all right what's going on everybody so in today's video I am going to be
telling you everything you need to know about Lending Club as well as giving a
review and just a little background I've used Lending Club twice on two different
occasions I got personal loans from them so I have a little bit of background as
to what I'm talking about here and before we jump into this video please
smash that like button and that being said let's get started okay so for
starters Lending Club is a peer-to-peer lending site meaning is people like you
and I that might lend money or in my case I was borrowing money from
different people across the United States and the whole reason these
peer-to-peer lending sites have become so popular is that banks if you've ever
worked with them before which I'm sure you probably have tend to be a little
inefficient at times so if you were to ask your bank for let's say a twenty
five thousand dollar loan they would say yeah we'll definitely give you a twenty
five thousand dollar loan just put twenty five thousand dollars cash in the
bank and then you know maybe two weeks later we'll give you a loan for twenty
five thousand secured by your cash so banks tend to be a little bit
inefficient so that's why these peer-to-peer lending sites have become
so popular over the over the last couple years and Lending Club has actually been
around for a while so it was started in 2007 which is kind of a interesting time
to start a financial services type of company and it's funded tens of billions
of dollars of loans and so you know these companies are here to stay there
is a definite gap in the marketplace between you know getting a loan from a
bank and then asking your friends and family for money there needs to be
somewhere in the middle where you can have like comment of a formal type of
agreement where the investor can get paid and the borrower can someone get a
decent interest rate and get their loan funded relatively quickly and the way
the application form works with Lending Club if you were to request to borrow
money from them is you would provide a verifiable income you know your credit
score and then the reason for the money so it could be like home improvement
debt consolidation student loans renovations you know it could be any
number of things I mean it has to be somewhat legitimate but there's a wide
variety of options as far as the reason for the loan and the good thing about
lending club is that before doing like a hard pull in your credit you can just
actually apply on the website should I put the link below but you can
see if you'd actually be be eligible for a loan so it won't even affect your
credit score you can just put in the basic information and it will tell you
you know yes you would be eligible or no you wouldn't and then if you were
eligible it would tell you you know what rate how much you'd be eligible for and
you still have to do the hard credit check eventually but that can kind of
give you a good understanding of if you'd be able to apply with them or not
and then based on your application based on your credit score your income debt
things like that they have underwriters at Lending Club that will give your loan
a score so it might be like an A+ it might be like an F it might be somewhere
in between and based on that they will have an interest rate so if you have
amazing credit like no debt ton of income you know your interest rate will
be pretty low I think the lowest they have is 6% and then if you're just if
you have horrible credit lots of debt like no income it's gonna be as high as
36% is what they advertised which is actually pretty high so they have a
pretty wide array of people that apply which is actually a good thing because
most banks or most lenders are not even going to consider people with
quote-unquote bad credit or maybe lower income so Lending Club is good in the
sense that it will give a variety of options depending on your income and
credit score now as far as being on the investor side of things that's what's
pretty interesting about these peer-to-peer lending sites is that it's
an additional way to make essentially passive income
so letting koma believe advertises that their investors make somewhere between 4
and 7 percent and you know that's one of those things where there's a giant
asterisk mark and you'd have to read the fine print but this you know that's not
a bad return if you compare to just having your money sits in a bank account
somewhere however if you decide to invest in Lending Club if you decide to
put your money in different loans and Lending Club you know obviously if
you're putting your loan let's say one of the 36% interest rate loads you
know that might have a pretty good likelihood of defaulting as far as the
loan goes so you do need to you know spend some time and energy picking out
the best loans the best interest rates because just because it has like a 20%
interest rate doesn't mean that people are gonna pay you back now Lending Club
is very good at kind of sorting through and really qualifying different
borrowers but you should always do your own due diligence and I would recommend
if you were I haven't invested in Lending Club I've only been on the bar
inside but I've just I've heard of other people investing in Lending Club and
they've had good experiences but they definitely recommend going with kind of
like the lower interest rate ones that are a little bit less riskier so after
your loan application goes through and let's say you get approved for let's say
twenty thousand they they offer loans they have four personal loans up to
forty thousand so their range is from two thousand I think is the least amount
up to forty thousand for the personal loan section and then I know that I also
are expanding into like business loans and things like that which out which
would obviously be significantly more than that
for the personal loan section let's say you put up a loan for twenty thousand
you get approved the next thing that happens is you'll have investors from
really all across the United States that will you know invest like fifty dollars
here maybe a thousand dollars there five thousand dollars here and you'll see
like a scale like a little graph on your application where it'll say it's like
twenty percent funded 30 percent 32 33 34 and then if you have good credit
typically your loan is approved pretty quickly or typically it's funded pretty
quickly so I might only take a day or two I think mine took maybe about a week
but it wasn't too long of a process it I mean it got funded pretty quickly people
these days are pretty I don't wanna say desperate but they don't want to they
don't want their money sitting in a bank account at 0.01% so even if you invest
in the least risky loan and Lending Club you're still getting you know like 5% 6%
somewhere somewhere in that ballpark so my loan got funded pretty quickly and
then once it gets funded the money actually hits your account within a few
days I think mine took maybe three or four days but you'll see that it gets
funded and then the money will just go into your account and
you'll you'll start the process now one thing to know with Lending Club is that
while you do get the funds and it's at a relatively good interest rate I think
mine was one of my loans was that like 15% which which sounds pretty high and
you know it's definitely higher but there's nowhere else where you're going
to get that type of loan without putting up some type of collateral so I think I
applied one time for ten thousand one time for twenty thousand somewhere in
that ballpark and I know what a my interest rate was 15 percent I think the
other one was actually closer to 20% which is definite towards the higher end
but at that time in my career my honestly my credit wasn't as good as it
is now my income wasn't as strong so I was I was actually just really happy
that I got a loan but one thing to know is they do charge a funding fee so let's
say you get a loan for ten thousand I believe they take out somewhere between
like one and five percent of that just for the funding fee so you get the money
you know - is a pretty small funding fee so it's not the biggest deal in the
world I mean I wish they didn't have it but you know there are business they
have to make money so you know I respect that and it's not like they're taking
some significant amount either and a couple of additional things to know
about the loan so one of my loans I believe was for five years and in one
was for three years so I think five years is the maximum that they do but
then you can do pretty much anywhere in between and you can also pay off the
loan early which I definitely did with one of them with with no prepayment
penalty which is nice so overall I would say my experience with Lending Club was
very good and I would highly recommend it and I forgot to add one thing the
site is very easy to use and very easy to understand it's like we need this
information and it's like how much do you want what's your credit score and
then here's what you can get and then you know a few days later you know your
load could get funded and then you get your money a few days after that and
it's kind of like a payment schedule it's it's very intuitive it's very easy
to understand sometimes with banks I'm with the credit union right now like
their website is so confusing and you would get all these phone calls from
them and stuff like that Lending Club I just found very easy and very
straightforward to use so it's a very smooth process you know the interest
rates are going to be a little bit higher than you might get from a bank
but again a bank is never going to lend money in the first place banks can be
very difficult to work with sometimes so this definitely provides a much-needed
service and from what I've heard I haven't used prosper but I've heard it's
very similar if not identical to prosper in terms of interest rates the amount
you can get and the customer service and things like that so definitely check out
Lending Club and if you want to see what you can apply for what you'd be
qualified for check out the link below in this video and if you have any
questions definitely drop them in the comments below and I'll try my best to
answer them in regards to Lending Club and financing and lending and different
things like that and thank you very much for watching please like please share
please subscribe and I will see you on the next one alright bye
you