Lending Club Complaints: Problems faced by Borrowers while applying for a loan
The loans offered by different financial institutions are at different rates. Some rates are high, some are low and some are at neutral. Moreover, the process of applying may be time-consuming and difficult. Different factors are under discussion when the loan is granted. When we talk about Lending Club then you can get a maximum loan of $40000, which you have to return within 3 to 5 years. One of the major benefits about Lending Club is that with low-interest rates you can get the full loan amount.
However, obviously, not everybody is a satisfied customer. Many people apply for a loan at Lending Club and are not happy at all the reasons may be different depending upon the situations. Here you will get to know about the Lending Club Complaints with the possible solution. Some of the Lending Club Complaints are given below go through all of these to beware.
- Lending Club can deny your loan application
One of the most prominent complaints from Lending Club Complaints is that the request for the loan is denied. This is something quite disappointing as to fill the application an applicant takes time out from his busy schedule by applying from the offer received from a lending club in mail mentioning that you are pre-approved and after that, he comes to know that his application is denied.
If you are suffering from such a situation that keeps in mind that Lending Club is performing on the information they have collected about you. May be while filling the loan application there is some negative information that reduces your chances to get a loan. There might be different reasons due to which you were approved before but your application is denied after applying for the loan.
However, luckily there is another option with which you can go with that is known as Prosper. They also offer the same amount of loan and sometimes people even get the loan in low rated than Lending Club.
- The interest rates at Lending Club can be too high
This is the second most common problem among Lending Club Complaints. In case you have applied for a loan at Lending Club after receiving a loan offer via mail from them then you come to know that the interest rate is higher and you can’t afford it. This is the most difficult part to understand as the interest rate that the company set is secret at Lending Club.
The interest rate applied to the offers given by the Lending Club is a combination of factors and it is the point, which is not known by everyone. Only a few people are aware of it. What is known by others is that the factors on which their loan rate is based are the same as other companies loan rates are identifying which help the borrower to get a good amount. So let us take a deep breath and think “What can make a person good borrower?”
The answer to this question is quite simple: The one whose credit history is healthy by paying back the loans and the one who has a fixed salary and can easily pay back their loan. By focusing on a few things, people can be a good candidate. Let us talk about it one by one.
Solution 1: Improve your credit history to get low rates
To be a healthy person your credit history is an important thing to notice. It will help you to get a loan for home remodeling and to start a small business. You should check your credit report to know the details about it. There are many points, which you should know about. Here I will cover some main point, which will probably portray you a big picture, and you can get help from it easily.
The three main methods to improve your credit history include:
- Download your credit history
- Check your credit history if there is an error
- Pay all your bad debts
The first step is to visit the AnnualCreditReport.com website and download your report. Take out some time, check it thoroughly, and go through each detail of your account mentioned on your credit report to check if there any inaccuracy in it most importantly check all your open accounts. If you find anything that is not correct and you don’t own that thing or your identity is stolen, as it may happen in the rare case then you can contact on the number that is available on your credit report.
If in case your identity is not stolen you find on your credit report that your old loan is not paid which you paid off already but the creditor hasn’t mentioned it then you can call up the creditor and request him to recheck and correct the error which helps you to improve your credit score.
To get a high-interest rate and not qualified for the loan is a very common problem faced by the majority of the people. The reason for this is negative information available your credit history. To avoid such things check your credit report thoroughly and make it sure that is 100% correct. Give some time on it to mark the inaccuracies. This helps you a lot to speak about your finance.
To be current on your loans or credit cards is a better idea if you have fallen
behind. If any such information link “in collection” or “Late” is mentioned on your credit history then if you will fix such thing then this will boost your credit score.
Solution 2: Increase your income to get low rates
If you increase your annual income then suddenly report it to Lending Club this will help you to get qualify for the loan easily with the low-interest rate. But the point is how can we increase our income?
