Lending Club Blog

For a P2P Loan, Your Credit Isn’t “Too Good”

If you have excellent credit, you may not think that a P2P loan from Lending Club is necessary. You may feel confident that you can get approved for a loan at your bank. You may also think that Lending Club is only for people with no other alternatives who are forced into a non-traditional lending path. Many of these thoughts are wrong, or simply incomplete. Below are some • Lending Club is Designed Specifically for People With Good to Excellent Credit

In order to qualify for a loan from Lending Club, you need a credit score of at least 640. Even then, some people with scores above 640 are turned down if their Debt-to-Income ratio is too high. Lending Club is committed to maintaining a high standard of creditworthiness among its borrowers. This isn’t a website for sub-prime lending. It’s a site for saving money for people with good credit who want to cut out the middleman and bypass the bank.

    • Lending Club Saves Money for People with Excellent Credit

While most would agree that rate comparisons show Lending Club as an inexpensive way to borrow money, some people may think that those comparisons aren’t valid for their particular situation. They may incorrectly assume that Lending Club loans aren’t competitive for people with excellent credit. That assumption is quickly corrected if you consider the rate comparison found on the Lending Club homepage, which cites data from creditcards.com for people with excellent credit.

These rates were shown on September 18th as follows:

Lending Club: 7.37%
Discover More Card: 10.99%
Citi Platinum Select® MasterCard: 12.74%
Capital One No Hassle Cash™: 13.90%

And don’t even get me started on personal loans from banks, which are extremely expensive. For example, look at some of the latest rates for loans in Arizona that are listed on bankrate.com. As all of this data shows, Lending Club is clearly the best option listed. The source of your money isn’t what matters; it’s the interest rate that determines how much you’ll save.

    • P2P Lending Isn’t Non-Traditional, It’s Just New

Just because P2P lending hasn’t been around for a long time, you shouldn’t think that these loans are non-traditional. Obviously, there were loans long before banks came into being. If anything, P2P lending is restoring the way people used to lend for thousands of years.

This type of lending is gaining significant momentum as more and more people, many of whom are fed up with the higher rates and fees of banks, discover how much they can save. I believe that the increased efficiency of P2P lending makes it a superior method of lending money. As with other new concepts, however, it can take time for people to see the advantages of and be compelled to try a new way of lending or borrowing money. Saving money is an excellent motivator, which has surely been a factor in the million dollars’ worth of loans issued in Lending Club’s first 100 days alone!

Everyone who is approved for a P2P loan on Lending Club stands to save money compared to his or her more expensive alternatives. Having excellent credit doesn’t exclude you from these savings; it likely qualifies you for them. The only way to know for sure how much Lending Club can save you is to submit an application. Like every aspect of the Lending Club experience, the application is simple to fill out and doesn’t take much time. Your journey to cashing in on your excellent credit may only be moments away.

Tuesday, September 25th, 2007 at 7:15 am

Comments (0)


5 Ways to Get Your Finances Ready for the Holidays

How to Build a Budget: Part 1

The State of Debt: 2016

Types of Loans 101

See more
Lending Club Awards
  • Archives z

Recent Posts

5 Ways to Get Your Finances Ready for the Holidays

Read More »
December 1, 2016

How to Build a Budget: Part 1

Living on a budget. It can sound scary, right?… Read More »
November 21, 2016

Five Signs Your Business Needs Capital

Knowing when your business needs working capital— and promptly… Read More »
November 10, 2016

How does a car refinance loan work?

Whether your goal is to lower your monthly car… Read More »
November 2, 2016

Are you paying too much for your auto loan?

How refinancing your auto loan with a better rate… Read More »
October 25, 2016

The State of Debt: 2016

Politics can be a divisive topic, where issues and… Read More »
October 24, 2016

Lending Club Teams Up with United MileagePlus® to Offer Customers More

  When it comes to… Read More »
October 21, 2016

Patrick Dunne: A Message to Investors

I wanted to take a moment to introduce myself… Read More »
September 29, 2016

Line of Credit vs. Loan

Lines of credit (LOCs) and small business term loans… Read More »
September 28, 2016

Types of Loans 101

There are many types of loans out there and… Read More »
September 16, 2016


We went public today!

Ringing the bell this morning at the New York… Read More »
December 11, 2014

New and Improved Statistics Page

We recently redesigned our Loan Statistics page to make… Read More »
November 13, 2014

Lending Club Honored with Economist Innovation Award

This month I was honored… Read More »
October 15, 2014

Welcome Vermont Investors!

Today, we’re thrilled to welcome residents of the state… Read More »
September 4, 2014

We filed to go public today

We filed a registration statement with the SEC today… Read More »
August 27, 2014

Our Billion Dollar Quarter

We’re excited to announce  that we’ve facilitated over $5… Read More »
July 8, 2014

Is Lending Club Available in My State?

Is Lending Club available in my state? That is… Read More »
July 7, 2014

Lending Club Joins Senator Cory Booker to Discuss Improving Access to Capital for Small Businesses

Read More »
June 20, 2014

Lending Club Named a CNBC Top 50 Disruptor for a Second Year

For the second year in… Read More »
June 17, 2014

PRIME is now Automated Investing

Lending Club is excited to announce that PRIME has… Read More »
May 14, 2014
View All w