Lending Club has been accredited by BBB since January, 2008, and they give them a rating of A+, on a scale of A+ to F, which is clearly their highest rating. Here are the reasons for that rating: Length of time business has been operating.
Likewise, does LendingClub hurt your credit?
When you check your rate through LendingClub, we use a soft inquiry. We’ll only do a hard pull of your credit (which could affect your credit score) once your loan is approved. If your loan application isn’t approved, there’s no need to worry. Being declined doesn’t hurt your credit.
Also to know is, is Lending Tree and LendingClub the same?
How they’re different. The main difference is that LendingClub is a peer-to-peer lender, while LendingTree is an online lending marketplace. This means that LendingClub relies on investors to fund your loan while LendingTree can help you prequalify for multiple lenders with one application.
Is LendingClub a Fintech?
As the only full-spectrum fintech marketplace bank at scale, our members can gain access to a broad range of financial products and services through a technology-driven platform, designed to help them pay less when borrowing and earn more when saving.
FDIC-insured up to at least $250,000 per depositor.
In October 2020, the company ceased all new loan accounts on their website as part of restructuring into a neobank after the acquisition of Radius Bank. As of December 31, 2020, Lending Club will no longer operate as a peer-to-peer lender.
If you default on a LendingClub loan, you will owe late fees for each missed payment and will experience credit score damage from those late payments being reported to the credit bureaus. In addition, you will have to deal with calls from debt collectors, and it’s possible you could be sued.
If you do not pay it, then your debt will be sent or sold to collections. You may even be contacted by debt collectors looking to collect your debt. Lending Club itself will make efforts to contact delinquent borrowers and collect these payments.