Lending Club is a peer-to-peer online credit marketplace, meaning your lender will be another individual rather than a bank or other financial institution. Lending Club will act as a broker that puts you in contact with potential lenders. The model appears to be popular, with over 2.4 million customers borrowing more than $35 billion.
The application process can take mere minutes, and you can borrow up to $40,000 with repayment terms of three to five years at interest rates as low as 5.89% APR. But, although there’s no minimum credit score needed, lenders will likely charge a higher APR for borrowers with lower credit scores, meaning you might be pushed toward the higher end of the rate ranges if you have bad credit.
- People in need of large sums of cash
- People who don’t want to borrow from a bank or other financial institution
- A 15-day grace period to make payments without being charged a late fee
- Borrow up to $40,000
- No origination fee