How to borrow from Lending Club

So you've done some research and decided you are interested in getting a loan from Lending Club.

A few things you should know about how lending club works.

The Concept:

This is a Peer to Peer lending system. All lending club does is act as the middle man they have no money to lend. It is up to your Peers, who have the money to loan, to decided if they will lend you the money. Generally speaking Lenders will only fund part of your loan. So it is not unusual to have 150 to 200 + lenders incrementally fund your loan.

The Process:

First off you submit ALL the requested information to Lending Club and COMPLETELY AND ACCURATELY fill out all the forms. They will back check all your facts so do not make stuff up. After Lending Club looks over your submitted information they will determine if it meets their general loan criteria. If your loan does meet their criteria they will list the loan and give your loan a rating. These ratings run from A-G and each letter grade is further broken down 1-5 ie B3. Your loan then has 13 days to be filled. Lending Club will continue to follow up on checking your information. It is possible to have your loan fully funded but the background check from Lending Club may have turned up some red flags and they do not allow the loan to be processed. Then you do not get the loan.

Example: Frank wants to borrow $12000 to refinance his credit cards at a lower fixed rate for a 3-5 year period. Lending club the post the following information based on what you have submitted.

Grade B2 Rate 10.74% Term 36 FICO 714-749 Amount $12,000 %Funded 91% Amount/Time Left $1,025 7 days

Title/Purpose Debt Consolidation

Borrower Member_########

• Loan Submitted: 1/13/12 5:53 AM
• Review Status: Under Review
• Monthly Payment: $408.22 (36)
• Member Loan#:########

(all information not verified)Borrower Profile

• Gross Income: $7,083 / month
• Current Employer: George town submarine and screen door company
• Home Ownership: RENT
• Location: Now Where, Nev.
• Length of Employment: 10+ years
• Debt-to-Income (DTI): 8.95%

(as reported on credit bureau on 1/10/12)Borrower Credit History

• Credit Score Range: 679-713
• Accounts Now Delinquent: 0
• Earliest Credit Line: 04/1988
• Delinquent Amount: $0.00
• Open Credit Lines: 15
• Delinquencies (last 2 yrs): 0
• Total Credit Lines: 27
• Months Since Last Delinquency: 35
• Revolving Credit Balance: $13,774.00
• Public Records on File: 0
• Revolving Line Utilization: 80.10%
• Months Since Last Record: n/a
• Inquiries in Last 6 Months: 1

(not verified)Loan Description

Borrower has not entered any description

The above information is all the lender initially has to see and base their decisions off of. So the lender has the option of asking you a number of standard questions that are based on the the purpose of the loan. If you want your loan to have an high chance of being fully funded your odds will increase dramatically if you answer the questions COMPLETELY AND ACCURATELY. Some question require only one answer others are multipart questions.

EXAMPLE QUESTIONS:

What are your current debt balances, interest rates, and monthly payments by type (credit cards, student loans, mortgages, lines of credit, etc)?

The question ask for 3 separate items for each of you debt balances.

Bad answer(most common): credit cards $5000, student loan $6000 3% Personal loan $2000.

Best answer: Credit cards $5000 rate 19.9%-23% payments $480, Student Loan $6000 3% payment $120, Personal loan $2000 17% payment $220.

Hints of things that make your answers look bad.

No answers to your questions: This tells the lender that you're not really interested in the loan and figure that you just deserve it without having to do anything. As you can see from the information available to the lender there are large holes in the information available to them. Your answers are the only way that they can get that information.

Incomplete answers: This tells the lenders that you maybe trying to hide something or that you don't take the time to fully answer the questions. Which make the lender wonder if you'll be bothered to pay back the loan.

Inaccurate or vague answers: eg.What are your monthly minimum payments? Unacceptable Answers: Around $50 about $100 between $300-500.

Make sure your numbers add up: If you're asking for $25000 and your revolving credit balance is only $14000 explain what you're going to do with the extra money. Or if you're asking for $22500 and you've listed your debts that you're going to pay off at $32000.

All these poor answers tell the lenders that you really have not taken a look at why you are in debt, you have no clear idea of what your debt is, what your debt is costing you now, or how this loan is going to improve your situation.

More to follow please feel free to ask questions.