If you’re in the market to get a personal loan from a bank, you have a number of different options to consider. The onset of the web as a means to connect with banks and finance companies has expanded your options beyond count. When looking for a loan from a bank or online, it’s important to know what your options are. A new option that has become available in the last few years is getting a peer-to-peer personal loan from a company such as Lending Club or Prosper.
These two companies offer unsecured online peer-to-peer personal loans which will pay-off over a period of three years. You’ll want to get rates from both your local bank and online before making a final decision as to who you are going to borrow money from. It doesn’t make sense to pay a dime more in interest than you have to, so make sure to get the best deal.
The interest rates that Lending Club will charge you will be fixed based upon your credit score and what they determine your credit-worthiness to be. The best interest rate that a borrower can get is currently 7.05%. Consumers at the bottom end of Lending Club’s lending range will have to pay close to 21.21%. The interest rates offered by Lending Club are typically in line with what borrowers will be able to get from a bank for an unsecured personal loan and will offer more competitive rates than what a borrower will be able to get on a credit card.
Much like getting a loan from a bank, a borrower will have to pay some sort of origination fee. The fee that borrowers will pay on Lending Club will range between 1.25% and 4.50% APY. These fees are typically in line with what borrowers can get from banks. Borrowers with lower credit scores may have to pay a slightly higher origination fee than what banks might charge them.
In order to determine what rate Lending Club will provide you a loan at, all you need to do is apply for a loan on their website. Lending Club will then tell you what interest rate you will be charged in a matter of moments and you can decide whether or not you want to accept their offer for financing.