One of the easy ways for this is to think how much money you are making every year. Obviously, you have already mentioned about your salary, which you get from your job, and are you doing any side work, which you haven’t mentioned? For example, you work on online projects and earn money in this way.
Think hard about it by printing out your old bank statements and check your rate maybe you have missed something. The other simple method is to increase your annual income. By making any new business plan, discuss it with your boss so that it will help him to raise his business or maybe in this way he thinks to launch something new in his business. Make full efforts to increase your yearly income. When next time you will check your rate then you can add this high income at Lending Club, probably, the new rate you will get will be low.
Move down for more Lending Club Complaints.
High monthly payment and interest rates
One of the most common problems that most people face is that they receive an email from Lending Club in which they are advertising great loans but when they check the given loan offer online the interest rate and the monthly payment on it high to afford. An offer of a loan with the high amount of monthly payment is inconvenient but you can lower your monthly payment by knowing a few important points:
- Borrow the amount which you need
- Extend the term of the loan
Only borrow the amount, which you need. That means if you need $7000 to pay off any of your bills then don’t borrow more than this amount just because you have an option to get it. Follow the strategy “Borrow what you need” this is the best option. It will make your monthly payment small, which will be easy for you to pay.
The Second thing is that try to increase the term of the loan. Which means you will get more time to return the loan. You can select from either 3 years or 5 years. We will suggest you select the bigger one this will reduce your monthly payment.
However, on following this method you have to pay little more interest but it will not be much high you can afford it easily.
Lending Club calls when your payment is late
This is something that we can say extraordinary. Every year many people faced a sudden problem for which they are not prepared. In any case, due to some problem, your payment is late then you will get a call from Lending Club to discuss it. Sometimes there is only a bank problem as if you changed the bank and forgot to mention it to Lending Club with the details of your account.
Let us assume that your payment is late then the best solution for this is to take out some time and check your monthly budget. Check out your credit card statement and bank statements. In this way, you can find out that is there anything, which you don’t need, and you spend money on it. For example, you visit Starbucks regularly and spend $4 which means the amount, which you pay to Starbucks monthly, is $120.You can go for solutions like give your extra room of the house on rent.
However, one of the best things to maintain your money is to work on a budget and move according to it. If no solutions work then you can make a call to the Lending Club and discuss your problem with them. They may have a better payment plan. Moreover, if you are a military veteran then you may be qualified for the less payment so don’t forget to mention your status of a veteran at Lending Club.
Did Lending club demand money or gift card from you?
Did the Lending club demand you for the money or the gift card to when you receive a loan? No, if this happens then for sure someone traps you. They never demand any money upfront. They already deduct the loan fee when you are approved for the loan. When you apply for a loan amount $5,000 and the fee on it is 5% then the amount deducted will be $250 from the amount you will receive that means the amount you will receive in your bank account from Lending Club is $4750.However, they have to pay you back $5,000.Check how it is working. Lending Club never takes any money from you to get a loan from them. They deduct the fee from the loan amount they transfer.
Conclusion: To apply for a loan at Lending Club is a safe
The experience of the people who often borrow from Lending Club is going good. However, sometimes people may face a problem when they get to know that they are preapproved for a loan but when they check their rates online, they come to know that the interest rate and monthly payment are high for them and they can’t afford it this will become the reason of their loan denial. However, most of the people who usually get the loan from Lending Club don’t have any complaint. All the Lending Club Complaints are mentioned above which usually people face.
I also had a good experience at this platform as I have taken several loans from Lending Club. The process of applying for the loan is smooth for me always. The interest rate on the credit cards is usually low than other banks and financial institution. The important point is that the rates are also fixed they will not increase even any penalty fee on late payment. There is also no prepayment penalty. If you will pay back your loan that, it will low your interest rate.
You can check your rates online within a minute and the process is soft credit check that means it will not hurt your credit score. Click here to check what kind of loans are offered by the Lending Club.