Using a service like LendingClub for the first time can be a big daunting. The peer-to-peer lending platform can offer interest rates lower than many credit cards for some borrowers. Having said that, where do you start? How hard is it to apply for and secure a loan?
Simon Cunningham posted an awesome step-by-step guide at LendingMemo that takes you along for the ride while he sets up and secures a $2,350 loan via LendingClub. The money hit his account in six days. He also shares what he likes and does not like about the platform…
Likes
- Very low rates for a loan
- Easy to apply
- No hidden fees
- Fast! (got cash in 6 business days)
- Zero prepayment penalty (pay the loan off early without a fee)
- Funded by people like me
Dislikes
- Maximum loan amount is only $35,000
- Scanning/faxing paperwork
- Origination fee could be stated more clearly
It’s a great primer for anyone that may be on the fence about whether to use a P2P lending platform like LendingClub.