Majority of the borrowers who have availed the services of Myinstantoffer Lending Club only have good things to say about the peer-to-peer lending organization. However, there are Lending Club Complaints that makes the loan aspirants to refrain from availing its services.
These complaints are mixed amongst many positive reviews. Some of these complaints are genuine while some are made out of frustration and many other reasons. In this post, we will discuss some of the common Lending Club loans complaints issued by the borrowers.
You must know that unlike your standard financial institution, Lending Club works differently. The investors invest their money in the Lending Club, which is stored and managed by WebBank. The bank then disburses the loan amount to the qualified borrowers.
You can apply for the maximum of $40000 as loan amount, which you will have to pay back within 3-5 years depending on the lender.
Five Lending Club complaints 2019
Here, we will explore some common problems that a borrower may experience at Lending Club. These are more of risk factors than the allegations and if you manage to pass the eligibility criteria, then it will become easier for Lending Club to sanction your loan much smoothly.
#1 Large amounts of loan applications are rejected
This is the most registered Lending Club complaint about the platform. Most of the borrowers are denied loan at Lending Club. This is because the loan application procedures are quite strict.
For starters, you need to have a credit score of above 660. This is the most important aspect if you want to borrow money from Lending Club.
Along with your credit score, your income, your financial history, your loan repayment capability, your loan amount, and many other factors are considered.
So, if you fail in any of the single criteria, your loan will be rejected, or you will not get your desired amount.
If this is the case, there are other platforms like Lending Club. But do not forget that Lending Club is the only platform that offers quick loans.
#2 High Interest Rates
The minimum interest charged at Lending Club is 7% however; it can likely go up to the maximum of 14%. This only happens when you don’t have a handle on your finances.
In order to save thousands of dollars, you must:
- Improve your credit score
- Do not apply for loan amounts that are much higher than your repayment capability
- Go for short tenure loans, say 36-month instead of a full-fledged 60-month tenure
- Stop shopping around using credit cards. The more you apply for credit, your credit score lowers
#3 Expensive loan repayment
Some individuals have a difficult time paying off their loans just because they cannot afford the payments. The maximum loan amount Lending Club offers is $40000 with the monthly payment of around $1000 (mostly higher).
It is not possible for most of the borrowers to afford such a huge loan payment.
The best way to evade this situation is to only take loan amounts necessary for you.
#4 Annoying Customer Service
In most cases, the borrower misses the monthly payment. When this happens, the borrower is notified about it via a telephone call or through email.
However, if the borrower still not makes the payment, Lending Club sends the loan into collections.
Suppose you do not acknowledge the telephone call or the email sent to you notifying that you have missed your payment. If this happens, Lending Club will assign agents to contact you and remind you about your missed loan repayment.
This factor has been registered as a Lending Club complaint by many borrowers as they get annoyed by constant badgering.
The best way to avoid this situation is to make the payments on time. In case, for some reason, if you aren’t able to make the payment on the payment date, make sure you fix it in the coming one or two days.
#5 Loan is not available in my State
Except for West Virginia and Iowa, Lending Club operates in all the states of America. If you are the resident of any of the mentioned states, no loan is available to you.
In such situations, apply for a loan through a different online lending platform.
What Better Business Bureau has to say?
The Better Business Bureau has given Lending Club an A+ rating stating that the online lending platform meets its accreditation standards.
CBS News on Lending Club
Several CBS News reports have praised the returns earned on the loans taken by the borrowers. The reports say that both the investors and borrowers were happy with the profits they earned, diminishing the Lending Club investor complaints.
Complaints registered on miscellaneous websites
In most cases, the complaint websites are formed to demolish the reputation of a business organization.
The names of the reviewers are anonymous, and there is no credibility on such complaints.
However, most of the complaints registered on such sites were related to pre-approval.
Lending Club Complaints are miscellaneous, and different borrowers have different complaints. If you look at the complaints registered, you will realize that they are not the organization’s fault, but the borrowers.
The borrowers must go through the complete terms and conditions before accepting the loan amount.