Lending Club Blog

Lending Club: borrowers and lenders can work in harmony

Trust, relationship, and money are words that should go great together. Today’s banking system, especially as it relates to unsecured loans and credit cards, does not fully recognize trusted connections and relationships. Lending Club is changing that.

Facebook provides Lending Club with a solid platform of potential borrowers and lenders. These users are connected via alumni relationships, geographic relationships, and hundreds of others. While no one trusts every Facebook friend, what’s critical is that they are not completely anonymous. Borrowers can decide to keep their identity anonymous and disclose only the groups and networks they belong to. In this case, the privacy of the borrowers is protected but the lenders gain valuable information such as verified affiliations to university or companies. Borrowers can also decide to publicly link their Lending Club anonymous screen name to their Facebook profile, and invite friends and members of their groups to lend them a hand.

We use the best of the financial system and banking infrastructure to take care of the rest of the problem: we verify identity, credit score and bank account, and handle electronic payments through our partner Bankserv, a financial service processor that supports over 400 banks in 52 countries and operates a PCI-compliant data center.

The lender feels safe, as they know that Lending Club pre-screens all potential borrowers. We pull a credit report on each borrower. Facebook members that are interested in borrowing must have a 640 FICO score or greater to qualify for a loan. Therefore, we do not facilitate sub-prime borrowing.

All borrowers’ identities are verified. Their privacy is not compromised, but we must be confident the person is who they say they are. The lender can feel secure in knowing that the screening process is all handled just like a bank or credit card company. We have obtained all the necessary licenses to be a lender.

We do not share personal information, or sell it. We couldn’t be in a trust-based business if we did! The only entities that receive updates are credit agencies and, when needed, collection agencies.

We are presenting another, and new, financial option to Facebook users. This option leverages trusted relationships and connections. We present a more human option.

Tuesday, May 29th, 2007 at 10:11 am

Comments (3)

  1. Alex:

    I’m excited about your new service and I’ve just created an account
    to lend money. I’ve noticed that I’m required to lend at least
    $1,000. As I begin to receive payments on those loans, will it be
    possible to immediately loan out those payments? I.e. if I loan
    $1000 in June receive $100 back in July, plus $10 interest, can I
    then loan those $110 or will I once again be told that there is a
    $1000 minimum and be forced to either wait or transfer more money
    before being able to loan again? As you can imagine, being able to
    immediately re-loan payments (well, after the time to select loans
    and wait for them to close) could increase my profits and make
    Lending Club much more attractive.

    May 30th, 2007 at 4:28 am

  2. Alex, Thanks for your support. By the way, while the minimum to
    have a diversified portfolio is $1,000, you can lend in increments
    as small as $25. So, you could transfer as little as $25 into your
    Lending Club account and loan that to one person. See the FAQ
    https://secure.lendingclub.com/info/faq.action#l5 for more
    information. Regarding auto-funding loans, that is on our
    development schedule and will be released soon. Thanks, John

    May 30th, 2007 at 7:39 am

  3. Alex:

    Thanks! That clarifies things a lot. I can’t wait to get started!

    May 30th, 2007 at 3:15 pm


Welcome Home

Lending Club named #5 on Forbes’ Most Promising Companies List

Get ready for tax season with Lending Club’s Tax Form Guide

New Adjusted Return Metric

See more
Lending Club Awards
  • Archives z

Recent Posts

Welcome Arkansas, Iowa, and Oklahoma Investors!

We recently welcomed residents of Arkansas, Iowa, and Oklahoma… Read More »
July 14, 2015

Renaud Talks Marketplace Lending on Jo Ann Barefoot’s Podcast

This week, CEO Renaud Laplanche… Read More »
June 24, 2015

Lending Club Teams Up with Sam’s Club to Deliver Small Business Financing

Read More »
June 8, 2015

New Lending Club TV Commercial Makes its Debut!

Last week we began testing a new TV commercial showcasing… Read More »
May 26, 2015

Lending Club Honored with Entrepreneurial Company of the Year Award from Harvard Business School Association of Northern California

Read More »
May 15, 2015

Renaud Talks to Jim Cramer

A few months ago, Jim Cramer remarked that he… Read More »
April 15, 2015

Lending Club 2 – Back in the Race

We’re excited to see Renaud back at the helm!… Read More »
March 26, 2015

Lending Club Store’s Grand Opening

We were thrilled at the support we received from… Read More »
March 20, 2015

LendIt is just one month away!

Congratulations to the LendIt team, who rang the opening… Read More »
March 13, 2015

Nearing Retirement – How an IRA Can Help

An Individual Retirement Account (IRA) can help you prep… Read More »
February 25, 2015


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