Just by reading comments here I realize what is going on. Given there are many more negative than positive comments, one can assume that Lending Club has made the barriers to funding very high.

My guess is that, after a substantial effort, 90%+ applicants are rejected. That is because the first priority of their business model is to assume as close to zero risk as possible. So they will be looking for ANYTHING that suggests even a remote possibility of a failure to pay the loan back. That means that a lot of people who obviously have the means and determination to pay everything LC wants, will be rejected, and will have wasted a lot of time applying.

Or they will paying a high interest rate plus fees, and end up worse off than doing nothing! And LC isn't going to tell you this upfront, because that would hurt the quantity of applicants, including the small number that do qualify. The long and the short of it is, if you don't qualify for a credit card or other type of loan, you should skip LC. They pretend to be a consolidation lender, but they are not.

They are in this business to make a lot of money and while incurring little or no risk. So are they scammers? That would be yes, because they are misrepresenting their objectives ("hidden agenda") and cloaking their policy and procedures.

PS...LC seems to have a comeback for every negative comment--I would consider the source and disregard all of them. [Note: I warrant and represent that the information presented heretofore is truthful and accurate to the best of my knowledge, but it is solely my opinion.]

Review about: Lending Club Loan.

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I don't think you have a clue as to what's going on genius. "their business model is to assume as close to zero risk as possible." I only wish this were true, but then nobody would be granted a loan.

I'm a small lender with Lending Club. I'm assuming the risk, not LC. So guess what? At least one out of every ten loans that I fund with LC goes bad.

LC does their best to screen out many of the high risk borrowers, such as the people who vent here. Unfortunately it's not an exact science. Some bad apples get loans, but thankfully many more are denied.

If they weren't the LC business model would fold. I don't make much money from LC, so if they relaxed their loan criteria I'd invest my money elsewhere.

Chicago, Illinois, United States #924029

The state in their investor section that they accept only 10% of loan applications. Obviously they market a lot to get a broad swath of potential borrowers and then pick the ones most likely to repay.

Keep in mind that they serve two markets - borrowers (like most of the posters on here) and investors (like me - I have about $5,000 in a Lending Club investment account.) As an investor, I definitely prefer that they reject iffy applications - the whole model falls apart if their default rate is so high that investors such as myself can't make money (we would take our cash elsewhere.) Sorry to those who can't get loans... but that's sort of how credit works.


Seriously? Does a business have to post that it is in business to make money in order for it to be allowed to make a profit?

A business by definition is in business to make money/profit or it will end up not in business.

Research the business model of LC and you will find the motive for them not taking large risks with the money belonging to their investors.

If there are no investors there is no business leading to no profit resulting in LC being out of business.

I suspect the business model of LC closely resembles the vetting process used by small banks in the past that were not underwritten by the government. Failure to properly *** out the bad loans would result in bank failure so better be careful with the funds entrusted to the bank by the depositors.


Sorry, but my experience was way different - it was good, and I don't have awesome credit. And why would anyone expect good reviews at a site called "pissedconsumer.com"???

to spanky #883013

so why you on here spanky

to spanky #895618

Yet you took the time to (1) visit the site and (2) provide a response. Hypocrisy at its finest??

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