Are Lending Club Loan Offers for real?

Are Lending Club Loan Offers for real?

Can you give some feedback on Lending Club/Lending tree? Are their offers too good to be true regarding loans? Any opinions would be greatly appreciated

How good are the laons offered by Lending Club?

—double D

I am assuming you are talking about the interest rates and size of loans available to people through the peer to peer lender Lending Club. Lending Tree is more of a matching service when it comes to personal loans, home and auto loans, and even credit cards.

If you can clarify what type of loan you are shopping that would help narrow my feedback and the discussion.

When it comes to the interest rates on personal loans through Lending Club, those great lower rates they have available are real enough. You do have to qualify through Lending Clubs credit scoring and loan approval model to get the best rates and higher loan amounts.

Lending Club loan approval.

If you have great credit and the ability to pay back your loan based on monthly cash flow, Lending Club is a good option for consolidating higher interest credit cards, funding a home improvement or other project, and even start up capital for a home based business.

If your credit is not excellent, but is good, the interest rates you pay Lending Club will be higher, and you may find you cannot get approval for larger loans, but can get a smaller loan amount approved.

Lending Club just announced last week that they will be offering smaller balance loans that have an increased risk profile with interest rates higher than they have had in the past, which could reach just over 30 percent.

Anyone declined a loan with Lending Club, post the reasons in the comments below and lets look at how to improve your situation.

Resolving or consolidating unpaid loans with Lending Club.

I have not covered negotiating settlements or otherwise resolving Lending Club loans on the site before, so as a bit of a side note, anyone unable to keep up payments on their Lending Club loan, and dealing with collections, you can negotiate lump sum settlements with Lending Club similar to how personal loans with major banks are settled.

I have seen 40 percent settlements on Lending Club loans. This negotiation target is something I have seen hit with contingency collectors, and with Lending Club loans being sold to debt buyers (unpaid loans being sold to debt buyers started happening last year).

I know that Lending Club loans are able to be enrolled in debt consolidation programs, such as through a credit counseling agency, but I was unable to confirm any interest rate concessions. I will look to do that this week and update this post if lower interest rates when enrolling in a DMP are confirmed.

Anyone with questions or concerns about Lending Club, when those loans make sense, and when alternatives may be better, can post  some details in the comments below for feedback.

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About Michael Bovee

Michael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry, and is a regular contributor to several personal finance websites.

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Comments

  1. Hi Michael,

    My Lending Club loan is currently with Credit Corp Solution’s pre-legal department. After speaking with them 10+ times, they are only willing to offer me a 10% discount on my loan. They have indicated that they’ve done a lot for me already, such as lowering my interest rate from 15% to 7% and with the 10% discount, it’s already a great deal. They are not willing to budge around the 10% discount figure. They have indicated that because we cannot come to a settlement amount, they will be sending my loan to a 3rd party attorney in my area. What is the process usually once my loan goes to an attorney? Does the attorney typically settle for even less (i.e. more than a 10% discount)? How long does it usually take for a judgment to occur? And if I negotiate with an attorney, does Credit Corp Solutions still have the final say regarding the settlement amount? When I spoke with the Senior Account Manager at Credit Corp, she mentioned that once my loan ends up with a 3rd party attorney, it would be more costly for me as the attorney would collect the full amount (vs a 10% discount) and I would be charged additional processing/legal fees on top of that. Is that true? Would it be wise for me to just settle at a 10% discount or wait until my loan goes to an attorney and settle it there?

    • If it were me, I would wait for Credit Corp Solutions to relent on the settlement amount, or let it go to the collection attorney and either negotiate then, or defend against any collection lawsuit and settle at that time too.

      The 90 percent offer can likely be duplicated with little problem along the collection path, and you should be able to improve on it.

      New portfolio purchases by new-ish debt buyers (whether run by experienced people or not), and when over paying like everyone has been to date on defaulted Lending Club loans, can make the debt collector hold on tight to returns in the first several months to a year of getting the debts.

  3. Recently my husband recieved a call from lending tree about consolidating his defaultd school loans. We couldn’t believe it. For only 80 bucks a month for 6 months my husband could go debt free on them for the rest of his life according to a law president Bush established. We got suckered into it. I can’t believe we did. I almost am going to cry already anticipating your answer.

    • You did not really post a question, but my response is indeed that there is no such thing as a debt consolidation through Lending Club, Lending Tree, or anybody, where your loans are consolidated for just 6 months of payments and then you are off the hook for the rest of the debt.