As regular readers know, I’m a frequent advocate of Lending Club and social lending. Between now and October 1st, if you apply for a Lending Club loan and get it approved and funded, you can receive a $150 rebate.
I should point out that yes, Lending Club is an affiliate. That said, my support for social lending goes way back. In 2006, around the same time I started this blog, I got a debt consolidation loan from Prosper, another social lending network. That loan saved me a couple thousand in interest, but more importantly it allowed me to consolidate three credit cards into one 36-month installment loan at a time banks wouldn’t lend to me (I already had too much debt). Quite simply, that peer-to-peer loan was the catalyst that pushed me to escape from debt and turn my financial life around.
Today, I continue to support peer-to-peer lending as a Lending Club investor…paying it back by lending to others and, of course, earning a return on my money in the process.
Is a Lending Club loan for you?
Lending Club loans are available to borrowers with credit scores of 660 or higher who meet a few other criteria. Loans are available up to $25,000 for 3- or 5-year terms.
In my opinion, Lending Club loans are ideal for:
- Debt consolidation loans: If you have credit card balances at over 15% APR, you may be able to save by going with a Lending Club loan. You’ll still need good credit to qualify.
- Small business loans: Unfortunately, banks rarely lend money to start-ups, so entrepreneurs turn to credit cards. Lending Club offers an alternative.
Of course, if get a good interest rate, you can use a Lending Club loan for anything—a car, wedding, home improvements, even education. Lending Club interest rates typically beat regular APRs on credit cards, but they may not beat conventional auto, home equity, and student loan rates for borrowers with good credit, so be sure to check.
How to apply for a Lending Club loan
Applying for a Lending Club loan is straightforward. You’ll create an online account and complete some information about your finances and employment on a secure site.
Lending Club will tell you you’re your interest rate will be based upon your creditworthiness. If you want to continue with the loan, you’ll choose your loan amount and enter some details about what your loan is for that may help investors decide to lend to you.
Interested? Check your Lending Club loan interest rate.
If you’re curious, here’s the fine print. On the $150 bonus:
*Qualified borrowers must have the following characteristics to qualify for the one-time $150 payment, the loan must be a 36 month term loan listed on LendingClub.com after September 23, 2010 and before October 1, 2010. The issued loan amount must be $12,000 or more.
And on all loans:
Loans are issued by WebBank, an FDIC insured Utah chartered industrial bank located in Salt Lake City, Utah. Loans are not issued in IA, ID, IN, KS, ME, MS, NC, ND, NE, or TN. Borrower must be a US citizen or permanent resident in an approved state and at least 18 years old. Valid bank account and social security number are required. All Loans are subject to credit approval.