If you want to simplify your finances, debt consolidation is one of the most straightforward methods. One of the best providers to help with this is Lending Club.
But why would you choose this method of financing your credit card? There are many benefits that recommend debt consolidation, including fixed interest rates.
Most people use Lending Club personal loans to pay off their credit card debt. Here we will take a look at why and how to apply for a personal loan with Lending Club.
Fees and Interest
One of the perks of the personal loan offered by the Lending Club is that the interest rate is fixed. Unlike the fluctuating rates offered by banks, the consolidation loan has fixed payments, so you never have to make higher payments.
Another aspect is that the repayment term can be either 36 or 60 months, so you know exactly when you will pay off your debt.
Unfortunately, the APR is not a fixed one, and can vary from 8.05% to 36.00% per year. There are no pre-payment penalties, so you can always cut your remaining sum. The interest depends on your credit score, how much you want to borrow, and your existing debt.
In addition to this, there is an origination fee of 2% to 6% to be paid once based on the amount you need to borrow. The amount is based on your credit score and is charged only when you receive the actual loan.
There are no additional fees charged by Lending Club. However, if you are more than 15 days late on your repayment, Lending Club will either charge you with $15 or 5% of the unpaid amount, whichever is higher. This fee is charged each time you are late on a payment.
How to Apply
Although Lending Club is quite flexible, there are several criteria you must consider in order to be eligible for the loan. Firstly, the loans are available only to permanent residents or citizens of the US. You must be at least 18 years old, have a valid bank account, and provide a valid Social Security Number.
Lending Club also requires its applicants to have a credit score of at least 600. The debt-to-income ratio, without considering a mortgage, should be a maximum of 40%. In other words, when you divide all your monthly expenses (i.e. car payments, credit cards, school loans, etc.) by your monthly income, the amount should not be more than 40%.
It is important to have a minimum of 3 years of credit history and a clean file, without any delinquencies, bankruptcies, non-medical collections account, or open tax liens, among others. There should not be more than 6 credit inquiries on your credit report in the past 6 months. Finally, you must have a minimum of 2 revolving credit accounts currently open.
Applying for a personal loan is easy. All you need to do is visit the Lending Club website and complete an application form with your personal information. You will receive your response immediately.
Features and Benefits
As mentioned above, the advantages of consolidating your credit card debt with Lending Club are numerous. Unlike the current APR on your credit card, the company offers you a fixed interest rate, so your payments will never rise, regardless of the term you choose.
There are no pre-payment penalties, so you can simply write-off your debt at any time that is convenient for you. Generally, Lending Club offer loans for 3 or 5 years, so this feature is excellent if you want to pay it earlier.
Finally, unlike other services, Lending Club offers unsecured loans. This means that you do not need to secure your home to receive the loan or put other belongings up as collateral. Of course, making timely payments is vital, but you do not need to use your assets to get the loan.
Bank Contact Details
Lending Club can be contacted via phone at 1-888-596-3157. The company is headquartered at 595 Market Street, Suite 200, San Francisco, California 94105.
Also read: These Are the Most Requested No-Fee Credit Cards in the United States
Summary
All in all, Lending Club is great if you wish to simplify your financial situation. Most people who use consolidating loans do so in order to write off their credit card debt, which can come with considerably higher interest rates.
Note: Consider the risks involved in using credit products before applying by consulting the issuing institution’s terms and conditions.
