If you’re hoping to get an unsecured loan or a personal loan, Lending Club might be a great way to get a better interest rate than what you would have gotten from a bank.
Many have also used Lending Club loans as consolidation loans to get a better interest rate on their debt than what they would be paying otherwise on their credit cards. If you are paying 25-30% on a credit card, you could potentially save a large amount in interest if you were to transfer that debt to a Lending Club loan with an interest rate between 10% and 15%.
All Lending Club loans amortize fully over a period of three years or five years. This means that when repaying the loan, you will be making 36 equal payments or 60 equal payments to Lending Club and at the end of that three year term or five your term, your loan would be fully repaid.
The interest rate that you will pay will vary depending upon your credit history. Generally, rates range between 7.5% and 20% depending upon your credit score. The average interest rate that borrowers are paying is currently 12.86%
From a borrowers perspective, getting a loan from Lending Club is just the same as getting a loan through a bank, except that you might get a better interest rate from lenders on Lending Club than you would be able to get form a bank.
