Lending Club has been gaining a lot of popularity lately by word of mouth and many other forums. The question that is on most people’s mind is usually, is Lending Club legit? It is a fair question for someone to ask as you want to be absolutely certain about something before you put any money into it. You can put your fears aside though with Lending Club because they are certified to be a legit and honest company.
Lending Club has been in business for over five years now, which is not a long time relatively but is still definitely long enough for them to prove themselves as an honest company. The company meets all of the regulatory requirements in every state that it operates in and is regulated by the U.S Securities and Exchange Commission. Furthermore, Lending Club has received a B+ rating from the Better Business Bureau (BBB), which has a reputation for being very thorough with their examinations.
One thing that makes people a bit hesitant to invest or to say that Lending Club is legit is the fact that the interest rates are so low. While the interest rate a borrower will receive is still based on their credit score, Lending Club is able to offer such competitive rates because the loans are being funded by individuals and not banks. The process of applying for a loan is the same as anywhere else so you can rest assured that the process will be familiar and comfortable for you if you have ever applied for any other type of loan. Lending Club’s loans are all fixed rate and there are no hidden fees to worry about later on.
Investors can rest easy knowing that the chances of them making a good return on their investment is quite high. Lending Club only approves about 10% of the loan applications that it receives, so you can feel confident that the person borrowing your money is trustworthy, from a credit standpoint. This system has allowed Lending Club to give a good rate of return to investors as well as a good interest rate for buyers. In fact when it comes to peer-to-peer trading services like Lending Club, the only ones that really lose are the banks.
Doing research before any investment is important and you should still do your homework if you are planning to invest with Lending Club. Hopefully at this point though you are no longer asking yourself “is Lending Club Legit?” because all the facts are right here.