn't require such a long-term loan. Secondly, they recommend considering a used car, which can provide significant savings compared to a new one. Thirdly, they propose a "middle-of-the-road" approach with a 60-month car loan, striking a balance between higher payments of shorter-term loans and the potential drawbacks of very long-term loans. Lastly, they advise leasing a vehicle instead of buying, which can often be a more cost-effective option.
• Bankrate: While not specifically an alternative lender, Bankrate provides a review of LendingClub personal loans. They mention Avant as a similar lender that offers a wider range of repayment terms, including loans up to 60 months. Avant also has a lower credit score requirement, starting at 550.

Frequently asked questions